Document:

EX-10.L

Exhibit 10 (L)

SCHERING-PLOUGH CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(AMENDED AND RESTATED JANUARY 1, 2008)

PREAMBLE

Schering Corporation has adopted the Schering-Plough Corporation Supplemental Executive Retirement
Plan to ensure the payment of a competitive level of retirement income to attract, retain, and
motivate selected executives of the Corporation and its Affiliates. The Plan is intended to be a
non-qualified, supplemental retirement plan that is unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or highly compensated
employees of the Corporation or its Affiliates pursuant to Sections 201(2), 301(a)(3), and
401(a)(1) of ERISA and, as such, to be exempt from the provisions of Parts 2, 3, and 4 of Subtitle
B of Title I of ERISA. The Plan was originally effective as of January 1, 1983. The Plan was
amended and restated in its entirety one time, January 1, 2005 prior to the instant amendment and
restatement, which is effective January 1, 2008. This amendment and restatement only applies to
employees of the Corporation or an Affiliate on or after that date. Except as otherwise defined
herein, all capitalized terms shall have the meaning given to them in the Retirement Plan.

ARTICLE 1

DEFINITIONS

	1.1	 	“Affiliate” means any corporation, partnership, or other organization controlled by or under
common control with the Corporation.
	 
	1.2	 	“Average Final Earnings” means a Participant’s or Former Participant’s average annual
Earnings during the sixty consecutive months for which his or her Earnings were highest during
the last one hundred twenty consecutive months prior to his or her Separation from Executive
Service.
	 
	1.3	 	“Board” means the Board of Directors of Schering-Plough Corporation.
	 
	1.4	 	“Bridged Participant” means a Participant in the Plan who experiences an involuntary
Separation from Service during the period beginning on January 1, 2008 and ending on December
31, 2009 in connection with the OBS Integration or the Productivity Transformation Program and
who executes and timely returns a release of claims against the Company in a format suitable
to the Company.
	 
	1.5	 	“Change of Control” means Change of Control as defined in the Corporation’s 2002 Stock
Incentive Plan or any successor stock incentive plan.
	 
	1.6	 	“Change of Control Termination Date” means the date, following a Change of Control, as of
which a Participant or Former Participant has a Separation from Service.
	 
	1.7	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	1.8	 	“Committee” means the Committee provided for in Section 6 of the Plan.
	 
	1.9	 	“Corporation” means Schering-Plough Corporation, a New Jersey Corporation, and any successor
or assigns thereto.

 

 

	1.10	 	“Deferral Rate” means, for each calendar quarter, a rate equal to the actual yield on
three-month U.S. Treasury bills as reported in the Wall Street Journal on the first business
day of such calendar quarter.
	 
	1.11	 	“Early Retirement Date” means:

	 	(a)	 	with respect to any person who, prior to March 1, 2006, both attained age 55
and became a Participant of the Plan, the later of the Participant’s attainment of age
55 and his or her Separation from Service; and
	 
	 	(b)	 	with respect to any other person, the latest of his or her attainment of age 55
or, with respect to Bridging Participants his or her attainment of age 53, Separation
from Service, and the date he or she completes five years of Eligibility Service under
the Retirement Plan.

	1.12	 	“Earnings” means Compensation under the Retirement Plan prior to the Participant’s Separation
from Executive Service plus, for periods prior to January 1, 2004, bonuses awarded for such
periods under any executive or management incentive plan of the Corporation or an Affiliate;
provided, however, that the amount of Earnings credited for any bonus earned in the calendar
year in which the Participant’s Separation from Executive Service occurs but not paid until
after the Participant’s Separation from Service shall be the estimated bonus as determined by
the Committee.
	 
	1.13	 	“Effective Date” means January 1, 2008.
	 
	1.14	 	“Equivalent Actuarial Value” means the equivalent value when computed on the basis of the
interest rate determined as of such date under the regulations of the Pension Benefit Guaranty
Corporation for determining the present value of a lump sum distribution on plan termination
that were in effect on September 1, 1993 and the 1994 Group Annuity Reserving mortality table.
Notwithstanding the foregoing, effective January 1, 2006, Equivalent Actuarial Value shall be
determined by using the market yield on U.S. Treasury securities at 10-year constant
maturities (non-inflation issues adjusted to constant maturities), as set forth in Federal
Reserve Statistical Release H.15 for the first business day of the month in which the
Participant’s Separation from Service occurs and the mortality table used to determine
automatic lump sum cash outs under the Retirement Plan.
	 
	1.15	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	1.16	 	“Executive Status” means:

	 	(a)	 	prior to January 1, 2004, employment in E-Grade pay status; and
	 
	 	(b)	 	on or after January 1, 2004:

	 	(i)	 	employment as a member of the Corporation’s Executive
Management Team or Operations Management Team; or
	 
	 	(ii)	 	effective on and after January 1, 2005, solely with respect to
an individual who did not become a Participant of the Plan prior to January 1,
2005, designation as a Participant of the Plan by the Chief Executive Officer
of the Corporation.

 

 

	 	 	Once a person attains Executive Status, he or she shall remain in Executive Status until his
or her Separation from Executive Service.
	 
	1.17	 	“Former Participant” means a former employee or an employee who has been removed from
Executive Status and on whose behalf a benefit is payable under the Plan.
	 
	1.18	 	“Other Retirement Income” means the employer-provided retirement income payable to a
Participant, Former Participant or Beneficiary (as defined in the Retirement Plan) from the
following sources:

	 	(a)	 	the Schering-Plough Retirement Benefits Equalization Plan, as amended from time
to time;
	 
	 	(b)	 	any other contract, agreement, or other arrangement with the Corporation or an
Affiliate (excluding the Retirement Plan) to the extent, as solely determined by the
Committee, it provides defined-benefit-type retirement or pension benefits; and
	 
	 	(c)	 	any contract, agreement, or other arrangement with the Corporation or an
Affiliate to the extent it provides defined-contribution-type retirement or pension
benefits which are the Participant’s or Former Participant’s primary source of
retirement or pension benefits, as solely determined by the Committee.

	1.19	 	“Participant” means an executive employee of the Corporation or an Affiliate who becomes a
participant in the Plan pursuant to Section 2.
	 
	1.20	 	“Plan” means the Schering-Plough Corporation Supplemental Executive Retirement Plan, as
amended from time to time.
	 
	1.21	 	“Retirement” means the Separation from Service of a Participant on or after his or her Normal
Retirement Age, Early Retirement Date, or Change of Control Termination Date, or the deemed
retirement of a Participant pursuant to an employment agreement between him or her and the
Corporation or an Affiliate.
	 
	1.22	 	“Retirement Plan” means the Schering-Plough Corporation Retirement Plan, as amended from time
to time.
	 
	1.23	 	“Retirement Plan Benefit” means the amount of benefit payable from the Retirement Plan to a
Participant, Former Participant or Beneficiary.
	 
	1.24	 	“Separation from Executive Service” means the earlier of (i) the Participant’s Separation
from Service or (ii) the date the Chief Executive Officer of the Corporation determines that
the individual is no longer entitled to participate in the Plan.
	 
	1.25	 	“Separation from Service” means “separation from service” as defined under Section
409A(a)(2)(A)(i) of the Code.
	 
	1.26	 	“Service” means an individual’s period of employment with the Corporation or an Affiliate as
a Participant prior to his or her Separation from Executive Service for which benefits are
accrued under the Retirement Plan; provided, however, that with respect to an individual who
first became a Participant in the Plan prior to January 1, 2008 and completed at least 10
years of Benefit Service under the Retirement Plan, Service shall also include the
individual’s period of employment with the Corporation or an Affiliate for which benefits are
accrued under the Retirement Plan prior to the date he or she

 

 

	 	 	became a Participant of this Plan; and provided further, that with respect to an individual
who first become a Participant in this Plan on or after January 1, 2005 but prior to January
1, 2008, Service shall also include the individual’s Eligibility Service under the
Retirement Plan prior to membership in the Retirement Plan, up to one year, if not otherwise
included in his or her Service pursuant to the prior provisions of this Section 1.25.
Notwithstanding anything to the contrary, with respect to an individual who first becomes a
Participant in this Plan on or after January 1, 2008, Service shall mean only the
individual’s period of employment with the Corporation or an Affiliate as a Participant in
the Plan prior to his Separation from Executive Service for which benefits are accrued under
the Retirement Plan.
	 
	1.27	 	“Supplemental Benefit” means a supplemental retirement benefit or survivor benefit as
determined under Article 4 or Article 5, respectively, as of any date of reference.
	 
	1.28	 	“Surviving Spouse” means a person of the opposite sex of the Participant or Former
Participant who is the Participant’s or Former Participant’s husband or wife as provided in
the Defense of Marriage Act of 1996, who has been married to the Participant throughout the
one-year period ending on the Participant’s date of death.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

	2.1	 	Any person who was a Participant in the Plan immediately prior to the Effective Date shall
continue to be a Participant as of the Effective Date, provided the person is in active
employment with the Corporation or an Affiliate on the Effective Date.
	 
	2.2	 	Any person who does not become a Participant of the Plan pursuant to Section 2.1 shall become
a Participant of the Plan on the later of:

	 	(a)	 	the first date he or she is in Executive Status; and
	 
	 	(b)	 	the earlier of (i) the date he or she is credited with one (1) year of
Eligibility Service under the Retirement Plan and (ii) the date he or she has attained
age 40;

	 	 	provided the person is in active employment with the Corporation or an Affiliate at that
time.
	 
	2.3	 	A person who is on a leave of absence on the date he or she would otherwise become a
Participant pursuant to Section 2.2 shall become a Participant on the date his or her leave of
absence terminates and he or she resumes active employment.

ARTICLE 3

ELIGIBILITY FOR BENEFITS

	3.1	 	Each Participant or Former Participant is eligible to commence receiving benefits under this
Plan on the first day of the month coincident with or next following his or her Separation
from Service.

ARTICLE 4

AMOUNT AND FORM OF RETIREMENT BENEFIT

	4.1	 	Normal Retirement Date or Postponed Retirement Date. The Supplemental Benefit of a
Participant or Former Participant whose Separation from Service occurs on or after his or

 

 

	 	 	her Normal Retirement Age shall be calculated as an annual benefit payable monthly
commencing on the first day of the calendar month coincident with or next following his or
her Retirement equal to:

	 	(a)	 	the sum of:

	 	(i)	 	2% of his or her Average Final Earnings multiplied by his or
her years of Service up to twenty years, plus
	 
	 	(ii)	 	1% of his or her Average Final Earnings for each year of
Service in excess of twenty years;

	 	 	 	up to a maximum of 55% of Final Average Earnings, reduced by:
	 
	 	(b)	 	his or her Other Retirement Income and Retirement Plan Benefit.

	 	 	The annual benefit calculated under this Section 4.1 of a Participant or Former Participant
who was in Executive Status prior to the Effective Date and who has completed 10 years of
Service in Executive Status and reached age 60 on or prior to his or her Separation from
Service shall not be less than an annual benefit payable monthly commencing on the first day
of the calendar month coincident with or next following his or her Retirement equal to 35%
of his or her Average Final Earnings reduced by his or her Other Retirement Income and
Retirement Plan Benefit.
	 
	4.2	 	Early Retirement Date or Change of Control. The Supplemental Benefit of a
Participant or Former Participant whose Separation from Service occurs prior to his or her
Normal Retirement Date but on or after his or her Early Retirement Date or after a Change in
Control shall be calculated as described in Section 4.1 above, but with reference to the
Participant’s Early Retirement Date or Change of Control Termination Date rather than his or
her Normal Retirement Age and reduced by the reduction factor set forth in the following chart
that corresponds to the Participant’s age at his or her Early Retirement Date or Change of
Control Termination Date, as applicable:

	 	 	 
	Age at Early Retirement Date or	 	 
	Change of Control Termination Date	 	Reduction Factor
	64
	 	0%
	63
	 	0%
	62
	 	0%
	61
	 	0%
	60
	 	0%
	59
	 	4%
	58
	 	8%
	57
	 	12%
	56
	 	16%
	55
	 	20%
	54 (Bridging Participants only)
	 	20%
	53 (Bridging Participants only)
	 	20%

 

 

	 	 	 
	Age at Change of Control Termination Date	 	Reduction Factor
	54
	 	25.5%
	53
	 	31%
	52
	 	36%
	51
	 	40%
	50
	 	44%
	49
	 	48%
	48
	 	51%
	47
	 	54%
	46
	 	57%
	45
	 	59.5%
	44
	 	62%
	43
	 	64%
	42
	 	66%
	41
	 	68%
	40
	 	70%
	39
	 	71.5%
	38
	 	73%
	37
	 	74%
	36
	 	75%
	35
	 	76%

	 	 	The annual benefit calculated under this Section 4.2 of a Participant or Former Participant
who was in Executive Status prior to the Effective Date and who has completed 10 years of
Service in Executive Status and reached age 60 on or prior to his or her Separation from
Service shall not be less than an annual benefit payable monthly commencing on the first day
of the calendar month coincident with or next following his or her Retirement equal to 35%
of his or her Average Final Earnings reduced by his or her Other Retirement Income and
Retirement Plan Benefit.
	 
	4.3	 	Other Termination. The Supplemental Benefit of a Participant or Former Participant
whose Separation of Service occurs for a reason other than Retirement, disability, death, or
following a Change of Control, shall be calculated as an annual benefit payable monthly
commencing on the first day of the calendar month coincident with his or her Normal Retirement
Date.
	 
	4.4	 	Disability. In the event that a Participant or Former Participant has become totally
and permanently disabled for the purposes of the Corporation’s long-term disability program,
disability retirement benefits shall be payable under this Plan, and shall be determined
pursuant to Section 4 hereof, with Earnings (as defined herein) and Service deemed to have
continued for such period, if any, as shall be applicable under the disability retirement
benefit provisions of the Retirement Plan.
	 
	4.5	 	Pre-March 1, 1987 Provisions. For the purpose of determining Supplemental Benefits
under the foregoing paragraphs of this Section 4:

 

 

	 	(a)	 	Service prior to March 1, 1987, for all executives who were Participants in the
Plan on January 1, 1983, shall be deemed to be in an E-grade pay status; and
	 
	 	(b)	 	in no event shall the Supplemental Benefit of an actively employed executive
participating in the Plan on March 1, 1987, be less than the Supplemental Benefit that
would be payable if such Supplemental Benefit were determined under the provisions of
the Plan as in effect immediately prior to such date and the executive’s earnings and
service as of February 28, 1987.

	4.6	 	Form of Payment. Supplemental Benefits shall be payable in a lump sum as soon as
administratively practicable following the Participant’s Separation from Service. Such lump
sum shall be of Equivalent Actuarial Value to the benefit calculated under Sections 4.1, 4.2,
4.3, 4.4, and 4.5 above that would have been provided commencing as of the Participant’s
Normal Retirement Date, or the first day of the month following the Participant’s Separation
from Service, if later. Notwithstanding the preceding sentence, in the case of a Participant
whose Separation from Service is on or after his or her Early Retirement Date, the lump sum
shall be of Equivalent Actuarial Value to the benefit that would have been calculated under
Sections 4.1, 4.2, 4.4, and 4.5 above that would have provided commencing on the first day of
the month following the Participant’s Separation from Service. Notwithstanding the foregoing,
the portion of the Supplemental Benefit that is accrued after December 31, 2004, for any
Participant who is a specified employee as defined in Section 409A of the Code, shall be
delayed for a period of six (6) months following such Participant’s Separation from Service.
If a Participant or a Former Participant has a Separation from Service by Retirement and dies
before receiving full payment of his or her Supplemental Benefit, payment of the Supplemental
Benefit shall be made to his or her Beneficiary, subject to Section 5. Payment made in
accordance with this Section 4.6 shall constitute full and complete satisfaction of the
Corporation’s obligation in respect thereof. A Participant may elect to defer receipt of his
or her Supplemental Benefit in accordance with the terms of the Savings Advantage Plan to the
extent that such plan complies with Section 409A of the Code in a manner that will not result
in the incurrence of Section 409A excise taxes to the Participant.
	 
	4.7	 	Section 162(m) of the Code. The Committee may, in its sole discretion, defer the
payment of any lump sum to a Participant or a Former Participant who is a “covered employee”
as defined in Section 162(m) of the Code, if such payment would be subject to such Section’s
limitation on deductibility; provided, however, that such payment shall not be deferred to a
date later than the earliest date in the year in which such payment would not be subject to
such limitation; and further provided that the Corporation shall, at the time of payment of
any amount so deferred, pay interest thereon from the due date thereof at the Deferral Rate,
compounded quarterly.
	 
	4.8	 	Delayed Payment. If a lump sum payment to a Participant or Former Participant, or
the Beneficiary thereof, including a payment delayed pursuant to Section 4.6, commences later
than the 15th day of the month following the month in which the Participant’s
Separation from Service occurs, the Corporation shall, at the time of payment of such lump
sum, pay interest thereon from the 15th day of the month following the month in
which the Participant’s Separation from Service occurs to the date payment is issued at the
Deferral Rate, compounded quarterly.
	 
	4.9	 	Forfeitability. Except as otherwise provided herein, the Supplemental Benefit of
each Participant and Former Participant under the Plan shall at all times be 100 percent
vested and nonforfeitable.

 

 

	4.10	 	Offset. If any Retirement Plan Benefit or Other Retirement Income is payable to a
Participant, Former Participant or Beneficary, and the form of such Retirement Plan Benefit or
Other Retirement Income is other than a lump sum or such Retirement Income or Other Retirement
Benefit is paid at a time other than when the Supplemental Benefit is paid under this Plan,
such Retirement Plan Benefit or Other Retirement Income shall be converted to a lump sum of
Equivalent Actuarial Value for purposes of determining the offset applied under this Plan.
The Committee shall be empowered to make such additional equitable adjustments to accomplish
the purposes of the foregoing as the Committee in its sole discretion shall determine.
	 
	4.11	 	Enhanced or Reduced Benefits. Notwithstanding the forgoing and subject to the
approval of the Corporation’s Chief Executive Officer, an employment or similar agreement
between a Participant and the Corporation may enhance or reduce the benefit provided to or on
behalf of such Participant under this Plan. In no event will an enhanced benefit be
separately paid under both an employment or similar agreement and this Plan in a manner that
results in a duplicative benefit.

ARTICLE 5

SURVIVING SPOUSE BENEFIT

	5.1	 	Upon the death of a Participant or Former Participant while employed by the Corporation or an
Affiliate who has at least 5 years of Eligibility Service under the Retirement Plan, his or
her Surviving Spouse shall be entitled to a survivor benefit under this Plan based upon the
Participant’s or Former Participant’s Supplemental Benefit immediately prior to his or her
death, but without any reduction factor, in accordance with the following schedule:

	 	 	 
	Age and Service at Time of Death	 	Survivor Benefit
	 
	a.   Age 55 or more with 5 or more years of
Eligibility Service.

	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit.
	 
	 	 
	b.   Ages 50 through 54 with 5 or more
years of Eligibility Service, and age plus
years of Eligibility Service equal 65.

	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit
multiplied by 80.0%.
	 
	 	 
	c.   Below age 50 with 5 or more years of
Eligibility Service, and age plus years of
Eligibility Service equal 65.

	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit
multiplied by 53.1%.

	 	 	less any Retirement Plan Benefit or Other Retirement Income payable to the Surviving Spouse
whether or not the Participant or Former Participant has elected or has been deemed to have
elected to have such benefit or retirement income paid to his or her Surviving Spouse.
	 
	5.2	 	Upon the death of any Participant or Former Participant who does not have at least 5 years of
Eligibility Service, his or her Surviving Spouse shall be entitled to a survivor benefit under
this Plan based upon his or her Supplemental Benefit immediately prior to his or her death and
computed as if he or she had retired on the day before his or her death and had elected a 50%
Qualified Joint and Survivor Annuity (as defined in the Retirement Plan) for the benefit of
his or her Surviving Spouse. Such survivor benefit under this Plan shall be reduced by any
Retirement Plan Benefit and Other Retirement

 

 

	 	 	Income payable to the Surviving Spouse whether or not the Participant or Former Participant
has elected or has been deemed to have elected to have such benefit or retirement income
paid to his or her Surviving Spouse.
	 
	5.3	 	A Surviving Spouse’s benefits provided under Section 5.1 or 5.2 shall be paid in a lump sum
as of the first day of the month following the month in which the Participant or Former
Participant dies. Such lump sum shall be of Equivalent Actuarial Value to the benefit
calculated under Section 5.1 or 5.2 that would have been provided commencing as of the
Participant’s Normal Retirement Date, or the first day of the month following the
Participant’s date or death, if later. Notwithstanding the preceding sentence:

	 	(a)	 	in the case of a Participant whose date of death is on or after his or her
attainment of age 55 and who, prior to March 1, 2006, both became a Participant of the
Plan and attained age 55, or
	 
	 	(b)	 	in the case of a Participant whose date of death is on or after the later of
his or her attainment age 55 and completion of five years of Eligibility Service:

	 	 	the lump sum shall be of Equivalent Actuarial Value to the benefit that would have been
provided commencing on the first day of the month following the Participant’s date of death.

ARTICLE 6

COMMITTEE

	6.1	 	Committee. The Plan shall be administrated by the Committee, which shall consist of
such persons as may be appointed by the Chief Executive Officer of the Corporation. The
Committee shall have (a) complete discretion to supervise the administration and operation of
the Plan, (b) complete discretion to adopt rules and procedures governing the Plan from time
to time, and (c) sole authority to give interpretive rulings with respect to the Plan.
	 
	6.2	 	Binding Effect of Decisions. Any decision or action of the Committee with respect to
any question arising out of or in connection with the administration, interpretation, or
application of the Plan shall be final and binding upon all persons having any interest in the
Plan.
	 
	6.3	 	Indemnification of Committee. The Corporation shall indemnify and hold harmless the
members of the Committee against any and all claims, loss, damage, expense, or liability
arising from any action or failure to act with respect to the Plan, except in the case of
gross negligence or willful misconduct by any such member.

ARTICLE 7

AMENDMENT AND TERMINATION OF PLAN

	7.1	 	Amendment. The Board, or the Board’s delegate, on behalf of itself and of each
Affiliate, may at any time amend, suspend, or reinstate any or all of the provisions of the
Plan, except that no such amendment, suspension, or reinstatement may adversely affect any
Participant’s or Former Participant’s vested Supplemental Benefit, as it existed immediately
before the effective date of such amendment, suspension, or reinstatement, without such
Participant’s or Former Participant’s prior written consent. Written notice of any amendment
or other action with respect to the Plan shall be given to each Participant.

 

 

	7.2	 	Termination. The Board, or the Corporation’s delegate on behalf of itself and of
each Affiliate, in its sole discretion, may terminate this Plan at any time and for any reason
whatsoever. On and after Plan termination, the Committee shall take those actions necessary
to administer any Supplemental Benefits existing prior to the effective date of such
termination; provided, however, that a termination of the Plan shall not adversely affect the
value of a Participant’s or Former Participant’s Supplemental Benefit, or the timing or method
of distribution of a Participant’s or Former Participant’s Supplemental Benefit, without the
Participant’s or Former Participant’s prior written consent.

ARTICLE 8

MISCELLANEOUS

	8.1	 	Funding. Participants, their Beneficiaries, and their heirs, successors, and assigns
shall have no secured interest or claim in any property or assets of the Corporation. The
Corporation’s obligation under the Plan shall be merely that of an unfunded and unsecured
promise of the Corporation to pay money in the future.
	 
	8.2	 	Expenses. All expenses of administering the Plan shall be borne by the Corporation,
to the extent they are not paid from any trust fund established by the Corporation to help
defray the costs of providing Plan benefits.
	 
	8.3	 	Nonassignability. No right or interest under the Plan of a Participant, Former
Participant, or his or her Beneficiary (or any person claiming through or under any of them)
shall be assignable or transferable in any manner or be subject to alienation, anticipation,
sale, pledge, encumbrance, or other legal process or in any manner be liable for or subject to
the debts or liabilities of any such Participant, Former Participant or Beneficiary.
	 
	8.4	 	Claims Procedure.

	 	(a)	 	Claim. A person who believes that he or she is being denied a
Supplemental Benefit to which he or she is entitled under the Plan (hereinafter
referred to as a “Claimant”) may file a written request for such benefit with the
Committee, setting forth the claim.
	 
	 	(b)	 	Claim Decision. Upon receipt of a claim, the Committee shall advise
the Claimant that a reply will be forthcoming within 90 days and shall, in fact,
deliver such reply within such period. If special circumstances require that the
90-day time period be extended, the Committee shall so notify the Claimant and shall
render the decision as soon as possible, but no later than 180 days after receipt of
the request for review.
	 
	 	(c)	 	Information. If the claim is denied in whole or in part, the Claimant
shall be provided an opinion, using language calculated to be understood by the
Claimant, setting forth:

	 	(i)	 	The specific reason or reasons for such denial;
	 
	 	(ii)	 	The specific reference to pertinent provisions of this Plan on
which such denial is based;
	 
	 	(iii)	 	A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;

 

 

	 	(iv)	 	Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review;
	 
	 	(v)	 	The time limits for requesting a review under subsection (c)
and for review under subsection (d) hereof; and
	 
	 	(vi)	 	A statement of the Claimant’s right to bring an action under
Section 502 of ERISA upon a claim denial on review.

	 	(d)	 	Request for Review. Within 60 days after the receipt by the Claimant
of the opinion described above, the Claimant may request in writing that the Committee
review its determination. The Claimant or his or her duly authorized representative
may, but need not, review the pertinent documents and submit issues and comment in
writing for consideration by the Committee. If the Claimant does not request a review
of the initial determination within such 60-day period, the Claimant shall be barred
	 
	 	 	 	and estopped from challenging the determination.
	 
	 	(e)	 	Review of Decision. Within 60 days after the Committee’s receipt of a
request for review, it will review the initial determination. After considering all
materials presented by the Claimant, the Committee shall render an opinion, drafted in
a manner calculated to be understood by the Claimant, setting forth the specific
reasons for the decision and containing specific references to the pertinent provisions
of this Plan upon which the decision is based and a statement of the Claimant’s right
to bring an action under Section 502 of ERISA. If special circumstances require that
the 60-day time period be extended, the Committee shall so notify the Claimant and
shall render the decision as soon as possible, but no later than 120 days after receipt
of the request for review.

	8.5	 	Limitation of Rights of Participants and Former Participants. Nothing in this Plan
shall be construed as conferring upon any Participant or Former Participant any right to
continue in the employment of the Corporation or an Affiliate, nor shall it interfere with the
rights of the Corporation or an Affiliate to terminate the employment of any Participant or
Former Participant and/or to take any personnel action affecting any Participant or Former
Participant without regard to the effect which such action may have upon such Participant or
Former Participant as a recipient or prospective recipient of Supplemental Benefits under the
Plan. Any amounts payable hereunder shall not be deemed salary or other compensation to a
Participant or Former Participant for the purposes of computing benefits to which the
Participant or Former Participant may be entitled under any other arrangement established by
the Corporation or Affiliate for the benefit of its employees.
	 
	8.6	 	No Limitation on Actions of Corporation or Affiliates. Nothing contained in the Plan
shall be construed to prevent the Corporation or an Affiliate from taking any action that is
deemed by it to be appropriate or in its best interest. No Participant or other person shall
have any claim against the Corporation or an Affiliate as a result of such action.
	 
	8.7	 	Obligations to Corporation. If a Participant or Former Participant becomes entitled
to a distribution of a Supplemental Benefit under the Plan, and if at such time the
Participant or Former Participant has outstanding any debt, obligation, or other liability
representing an amount owing to the Corporation or an Affiliate, the Corporation or Affiliate
may offset such amount owed to it against the amount of benefits otherwise distributable.
Such determination shall be made by the Committee.

 

 

	8.8	 	Captions. The captions contained herein are for convenience only and shall not
control or affect the meaning or construction hereof.
	 
	8.9	 	Governing Law. The Plan is intended to constitute an unfunded plan providing
retirement or deferred compensation benefits for officers and highly compensated employees
exempt from the requirements of parts 2, 3, and 4 of Subtitle B of Title I of ERISA. Except
to the extent otherwise provided in ERISA and the Code, this Plan shall be construed,
regulated, and administered under the laws of the State of New Jersey.
	 
	8.10	 	Successors. The provisions of the Plan shall bind and inure to the benefit of
Schering Corporation, the Corporation, and the Affiliates, and their respective successors and
assigns. The term successors as used herein shall include any corporate or other business
entity that, whether by merger, consolidation, purchase, or otherwise, acquires all or
substantially all of the business and assets of Schering Corporation, the Corporation, or an
Affiliate and successors of any such Corporation or other business entity.
	 
	8.11	 	Illegal or Invalid Provision. In case any provision of the Plan shall be held
illegal or invalid for any reason, such illegal or invalid provision shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced without regard to
such illegal or invalid provision.
	 
	8.12	 	Protective Provisions. Each Participant shall cooperate with the Corporation or an
Affiliate by furnishing any and all information requested by the Corporation or Affiliate to
facilitate the payment of benefits hereunder.
	 
	8.13	 	Withholding Taxes. The Corporation may make such provisions and take such action as
it may deem necessary or appropriate for the withholding of any taxes which the Corporation is
required by any law or regulation of any governmental authority, whether Federal, state, or
local, to withhold in connection with any benefits under the Plan, including, but not limited
to, the withholding of appropriate sums from any amount otherwise payable to, or on behalf of,
the Participant. Each Participant, Former Participant and Beneficiary, however, shall be
responsible for the payment of all individual tax liabilities relating to any such benefits.
	 
	8.14	 	Inability to Locate Participant, Former Participant, or Beneficiary. In the event
that the Committee is unable to locate a Participant, Former Participant or Beneficiary within
two years following the date he or she was to commence receiving payment, the entire
Supplemental Benefit payable shall be forfeited. If, after such forfeiture, the Participant,
Former Participant or Beneficiary later claims such Supplemental Benefit, such Supplemental
Benefit shall be reinstated without interest or earnings thereon and paid pursuant to the
terms of the Plan.
	 
	8.15	 	Facility of Payment. If, in the opinion of the Committee, a person to whom a benefit
is payable under the Plan is unable to care for his or her affairs because of illness,
accident, or any other reason, any payment due the person, unless prior claim therefore shall
have been made by a duly qualified guardian or other duly appointed and qualified
representative of such person, may be paid to some member of the person’s family, or to some
other party who, in the opinion of the Committee, has incurred expenses for such person. Any
such payment shall be a payment for the account of such person and shall be a complete
discharge of liability under the Plan.
	 
	8.16	 	Notice. Any notice or filing required or permitted to be given to the Committee
under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail, to the Corporation’s Senior Vice President of Human Resources, or to such
other

 

 

	 	 	entity as the Committee may designate from time to time. Such notice shall be deemed given
as to the date of delivery, or, if delivery is made by mail, as of the date shown on the
postmark on the receipt for registration or certification.EX-10.M

Exhibit 10 (m)

SCHERING-PLOUGH RETIREMENT BENEFITS EQUALIZATION PLAN

(As Amended and Restated to January 1, 2008)

I. Purpose of Plan

The purpose of this Plan is to provide a means of equalizing the benefits of those employees
participating in the Schering-Plough Corporation Retirement Plan (the “Retirement Plan”) whose
benefits under the Retirement Plan are or will be limited by application of the Employee Retirement
Income Security Act of 1974 (“ERISA”) and the Internal Revenue Code of 1986 or as subsequently
amended (the “Code”).

II. Administration of the Plan

The Plan shall be administered by the Secretary of Schering-Plough Corporation (the “Company”) or
its delegate (the “Secretary”), and all questions arising in connection with the Plan shall be
determined by the Compensation Committee of Schering-Plough Corporation or its delegate (the
“Committee”). The Secretary and the Committee may employ and rely upon such legal counsel, such
actuaries, such accountants, and such agents as they may deem advisable. Decisions of the Committee
shall be conclusive and binding upon all persons. The Committee may delegate in writing part or
all of its authority under this Plan to such party or parties as it may deem necessary or
appropriate.

III. Participation in the Plan

All members of the Retirement Plan shall become Participants in this Plan whenever their
compensation or benefits under the Retirement Plan as from time to time in effect exceed the
limitations on eligible compensation and/or benefits imposed by Sections 401 and 415 of the Code,
respectively.

IV. Compensation and Benefit Limitations

For purposes of this Plan and the Retirement Plan, the limitations on eligible compensation under
Section 401(a)(17) of the Code shall be deemed to be reached when a Participant’s eligible
compensation under the Retirement Plan, commencing January 1, 2008, exceeds $230,000 or such other
amount as the Secretary of the Treasury shall pronounce. The limitations imposed by Section 415 of
the Code shall be deemed to be reached when the benefits otherwise payable to the Participant in
the Retirement Plan for a given plan year would exceed the maximum allowable under the Code. The
limitations imposed by Section 401(a)(4) shall be deemed to be reached to the extent that any
Participant’s benefit in the Retirement Plan is reduced by virtue of the application of applicable
nondiscrimination testing to the Participant’s benefits under the Retirement Plan or to a voluntary
early retirement program (or any similar program) under the Retirement Plan.

V. Amount of Supplemental Benefits

Each eligible member of the Retirement Plan and his or her beneficiaries shall receive a
supplemental pension benefit (a “Supplemental Benefit”) equal to the benefit which would have been
payable to them under the Retirement Plan, without regard for any provision therein incorporating
limitations imposed by Section 401 or 415 of the Code, to the extent that such benefit otherwise
payable under the Retirement Plan exceeds the benefit limitations as described in Section IV of
this Plan. For purposes of the preceding sentence, and solely with respect to a

 

 

Participant who also participates in the Schering-Plough Supplemental Executive Retirement Plan
(the “SERP”), the benefit which would have been payable to such eligible member under the
Retirement Plan without regard to the aforesaid limitations shall be calculated by substituting the
eligible member’s “Earnings” under the SERP for his or her “Compensation” under the Retirement Plan
for periods prior to the eligible member’s “Separation from Executive Service” under the SERP.
Notwithstanding the foregoing, the benefit of any Participant in the Pilots’ and Chauffeurs’
Supplemental Retirement Plan (the “Pilots’ Plan”) under this Plan shall be reduced, but not below
zero, by the benefit payable to such Participant under the Pilots’ Plan.

VI. Form and Timing of Payment of Supplemental Benefit

     1. Definitions. For purposes of this Article VI, the following words shall mean as
follows:

          "Applicable Actuarial Assumptions” shall mean the applicable interest rate and mortality table
under the Retirement Plan except:

               (i) with respect to the conversion of a SERP Eligible Participant’s Supplemental Benefit to a
lump sum (or, with respect to amounts that must be paid in a form that is equivalent to a form
available under the Retirement Plan, the pre-conversion lump sum equivalent), that the interest
rate and mortality table to be used shall be the interest rate and mortality table used to
calculate the lump sum benefit in the SERP, and that the value of the early retirement subsidy
provided under the Retirement Plan shall only be included in the value of the Supplemental Benefit
provided under this Plan if the value of the early retirement subsidy is included in the lump sum
supplemental benefit provided to the Participant or surviving spouse under the SERP;

               (ii) with respect to the reconversion of that portion of a SERP Eligible Participant’s
Supplemental Benefit that is payable in a form available under the Retirement Plan, the interest
rate and mortality table to be applied to convert the lump sum equivalent amount to the form of
payment available under the Retirement Plan shall be the applicable interest rate and mortality
table under the Retirement Plan;

               (iii) with respect to any Participant who is not a SERP Eligible Participant, the interest
rate and mortality table used to calculate the small benefit cash out pursuant to Section 5 below
shall be the interest rate and mortality table used to calculate the automatic lump sum cash out
under the Retirement Plan, and the value of the early retirement subsidy provided under the
Retirement Plan shall only be included in the lump sum if the value of the early retirement subsidy
would have been included in an automatic lump sum provided to the Participant or surviving spouse
under the Retirement Plan at such time.

          "Change of Control” shall mean a Change of Control as defined in the 2002 Stock Incentive Plan
of Schering-Plough Corporation or its successor plan.

          "Change of Control Termination Date” shall mean the date, following a Change of Control, as of
which a Participant ceases to be an employee of the Company or any of its affiliates.

          "Deferral Rate” shall mean, for each calendar quarter, a rate equal to the actual yield on
three-month U.S. Treasury bills as reported in the Wall Street Journal on the first business day of
such calendar quarter.

-2-

 

          "PTP Participant” shall mean any Participant who is involuntarily terminated in connection
with OBS Integration or the Productivity Transformation Program during the period commencing on
January 1, 2008 and ending on December 31, 2009.

          "SERP Eligible Participant” shall mean any Participant who is eligible to participate in the
SERP at any time prior to the commencement of his or her Supplemental Benefit.

          "Separation from Service” shall mean “separation from service” as defined in regulations under
Section 409A(a)(2)(A)(i) of the Code.

     2. Pre-1/1/09 Rules. Supplemental Benefits of a Participant who commences Retirement
Plan benefits prior to January 1, 2009 shall be payable as follows (except as otherwise provided in
this Article VI):

          (a) Linked Benefit. Such Supplemental Benefit shall be payable at the same time and
in the same form as applicable to such Participant’s benefits under the Retirement Plan, including
whatever optional benefits he or she may have elected, determined using the Applicable Actuarial
Assumptions.

          (b) BEP Only Accruals for SERP Eligible Participants. Notwithstanding Section 2(a),
the portion of a SERP Eligible Participant’s Supplemental Benefit that accrued during any period
(after December 31, 2007) when such SERP Eligible Participant was not eligible to participate in
the SERP shall be payable at the same time and in the same form as applicable to such Participant’s
benefits under the Retirement Plan, including whatever optional benefits he or she may have
elected, determined using the Applicable Actuarial Assumptions. The amount of these benefits shall
be determined by converting the Supplemental Benefit to a lump sum using the Applicable Actuarial
Assumptions and reconverting such lump sum amount to the applicable form of benefit elected under
the Retirement Plan using the Applicable Actuarial Assumptions.

     3. Post-12/31/08 Rules. Supplemental Benefits of a Participant who does not commence
Retirement Plan benefits before January 1, 2009 shall be payable as follows (except as otherwise
specifically provided in this Article VI):

          (a) General Rule. Except as otherwise provided herein, Supplemental Benefits of a
Participant who does not commence Retirement Plan benefits before January 1, 2009 shall be payable
in any such form that is available under the Retirement Plan as the Participant shall elect in the
manner established by the Company (determined using the Applicable Actuarial Assumptions) and shall
commence on the latest of (i) the Participant’s Separation from Service; (ii) the first day of the
month coincident with or next following the date on which the Participant reaches age 55; or (iii)
January 1, 2009. If the Participant fails to elect the form of his or her Supplemental Benefit
under this Section 3(a), he or she shall be deemed to have elected a life annuity (if the
Participant is unmarried on the date on which his or her Supplemental Benefit commences) or a joint
and 50% survivor annuity with the Participant’s spouse as beneficiary (if the Participant is
married on the date on which his or her Supplemental Benefit commences).

          (b) BEP Only Accruals for SERP Eligible Participants. Except as otherwise provided
herein, the portion of a SERP Eligible Participant’s Supplemental Benefit that accrued during any
period (after December 31, 2007) during which such SERP Eligible Participant was not eligible to
participate in the SERP shall be payable in any such form that is available under the Retirement
Plan as the Participant shall elect in the manner established by the Company (determined using the
Applicable Actuarial Assumptions) and shall commence on the later of (i)

-3-

 

the Participant’s Separation from Service; (ii) the first day of the month coincident with or
next following the date on which the Participant reaches age 55; or (iii) January 1, 2009. The
amount of these benefits shall be determined by converting the Supplemental Benefit to a lump sum
using the Applicable Actuarial Assumptions and reconverting such lump sum amount to the applicable
form of benefit elected at the time of benefit commencement using the Applicable Actuarial
Assumptions. If the Participant fails to elect the form of his or her Supplemental Benefit under
this Section 3(b), he or she shall be deemed to have elected a life annuity (if he or she is
unmarried on the date on which his or her Supplemental Benefit commences) or a joint and 50%
survivor annuity with the Participant’s spouse as beneficiary (if the Participant is married on the
date on which his or her Supplemental Benefit commences).

          (c) Disability. Notwithstanding Sections 3(a) and 3(b), the Supplemental Benefit of a
Participant who ceases to be employed by the Company and its affiliates on account of disability
pursuant to the terms of the Retirement Plan and who does not commence Retirement Plan benefits
before January 1, 2009 shall be payable in any such form that is available under the Retirement
Plan as the Participant shall elect in the manner established by the Company (determined using the
Applicable Actuarial Assumptions) and shall commence on the later of the date that the Participant
attains age 65 or the Participant’s Separation from Service. The provisions of this subsection (c)
shall apply to the Supplemental Benefit of a Participant who recovers from a disability prior to
attaining age 65 but is not restored to service with the Company or any of its affiliates. Any
remaining payments of a Participant’s Supplemental Benefit that commenced prior to the commencement
of his benefit under the terms of the Retirement Plan pursuant to this subsection (c), shall be
recalculated and appropriately increased or decreased upon payment of the Participant’s benefit
under the Retirement Plan. If the Participant fails to elect the form of his or her Supplemental
Benefit under this Section 3(c), he or she shall be deemed to have elected a life annuity (if he or
she is unmarried on the date on which his or her Supplemental Benefit commences) or a joint and 50%
survivor annuity with the Participant’s spouse as beneficiary (if the Participant is married on the
date on which his or her Supplemental Benefit commences).

          (d) PTP Participants. The Supplemental Benefit of a PTP Participant who does not
commence Retirement Plan benefits before January 1, 2009 shall be payable as follows (except as
otherwise provided in this Article VI):

               (i) Grandfathered Benefit. With respect to the portion of the Supplemental Benefit
that was accrued and vested prior to January 1, 2005, such Supplemental Benefit shall be payable at
the same time and in the same form as applicable to such PTP Participant’s benefits under the
Retirement Plan, including whatever optional benefits he or she may have elected under the
Retirement Plan, determined using the Applicable Actuarial Assumptions.

               (ii) Non-Grandfathered Benefit. With respect to the portion of the Supplemental
Benefit that was accrued or vested after December 31, 2004, such Supplemental Benefit shall be
payable in any such form that is available under the Retirement Plan as the Participant shall elect
in the manner established by the Company (determined using the Applicable Actuarial Assumptions)
and shall commence on the later of (i) January 1, 2009 (or such later date as the Participant shall
irrevocably elect during a special election period in the fall of 2008); or (ii) the date that the
Participant attains age 55. If the Participant fails to elect the form of his or her Supplemental
Benefit under this Section 3(d), he or she shall be deemed to have elected a life annuity (if the
Participant is unmarried on the date on which his or her Supplemental Benefit commences) or a joint
and 50% survivor annuity with the Participant’s spouse as beneficiary (if the Participant is
married on the date on which his or her Supplemental Benefit commences).

-4-

 

               (iii) SERP Eligible PTP Participant. The Supplemental Benefit of a PTP Participant
who is also a SERP Eligible Participant and who does not commence Retirement Plan benefits before
January 1, 2009 shall be payable in accordance with Section 3(d)(ii) above with regard to that
portion of the Supplemental Benefit that accrued after December 31, 2007 during a period when the
Participant was not eligible to participate in the SERP and in accordance with Section 4 below with
regard to that portion of the Supplemental Benefit that accrued prior to January 1, 2008 or during
periods in which the Participant was eligible to participate in the SERP.

     4. SERP Accruals. Notwithstanding anything herein to the contrary other than Section
6 below, the portion of a SERP Eligible Participant’s Supplemental Benefit (and any survivor’s
benefit payable to his or her surviving spouse under this Plan) that was accrued prior to January
1, 2008 or while such SERP Eligible Participant was participating in the SERP shall be paid in a
lump sum (determined using the Applicable Actuarial Assumptions), as soon as administratively
practicable after the Participant’s Separation from Service (or death, as applicable). Any such
Supplemental Benefit that is payable in a lump sum may be deferred in accordance with the terms of
the Schering-Plough Corporation Savings Advantage Plan to the extent that such plan complies with
Section 409A of the Code in a manner that will not result in the incurrence of Section 409A excise
taxes to the Participant.

     5. Small Benefit Cash Out. Notwithstanding anything herein to the contrary other than
Section 4 above and 6 below, if, at any time, the present value of the aggregate of a Participant’s
remaining benefits under this Plan (and any remaining survivor benefit payable to his or her
surviving spouse or beneficiary under this Plan) does not exceed $5,000 (determined using
Applicable Actuarial Assumptions) such remaining benefits shall be paid (to the Participant or his
or her surviving spouse or beneficiary, as applicable) in a single lump sum as soon as
administratively practicable calculated using Applicable Actuarial Assumptions.

     6. Specified and Covered Employees. Notwithstanding anything herein to the contrary,
the Company shall defer payments under this Plan to any Participant that it reasonably believes is
a “covered employee” as defined in Section 162(m) of the Code, if such payment would be subject to
such Section’s limitation on deductibility; provided, however, that such payment shall not be
deferred to a date later than the earliest date in the year in which such payment would not be
subject to such limitation. Notwithstanding anything herein to the contrary, any payment to be
made to a specified employee (as that term is defined under Section 409A of the Code as applied to
the Company’s deferred compensation plans) that is triggered by a Separation from Service shall be
delayed for a period of six months. If a lump sum payment to a Participant commences later than
the 15th day of the month following the month in which the Participant’s Separation from
Service occurs, the Company shall, at the time of payment of such lump sum, pay interest thereon
from the 15th day of the month following the month in which the Participant’s Separation
from Service occurs to the date payment is issued at the Deferral Rate, compounded quarterly. If
an annuity payment commences later than the 15th day of the month following the month in
which the Participant’s Separation from Service occurs, the Company shall, at the time of the
commencement of the annuity payments, pay in one lump sum the amount of the annuity payments that
would have been paid had the payment not been delayed under this Section (and interest thereon at
the aforementioned rate) from the 15th day of the month following the month in which the
Participant’s Separation from Service occurs to the date annuity payments commence.

     7. Change of Control. Notwithstanding anything herein to the contrary other than
Section 6 above, in the event that a SERP Eligible Participant experiences a Change of Control
Termination Date, the Supplemental Benefit of such SERP Eligible Participant shall be paid in a
lump sum (determined using Applicable Actuarial Assumptions) reduced by the factors set forth on
Annex A hereto depending upon his or her age on the relevant Change of Control

-5-

 

Termination Date as soon as administratively possible following the Change of Control
Termination Date.

     8. Pre-Retirement Survivor Benefit. In the event that a Supplemental Benefit accrues
as a result of the Participant’s death prior to the commencement of benefits under the Retirement
Plan, such Supplemental Benefit shall be payable to the Participant’s surviving spouse (provided
that the spouse is otherwise entitled to a pre-retirement death benefit under the Retirement Plan)
as follows:

          (a) Pre-1/1/09 Rules. If such a payment commences prior to January 1, 2009, the
Supplemental Benefit shall be paid to the Participant’s surviving spouse (provided that such spouse
is eligible for a pre-retirement death benefit pursuant to the terms of the Retirement Plan) at the
same time and in the same form as under the Retirement Plan (determined in accordance with the
Applicable Actuarial Assumptions).

          (b) Post-12/31/08 Rules. If such a payment commences after December 31, 2008, the
Supplemental Benefit shall be paid to the Participant’s surviving spouse in a single life annuity
for the surviving spouse’s lifetime (determined in accordance with the Applicable Actuarial
Assumptions) and (i) with respect to Participants who are eligible for a pre-retirement death
benefit in accordance with the criteria set forth in Section 4.06(b)(i) of the Retirement Plan such
Supplemental Benefits shall commence on the Participant’s date of death or, (ii) with respect to
any other Participant, such Supplemental Benefit shall commence on the later of what would have
been the Participant’s Normal Retirement Date or the date of the Participant’s death.

     9. Actual Payment Date. To the extent permitted by Section 409A of the Code, payments
shall be made as soon as administratively practicable after the date specified in this Article VI,
and in any event within the same calendar year or, if later, by the fifteenth day of the third
calendar month following such specified date (or as otherwise permitted under Section 409A of the
Code).

VII. Miscellaneous

     1. No Right of Employment. Neither the establishment of this Plan nor the
participation therein shall confer upon any person any right to be continued as an employee of the
Company or any affiliated company, and the Company reserves the right to discharge any employee
whenever in its sole judgment the interest of the Company or any affiliated company so requires.

     2. Plan Expenses. All expenses of administering this Plan shall be borne by the
Company, to the extent they are not paid from any trust fund established by the Company to help
defray the costs of providing Plan benefits.

     3. Anti-alienation. No benefit under this Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, or subject to
attachment, garnishment, or other legal process.

     4. Incapacity. If, in the opinion of the Committee, a person to whom a benefit is
payable under the Plan is unable to care for his or her affairs because of illness, accident, or
any other reason, any payment due the person, unless prior claim therefore shall have been made by
a duly qualified guardian or other duly appointed and qualified representative of such person, may
be paid to some member of the person’s family, or to some other party who, in the opinion of the
Committee, has incurred expense for such person. Any such payment shall be a payment for the
account of such person and shall be a complete discharge of liability under the Plan.

-6-

 

     5. Amendment. This Plan may be amended or terminated at any time by action of the
Company’s Board of Directors or its delegate. In the event of termination, no contributions shall
be made thereafter, except for contributions that are due for a year preceding the year in which
termination occurs and provided that no such amendment or termination shall affect any right or
obligation with respect to any contribution theretofore made, or the rights of a participant,
terminated participant, former participant or beneficiary to receive amounts credited to his
account.

     6. Top Hat Plan. The Plan is intended to constitute a nonqualified deferred
compensation arrangement maintained for a select group of management or highly compensated
employees within the meaning of Title I of ERISA. Benefits payable under this Plan shall not be
funded and shall be paid out of the general funds of the Company and/or its affiliates.

     7. Payment of Taxes. The Company may withhold from any payment required to be made
under the Plan any federal, state or local taxes required by law to be withheld with respect to
such payment and such sums as the Company may reasonably estimate are necessary to cover any other
amounts for which the Company may be legally liable and which may be assessed with regard to such
payment.

     8. Governing Law. The Plan shall be construed, administered, and enforced under ERISA
and the laws of the State of New Jersey, except where ERISA controls.

     9. Claims Procedure. A person who believes that he or she is being denied a
Supplemental Benefit to which he or she is entitled under the Plan (hereinafter referred to as a
“Claimant”) may file a written request for such benefit with the Committee, setting forth the
claim. Upon receipt of a claim, the Committee shall advise the Claimant that a reply will be
forthcoming within ninety days and shall, in fact, deliver such reply within such period. The
Committee may, however, extend the reply period for an additional ninety days for reasonable cause.
If the claim is denied in whole or in part, the Claimant shall be provided an opinion, using
language calculated to be understood by the Claimant, setting forth: (i) the specific reason or
reasons for such denial; (ii) the specific reference to pertinent provisions of this Plan on which
such denial is based; (iii) a description of any additional material or information necessary for
the Claimant to perfect his claim and an explanation why such material or such information is
necessary; (iv) appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review; (v) the time limits for requesting a review under subsection (c) and
for review under subsection (iv) hereof; and (vi) a statement of the Claimant’s right to bring an
action under Section 502 of ERISA upon a claim denial on review.

     10. Request for Review. Within 60 days after the receipt by the Claimant of the
opinion described above, the Claimant may request in writing that the Committee review its
determination. The Claimant or his or her duly authorized representative may, but need not, review
the pertinent documents and submit issues and comment in writing for consideration by the
Committee. If the Claimant does not request a review of the initial determination within such
60-day period, the Claimant shall be barred and estopped from challenging the determination.

     11. Review of Decision. Within 60 days after the Committee’s receipt of a request for
review, it will review the initial determination. After considering all materials presented by the
Claimant, the Committee shall render an opinion, drafted in a manner calculated to be understood by
the Claimant, setting forth the specific reasons for the decision and containing specific
references to the pertinent provisions of this Plan upon which the decision is based and a
statement of the Claimant’s right to bring an action under Section 502 of ERISA. If special
circumstances require that the 60-day time period be extended, the Committee shall so notify the
Claimant and shall render the decision as soon as possible, but no later than 120 days after
receipt of the request for review.

-7-

 

Annex A

	 	 	 
	Age on Change of Control	 	 
	Termination Date	 	Reduction Factor
	 
	64
	 	4%
	63
	 	8%
	62
	 	12%
	61
	 	16%
	60
	 	20%
	59
	 	26.6%
	58
	 	32.5%
	57
	 	37.8%
	56
	 	42.6%
	55
	 	46.9%
	54
	 	50.9%
	53
	 	54.7%
	52
	 	58.3%
	51
	 	61.7%
	50
	 	64.9%
	49
	 	67.7%
	48
	 	70.1%
	47
	 	72.1%
	46
	 	74.0%
	45
	 	75.8%
	44
	 	77.5%
	43
	 	79.1%
	42
	 	80.6%
	41
	 	82.0%
	40
	 	83.3%
	39
	 	84.5%
	38
	 	85.6%
	37
	 	86.6%
	36
	 	87.6%
	35
	 	88.6%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]