Document:

exv10w1

Exhibit 10.1

TERMS FOR 2011 RSU QUARTERLY, ANNUAL GRANTS

RESTRICTED STOCK UNIT TERMS

FOR 2011 GRANTS

UNDER THE MERCK & CO. INC 2010 INCENTIVE STOCK PLAN

These Terms apply to the 2011 Quarterly and Annual Restricted Stock Unit Grants. They may be
amended by the Merck Compensation and Benefits Committee of the Board of Directors as permitted by
the ISP.

This is a summary of the terms applicable to the Restricted Stock Unit (RSU) Award specified in
this document. Different terms may apply to any prior or future RSU Awards.

Eligibility: Eligibility for grants is determined under
the Merck & Co. Inc. 2010 Incentive Stock Plan for
employees of the Company, its subsidiaries, its
affiliates or its joint ventures if designated by the
Compensation and Benefits Committee of Merck’s Board of
Directors, or its delegate (the “Committee”).

I. GENERAL INFORMATION

A. Restricted Period. The Restricted Period is the
period during which this RSU Award is restricted and
subject to forfeiture. The Restricted Period begins on
the Grant Date and ends on the third anniversary of the
Grant Date unless ended earlier under Article II below.

B. Dividend Equivalents. During the Restricted Period,
dividend equivalents will be accrued for the holder
(“you”) if and to the extent dividends are paid by the
Company on Merck Common Stock. Payment of such dividends
will be made, without interest or earnings, at the end of
the Restricted Period. If any portion of this RSU Award
lapses, is forfeited or expires, no dividend equivalents
will be credited or paid on such portion. Any payment of
dividend equivalents will be reduced to the extent
necessary for the Company to satisfy any tax or other
withholding obligations. No voting rights apply to this
RSU Award.

C. Distribution. Upon the expiration of the Restricted
Period if you are then employed, you will be entitled to
receive a number of shares of Merck common stock equal to
the number of RSUs that have become unrestricted and the
dividend equivalents that accrued on that portion. Prior
to distribution, you must deliver to the Company an
amount the Company determines to be sufficient to satisfy
any amount required to be withheld, including applicable
taxes. The Company may, in its sole discretion, withhold
from the RSU Award distribution a number of shares to pay
applicable withholding (including taxes).

D. 409A Compliance. Anything to the contrary
notwithstanding, no distribution of RSUs may be made
unless in compliance with Section 409A of the Internal
Revenue Code or any successor thereto. Specifically,
distributions made due to a separation from service (as
defined in Section 409A) to a “Specified Employee” as
defined in Treas. Reg. Sec. 1.409A-1(i) or any successor
thereto, to the extent required by Section 409A of the
Code will not be made until administratively feasible
following the first day of the sixth month following the
separation from service, in the same form as they would
have been made had this restriction not applied; provided
further, that dividend equivalents that otherwise would
have accrued will accrue during the period during which
distribution is suspended.

II. TERMINATION OF EMPLOYMENT

If your employment with the Company is terminated during
the Restricted Period, your right to this RSU Award will
be determined according to the terms in this Section II.

A. General Rule. If your employment is terminated during
the Restricted Period for any reason other than those
specified in the following paragraphs, this RSU Award
(and any accrued dividend equivalents) will be forfeited
on the date your employment ends. If your employment is
terminated as described in this paragraph and you are
later rehired by the Company or JV, this grant
nevertheless will expire according to this paragraph
notwithstanding such rehire.

B. Sale. If your employment is terminated during the
Restricted Period and the Company determines that such
termination resulted from the sale of your subsidiary,
division or joint venture, the following portion of your
RSU Award and accrued dividend equivalents will be
distributed to you at such time as it would have been
paid if your employment had continued: one-third if
employment terminates on or after the Grant Date but
before the first anniversary thereof; two-thirds if
employment terminates on or after the first anniversary
of the Grant Date but before the second anniversary
thereof; and all if employment terminates on or after the
second anniversary of the Grant Date. The remainder will
be forfeited on the date your employment ends. If your
employment is terminated as described in this paragraph
and you are later rehired by the Company or JV, this
grant nevertheless will expire according to this
paragraph notwithstanding such rehire.

C. Involuntary Termination. If your employment terminates
during the Restricted Period and the Company determines
that your employment was involuntarily terminated on or
after the first anniversary of the Grant Date and during
the Restricted Period, a pro rata portion (based on the
number of completed months held prior to the date your
employment terminated) of your RSU Award and accrued
dividend equivalents will be distributed to you at such
time as they would have been paid if your employment had
continued. The remainder will be forfeited on the date
your employment ends. An “involuntary termination”
includes termination of your employment by the Company as
the result of a restructuring or job elimination, but
excludes non-performance of your duties and the reasons
listed under paragraphs B, or D through G of this
section. If your employment is terminated as described in
this paragraph and you are later rehired by the Company
or JV, this grant nevertheless will expire according to
this paragraph notwithstanding such rehire.

D. Retirement. If you terminate employment during the
Restricted Period by retirement on or after the same day
of the sixth month after the Grant Date, then this RSU
Award will continue and be distributable in accordance
with its terms as if employment had continued and will
be distributed at the time active RSU Grantees receive
distributions with respect to this Restricted Period. If
your Retirement occurs before the same day of the sixth
month after the Grant Date, then this RSU Award and any
accrued dividend equivalents will be forfeited on the
date your employment ends. For

			
	 	 	 
	
	 	

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participants in a U.S.-based tax-qualified defined
benefit retirement plan, “retirement” means a termination
of employment at a time that qualifies as a disability,
early, normal or late retirement according to the terms
of that plan as in effect from time to time. For other
grantees, “retirement” is determined by the Company. If
your employment is terminated as described in this
paragraph and you are later rehired by the Company or JV,
this grant nevertheless will expire according to this
paragraph notwithstanding such rehire.

E. Death. If your employment terminates due to your
death during the Restricted Period, all of this RSU
Award and accrued dividend equivalents will be
distributed to your estate as soon as possible after
your death.

F. Misconduct. If your employment is terminated as a
result of your deliberate, willful or gross misconduct,
this RSU Award and accrued dividend equivalents will be
forfeited immediately upon your receipt of notice of
such termination.

G. Disability. If your employment is terminated during
the Restricted Period and the Company determines that
such termination resulted from inability to perform the
material duties of your role by reason of a physical or
mental infirmity that is expected to last for at least
six months or to result in your death, whether or not
you are eligible for disability benefits from any
applicable disability program, then this RSU Award will
continue and be distributable in accordance with its
terms as if employment had continued and will be
distributed at the time active RSU Grantees receive
distributions with respect to this RSU Award.

H. Change in Control. If the Company involuntarily
terminates your employment during the Restricted Period
without Cause before the second anniversary after the
closing of any change in control, then this RSU Award
will continue in accordance with its terms as if
employment had continued and will be distributed at the
time active RSU Grantees receive distributions with
respect to this RSU Award. If this RSU does not remain
outstanding following the change in control and is not
converted into a successor RSU, then you will be entitled
to receive cash for this RSU in an amount equal to the
fair market value of the consideration paid to Merck
stockholders for a share of Merck common stock in the
change in control payable within 30 days of the closing
of the change in control. On the second anniversary of
the closing of the change in control, this paragraph
shall expire. Change in control is defined in the Merck &
Co., Inc. Change in Control Separation Benefits Plan
(excluding an MSD Change in Control), but if RSUs are
considered “deferred compensation” under Section 409A of
the Internal Revenue Code, the definition of change in
control will be modified to the extent necessary to
comply with Section 409A.

I. Joint Venture. Employment with a joint venture or
other entity in which the Company has a significant
business or ownership interest is not considered
termination of employment for purposes of this RSU Award.
Such employment must be approved by, and contiguous with
employment by, the Company. The terms set out in
paragraphs A-H above apply to this RSU Award while you
are employed by the joint venture or other entity.

III. TRANSFERABILITY

This RSU Award is not transferable and may not be
assigned or otherwise transferred.

IV. ADMINISTRATION

The Committee is responsible for construing and
interpreting this grant, including the right to construe
disputed or doubtful plan provisions, and may establish,
amend and construe such rules and
regulations as it may deem necessary or desirable for the
proper administration of this grant. Any decision or
action taken or to be taken by the Committee, arising out
of or in connection with the construction,
administration, interpretation and effect of this grant
shall, to the maximum extent permitted by applicable law,
be within its absolute discretion (except as otherwise
specifically provided herein) and shall be final, binding
and conclusive upon the Company, all eligible employees
and any person claiming under or through any eligible
employee. All determinations by the Committee including,
without limitation, determinations of the eligible
employees, the form, amount and timing of incentives, the
terms and provisions of incentives and the writings
evidencing incentives, need not be uniform and may be
made selectively among eligible employees who receive, or
are eligible to receive, Incentives hereunder, whether or
not such eligible employees are similarly situated.

V. GRANTS NOT PART OF EMPLOYMENT CONTRACT

Notwithstanding reference to grants of incentives in
letters offering employment or in specific employment
agreements, incentives do not constitute part of any
employment contract between the Company or JV and the
grantee, whether the employment contract arises as a
matter of agreement or applicable law. The value of any
grant or of the proceeds of any exercise of incentives
are not included in calculating compensation for purposes
of pension payments, separation pay, termination
indemnities or other similar payments due upon
termination of employment.

This RSU Award is subject to the provisions of the 2010
Incentive Stock Plan. For further information regarding
your RSU Award, you may access the Merck Global Long-Term
Incentives homepage via http://onemerck.com

Unless you notify the Company in writing that you wish
to refuse this grant within 60 days of the Grant Date,
you will be deemed to acknowledge that you have read,
understood and agree to all of the terms, conditions and
provisions of this document and the Merck & Co., Inc.
2010 Incentive Stock Plan.

If you wish to reject this grant, you must send your
written notice of rejection to the Company at:

Attention: Global Executive Compensation and Benefits

Merck & Co., Inc.

One Merck Drive, WS1F-38

Whitehouse Station, New Jersey, U.S.A. 08889

			
	 	 	 
	
	 	

2exv10w2

Exhibit 10.2

TERMS FOR 2011 OPTION QUARTERLY, ANNUAL GRANTS

STOCK OPTION TERMS

FOR A NON-QUALIFIED STOCK OPTION (NQSO)

UNDER THE MERCK & CO. INC. 2010 INCENTIVE STOCK PLAN

These Terms apply to the 2011 Quarterly and Annual Stock Option Grants. They may be amended by the
Merck Compensation and Benefits Committee of the Board of Directors as permitted by the ISP.

This is a summary of the terms applicable to the stock option specified in this document. Different
terms may apply to any prior or future stock option.

I. GENERAL INFORMATION

This stock option becomes exercisable in equal
installments (subject to a rounding process) on the
Vesting Dates indicated in the accompanying box. This
stock option expires on its Expiration Date, which is the
day before the tenth anniversary of the Grant Date. If
your employment with the Company is terminated, your
right to exercise this stock option will be determined
according to the terms in Section II.

Eligibility: Eligibility for grants is determined under
the Merck & Co. Inc. 2010 Incentive Stock Plan for
employees of the Company, its subsidiaries, its
affiliates or its joint ventures if designated by the
Compensation and Benefits Committee of Merck’s Board of
Directors, or its delegate (the “Committee”)

II. TERMINATION OF EMPLOYMENT

A. General Rule. If your employment is terminated for any
reason other than those specified in the following
paragraphs, the portion of this stock option that is
unvested will expire on the date your employment ends;
the portion of this stock option that is vested will
expire unless exercised before the New York Stock
Exchange closes (the “Close of Business”) on the day
before the same day of the third month (“Within Three
Months”) after the date of the termination (but in no
event after the expiration of the Option Period). Close
of Business for any day on which the New York Stock
Exchange is not open means the close of business prior to
that date when the Exchange is open. Where there is no
corresponding day of a month, the last day of the month
is deemed to be the same day as a later day (e.g.,
November 28, 29 and 30 all correspond to February 28 in
non leap years). If you are rehired by the Company or JV,
this option nevertheless will expire unless exercised
Within Three Months, or the original Expiration Date if
earlier.

B. Retirement. If you retire from service with the
Company on a date that is at least six months later than
the Grant Date, this stock option will continue to become
exercisable on applicable Vesting Dates and will expire
on the earlier of (a) the day
before the fifth anniversary of the termination date or
(b) its original Expiration Date. For participants in a
U.S.-based tax-qualified defined benefit retirement plan,
“retire” means to
terminate employment at a time that qualifies as a
disability, early, normal or late retirement according to
the terms of that plan as in effect from time to time.
For other grantees, “retire” is determined by the
Company. If your employment is terminated as described in
this paragraph and you are later rehired by the Company
or JV, this option nevertheless will expire according to
this paragraph notwithstanding such rehire.

C. Involuntary Termination. If your employment is
terminated by the Company and the Company determines that
such termination was involuntary, including the result of
a restructuring or job elimination, but excluding
non-performance of your duties and the reasons listed
under paragraphs B or D through G, the portion of this
stock option that is unvested will expire on the date
your employment ends; the portion of this stock option
that is vested will expire on the day before the one year
anniversary of the date your employment ends, but in no
event later than the original Expiration Date. If your
employment is terminated as described in this paragraph
and you are later rehired by the Company or JV, this
option nevertheless will expire according to this
paragraph notwithstanding such rehire.

D. Sale. If your employment is terminated and the Company
determines that such termination resulted from the sale
of your subsidiary, division or joint venture, the
portion of this stock option that would have become
exercisable within one year of the date your employment
terminated according to the original schedule will vest
immediately upon such termination. Whether already vested
on the date your employment terminates or vested as a
result of such sale, this stock option will expire the
day before the first anniversary of the date your
employment with the Company ends, but in no event later
than the original Expiration Date. Notwithstanding the
foregoing, the Committee may determine, for purposes of
this stock option grant, whether employment with an
entity that is established from the Company’s spin off,
split off, split up or distribution of equity securities
in connection with that entity constitutes a termination
of employment, and may make adjustments, if any, as it
deems appropriate, at the time of the distribution of
such equity securities, in the kind and/or number of
shares subject to this option, and/or in the option price
of such option. If your employment is terminated as
described in this paragraph and you are later rehired by
the Company or JV, this option nevertheless will expire
according to this paragraph notwithstanding such rehire.

E. Misconduct. If your employment is terminated as a
result of your deliberate, willful or gross misconduct,
this stock option (whether vested or unvested) will
expire immediately upon your receipt of notice of such
termination.

F. Death. If your employment terminates as a result of
your death, the portion of this stock option that is
unvested will vest immediately upon your death. Whether
already vested on the

			
	 	 	 
	
	 	

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date of your death or vested as a result of your death,
this stock option will expire on the day before the
first anniversary of your death, even if such date is
later than the Original Expiration date. This stock
option will expire on such earlier date than otherwise
specified in this paragraph as may be required under
applicable non-U.S. law (e.g., in France, six months
from the date of death).

G. Disability. If your employment is terminated and the
Company determines that such termination resulted from
your inability to perform the material duties of your
role by reason of a physical or mental infirmity that is
expected to last for at least six months or to result in
your death, whether or not you are eligible for
disability benefits from any applicable disability
program, then this stock option will continue to become
exercisable on applicable Vesting Dates and will expire
on the earlier of (a) the day before the fifth
anniversary of the day your employment terminates and (b)
its original Expiration Date. If your employment is
terminated as described in this paragraph and you are
later rehired by the Company or JV, this option
nevertheless will expire according to this paragraph
notwithstanding such rehire.

H. Change in Control. If the Company involuntarily
terminates your employment without Cause before the
second anniversary after the closing of a change in
control, each unvested Stock Option that is outstanding
immediately prior to the change in control will
immediately become fully vested and exercisable. All
options, including options vested prior to such time,
will expire on the day before the fifth anniversary of
the termination of your employment following a change in
control (but not beyond the Expiration Date). This
extended exercise period does not apply in the case of
termination by reasons of retirement, involuntary
termination, sale, misconduct, death or disability, as
described in paragraphs B, D, E, F and G above or
termination prior to a change in control. If this stock
option does not remain outstanding following the change
in control and is not converted into a successor stock
option, then you will be entitled to receive cash for
this option in an amount at least equal to the difference
between the price paid to stockholders in the change in
control and the Option Price of this stock option. A
“change in control” has the same meaning that it has
under the Merck & Co., Inc. Change in Control Separation
Benefits Plan (excluding an MSD Change in Control).

I. Joint Venture. Employment with a joint venture or
other entity in which the Company has determined that it
has a significant business or ownership interest (a “JV”)
is not considered termination of employment for purposes
of this stock option. If you transfer employment from the
Company to a JV or from a JV to the Company, such
employment must be approved by, and contiguous with
employment by, the Company or the JV. The terms set out
in paragraphs A through H above apply to this stock
option while the option holder is employed by the JV.

III. TRANSFERABILITY

This stock option is not transferable and may not be
assigned or otherwise transferred except, under specific
terms, by executives who hold or who retired within the
prior 12 months from a Grade 1 or Section 16 position.

IV. ADMINISTRATION

The Committee is responsible for construing and
interpreting this grant, including the right to construe
disputed or doubtful plan provisions, and may establish,
amend and construe such rules and regulations as it may
deem necessary or desirable for the proper
administration of this grant. Any decision or action
taken or to be taken by the Committee, arising out of or
in connection with the construction, administration,
interpretation and effect of this grant shall, to the
maximum extent permitted by applicable law, be within
its absolute discretion (except as otherwise
specifically provided herein) and shall be final,
binding and conclusive upon the Company, all eligible
employees and any person claiming under or through any
eligible employee. All determinations by the Committee
including, without limitation, determinations of the
eligible employees, the form, amount and timing of
incentives, the terms and provisions of incentives and
the writings evidencing incentives, need not be uniform
and may be made selectively among eligible employees who
receive, or are eligible to receive, Incentives
hereunder, whether or not such eligible employees are
similarly situated.

V. GRANTS NOT PART OF EMPLOYMENT CONTRACT

Notwithstanding reference to grants of incentives in
letters offering employment or in specific employment
agreements, incentives do not constitute part of any
employment contract between the Company or JV and the
grantee, whether the employment contract arises as a
matter of agreement or applicable law. The value of any
grant or of the proceeds of any exercise of Incentives
are not included in calculating compensation for
purposes of pension payments, separation pay,
termination indemnities or other similar payments due
upon termination of employment.

This stock option is subject to the provisions of the
2010 Incentive Stock Plan. For further information
regarding your stock options, you may access the Merck
Global Long-Term Incentives homepage via
http://onemerck.com

Unless you notify the Company in writing that you do
wish to refuse this grant within 60 days of the Grant
Date, you will be deemed to acknowledge that you have
read, understood and agree to all of the terms,
conditions and provisions of this document and the Merck
& Co., Inc. 2010 Incentive Stock Plan.

If you wish to reject this grant, you must send your
written notice of rejection to the Company at:

Attention: Global Executive Compensation and Benefits

Merck & Co., Inc.

One Merck Drive, WS1F-38

Whitehouse Station, New Jersey, U.S.A. 08889

			
	 	 	 
	
	 	

2

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