Document:

exv10w10

EXHIBIT 10.10

MSD SEPARATION BENEFITS PLAN

FOR NONUNION EMPLOYEES

Amended and Restated Effective as of October 1, 2010

Revised as of October 1, 2010

 

 

MSD

SEPARATION BENEFITS PLAN FOR NONUNION EMPLOYEES

Amended and Restated Effective as of October 1, 2010

SECTION I

PURPOSE

The purpose of this MSD Separation Benefits Plan for Nonunion Employees (the “Plan”) is to provide
benefits to eligible nonunion employees whose employment with the Employer is terminated at the
initiative of the Employer for reasons described below. This Plan is part of the MSD Separation
Allowance Plan (Plan No. 514).

SECTION 2

DEFINITIONS

For the purposes of this Plan, the following terms shall have the following meanings:

2.1 “Adjusted Base Pay Rate” means for an Eligible Employee who is

(a) exempt, his/her Base Pay Rate adjusted to its full-time equivalent and then
multiplied by the percent of full-time (up to 100%) applicable to the alternate
position offered; and

(b) non-exempt, his/her Base Pay Rate adjusted to an hourly rate by dividing it by
the number of hours regularly scheduled to work in the current position.

2.2 “Annual Base Salary” means the Covered Employee’s annualized base salary according to
the Employer’s payroll records in effect as of the date the Covered Employee incurs a
Separation From Service, without reduction for any pre-tax contributions to MSD-sponsored
benefit plans. For a Covered Employee who is regularly scheduled to work less than
full-time, annual base salary is the reduced annual base salary applicable to the less than
full-time position. Annual Base Salary does not include bonuses, commissions, overtime
pay, shift pay, premium pay, cost of living allowances, income from stock options or other
incentives under an Incentive Stock Plan of the Employer (or the Parent or any of its
subsidiaries), stock grants or other incentives, or other pay not specifically included
above.

2.3 “Base Pay Rate” means

(a) With respect to an Eligible Employee who is exempt, his/her annual base salary
according to the Employer’s payroll records in effect as of the

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date the Eligible Employee is offered an alternate position in connection with an
organizational change or general reduction of the work force. For an Eligible
Employee who is regularly scheduled to work less than full-time, annual base salary
is the reduced annual base salary applicable to the less than full-time position.

(b) With respect to an Eligible Employee who is non-exempt, the hourly rate
according to the Employer’s payroll records in effect as of the date the Eligible
Employee is offered an alternate position in connection with an organizational
change or general reduction of the work force multiplied by the number of hours the
Eligible Employee is regularly scheduled to work (up to a maximum of 2080 hours).

(c) With respect to an alternate position offered to an Eligible Employee in
connection with an organizational change or general reduction of the work force,

(i) For exempt positions, the annual base salary offered to the Eligible
Employee; if a less than full-time position is offered to the employee,
the reduced annual base salary applicable to the less than full-time
position offered; and

(ii) For non-exempt positions, the hourly rate actually offered to the
Eligible Employee multiplied by the number of regularly scheduled hours
applicable to the offered position (up to a maximum of 2080 hours).

Base Pay Rate is calculated without reduction for any pre-tax contributions to
MSD-sponsored benefit plans. Base Pay Rate includes applicable shift pay and
premium pay but does not include bonuses, commissions, overtime pay, cost of living
allowances, income from stock options or other incentives under an Incentive Stock
Plan of the Employer (or the Parent or its subsidiaries), stock grants or other
incentives, or other pay not specifically included above.

2.4 “Basic Life Insurance” means prior to January 1, 2011, the employee group term
life insurance coverage in effect for a Covered Employee on the date he/she incurs a
Separation From Service as follows:

	 	(a)	 	if on that date the Covered Employee has “New Format”
coverage (as described in the applicable Merck life insurance plan as it may
be amended from time to time): the amount equal to 1x base pay; or
	 
	 	(b)	 	if on that date the Covered Employee has “Old Format”
coverage (as described in the applicable Merck life insurance plan as it may
be amended from time to time): the amount equal to 2x base pay.

Effective January 1, 2011, “Basic Life Insurance” means 1x base pay. For Eligible
Employees covered by “Old Format” coverage with a Separation Date

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before January 1, 2011, effective as of January 1, 2011, “Basic Life Insurance” is reduced
to 1x base pay.

2.5 “Casual Employee” means a person who may be called by the Employer at any time for
employment in the U.S. on a non-scheduled and non-recurring basis, and who becomes an
employee of the Employer only after reporting to work for the period of time during which
the person is working and who is not an Excluded Person.

2.6 “Change in Control” shall have the meaning set forth in the CIC Plan (and, for
avoidance of doubt, a valid amendment of that definition under the CIC Plan shall
constitute an amendment of this Plan without further action); provided, however that until
November 3, 2010 a “Change in Control” shall include both a “Change in Control” with
respect to Parent and an “MSD Change in Control” with respect to MSD as both such terms are
defined in the CIC Plan.

2.7 “CIC Plan” means the Merck & Co., Inc. Change in Control Separation Benefits Plan, as
amended and restated effective November 3, 2009 and as it may be further amended from time
to time.

2.8 “Claims Reviewer” means the Vice President, Human Resources of the Employer (or the
Parent or its subsidiaries), most directly responsible for MSD’s employee benefit plans or
his or her delegate; provided however, for Section 16 Officers, Claims Reviewer means the
Compensation and Benefits Committee of the Board of Directors of the Parent or its
delegate.

2.09 “Complete Year of Continuous Service” means a year from the Covered Employee’s Most
Recent Hire Date to its anniversary, and thereafter from each anniversary to the next.

2.10 “Continuous Service” means the period of a Covered Employee’s continuous employment
with the Employer commencing on the Covered Employee’s Most Recent Hire Date and ending on
the Separation Date as reflected on the Employer’s employee database.

2.11 “Covered Employee” means an Eligible Employee who has experienced a Separation From
Service and who has signed — and, if a revocation period is applicable, not revoked — a
Release of Claims in a form that is satisfactory to the Employer in its sole and absolute
discretion.

2.12 Intentionally Omitted

2.13 “Eligible Employee” means an employee of the Employer who:

	 	(a)	 	is (i) a Regular Full-Time Nonunion Employee or Regular
Part-Time Nonunion Employee, exempt or non-exempt, on the Employer’s normal
U.S. payroll, or (ii) a U.S. Expatriate on the Employer’s normal U.S. payroll;
and

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	 	(b)	 	is not otherwise excluded under this paragraph. “Eligible
Employee” excludes a person who:

	 	1.	 	is a participant in the CIC Plan (but this clause 1
shall only apply during the Protection Period (as defined in Section
6.8)); or
	 
	 	2.	 	is a party to an employment agreement with the Employer
or with Parent (or any of its subsidiaries) ; or
	 
	 	3.	 	is entitled, upon termination of employment with the
Employer, to separation, severance, termination or other similar payments
(i) under another plan or program sponsored by the Employer or Parent (or
any of its subsidiaries); or (ii) pursuant to a separate agreement with
the Employer or Parent (or any of its subsidiaries) that provides for
payments or benefits in connection with the termination of the employee’s
employment; or
	 
	 	4.	 	is a party to an agreement with the Employer or
Parent (or any of its subsidiaries) that provides that no payment or
benefits are due to the employee in connection with his/her termination of
employment,

	 	 	in each case for clauses 2, 3 and 4 above, unless the other plan, program or
agreement expressly provides that the employee is eligible to participate in
this Plan;

Whether an individual is an Eligible Employee or not is determined as of the date of
his/her Separation From Service.

2.14 “Employee Benefits Committee” means the committee established by MSD (or the Parent)
to review claims and appeals under certain employee benefit plans sponsored by MSD;
provided, however, for Section 16 Officers, Employee Benefits Committee means the
Compensation and Benefits Committee of the Board of Directors of Parent or its delegate.

2.15 “Employer” means individually and collectively, Merck Sharp & Dohme Corp. and the
subsidiaries of Merck Sharp & Dohme Corp. listed on Schedule A attached hereto.

2.16 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated thereunder.

2.17 “Excluded Employee” means collectively, (i) Temporary Employees, (ii) Casual
Employees, (iii) Intern/Graduate/Cooperative Associate, (iv) employees of a non-US
subsidiary of MSD (or who are dual employees of a non-US subsidiary of MSD and the
Employer) who are on assignment in the US, (v) employees whose employment ends for any
reason while on unapproved leaves of absence, (vi) employees whose employment ends for any
reason while on approved leaves of absence for a period equal to or more than 6 continuous
months regardless of the reason(s) for the leave (other than military leave or family
medical leave

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under federal or state family medical leave laws) and (vii) employees of MSD who are
subject to a collective bargaining agreement. A series of leaves of absence is considered
one continuous leave for purposes of calculating the 6-month requirement if the employee
does not return to active employment for any reason, including but not limited to because
the employee’s former position is unavailable and the employee is unable to secure a new
position.

2.18 “Excluded Person” means a person who is an independent contractor, or agrees or has
agreed that he/she is an independent contractor, or has any agreement or understanding with
the Employer, or any of its affiliates that he/she is not an employee or an Eligible
Employee, or is employed by a temporary or other employment agency, regardless of the
amount of control, supervision or training provided by the Employer or its affiliates, or
he/she is a “leased employee” as defined under Section 414(n) of the Internal Revenue Code
of 1986, as amended. An Excluded Person is not eligible to participate in the Separation
Benefits Plan even if a court, agency or other authority rules that he/she is a common-law
employee of the Employer or its affiliates.

2.19 “Intern/Graduate/Cooperative Associate” means a student hired by MSD as a participant
in the MSD Intern/Graduate/Cooperative Associate Program. The student must be designated
as a participant in that program at least annually by the Director of University Relations.

2.20 “MSD” means Merck Sharp & Dohme Corp.

2.21 “Most Recent Hire Date” means an Eligible Employee’s most recent hire date as
reflected on the Employer’s employee data system.

2.22 “Outplacement Benefits” means benefits for outplacement counseling or other
outplacement services made available to a Covered Employee who incurs a Separation From
Service and who signs, and if a revocation period is applicable, does not revoke a Release
of Claims.

2.23 “Parent” means Merck & Co., Inc. ultimate parent of Merck Sharp & Dohme Corp.

2.24 “Plan” means the MSD Separation Benefits Plan for Nonunion Employees as set forth
herein, and as may be amended from time to time.

2.25 “Plan Administrator” means Merck Sharp & Dohme Corp. or its delegate.

2.26 “Plan Year” means the calendar year January 1 through December 31 on which the records
of the Plan are kept.

2.27 “Regular Full-Time Nonunion Employee” means an employee employed by the Employer in
the U.S. on a scheduled basis for a normal work week, who is not an Excluded Employee or an
Excluded Person.

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2.28 “Regular Part-Time Nonunion Employee” means an employee employed by the Employer in
the U.S. who works on a scheduled basis of less than the number of regularly scheduled
hours for his or her site who is not an Excluded Employee or an Excluded Person.

2.29
“Release of Claims” means the agreement that a Covered Employee must execute in order to receive Separation Plan Benefits, which shall be prepared by MSD and
shall contain such terms and conditions as determined by MSD, including but not limited to
a general release of claims, known or unknown, that the Covered Employee may have against
the Employer (and the Parent and any of its subsidiaries and/or affiliates), including
claims related to the employment and termination of employment of the Covered Employee;
such Release of Claims may also contain, in MSD’s discretion, non-solicitation and
non-competition provisions.

2.30 “Section 16 Officer” means an “officer” as such term is defined in Rule 16(a)-1(f) of
the Securities Exchange Act of 1934 of the Parent who is also an Eligible Employee of the
Employer.

2.31 “Separation Benefits” means the outplacement benefits provided pursuant to Section 4.2
and the continued medical, dental and Basic Life Insurance benefits provided pursuant to
Section 4.3.

2.32 “Separation Date” means an Eligible Employee’s last day of employment with the
Employer due to a Separation From Service.

2.33 “Separation From Service” means the termination of an Eligible Employee’s employment
as determined and caused by the Employer
 due to:

(a) organizational changes; or

(b) a general reduction of the workforce.

Organizational changes are determined by MSD and include discontinuance of operations,
location closings, corporate restructuring or job elimination but exclude a reduction in job
title, grade or band level, Base Pay Rate, short term incentive opportunity (e.g., cash
bonuses under any bonus plan or program of the MSD or the Parent including the Annual
Incentive Plan and Executive Incentive Plan of MSD or the Parent and sales incentive
compensation under any sales incentive plan or program of MSD or the Parent including the
Sales Incentive Plan(s)), long term incentive compensation opportunity, equity compensation
opportunity and/or other forms of remuneration of an Eligible Employee without a change in
the Eligible Employee’s job duties where such reduction is due to a general change in the
Employer’s or the Parent’s compensation framework as it applies to similarly situated
Eligible Employees, e.g., a change in the general compensation framework applicable to
similar jobs with the Employer, or an identifiable segment of the Employer such as a
subsidiary, division or department.

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A Separation From Service does not occur

(i) if an Eligible Employee’s employment is terminated by the Employer other than due to an
organizational change or a general reduction of the work force; or

(ii) if an Eligible Employee’s employment is terminated by the Employer due to an
organizational change or a general reduction of the work force and any one of the following
occur:

	 	1.	 	Upon a divestiture of a subsidiary, division or other
identifiable segment of the Employer where the Eligible Employee either

	 	a.	 	continues or is offered any employment with the
acquiring company and accepts such employment; or
	 
	 	b.	 	is offered employment with the acquiring company
and declines it and such declined offer of employment is

	 	i.	 	on such terms and conditions
agreed to between the Employer (or its designate) and the
buyer, including but not limited to the job title, grade or
band level, short term incentive compensation opportunity
(e.g., cash bonus or sales incentive compensation), long term
incentive compensation opportunity, equity compensation
opportunity and/or level of base pay offered ◊; and
	 
	 	ii.	 	at a work location that is
less than 50 miles farther* from the employee’s residence at
the time of the divestiture; or

	 	2.	 	Due to the Employer’s decision to outsource work to a third-party
vendor where the Eligible Employee either

	 	a.	 	continues or is offered any employment with the
outsource vendor and accepts such employment; or
	 
	 	b.	 	is offered employment with such outsource vendor
and declines it and such declined offer of employment is

	 	i.	 	on such terms and conditions
agreed to between the Employer (or its designate) and the
outsource vendor, including but not limited to the job title,
grade or band level, short term incentive compensation
opportunity (e.g., cash bonus or sales incentive
compensation), long term incentive compensation opportunity,
equity compensation opportunity and/or level of base pay
offered ◊; and
	 
	 	ii.	 	at a work location that is
less than 50 miles farther* from the employee’s residence on
the date the Eligible Employee’s employment with the Employer
ends; or

	 	3.	 	Upon the formation of a joint venture or other business entity in
which the Employer or the Parent directly or indirectly will own some
outstanding voting or other ownership interest where the Eligible Employee
either

	 	a.	 	continues or is offered any employment with the
joint venture or other business entity and accepts such employment; or
	 
	 	b.	 	is offered employment with the joint venture or
other business entity and declines it and such declined offer of
employment is

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	 	i.	 	on such terms and conditions
agreed to between the Employer or the Parent (or its
designate) and the joint venture or other business entity,
including but not limited to the job title, grade or band
level, short term incentive compensation opportunity (e.g.,
cash bonus or sales incentive compensation), long term
incentive compensation opportunity, equity compensation
opportunity and/or level of base pay offered ◊; and
	 
	 	ii.	 	at a work location that is
less than 50 miles farther* from the employee’s residence at
the time of the formation of the joint venture; or

	 	4.	 	If an Eligible Employee’s job with the Employer is moved to
another work location of the Employer (or the Parent or any of its subsidiaries)
and the Eligible Employee either

	 	a.	 	decides to follow the job; or
	 
	 	b.	 	decides not to follow the job and the job offered
and declined is

	 	i.	 	a work location that is less
than 50 miles farther* from the employee’s residence at the
time the job is moved; and
	 
	 	ii.	 	at a Base Pay Rate equal to
at least 100% of the employee’s Base Pay Rate;***; or

	 	5.	 	If an Eligible Employee is offered a position with the Employer
(or the Parent or any of its subsidiaries)** regardless of job title, grade or
band level, short term incentive compensation opportunity (e.g., cash bonus or
sales incentive compensation), long term incentive compensation opportunity
and/or equity compensation opportunity and either

	 	a.	 	accepts the position; or
	 
	 	b.	 	declines it, provided the position offered and
declined is

	 	i.	 	at a work location that is
less than 50 miles farther* from the employee’s residence on
the date the position is offered; and
	 
	 	ii.	 	at a Base Pay Rate equal to
at least 100% of the employee’s Base Pay Rate;*** or

	 	6.	 	If an Eligible Employee resigns for any reason; or
	 
	 	7.	 	If an Eligible Employee is terminated for cause; or
	 
	 	8.	 	If an Eligible Employee retires (except where the retirement
results from the Employer’s termination of the Eligible Employee’s employment
due to an organizational change or a general reduction of the work force; or
	 
	 	9.	 	If an Eligible Employee’s employment is terminated due to failure
to return to work at the Employer (or the Parent or any of its subsidiaries) for
any reason, including, but not limited to the Eligible Employee’s failure to
secure a position at the Employer (or the Parent or any of its subsidiaries)
upon a return from a leave of absence for any reason; or
	 
	 	10.	 	If an Eligible Employee terminates employment with the Employer
prior to the date identified as the date the employee would experience a
Separation From Service unless the Employer expressly agreed to waive this
provision; or

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	 	11.	 	If an Eligible Employee dies (unless the Eligible Employee dies
after he/she has been notified of his/her Separation Date but before the
Separation Date occurs and a valid release of claims is executed); or
	 
	 	12.	 	If an Eligible Employee’s part-time or job share arrangement is
terminated for any reason and the Eligible Employee is offered a position with
the Employer (or the Parent or any of its subsidiaries),** including a full-time
position, and either

	 	a.	 	accepts it; or
	 
	 	b.	 	declines it, provided the position offered and
declined is

	 	i.	 	at a work location that is
less than 50 miles farther* from the employee’s residence at
the time the part-time or job share arrangement is terminated;
and
	 
	 	ii.	 	at a Base Pay Rate equal to
at least 100% of the employee’s Base Pay Rate;*** or

	 	13.	 	If an Eligible Employee’s flexible work arrangement (e.g.,
flexible hours, flexible workplace, work-at-home, compressed work-week,
non-standard work hours, etc.) is terminated for any reason and the Eligible
Employee is offered a position with the Employer (or the Parent or any of its
subsidiaries),** including a position having an Employer-standard work
arrangement or a flexible work arrangement, and either

	 	a.	 	accepts it; or
	 
	 	b.	 	declines it, provided the position offered and
declined is

	 	i.	 	at a work location that is
less than 50 miles farther* from the employee’s residence at
the time the flexible work arrangement is terminated (or for
employees with a flexible workplace or work-at-home
arrangement, at the work location where the position was
assigned on the Employer’s data base); and
	 
	 	ii.	 	at a Base Pay Rate equal to
at least 100% of the employee’s Base Pay Rate;*** or

	 	14.	 	If an Eligible Employee is a shift worker and is offered a
position with the Employer (or the Parent or any of its subsidiaries),**
including a position on a different shift, and either

	 	a.	 	accepts it; or
	 
	 	b.	 	declines it, provided the position offered and
declined is

	 	i.	 	at a work location that is
less than 50 miles farther* from the employee’s residence at
the time the offer is made; and
	 
	 	ii.	 	at a Base Pay Rate equal to
at least 100% of the employee’s Base Pay Rate.***

A Separation From Service does not occur under subsections (a) of each of sections 1, 2, 3,
4, 5, 12, 13 and 14 above if the Eligible Employee accepts the offered (or transferred)
position but later declines it.

 

			
	*	 	Whether a work location is less than 50 miles farther from an employee’s residence
will be determined in accordance with MSD’s relocation policy. For Eligible Employees who
are field sales representatives, the new work location is

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	 	 	the geographic workload center of the new territory as determined by the Employer in its
sole and absolute discretion.
	 
	**	 	The Employer (or the Parent or any of its subsidiaries) may offer a position at the same
time the organizational change or reduction in force occurs or at any time prior to the
Eligible Employee’s Separation Date and may offer a position for any reason, including but
not limited to as a result of the Eligible Employee’s application for a position in
accordance with job posting system of MSD (or the Parent or any of its subsidiaries).
	 
	***	 	For purposes of determining whether a Separation From Service has occurred (and not for
purposes of calculating Separation Pay), at least 100% the Base Pay Rate is calculated as
of the date the alternate position is offered to the Eligible Employee.

For an Eligible Employee offered an alternative position at the same percentage of time
(for example, full-time to full-time, 50% time to 50% time), a Separation From Service will
not occur if the new position is offered with a Base Pay Rate equal to at least 100% of the
Eligible Employee’s Base Pay Rate.

For an Eligible Employee whose current position is less than 100% full-time who is offered
an alternate position at a higher percentage of full-time up to 100% of full-time, a
Separation From Service will not occur if the new position is offered with a Base Pay Rate
equal to the greater of (a) at least 100% of the Eligible Employee’s Base Pay Rate or (b)
at least 100% of the Eligible Employee’s Adjusted Base Pay Rate.

For an Eligible Employee whose current position is full-time who is offered an alternate
position of less than 100% full-time, a Separation From Service will not occur if the new
position is offered with a Base Pay Rate equal to at least 100% of the Eligible Employee’s
Base Pay Rate.

An example: Eligible Employee with a 60% full-time position at a Base Pay Rate of $60,000
who is offered an alternate position at 80% full-time has an Adjusted Base Rate of $80,000.
A Separation From Service does not occur if the alternate position is offered at a Base
Pay Rate of at least $80,000 (100% of the greater of $80,000 or $60,000). Assume the
alternate position was 50% full-time. A Separation From Service does not occur if the
alternate position is offered at a Base Pay Rate of at least $60,000 (100% of $60,000).

Whether a Separation From Service has occurred is determined at the time the alternate
position is offered and not at the time the actual reduction in Base Pay Rate (or Adjusted
Base Pay Rate), if any, applicable to the alternate position offered is effective. The
effectuation of a reduction in Base Pay Rate (or Adjusted Base Pay Rate) applicable to the
alternate position previously offered is not a Separation From Service regardless of when
the reduction is actually made.

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◊
A “Separation From Service” does not occur if the terms and conditions of the offers of
employment to Eligible Employees in connection with a divestiture, outsourcing, formation
of a joint venture or other transaction agreed to between Employer (or the Parent) and the
buyer, vendor, joint venture or other entity include a level of base pay of less than 100%
of the Eligible Employees’ Base Pay Rate (or Adjusted Base Pay Rate) on the date of the
applicable transaction.

2.34 “Separation Pay” means the cash benefit payable under this Plan pursuant to Section
4.1.

2.35 “Separation Pay Period” means the period beginning on the date the
 Covered Employee incurs a Separation From Service during which Separation Pay described on
Schedule B is payable in periodic installments in accordance with the Employer’s normal
payroll periods. Payment of Separation Pay in a lump sum under the Plan does not shorten
the Separation Pay Period.

2.36 “Separation Plan Benefits” means Separation Pay described in Section 4.1 and
Separation Benefits described in Sections 4.2 and 4.3.

2.37 “Temporary Employee” means an employee hired and paid by the Employer for a specific
position in the U.S. for a designated length of time, which is normally not more than 24
consecutive months in duration, who is committed to leave the Employer at the end of that
time and who is not an Excluded Person.

2.38 “U.S. Expatriate” means a U.S. citizen or individual with U.S. Permanent Resident
status who is employed by a foreign subsidiary of MSD, as a foreign service employee and
who is not an an Excluded Person.

SECTION 3

ELIGIBILITY FOR BENEFITS

	 	(a)	 	An Eligible Employee will be eligible for Separation Plan Benefits described
in Section 4 when he/she experiences a Separation From Service. Separation Pay and
Separation Benefits shall be provided under this Plan only if the Eligible Employee
has executed and, if a revocation period is applicable, not revoked a Release of
Claims in a form satisfactory to MSD in its sole and nonreviewable discretion. An
Eligible Employee who has executed and, if a revocation period is applicable, not
revoked a Release of Claims is a Covered Employee.
	 
	 	(b)	 	An Eligible Employee will also be entitled to receive those pension benefits
set forth in Schedule E (Change in Control/Pension) and retiree healthcare and life
insurance benefits set forth in Schedule F (change in Control/Retiree Healthcare and
Life Insurance) if (i) a Change in Control has occurred and (ii) within two years
thereafter, the Eligible Employee’s employment with the Employer is terminated by the
Employer without Cause and other than for

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	 	 	 	death or Permanent Disability. MSD may, to the extent it deems necessary or
appropriate (including to comply with applicable law), (1) cause the benefits set
forth in Schedule E to be paid from the MSD Supplemental Retirement Plan (the
“Supplemental Plan”) or otherwise from MSD’s general assets and (2) cause the benefits
set forth in Schedule F to be provided from an insured arrangement, pursuant to
individual arrangements or otherwise. For purposes of this Section 3(b), the terms
“Cause” and “Permanent Disability” shall have the meanings set forth in the CIC Plan
(and, for the avoidance of doubt, a valid amendment of these definitions under the CIC
Plan shall constitute an amendment of this Plan without further action).

SECTION 4

BENEFITS

4.1 Separation Pay — Separation Pay shall be payable under this Plan as set forth on
Schedule B-1 to a Covered Employee whose Separation From Service occurs on or after
January 1, 2009 but on or before December 31, 2011. Separation Pay shall be payable under
this Plan as set forth on Schedule B-2 to a Covered Employee whose Separation From Service
occurs on or after January 1, 2012. The terms of such Schedule B-1 and Schedule B-2 are
hereby fully incorporated into and shall be considered as part of Section 4 of this Plan.
In no event shall the Separation Pay under the Plan exceed 200% of a Covered Employee’s
Annual Base Salary.

4.2 Outplacement Benefits — Benefits for outplacement counseling or other outplacement
services, as set forth in Schedule D will be made available to a Covered Employee. The
terms of such Schedule D are hereby fully incorporated into and shall be considered as part
of Section 4 of this Plan. Outplacement benefits shall be provided in kind; cash shall not
be paid in lieu of outplacement benefits nor will Separation Pay be increased if a Covered
Employee declines or does not use the outplacement benefits.

4.3 Medical, Dental and Basic Life Insurance Benefits

	 	(a)	 	A Covered Employee shall continue medical, dental and Basic
Life Insurance coverage during the Separation Pay Period. If the Separation
Pay Period is less than 6 months, the medical, dental and Basic Life Insurance
coverage described in this Section 4.3 shall continue for the 6-month period
beginning on the first day of the month coincident with or following the date
the Covered Employee incurs a Separation From Service.
	 
	 	(b)	 	The medical and dental and Basic Life insurance coverages
that shall be continued under this Section 4.3 are those coverages that are in
effect for the Covered Employee as of the date the Covered Employee

sep bene plan/nonunion/revised 11-09

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	 	 	 	incurs a Separation From Service, subject to and in accordance with the terms
of the applicable medical, dental and life insurance plans as they may be
amended from time to time. A Covered Employee who, prior to the Separation
From Service, had elected no medical or dental coverage under MSD’s medical or
dental plans will not be permitted to change from no medical and/or dental
coverage to coverage as a result of a Separation From Service. The Covered
Employee who continues medical and dental coverage may change such coverages
(e.g., coverage option and family status) subject to the terms and conditions
of the applicable plans as they apply to active employees.
	 
	 	(c)	 	These Separation Benefits shall begin on the first day of the
month coincident with or following the date the Covered Employee incurs a
Separation From Service. The medical, dental and Basic Life insurance
coverages shall end on the last day of the month in which the Separation Pay
Period ends or, if the Separation Pay Period is less than 6 months, then at
the end of the 6-month period during which medical and dental coverages are
provided.
	 
	 	(d)	 	Contributions for Separation Benefits shall be payable by the
Covered Employee in the time and manner specified by MSD from time to time.
	 
	 	(e)	 	Eligibility for COBRA continuation coverage for medical
and/or dental plan coverage shall begin at the first day of the month
following the expiration of the Separation Pay Period, or, if the Separation
Pay Period is less than 6 months, then at the end of the 6 month period during
which medical and dental coverages are provided. If the Separation Date is
prior to December 31, 2010, the Covered Employee will also be eligible to
continue Basic Life Insurance coverage under the continuation provisions of
the life insurance plan, if any, and as they may be amended from time to time,
for the balance of the plan continuation period.
	 
	 	(f)	 	At the time the Release of Claims is signed, the Covered
Employee may decline to continue medical, dental and Basic Life Insurance
Separation Benefits under this paragraph; however, the Covered Employee must
decline to continue all such Separation Benefits. Such election to decline
Separation Benefits is irrevocable. Cash shall not be paid in lieu of
Separation Benefits nor will Separation Pay be increased if a Covered Employee
declines medical, dental and Basic Life Insurance coverage. If the Covered
Employee declines medical, dental and Basic Life Insurance Separation
Benefits, then he/she shall be eligible for COBRA continuation coverage for
medical and dental in accordance with the COBRA continuation provisions of the
medical and dental plans applicable to terminated employees, and if the
Separation Date is prior to December 31, 2010, continuation of the Basic Life
insurance in accordance with the continuation provisions of

sep bene plan/nonunion/revised 11-09

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	 	 	 	the life insurance plan, if any, and as they may be amended from time to time.
If Separation Benefits are provided during the period for consideration and
revocation of the Release of Claims and, upon signing the Release of Claims,
the Covered Employee declines medical, dental and Basic Life Insurance
Separation Benefits, then contributions for the Separation Benefits provided
during the consideration and revocation periods will be deducted from the
Separation Pay.

     (g) Anything in the Plan to the contrary notwithstanding:

	 	•	 	no medical coverage shall be provided under this Plan to an Eligible
Employee or a Covered Employee who is or becomes eligible for retiree
medical benefits upon retirement in connection with a Separation From
Service;
	 
	 	•	 	no dental coverage shall be provided under this Plan to an Eligible
Employee or a Covered Employee who is or becomes eligible for retiree
dental benefits upon retirement in connection with a Separation From
Service;
	 
	 	•	 	no Basic Life Insurance coverage shall be provided under this Plan to
an Eligible Employee or a Covered Employee who is or becomes eligible to
be treated as a retiree (including a “bridged” retiree) in connection with
a Separation From Service under the defined benefit pension plan in which
the individual participates as of his/her Separation From Service; and
	 
	 	•	 	to the extent that an Eligible Employee or Covered Employee becomes
entitled to benefits pursuant to Schedule F of the Plan, no coverage shall
be provided under this Section 4.3.

4.4 Reduction of Benefits - Notwithstanding anything in this Plan to the contrary, a
Covered Employee’s Separation Pay shall be reduced by:

	 	(a)	 	any amount the Plan Administrator reasonably concludes the
Covered Employee owes the Employer (or the Parent or any subsidiary or
affiliate of the Parent) including, without limitation, unpaid bills under the
corporate credit card program, and for vacation used, but not earned; and
	 
	 	(b)	 	any severance or severance type benefits that the Employer
(or the Parent or any subsidiary or affiliate of the Parent) must pay to a
Covered Employee under applicable law; and
	 
	 	(c)	 	where permitted by law, any payments received by the Covered
Employee pursuant to state workers compensation laws; and
	 
	 	(d)	 	short term disability benefits where state law does not
permit Separation Pay to be offset from short term disability benefits (or

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	 	 	 	where the Employer in its sole and absolute discretion determines it is
administratively easier for the Employer to reduce Separation Pay by short
term disability benefits in lieu of reducing short term disability benefits by
Separation Pay).

Notwithstanding anything in the Plan to the contrary, a Covered Employee’s Separation Pay
and Separation Benefits are not meant to duplicate pay and benefits provided by the
Employer (or the Parent or any of its subsidiaries) in connection with any Covered
Employee’s Separation From Service, including pay and benefits under the federal Worker
Adjustment Retraining and Notification Act and any state or local equivalent (collectively
the “WARN Act”). If the Plan Administrator determines that a Covered Employee is entitled
to WARN Act damages or WARN Act notice, the Plan Administrator in its sole and absolute
discretion may reduce the Covered Employee’s Separation Pay and Separation Benefits under
the Plan by the WARN Act damages or pay and benefits after receiving WARN Act notice, but
not below $500, with the remaining Separation Pay and Separation Benefits provided to the
Covered Employee in accordance with the terms of the Plan in satisfaction of the Covered
Employee’s WARN Act notice rights or damages. In all other cases, Separation Pay paid
under the Plan in excess of $500 will be treated as having been paid to satisfy any WARN
Act damages, if applicable.

SECTION 5

FORM AND TIMING OF BENEFITS; FORFEITURE AND REPAYMENT OF BENEFITS

5.1 Form and Time of Payment - Separation Pay shall commence as soon as practicable after
the Covered Employee’s Separation From Service and the expiration of any period during
which the Covered Employee may consider, sign and, if a revocation period is applicable,
revoke the Release of Claims. Separation Pay, less taxes and applicable deductions shall
be paid in periodic installments corresponding to the Employer’s normal payroll periods;
provided, however, that if the Separation Pay Period is less than 6 months, then the
Employer will pay the Separation Pay in a lump sum.

Payments generally may not be made on account of separation from service for six months
following the termination of employment of a “Specified Employee” as defined in Treas. Reg.
Sec. 1.409A-1(i) or any successor thereto, which in general includes the top 50 employees
of a company ranked by compensation. Notwithstanding anything contained in the Plan to the
contrary, if a Covered Employee is a “Specified Employee” on his or her Separation Date, to
the extent required by Section 409A of the Internal Revenue Code of 1986, as amended, no
payments will be made to him or her prior to the first day of the sixth month following
termination of employment. Instead, amounts that would otherwise

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have been payable will be accumulated and paid, without interest , as soon as
administratively feasible following such six-month period.

5.2 Taxes — Separation Pay payable under this Plan shall be subject to the withholding of
appropriate federal, state and local taxes.

Section 409A — Notwithstanding anything in this Plan to the contrary, benefits under this
Plan (including Separation Pay and Separation Benefits) that are subject to Section 409A of
the Internal Revenue Code of 1986, as amended, will be adjusted to avoid the excise tax
under Section 409A. The Employer will take any and all steps it determines are necessary,
in its sole and absolute discretion, to adjust benefits under this Plan (including
Separation Pay and Separation Benefits) to avoid the excise tax under Section 409A,
including but not limited to, reducing or eliminating benefits, changing the time or form
of payment of benefits, etc.

5.3 Forfeiture of Benefits — The Employer reserves the right, in its sole and absolute
discretion, to cancel all benefits under this Plan in the event a Covered Employee engages
in any activity that the Employer considers detrimental to its interests (or the interests
of the Parent or any of its subsidiaries) as determined by the Parent’s Senior Vice
President and General Counsel and the Parent’s Senior Vice President, Human Resources.
Activities that the Employer considers detrimental to its interest (or the interests of the
Parent or any of its subsidiaries) include, but are not limited to:

	 	(a)	 	breach of any obligations of the Covered Employee’s Terms
and Conditions of Employment;
	 
	 	(b)	 	making false or misleading statements about the Employer,
the Parent or any of its subsidiaries or their products, officers or
employees to competitors, customers, potential customers of the Employer, the
Parent or any of its subsidiaries or to current or former employees of the
Employer, the Parent or any of its subsidiaries; and
	 
	 	(c)	 	breaching any terms of the Release of Claims, including, if
included in the Release of Claims, any non-solicitation or non-competition
provisions.

5.4 Cessation of Separation Pay and Separation Benefits - Separation Pay and Separation
Benefits shall cease in the event a Covered Employee is rehired by the Employer, the Parent
or one of its subsidiaries or affiliates other than Telerx Marketing, Inc..

5.5 Return of Separation Pay - If Separation Pay is paid under this Plan in a lump sum,
and an event described in 5.3 or 5.4 occurs pursuant to which Separation Benefits would
cease, then the Covered Employee shall repay to the Employer that portion of the lump sum
amount that would not have been paid had the Separation Pay been paid in installments. If
Separation Pay is paid in a lump

sep bene plan/nonunion/revised 11-09

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sum and the Covered Employee receives short term disability benefits from the Employer
during the Separation Pay Period, the Employer reserves the right to seek repayment by the
Covered Employee of that portion of the Separation Pay that would not have been paid in
accordance with Section 4.4 had the Separation Pay been paid in installments.

5.6
Death of Covered Employee —  If a Covered Employee dies before the Separation Pay
has been fully paid, the balance of payments will be payable to the Covered Employee’s
estate, less contributions for continued medical and dental coverage as described below.
If the Covered Employee’s dependents were covered under the medical and dental coverages
(other than coverages applicable to retirees and their dependents) at the time of the
Covered Employee’s death, and, prior to payment of the balance of the Separation Pay, they
choose to continue to be covered under the medical and dental coverages, they will continue
to do so for the balance of the Separation Pay Period. Such coverages shall be subject to
and in accordance with the terms of the applicable plans as they may be amended from time
to time. Contributions for the medical and dental coverages will be payable by the
dependents in the time and manner specified by MSD. The dependents covered at the time of
the Covered Employee’s death may change such coverages (e.g., coverage option and family
status) subject to the terms and conditions of the applicable medical and dental plans as
they apply to active employees of MSD. Any additional contributions that result from a
change in family status must be paid by the dependents in the time and manner specified by
MSD in order to maintain such coverage. Upon the expiration of the continued coverage under
this paragraph, those dependents who are still covered shall be offered COBRA continuation
coverage for the balance of the 36-month period beginning at the date of the death of the
Covered Employee.

SECTION 6

ADMINISTRATION, AMENDMENT AND TERMINATION

6.1 Plan Administration — MSD or its delegate is the Plan Administrator for purposes
of ERISA.

6.2 Powers and Duties of Plan Administrator — The Plan Administrator shall have the
full discretionary power and authority to: (i) construe and interpret the Plan (including,
without limitation, supplying omissions from, correcting deficiencies in, or resolving
inconsistencies or ambiguities in, the language of the Plan); (ii) determine all questions
of fact arising under the Plan, including questions as to eligibility for and the amount of
benefits; (iii) establish such rules and regulations (consistent with the terms of the
Plan) as it deems necessary or appropriate for administration of the Plan; (iv) delegate
responsibilities to others to assist in administering the Plan; and (v) perform all other
acts it believes reasonable and proper in connection with the administration of the Plan.
The Plan Administrator shall be entitled to rely on the records of the Employer in
determining any Covered Employee’s entitlement to and the amount of benefits

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payable under the Plan. Any determination of the Plan Administrator, including
interpretations of the Plan and determinations of questions of fact, shall be final and
binding on all parties.

Additional Discretionary Authority — The Plan Administrator may, upon written approval of
the Parent’s Senior Vice President, Human Resources (written approval of the Compensation
and Benefits Committee of the Board of Directors of the Parent or its delegate with respect
to Section 16 Officers), take the following actions under the Plan:

	 	(a)	 	grant some, all or any portion of the benefits under this
Plan to an employee who would not otherwise be eligible for such benefits
under Section 3 above;

	 	(b)	 	waive the requirement set forth in Section 3 for any
individual Eligible Employee or group of Eligible Employees to execute a
Release of Claims;

	 	(c)	 	grant additional Separation Plan Benefits to a Covered
Employee; and

	 	(d)	 	pay Separation Pay to a Covered Employee in a single lump
sum.

	 	6.4	 	Plan Year — The Plan Year shall be the calendar year.

	 	6.5	 	Claims Procedures

	 	(a)	 	Any request or claim for benefits under the Plan must be
filed by a claimant or the claimant’s authorized representative within 60 days
after the date the event occurs that the claimant alleges gives rise to the
claimant’s claim (e.g., for eligibility for Separation Pay, within 60 days
after the claimant’s employment with the Employer ends; for amount of
Separation Pay, within 60 days after the first payment of allegedly incorrect
Separation Pay; for forfeiture of Separation Pay under Section 5.3, within 60
days after the cessation of payment).

	 	(b)	 	Any request or claim for benefits under the Plan shall be
deemed to be filed when a written request made by the claimant or the
claimant’s authorized representative addressed to the Claims Reviewer at the
address below is received by the Claims Reviewer.

Claims Reviewer for the Separation Benefits Plan

c/o Secretary of the Employee Benefits Committee

WS 3B-35

Merck Sharp & Dohme Corp.

One Merck Drive, P.O. Box 100

Whitehouse Station, NJ 08889-0100

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	 	 	 	The claim for benefits shall be reviewed by, and a determination shall be
made by, the Claims Reviewer, within the timeframe required for notice of
adverse benefit determinations described below.

	 	(c)	 	The Claims Reviewer shall provide written or electronic
notification to the claimant or the claimant’s authorized representative of
any “adverse benefit determination.” Such notice shall be provided within a
reasonable time but not later than 90 days after the receipt by the Claims
Reviewer of the claimant’s claim, unless the Claims Reviewer determines that
special circumstances require an extension of time for processing the claim.
If the Claims Reviewer determines that an extension of time for processing is
required, written notice of the extension shall be furnished to the claimant
before the expiration of the initial 90-day period indicating the special
circumstances requiring an extension and the date by which the Claims Reviewer
expects to render the benefit determination. No extension can exceed 90 days
from the end of the initial 90-day period (i.e., 180 days from the receipt of
the claim by the Claims Reviewer) without the consent of the claimant or the
claimant’s authorized representative.

	 	(d)	 	An “adverse benefit determination” is a denial,
reduction, or termination of, or a failure to provide or make payment (in
whole or part) for a benefit, including one that is based on a determination
of a claimant’s eligibility to participate in the Plan.
	 
	 	(e)	 	The notice of adverse benefit determination shall be written in a manner
calculated to be understood by the claimant and shall:

	 	(i)	 	set forth the specific reasons for the adverse benefit determination;
	 
	 	(ii)	 	contain specific references to Plan provisions
on which the determination is based;
	 
	 	(iii)	 	describe any material or information
necessary for the claim for benefits to be allowed and an explanation
of why such information is necessary; and
	 
	 	(iv)	 	describe the Plan’s appeal procedures and the time limits
applicable to such procedures, including a statement of the claimant’s
right to bring a civil action under section 502(a) of ERISA following an
adverse benefit determination on review.

	 	6.6	 	Appeals Procedures

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	 	(a)	 	Any request to review the Claims Reviewer’s adverse
benefit determination under the Plan must be filed by a claimant or the
claimant’s authorized representative in writing within 60 days after receipt
by the claimant of written notification of adverse benefit determination by
the Claims Reviewer. If the claimant or the claimant’s authorized
representative fails to file a request for review of the Claims Reviewer’s
adverse benefit determination in writing within 60 days after receipt by the
claimant of written notification of adverse benefit determination, the Claims
Reviewer’s determination shall become final and conclusive.
	 
	 	(b)	 	Any request to review an adverse benefit determination
under the Plan shall be deemed to be filed when a written request is made by
the claimant or the claimant’s authorized representative addressed to the
Employee Benefits Committee at the address below is received by the Secretary
of the Employee Benefits Committee.

Employee Benefits Committee

c/o Secretary to the Employee Benefits Committee

WS 3B-35

Merck Sharp & Dohme Corp.

One Merck Drive, P. O. Box 100

Whitehouse Station, NJ 08889-0100

	 	(c)	 	If the claimant or the claimant’s authorized
representative timely files a request for review of the Claims Reviewer’s
adverse benefit determination as specified in this Section 6.6, the Employee
Benefits Committee shall re-examine all issues relevant to the original
adverse benefit determination taking into account all comments, documents,
records, and other information submitted by the claimant or the claimant’s
authorized representative relating to the claim, without regard to whether
such information was submitted or considered in the initial benefit
determination. Any such claimant or his or her duly authorized representative
may

	 	(i)	 	upon request and free of charge have reasonable access to, and copies of, all
documents, records, and other information relevant to the claimant’s claim for benefits;
whether an item is relevant shall be determined by the Employee Benefits Committee in
accordance with 29 CFR 2560.503-1 (m)(8); and
	 
	 	(ii)	 	submit in writing any comments, documents,
records, and other information relating to the claim for benefits.

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	 	(d)	 	The Employee Benefits Committee shall provide written or
electronic notice to the claimant or the claimant’s authorized representative
of its benefit determination on review. Such notice shall be provided within
a reasonable time but not later than 60 days after the receipt by the Employee
Benefits Committee of the claimant’s request for review, unless the Employee
Benefits Committee determines that special circumstances require an extension
of time for processing the request for review. If the Employee Benefits
Committee determines that an extension of time for processing is required,
written notice of the extension shall be furnished to the claimant before the
expiration of the initial 60-day period indicating the special circumstances
requiring an extension and the date by which the Employee Benefits Committee
expects to render the benefit determination. No extension can exceed 60 days
from the end of the initial 60-day period (i.e., 120 days from the date the
request for review is received by the Employee Benefits Committee) without the
consent of the claimant or the claimant’s authorized representative.
	 
	 	(e)	 	If the claimant’s appeal is denied, the notice of
adverse benefit determination on review shall be written in a manner
calculated to be understood by the claimant and shall:

	 	(i)	 	set forth the specific reasons for the
adverse benefit determination on review;
	 
	 	(ii)	 	contain specific references to Plan provisions on which the
benefit determination is based;
	 
	 	(iii)	 	contain a statement that the claimant is
entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; whether an
item is relevant shall be determined by the Employee Benefits
Committee in accordance with 29 CFR 2560.503-1 (m)(8); and
	 
	 	(iv)	 	include a statement of the claimant’s right
to bring a civil action under section 502(a) of ERISA.

6.7 Amendment or Termination — Parent or its delegate has the right to amend or
terminate the Plan at any time without prior notice to or the consent of any employee. The
Chief Executive Officer of Parent or its delegate has the authority to amend or terminate
this Plan; provided, however, that amendments that apply only to Section 16 Officers must
also be approved by the Compensation and Benefits Committee of the Board of Directors of
Parent or its delegate. Any Eligible Employee whose employment continues after amendment
of the Plan and, other than to the extent specifically provided in this Section 6.7,

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the Separation Plan Benefits of any Covered Employee who experienced a Separation From
Service prior to such amendment, shall be governed by the terms of the Plan as so amended.
Any Eligible Employee whose employment continues after termination of the Plan and, other
than to the extent specifically provided in this Section 6.7, any Covered Employee who
experienced a Separation From Service prior to such termination, shall have no right to a
benefit under the Plan. A Covered Employee who experiences a Separation From Service prior
to any amendment to the Plan shall not be eligible for any increase in Separation Benefits
under the Plan. Nothing in this Plan in any way limits MSD’s right to amend or terminate
any or all of MSD’s plans that provide Separation Benefits as described in this Plan.

Notwithstanding the foregoing provisions of this Section 6.7, if the amendment or
modification of Schedule E or Schedule F prior to a Change in Control would adversely
affect the benefits or protections hereunder of any individual who is an Eligible Employee
as of the date such amendment or modification is adopted, such amendment or modification
shall be effective as it relates to such individual only if no Change in Control occurs
within one year after such adoption, any such attempted amendment or modification adopted
within one year prior to a Change in Control being null and void ab initio
as it relates to all such individuals who were Eligible Employees prior to such adoption;
provided, further, that neither Schedule E nor Schedule F may be amended or
modified (i) at the request of a third party who has indicated an intention or taken steps
to effect a Change in Control and who effectuates a Change in Control or (ii) otherwise in
connection with, or in anticipation of, a Change in Control which actually occurs, any such
attempted amendment or modification being null and void ab initio. In
addition, this Section 6.7 shall be subject to Section 6.8 upon and following a Change in
Control.

6.8 Additional Provisions.

1. Except to the extent required by applicable law, for the entirety of the Protection
Period, the material terms of the Plan shall not be modified in any manner that is
materially adverse to the Qualifying Participants.

2. During the Protection Period, the Plan may not be amended or modified to reduce or
eliminate the protections set forth in this Section 6.8 and may not be terminated.

3. MSD shall pay all legal fees and related expenses (including the costs of experts,
evidence and counsel) reasonably and in good faith incurred by a Qualifying Participant if
the Qualifying Participant prevails on his or her claim for relief in an action (x) by the
Qualifying Participant claiming that the provisions of this Section 6.8 have been violated
(but, for avoidance of doubt, excluding claims for plan benefits in the ordinary course)
and (y) if applicable, by MSD or the Employer or the Qualifying Participant’s employer to
enforce post-termination covenants against the Qualifying Participant.

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4.   Definitions. For purposes of this Section 6.8:

     (a) “Protection Period” shall mean the period beginning on the date of the
Change in Control and ending on the second anniversary of the date of the Change in
Control; and

     (b) “Qualifying Participants” shall mean those individuals who participate in
the Plan (whether as current or former employees) as of immediately prior to the Change in
Control.

SECTION 7

GENERAL PROVISIONS

7.1 Unfunded Obligation - Separation Pay payable under this Plan and Outplacement Benefits
provided under this Plan shall constitute an unfunded obligation of the Employer. Payments
shall be made, as due, from the general funds of the Employer. This Plan shall constitute
solely an unsecured promise by the Employer to pay such benefits to Eligible Employees and
to Covered Employees to the extent provided herein. Participant contributions
are required for Separation Benefits. Separation Benefits under this Plan provide Covered
Employees with eligibility for continued medical, dental and life insurance coverage under
the applicable MSD plans and Schedule E and Schedule F of this Plan provide Eligible
Employees with eligibility for certain retirement benefits under the applicable MSD plans.
This Plan does not provide the substantive benefits under those plans.

7.2 Applicable Law — It is intended that the Plan be an “employee welfare benefit plan”
within the meaning of Section 3(1) of ERISA, and the Plan shall be administered in a manner
consistent with such intent. The Plan and all rights thereunder shall be governed and
construed in accordance with ERISA and, to the extent not preempted by federal law, with
the laws of the state of New Jersey, wherein venue shall lie for any dispute arising
hereunder.

7.3 Severability — If any provision of this Plan shall be held illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts of this Plan,
but this Plan shall be construed and enforced as if said illegal or invalid provision had
never been included herein.

7.4 Employment at Will — Nothing contained in this Plan shall give an employee the right to
be retained in the employment of the Employer or shall otherwise modify the employee’s at
will employment relationship with the Employer. This Plan is not a contract of employment
between the Employer and any employee.

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SCHEDULE A

In addition to Merck Sharp & Dohme Corp., the following employers participate in this Plan:

Merck and Company, Incorporated

Merck Holdings, Inc.

KBI Enterprises, Inc.

Rosetta Inpharmatics LLC.

Merck HDAC Research, LLC.

Abmaxis, Inc.

Glycofi, Inc.

Sirna Therapeutics, Inc.

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SCHEDULE B-1

Effective January 1, 2009

Separation Pay for Covered Employees whose Separation From Service occurs on or after

January 1, 2009 but on or before December 31, 2011

	 	 	For purposes of calculating Separation Pay:

	 	 	A “days pay” means the Covered Employee’s Annual Base Salary in effect on the date
the Covered Employee experiences a Separation in Service divided by 260. A “weeks
pay” means a “days pay” multiplied by five.

SEPARATION PAY

	 	 	 
	Grade Level	 	Separation Pay
	Non-Exempt
	 	2 weeks pay + an additional 2 weeks
	&
	 	pay per Complete Year of Continuous
	10-14
	 	Service.
	 
	 	Maximum of 78 weeks.
	 
	7-9
	 	4 weeks pay + an additional 2 weeks
	 
	 	pay per Complete Year of Continuous
	 
	 	Service.
	 
	 	Maximum of 78 weeks.
	 
	5-6
	 	12 weeks pay + an additional 2 weeks
	 
	 	pay per Complete Year of Continuous
	 
	 	Service.
	 
	 	Maximum of 78 weeks.
	 
	4
	 	12 weeks pay + an additional 2 weeks
	 
	 	pay per Complete Year of Continuous
	 
	 	Service.
	 
	 	Maximum of 78 weeks.
	 
	1-3
	 	26 weeks pay
	with less than 1 Complete Year of
Continuous Service
	 	 
	 
	1-3
	 	41 weeks pay
	with at least 1 Complete Year but
less than 2 complete years of
Continuous Service
	 	 
	 
	 	
	1-3
	 	41 weeks pay + an additional 2 weeks
	with at least 2 Complete Years of
	 	pay per Complete Year of Continuous
	Continuous Service
	 	Service
	
	 	Maximum of 78 weeks.

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SCHEDULE B-2

Effective January 1, 2009

Separation Pay for Covered Employees whose Separation From Service occurs on or after

January 1, 2012

	 	 	For purposes of calculating Separation Pay:

	 	 	A “days pay” means the Covered Employee’s Annual Base Salary in effect on the date
the Covered Employee experiences a Separation in Service divided by 260. A “weeks
pay” means a “days pay” multiplied by five.

SEPARATION PAY

	 	 	 
	Grade Level	 	Separation Pay
	Non-Exempt
	 	2 weeks pay + an additional 2 weeks pay per Complete Year of
	&
	 	Continuous Service.
	10-14
	 	Maximum of 52 weeks.
	 
	7-9
	 	3 weeks pay + an additional 2 weeks pay per Complete Year of
	 
	 	Continuous Service.
	 
	 	Maximum of 52 weeks.
	 
	5-6
	 	4 weeks pay + an additional 2 weeks pay per Complete Year of
	 
	 	Continuous Service.
	 
	 	Maximum of 52 weeks.
	 
	4
	 	12 weeks pay + an additional 2 weeks pay per Complete Year of
	 
	 	Continuous Service.
	 
	 	Maximum of 52 weeks.
	 
	1-3
	 	26 weeks pay + an additional 2 weeks pay per Complete Year of
	 
	 	Continuous Service
	 
	 	Maximum of 52 weeks.

sep bene plan/nonunion/revised 11-09

26

 

SCHEDULE C

INTENTIONALLY OMITTED

sep bene plan/nonunion/revised 11-09

27

 

SCHEDULE D

OUTPLACEMENT BENEFITS

	 	 	 	 	 
	GRADE LEVEL	 	PROGRAM NAME	 	DURATION
	Non-Exempt
	 	Individual Career Transition	 	•    2 Day Milestones Seminar

	&
	 	Seminar	 	•    Up to six (6) individual follow-up 

 consulting sessions

	10-14
	 	& Counseling
	 
	 	 	 	•    3 months access to Career Resource

	 
	 	 	 	     Network
	 
	 	 	 	 
	7-9
	 	Career Assistance Program	 	3 Months
	 
	 	 	 	 
	5-6
	 	Career Transition Service	 	6 Months
	 
	 	 	 	 
	4
	 	Executive Service	 	12 Months
	 
	 	 	 	 
	1-3
	 	Senior Executive Service	 	12 Months

The Outplacement Benefits are provided through a third party vendor. The programs listed above are
the programs in effect through the vendor engaged by MSD as of the October 1, 2010 to provide such
services. The vendor and/or the programs may change from time to time.

sep bene plan/nonunion/revised 11-09

28

 

SCHEDULE E (Change in Control/Pension)

Description of Change-in-Control Benefits under the

MSD Salaried Retirement Plan (the “Pension Plan”)

     This Schedule describes benefits under the Pension Plan and the Supplemental Plan
provided to an Eligible Employee under the Plan if such Eligible Employee signs and returns
the release of claims in use under the CIC Plan.

I. If an Eligible Employee’s employment is terminated in circumstances entitling him or her
to the benefits provided in Section 3(b) of the Plan:

     1. For an Eligible Employee who participates in the Pension Plan and on his or
her Separation Date is not at least age 55 with at least ten years of Credited
Service under the Pension Plan but would attain at least age 50 and have at least
ten years of Credited Service under the Pension Plan within two years following the
date of the Change in Control (assuming continued employment during the entirety of
such two-year period), then the Eligible Employee shall be deemed to be eligible
for a subsidized early retirement benefit under the Pension Plan commencing no
earlier than age 55 based on his or her Credited Service under the Pension Plan
accrued as of his or her Separation Date.

     2. For an Eligible Employee who participates in the Pension Plan and on his or
her Separation Date is not at least age 65 but would attain at least age 65 within
two years following the date of the Change in Control without regard to years of
Credited Service (assuming continued employment during the entirety of such
two-year period), then the Eligible Employee shall be deemed to be eligible for a
benefit unreduced for early commencement under the Pension Plan commencing as soon
after his or her Separation Date that he or she elects to commence to receive
benefits.

     3. For an Eligible Employee who participates in the Pension Plan and on his or her
Separation Date is not eligible for the “Rule of 85 Transition Benefit” (as such
term is defined in the Pension Plan) but would have been eligible for the Rule of
85 Transition Benefit within two years following the date of the Change in Control
(assuming continued employment during the entirety of such two-year period), then
the Eligible Employee shall be deemed to be eligible for the Rule of 85 Transition
Benefit upon commencement of his or her pension benefit under the Pension Plan.

II. The benefits described in this Schedule E shall be payable from the Pension Plan and,
to the extent that such benefits cannot be paid from the Pension Plan, MSD may, to the
extent it deems necessary or appropriate (including to comply with applicable law and to
preserve grandfathered status of arrangements subject to Section 409A of the Code), cause
such benefits to be paid under the Supplemental Plan or under new arrangements or from
MSD’s general assets.

sep bene plan/nonunion/revised 11-09

29

 

SCHEDULE F (Change in Control/Retiree Healthcare and Life Insurance)

Description of Change-in-Control Benefits under the MSD Medical Plan for Nonunion Employees
and the MSD Dental Plan for Nonunion Employees (which plans are part of the MSD Medical,
Dental and Long-Term Disability Program for Nonunion Employees) (the “Health Plan”) and the
MSD Group Term Life and Optional Insurance Plan (the “Life Insurance Plan”)

     This Schedule describes benefits under the Health Plan and the Life Insurance Plan
provided to an Eligible Employee under the Plan if such Eligible Employee signs and returns
the release of claims in use under the CIC Plan.

I. If an Eligible Employee’s employment is terminated in circumstances entitling him or her
to the benefits provided in Section 3(b) of the Plan:

          (1) If the Eligible Employee is eligible to participate in the Health Plan and on his
or her Separation Date is not at least age 55 with the requisite amount of service with an
Employer to satisfy the requirements to be considered a retiree under the Health Plan but
would attain at least age 50 and meet the service requirements to be considered a retiree
under the Health Plan within two years following the date of the Change in Control
(assuming continued employment during the entirety of such two-year period), then the
Eligible Employee shall be eligible for retiree healthcare benefits under the Health Plan
on his or her Separation Date on the same terms and conditions applicable to salaried
U.S.-based employees of the Employer whose employment terminated the last day of the month
prior to the Eligible Employee’s Separation Date who were treated as retirees under the
Health Plan as of that date.

          (2) If the Eligible Employee is eligible to participate in the Health Plan and on his
or her Separation Date is not either at least age 65 or at least age 55 with the requisite
amount of service with an Employer to satisfy the requirements to be considered a retiree
under the Life Insurance Plan but would attain at least age 65 or at least age 50 and meet
the service requirements to be considered a retiree under the Life Insurance Plan within
two years following the date of the Change in Control (assuming continued employment during
the entirety of such two-year period), then the Eligible Employee shall be eligible for
retiree life insurance benefits under the Life Insurance Plan on his or her Separation Date
on the same terms and conditions applicable to salaried U.S.-based employees of the
Employer whose employment terminated the last day of the month prior to the Eligible
Employee’s Separation Date who were treated as retirees under the Life Insurance Plan as of
that date.

II. MSD may, to the extent it deems necessary or appropriate (including to comply with
applicable law and to preserve grandfathered status of arrangements subject to Section 409A
of the Code), cause the benefits set forth in this Schedule F to be provided from insured
arrangements, or pursuant to new arrangements, individual arrangements or otherwise.

sep bene plan/nonunion/revised 11-09

30exv10w11

EXHIBIT 10.11

MSD

SPECIAL SEPARATION PROGRAM

FOR

“SEPARATED” EMPLOYEES

Eligible Employees: Employees of Merck Sharp & Dohme Corp. (and certain of its
subsidiaries) who are not subject to a collective bargaining agreement and:

(1) who experience a Separation From Service (as defined in the Separation Benefits Plan) on or
between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date are

	 	•	 	Less than age 49; or
	 
	 	•	 	At least age 49 but not yet age 64 with less than 9 years of Credited
Service

Effective Date: As of October 1, 2010

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

 

 

This document summarizes the benefits for which a “Separated Employee” may be eligible under
the Special Separation Program and other employee benefit plans and programs of Merck Sharp &
Dohme,Corp. (“MSD”). Unless otherwise noted below, the terms and conditions of MSD’s employee
benefit plans and programs applicable on an employee’s termination of employment from the Employer
are as described in the applicable sections of the current MSD Benefits Book (and applicable
summaries of material modification) previously provided to you or provided to you with this
Brochure, as such plans and programs (and the applicable sections of the MSD Benefits Book) may be
amended from time to time. (A copy of the applicable sections of the MSD Benefits Book (and
applicable summaries of material modification) can be obtained on
line at http://hr.merck.com or
www.merck.com/benefits or by calling the Merck Benefits Service Center at 1-800-666-3725).
However, to the extent that the terms below differ from those described in the applicable sections
of the current MSD Benefits Book (and applicable summaries of material modification), this
communication constitutes a summary of material modifications and should be kept with that book.

“Separated Employees” are certain nonunionized employees of the Employer

(1) who experience a Separation From Service (as that term is defined in the Separation
Benefits Plan) on or between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date, is:

	 	•	 	Less than age 49 or
	 
	 	•	 	At least age 49 but not yet age 64 with less than nine years of Credited
Service

Separated Employees are only those employees who are designated by MSD as “Separated Employees.”
“Separated Employees” do not include employees who terminate employment in any way that does not
constitute a Separation From Service as determined by MSD, including employees who resign for any
reason. Benefits described in this Brochure only apply to Separated Employees and do not apply to
any other employees of Merck or its subsidiaries or affiliates, including the Employer.

If you have been designated as a Separated Employee, MSD will provide you with a separation letter
(the “Separation Letter”) that will describe the Special Separation Program benefits for which you
are eligible and include a release of legal claims against Merck and its subsidiaries and
affiliates, including the Employer, and may also include other terms, such as non-solicitation and
non-competition provisions, as MSD in its sole discretion decides to include. In order to receive
the benefits under the Special Separation Program, you must sign and return the Separation Letter
by the date stated in the letter (the “Separation Letter Return Date”) and, if a revocation period
is applicable to you, not revoke the letter within the revocation period.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

2

 

Special Separation Program

All benefits under this Special Separation Program are contingent upon the Separated Employee
signing (and, if a revocation period is applicable, not revoking) the Separation Letter. They
consist of:

	 	•	 	Separation Pay
	 
	 	•	 	Outplacement Services
	 
	 	•	 	Eligibility for continued medical, dental and life insurance benefits
	 
	 	•	 	Eligibility for a special payment in lieu of an AIP/EIP bonus for the performance year
in which his or her Separation Date occurs if his or her Separation Date occurs after June
30 and on or before December 31 of that performance year

Separation Pay, Outplacement Benefits and continued medical, dental and life insurance benefits are
described in the Separation Plan SPD distributed with this Brochure.

This Brochure describes the following:

	 	•	 	the benefits for those Separated Employees who do not sign, or who sign and, if a
revocation period is applicable to them, later revoke, the Separation Letter; and

	 	•	 	the terms and conditions of certain MSD benefit plans and programs as they apply to any
separated employee without regard to whether they sign the Separation Letter.

Medical (including Prescription Drug) and Dental

Medical (including Prescription Drug) and Dental — If You Do Not Sign the Separation Letter

If you do not sign the Separation Letter (or if a revocation period is applicable to you, you
revoke the Separation Letter), your medical and dental coverage options in effect on your
Separation Date will continue under MSD’s medical and dental plans (as they may be amended from
time to time) until the end of the month in which your Separation Date occurs. At the end of that
period, you will be eligible to elect to continue your coverage in accordance with COBRA for up to
18 months from your Separation Date. If you have no medical and/or dental coverage under MSD’s
medical and dental plans on your Separation Date, you will not have medical and/or dental coverage,
as applicable, after your Separation Date nor will you be eligible to elect such coverage under
COBRA.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

3

 

Special Separation Program — Medical (including Prescription Drug) and Dental — If You Sign
the Separation Letter

Under the Special Separation Program, if you sign the Separation Letter (and if a revocation period
is applicable to you, do not revoke the Separation Letter), you will be eligible to continue
medical and dental coverage under MSD’s plans (as they may be amended from time to time) for the
Separation Pay Period as more fully described in the Separation Plan SPD. If the Separation Pay
Period is less than six months, you may continue medical and dental coverage for six months. Your
contributions to continue such coverage will be the same as the contributions for active employees,
as they may change from time to time and will be payable to MSD (or its designee) in the time and
manner specified by MSD from time to time. If you do not pay the required contributions to MSD (or
its designee) in the time and manner specified by MSD from time to time, your coverage will be
terminated and it will not be reinstated. Provided you have paid the required contributions to
continue coverage, at the end of the Separation Pay Period or, if the Separation Pay Period is less
than 6 months, at the end of the 6-month period during which medical and dental coverages are
provided, you may elect to continue your coverage in accordance with COBRA for up to an additional
18 months.

Continuation of medical and dental coverages under the Special Separation Program is subject to the
early forfeiture provisions described in the Separation Plan SPD.

Life Insurance

Whether or not you sign the Separation Letter, your accidental death and dismemberment
coverage ends on your Separation Date. In addition, a full month’s premium for your life insurance
coverage in effect on your Separation Date may be deducted from your paycheck for the month in
which your Separation Date occurs.

Life Insurance — If You Do Not Sign the Separation Letter

If your Separation Date Occurs before December 31, 2010. If your Separation Date occurs before
December 31, 2010 and you do not sign the Separation Letter (or if a revocation period is
applicable to you, you revoke the Separation Letter), your basic and optional employee group term
life, dependent life, and survivor income protection will continue for 31 days after your
Separation Date. After this 31-day period you may elect to continue these coverages at the level
in effect on your Separation Date under MSD’s Life Insurance Plan (as it may be amended from time
to time). You may continue these coverages at your cost for up to the earlier of 30 months from
your Separation Date or age 65. If you wish to continue your survivor income protection and/or
your dependent life coverage, you must continue your

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

4

 

employee group term life (basic and optional). Please note that if you have “old format” basic
life insurance and/or survivor income coverage in effect on December 31, 2010, that coverage will
terminate at midnight on that date and an amount of coverage will map to an amount of optional life
insurance effective January 1, 2011, which amount will be added to your then current optional life
insurance. See your annual enrollment communications for 2011 for more information on coverage
mapping. To continue your life insurance coverage(s) you must contact the Merck Benefits Service
Center (1-800-666-3725) within 31 days after your Separation Letter Return Date and you must pay
the applicable premium in the time and manner specified by MSD. If you fail to pay the premium in
the time and manner specified by MSD, your coverage(s) will be terminated and will not be
reinstated. If you are interested in continuing your coverage(s), contact the Merck Benefits
Service Center (1-800-666-3725) for more information.

If your Separation Date Occurs on or after December 31, 2010. If your Separation Date occurs on or
after December 31, 2010 and you do not sign the Separation Letter (or if a revocation period is
applicable to you, you revoke the Separation Letter), your basic group term life insurance equal to
1x base pay will continue for 31 days after your Separation Date. During this 31-day period you
may elect to convert this coverage to an individual policy with Prudential, subject to certain
limitations. Contact the Merck Benefits Service Center (1-800-666-3725) or Prudential for more
information.

If your Separation Date occurs on or after December 31, 2010 whether or not you sign the Separation
Letter, your optional group term life insurance (including any amount of “old format” basic life
and/or survivor income protection coverage that is mapped to your optional life insurance coverage
effective January 1, 2011 as described in the annual enrollment communications for 2011) and
dependent life insurance will continue for 31 days after your Separation Date. During this 31-day
period you may elect to convert or port this coverage to an individual policy with Prudential,
subject to certain limitations. Contact the Merck Benefits Service Center (1-800-666-3725) or
Prudential for more information.

Special Separation Program — Life Insurance — If You Sign the Separation Letter

If your Separation Date Occurs before December 31, 2010. Under the Special Separation Program, if
your Separation Date occurs before December 31, 2010 and you sign the Separation Letter (and if a
revocation period is applicable to you, do not revoke the Separation Letter), your basic employee
group term life insurance coverage will continue under MSD’s Life Insurance Plan (as it may be
amended from time to time) until the earlier of (i) last day of the month in which the Separation
Pay Period ends, or, if the Separation Pay Period is less than 6 months, then for 6 months
beginning on the first of the

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

5

 

month coincident with or following your Separation Date as more fully described in the
Separation Plan SPD, or (ii) age 65. If your basic employee group term life coverage is under the
“Old Format” (that is, equal to 2x base pay with the 1st $20,000 company-paid and the
remainder up to 2x base pay employee-paid at .25/1,000), prior to January 1, 2011 your
contributions to continue such coverage will be the same as the contributions for active employees,
as they may change from time to time and will be payable to MSD (or its designee) in the time and
manner specified by MSD from time to time. Prior to January 1, 2011, if you do not pay the
required contributions to MSD (or its designee) in the time and manner specified by MSD from time
to time, your coverage will default to “New Format” (that is 1x base pay). No contributions are
required if your basic employee group term life coverage is under the “New Format” (that is 1x base
pay). If you continue to be covered under “Old Format” coverage as of December 31, 2010, then you
will be mapped effective January 1, 2011 to company-paid basic life insurance equal to 1x base pay
and employee-paid optional coverage of 1x base pay which will be added to your then current
optional life insurance, if any (see the annual enrollment communications for 2011 for more
information on coverage mapping). Continuation of basic life insurance under the Special Separation
Program is subject to the early forfeiture provisions described in the Separation Plan SPD.

If you sign the Separation Letter (and if a revocation period is applicable to you, do not revoke
the Separation Letter) and your basic life insurance continues, you may also continue optional term
life, dependent life and survivor income protection at your cost for up to the earlier of 30 months
from your Separation Date or age 65. If you wish to continue your survivor income protection and/or
your dependent life coverage, you must continue your optional employee group term life. Please note
that if you have “old format” basic life insurance and/or survivor income coverage in effect on
December 31, 2010, that coverage will terminate at midnight on that date and an amount of coverage
will map to an amount of optional life insurance effective January 1, 2011, which amount will be
added to your then current optional life insurance. See your annual enrollment communications for
2011 for more information on coverage mapping. To continue your optional life insurance coverage(s)
you must contact the Merck Benefits Service Center (1-800-666-3725) within 31 days after your
Separation Letter Return Date and you must pay the applicable premium in the time and manner
specified by MSD. If you fail to pay the premium in the time and manner specified by MSD, your
optional coverage(s) will be terminated and they will not be reinstated. If you are interested in
continuing your optional coverage(s), contact the Merck Benefits Service Center (1-800-666-3725)
for more information. After the Separation Pay Period, you may continue your basic employee group
term life coverage at your cost for the remainder of the period ending at the earlier of the
expiration of the 30-month period from your Separation Date or age 65. At that time, if you are
interested in continuing your basic life coverage, you must contact the Merck Benefits Service
Center (1-800-666-3725).

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

6

 

If your basic life insurance ends as a result of the early forfeiture provisions of the
Separation Benefits Plan, you will not be allowed to continue your optional coverages under the
30-month continuation provisions. See the life insurance section of the MSD Benefits Book (and
applicable summaries of material modification) for description of conversion rights.

If your Separation Date Occurs on or after December 31, 2010. Under the Special Separation
Program, if your Separation Date occurs on or after December 31, 2010 and you sign the Separation
Letter (and if a revocation period is applicable to you, do not revoke the Separation Letter), your
basic employee group term life insurance coverage equal to 1x base pay will continue at no cost to
you under MSD’s Life Insurance Plan (as it may be amended from time to time) until the earlier of
(i) last day of the month in which the Separation Pay Period ends, or, if the Separation Pay Period
is less than 6 months, then for 6 months beginning on the first of the month coincident with or
following your Separation Date as more fully described in the Separation Plan SPD, or (ii) age 65.
Continuation of basic life insurance under the Special Separation Program is subject to the early
forfeiture provisions described in the Separation Plan SPD.

If your Separation Date occurs on or after December 31, 2010 whether or not you sign the Separation
Letter, your optional group term life insurance (including any amount of “old format” and/or
survivor income protection coverage that is mapped to your optional life insurance coverage
effective January 1, 2011 as described in the annual enrollment communications for 2011) and
dependent life insurance will continue for 31 days after your Separation Date. During this 31-day
period you may elect to convert or port this coverage to an individual policy with Prudential,
subject to certain limitations. Contact the Merck Benefits Service Center (1-800-666-3725) or
Prudential for more information.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

7

 

The chart below is provided for your convenience to compare the medical, dental and life insurance
benefits offered under the Special Separation Program to the normal plan provisions.

	 	 	 	 	 
	 	 	 	 	Special Separation
	 	 	 	 	Program (if sign
	 	 	Regular Plan Provisions	 	letter)
	Medical, Dental, Prescription 

Drug

	 	Benefits continue
to the end of the
month in which your
Separation Date
occurs; eligible for
COBRA afterward
	 	Benefits continue
to the end of the
month in which the
Separation Pay
Period ends (or a
minimum of 6
months), provided
you pay the
applicable employee
contributions in
the time and manner
specified by MSD
(or its designee);
eligible for COBRA
afterward
	 
	 	 	 	 
	Basic Employee Term Life
Insurance (New Format-maximum
1x base pay; Prior to January
1, 2011, Old Format -2x base
pay)

	 	If your Separation
Date occurs before
December 31, 2010

•     coverage at
level in effect on
Separation Date
continues for 31 days,
provided “old format”
coverage is reduced to
1x base pay due to
mapping of “old
format” coverage
effective January 1,
2011 as described in
annual enrollment
materials for 2011;
and

•     you may elect
to continue coverage
for up to 30 months
(but not beyond age
65) from your
Separation Date at
your cost under the
Merck Life Insurance
Plan.

If your Separation
Date occurs on or
after December 31,
2010, coverage equal
to 1x base pay
continues for 31 days.

In either event, you
may be eligible to
convert to an
individual policy with
Prudential after
coverage under the
Merck Life Insurance
Plan ends.

	 	Coverage under the
Merck Life
Insurance Plan
continues to the
end of the month in
which the
Separation Pay
Period ends (or a
minimum of 6
months) (but not
beyond age 65),
provided you pay
the applicable
employee
contributions in
the time and manner
specified by MSD
(or its designee)
for “old format”
coverage prior to
January 1, 2011 and
subject to mapping
of “old format”
coverage effective
January 1, 2011 as
described in annual
enrollment
materials for 2011.

If your Separation
Date occurs before
December 31, 2010,
you may elect to continue
coverage
under the Merck
Life Insurance Plan
for the balance of
up to 30 months
(but not beyond age
65) from your
Separation Date at
your cost.

You may be eligible
to convert to an
individual policy
with Prudential
after coverage
under the Merck
Life Insurance Plan
ends.
	 
	 	 	 	 
	Optional Employee Group
Term Life, Dependent Life and
prior to January 1, 2011,
Survivor Income

	 	Coverage at level
in effect on your
Separation Date
continues for 31 days,
subject to mapping of
“old format” and
survivor income
coverage effective
January 1, 2011 as
described in annual
enrollment materials
for 2011.

If your Separation
Date occurs before
December 31, 2010, you
may elect to continue
coverage for up to 30
months (but not beyond
age 65) from your
Separation Date at
your cost under the
Merck Life Insurance
Plan 

You may be eligible to
convert or port to an
individual policy with
Prudential after
coverage under the
Merck Life Insurance
Plan ends.
	 	Coverage at level
in effect on your
Separation Date
continues for 31
days, subject to
mapping of “old
format” and
survivor income
coverage effective
January 1, 2011 as
described in annual
enrollment
materials for 2011

If your Separation
Date occurs before
December 31, 2010,
you may elect to
continue coverage
for up to 30 months
(but not beyond age
65) from your
Separation Date at
your cost under the
Merck Life
Insurance Plan

You may be eligible
to convert or port
to an individual
policy with
Prudential after
coverage under the
Merck Life
Insurance Plan
ends.
	 
	 	 	 	 
	AD&D

	 	No coverage
	 	No coverage

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

8

 

Annual Incentive Program/Executive Incentive Program (“AIP/EIP”)—

As described in more detail below, payment of bonuses, or a special payment in lieu of a bonus,
depends on when a Separated Employee’s Separation Date occurs during a performance year. Actual
AIP/EIP bonuses with respect to the performance year immediately preceding the Separated Employee’s
Separation Date may be paid to employees whose employment terminates between January 1 and the time
AIP/EIP bonuses are paid for that year to other employees. No AIP/EIP or special payment in lieu
of a bonus with respect to the performance year in which the Separation Date occurs is payable for
any employee separated January 1 through June 30, inclusive. A special payment in lieu of a bonus
is payable under this program with respect to the performance year in which the Separation Date
occurs only for employees whose Separation Dates occur on or after July 1 and on or before December
31 of that performance year. For executives who are listed in the Summary Compensation Table for
the most recent proxy materials issued by Merck in connection with the annual meeting of
shareholders, the amount of payment in lieu of EIP award, if any, will be guided by the following
principles, but Merck retains complete discretion to pay more, or less, than those amounts. The
Employer reserves the right to treat the payment of AIP/EIP bonuses and/or the special payments in
lieu of AIP/EIP bonuses as supplemental wages subject to flat-rate withholding (that is, not taking
into account any exemptions).

If
Your Separation Date occurs between January 1 and prior to the time
AIP/EIP bonuses are paid for the prior performance year

If your Separation Date occurs on or after January 1 and prior to the day AIP/EIP bonuses for the
prior performance year are paid to other MSD employees, you will be eligible for consideration for
an AIP/EIP bonus with respect to the prior complete performance year on the same terms and
conditions as other MSD employees. Provided you are in a class of employees eligible for an
AIP/EIP, your AIP/EIP bonus, if any, will be paid to you at the same time AIP/EIP bonuses are paid
to other MSD employees or will be deferred in accordance with your applicable deferral election for
that AIP/EIP performance year, as applicable. Eligibility for consideration for AIP/EIP bonus is
not contingent upon your signing the Separation Letter. You will not be eligible for any AIP/EIP
or payment in lieu of an AIP/EIP for the performance year in which your Separation Date occurs.

If
Your Separation Date occurs between the time AIP/EIP bonuses for the prior performance year are paid and June 30

If your Separation Date occurs after AIP/EIP bonuses for the prior performance year are paid
to other MSD employees and on or before June 30, you will not be eligible for consideration for an
AIP/EIP bonus or the special in lieu of bonus payment described below whether or not you sign the
Separation Letter.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

9

 

If Your Separation Date occurs after June 30 and on or before December 31

If your Separation Date occurs after June 30 and on or before December 31, a special payment in
lieu of an AIP/EIP with respect to the performance year in which your Separation Date occurs may be
paid only if you sign (and, if a revocation period is applicable to you, do not revoke) the
Separation Letter. The special payment, if any, will be calculated based on the target bonus
applicable to you under the Annual Incentive Program/Executive Incentive Program with respect to
the current performance year and the number of full and partial months you worked in the current
performance year and is subject to adjustment by Merck in its sole discretion based on a variety of
factors, including but not limited to your documented poor or extraordinary performance in the
current performance year. If you receive a special payment in lieu of an AIP/EIP bonus, it will be
paid to you (less applicable withholding) as soon as administratively feasible following your
Separation Date. However, if you elected to defer your AIP/EIP bonus, that election will apply to
payments made in lieu of AIP/EIP bonus.

OTHER BENEFITS AND PROGRAMS

Stock Options, Restricted Stock Units and Performance Stock Units

Only employees may receive incentives under Merck’s incentive stock plans, including stock options,
restricted stock units (“RSUs”) or performance stock units (“PSUs”); therefore, you will not be
eligible to receive any grants after your Separation Date.

Outstanding Stock Options, RSUs and PSUs

Whether you sign the Separation Letter or not, the separation provisions applicable to stock
options, RSUs and PSUs will apply to any outstanding incentives you hold on your Separation Date
that were granted to you before 2010; the sale/involuntary termination provisions applicable to
stock options, RSUs and PSUs will apply to any outstanding incentives you hold on your Separation
Date that were granted to you after 2009. Provisions may differ based on the grants. IT IS YOUR REPSONSIBILITY TO FAMILIARIZE YOURSELF WITH THE TERMS OF
INDIVIDUAL GRANTS.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

10

 

Stock Options (separation/sale/involuntary termination terms)
Generally, for outstanding annual and quarterly stock option grants made prior to 2001, the terms
are:

Vested options will expire upon the earlier of (i) the day before the one-year anniversary
of your Separation Date or (ii) the original 10-year expiration date.

Generally, for outstanding annual and quarterly stock option grants made in 2001 through 2009:

	 	 	 	Unvested options will vest on the Separation Date. You will then have two years to
exercise them and previously vested grants. All outstanding vested options—including those
previously vested—will expire on the day before the second anniversary of your Separation
Date (or their original expiration date, if earlier).

Generally, for outstanding annual and quarterly stock option grants made during 2010 and
thereafter, terms differ depending on whether your employment terminated due to the sale of your
division or otherwise in an involuntary termination:

	 	•	 	If your employment is terminated due to the sale of your subsidiary, division or
joint venture, options that would have become exercisable within one year of your
Separation Date will be exercisable on your Separation Date and all others immediately
expire. All unexercised options will expire on the day before the first anniversary
of your Separation Date (or their original expiration date, if earlier).
	 
	 	•	 	If your employment terminates due to an other involuntary termination, options that
are unvested on your Separation date will expire on your Separation Date. Options
that are exercisable on your Separation Date will expire on the day before the first
anniversary of your Separation Date (or their original expiration date, if earlier).

Key R&D, MRL and MMD new hire stock option grants and other stock option grants may have different
terms. See the term sheets applicable to such stock option grants.

If on your Separation Date your then outstanding equity is treated as described above and you are
rehired,

	 	•	 	stock options granted before 2010 that are unexercised and outstanding on your rehire
date will be reinstated to active status as if your employment had not been interrupted,
and
	 
	 	•	 	stock options granted during 2010 and thereafter that are unexercised and outstanding
on your rehire date will continue to be treated as described above.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

11

 

RSUs (separation/sale/involuntary termination terms)

For RSUs
granted before 1/1/2011, under the separation provisions of the RSUs, a pro rata portion of
your annual grants of restricted stock units, if any, generally will vest and become distributable
at the same time as if your employment had continued; the remainder of the grant will expire on
your Separation Date. Different terms may apply to RSUs that were not granted as part of the
annual RSU grants. See the term sheets applicable to RSUs granted to you, if any.

For each annual and quarterly RSU grant made on or after 1/1/2010, terms differ depending on
whether your employment terminated due to the sale of your division or otherwise in an involuntary
termination.

If your employment is terminated due to the sale of your subsidiary, division or joint venture, the
following portion of your RSU awards and accrued dividends, if any, will be distributed at the time
distributed to active employees: one-third if your Separation Date is on or after the grant date
but before the first anniversary of the grant date; two-thirds if your Separation Date is on or
after the first anniversary of the grant date but before the second anniversary of the grant date;
and all if your Separation Date is on or after the second anniversary of the grant date.

If your employment terminates in an other involuntary termination and your Separation Date occurs

	 	•	 	On or after the first anniversary of the RSU grant date, a pro rata portion of your RSU
grant generally will vest and become distributable to you (together with any applicable
accrued dividend equivalents) at the same time as if your employment had continued; the
remainder of the grant will expire on your Separation Date; or

	 	•	 	before the first anniversary of the RSU grant date, the entire grant (together with any
applicable accrued dividend equivalents) will expire on your Separation Date.

See the term sheets applicable to RSUs granted to you, if any.

PSUs (separation/sale/involuntary termination terms)

For PSUs granted before 1/1/2010, under the separation provisions of the PSUs, a pro rata portion
of your annual grant of performance share units will be payable, if at all, when the distribution
with respect to the applicable performance year is made to active employees. See the term sheets applicable to PSUs granted to you, if any.

For each PSU granted on or after 1/1/2010, terms differ depending on whether your employment
terminated due to the sale of your division or otherwise in an involuntary termination.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

12

 

If your employment is terminated due to the sale of your subsidiary, division or joint venture, the
following portion of your PSU awards will be distributed at the time distributed to active
employees, based on actual performance: one-third if your Separation Date is on or after the grant
date but before the first anniversary of the grant date; two-thirds if your Separation Date is on
or after the first anniversary of the grant date but before the second anniversary of the grant
date; and all if your Separation Date is on or after the second anniversary of the grant date.

If your employment terminates in an other involuntary termination and your Separation Date occurs

	 	•	 	on or after the first anniversary of the PSU grant date, a pro rata portion of your PSU
grant generally will vest and become distributable to you at the same time as if your
employment had continued and based on actual performance; the remainder of the grant will
expire on your Separation Date; or
	 
	 	•	 	before the first anniversary of the PSU grant date, the entire grant will expire on
your Separation Date.

	See the term sheets applicable to PSUs granted to you, if any.

If you have any question about your stock options, RSUs or PSUs, you can call the Support Center at
1-866-MERCK-HD (1-866-637-2543).

* * *

The following describes the terms and conditions of certain MSD benefit plans and programs as
they apply to employees whose employment with the Employer terminates for any reason. For
additional information, see the applicable sections of the current MSD Benefits Book (and
applicable summaries of material modification).

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

13

 

Dependent Care Reimbursement Account

Your participation in the Dependent Care Reimbursement Account (“DCRA”) ends on your Separation
Date. Eligible expenses incurred throughout the calendar year in which your Separation Date occurs
(even after employment with the Employer ends) can be reimbursed but only up to the amount actually
contributed to the account. Claims for those expenses must be submitted to Horizon Blue Cross Blue
Shield by April 15th of the year following the year in which your Separation Date
occurs. Amounts remaining in the account after all eligible expenses have been paid will be
forfeited.

Financial Planning

Your company-paid financial planning benefit will continue through the end of the calendar year in
which your Separation Date occurs.

Flexible Benefits Program

The Flexible Benefits Program consists of the following MSD plans and programs: medical, dental,
vision, health care and dependent care reimbursement accounts, life insurance (including basic and
optional term life, dependent term life, accidental death and dismemberment and prior to January 1,
2011, survivor income protection), long term care and long term disability. Your participation in
these plans ends as described elsewhere in this communication. However, a full month of
contribution/premium for your coverage under these plans in effect on your Separation Date may be
deducted from your paycheck for the month in which your Separation Date occurs.

Health Care Reimbursement Account

Your participation in the Health Care Reimbursement Account (“HCRA”) ends on your Separation Date,
unless you elect to continue to participate in accordance with COBRA for the remainder of the
calendar year in which your Separation Date occurs. If you elect to continue participation in HCRA
under COBRA, you must make your required contributions on an after-tax basis. Eligible expenses
incurred while you participate in HCRA during the calendar year in which your Separation Date
occurs can be reimbursed up to your entire elected amount. Claims incurred after your
participation in HCRA ends cannot be reimbursed, no matter how much money is left in the account.
Claims for expenses incurred during the calendar year in which your Separation Date occurs and
while you are a participant in HCRA must be submitted to Horizon Blue Cross Blue Shield by April 15
of the year following the year in which your Separation Date occurs. Amounts remaining in the
account after all eligible expenses have been paid will be forfeited.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

14

 

Long Term Care

If you elected coverage under MSD’s Long Term Care Plan for you (or your spouse or same-sex
domestic partner), that coverage will end on your Separation Date. However, if you want to
continue coverage without interruption, you must contact CNA (the insurer) and pay your first
quarterly premium to CNA within 31 days after the last day of the month in which your Separation
Date occurs. For more information (and to request the necessary forms) contact CNA directly at
1-800-528-4582.

Long Term Disability

Your participation in the Long Term Disability Plan will end on the last day of the month in which
your Separation Date occurs. In other words, you must have satisfied the 26-week eligibility
period by the end of the month that includes your Separation Date to be eligible for LTD benefits.
If you are disabled and receiving income replacement benefits under the Long Term Disability Plan
on your Separation Date, those benefits will continue in accordance with the terms of the Long Term
Disability Plan. However, Separation Pay paid by the Employer under the Special Separation Program
will act as an offset from benefits payable under the Long Term Disability Plan (meaning the LTD
benefits will be reduced by Separation Pay).

Pension

If you have at least 5 years of Vesting Service (as that term is defined in the Retirement Plan) as
of your Separation Date, you will be a “terminated vested” participant in the Retirement Plan.
This means that your employment will have terminated before you were eligible to “retire” from
active service with the Employer (generally, age 55 with at least 10 years of Credited Service (as
that term is defined in the Retirement Plan)) and that you have a “vested” pension under the
Retirement Plan.

If you are a “terminated vested” participant, your benefits under the Retirement Plan must
begin no later than the first day of the month following age 65 after your employment terminates.
However, you can start receiving a reduced benefit on the first day of any month after you reach
age 55. The early payment reduction for a “terminated vested” participant is an “actuarial”
reduction. That is, your life expectancy and certain other actuarial assumptions are used in
calculating the reduction amount. You should expect this to reduce your benefits substantially
because by commencing your benefit early, you receive benefits earlier and for a longer period. A
table illustrating examples of actuarial reductions from the age 65 benefit and a more detailed
explanation of the benefits for “terminated vested” participants can be found in the Salaried
Retirement Plan section of the current MSD Benefits Book (and applicable summaries of material
modification). If you do not have at least 5 years of

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

15

 

Vesting Service as of your Separation Date, you will not be eligible for a benefit under the
Retirement Plan.

After you leave the Employer, if you are entitled to a vested benefit from the Retirement Plan,
you’ll receive a statement that will tell you what your life income will be at age 65. This will
be sent to you within approximately one year from your Separation Date. If any portion of your
benefit is from a different plan, such as the Retirement Plan for Hourly Employees of MSD, there is
an offset which reduces the benefit from the Retirement Plan. The aggregate lump sum benefit
payable from two different plans generally differs slightly from a lump sum payable from only one
plan (especially if different interest rate methodologies apply).

Payments not Compensation for Retirement Plan. Separation Pay is not compensation for Retirement
Plan purposes. A bonus or the special payment, if any, in lieu of an AIP/EIP bonus paid after your
Separation Date is also not compensation for Retirement Plan purposes.

Sales Incentive Plan

If you are a participant in a sales incentive plan of Merck or its subsidiaries, including the
Employer, on your Separation Date, your eligibility to be paid a bonus, if any, will be determined
under the terms and conditions of the plan in which you are a participant.

Savings Plan

Any Separation Pay you receive under the Special Separation Program is not Base Pay and may not be
contributed to the Savings Plan. A pro-rata deduction will be made to the Savings Plan based on
the percentage of your monthly base pay you receive for the month in which your Separation Date
occurs. If you have a plan loan and do not repay it within 45 days of your Separation Date, the
loan will be declared in default and reported as a taxable distribution to the Internal Revenue
Service.

You generally may receive a final distribution from the Savings Plan at any time after your
Separation Date. However, if your account balance is $5,000 or less, your account balance
automatically will be distributed to you soon after your Separation Date. If, upon reaching age
65, you have not previously elected to receive your benefits, your account balance will be
distributed to you without regard to its amount. Review the information in the Salaried Savings
Plan section of the current MSD Benefits Book (and applicable summaries of material modification)
for additional information on Receiving a Final Distribution.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

16

 

Short Term Disability

Subject to applicable state law, your participation in the Short Term Disability Plan ends on your
Separation Date. If you are disabled and are receiving income replacement benefits under the Short
Term Disability Plan on your Separation Date, those benefits will continue in accordance with the
terms of the plan. However, subject to state law, Separation Pay paid by the Employer under the
Special Separation Program will act as an offset from benefits payable under the Short Term
Disability Plan (meaning the STD benefits will be reduced by Separation Pay). Where state law does
not permit such offsets to be made to STD benefits (or where MSD in its sole and absolute
discretion determines it is easier for the Employer to administer), STD benefits will instead act
as an offset from Separation Pay paid (or payable) by the Employer under the Special Separation
Program (meaning Separation Pay will be reduced by the STD benefits).

Travel Accident

Your coverage under the Travel Accident Insurance Plan ends on your Separation Date.

Vacation Pay

You will be paid for any amount of vacation that you have accrued but not used as of your
Separation Date. Conversely, you must reimburse MSD for any vacation you used prior to your
Separation Date that you had not earned as of your Separation Date. Any such amounts to be
reimbursed may be deducted from Separation Pay paid pursuant to the Separation Benefits Plan.

Vision

Coverage under the Vision Plan ends on the last day of the month in which your Separation Date
occurs. You will be given the opportunity to continue this benefit in accordance with COBRA for up
to 18 months from your Separation Date by paying the required premiums.

* * *

The Special Separation Program described here currently is scheduled to be in effect for
Separations From Service that occur from January 1, 2009 through December 31, 2011. MSD retains
the right (to the extent permitted by law) to amend or terminate the Special Separation Program and
any benefit or plan described in this brochure (or otherwise) at any time. However, following a
“change in control” of Merck (as defined in the Merck & Co., Inc. Change in Control Separation
Benefits Plan, as it may be

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

17

 

amended from time to time), certain limitations apply to MSD’s ability to amend or terminate this
and other benefit plans.

While it has no current intention to do so, MSD also may extend, decrease or enhance, the Special
Separation Program in the future. If you sign and return the Separation Letter by the Separation
Letter Return Date, any later amendment or termination will not decrease or increase the amount of
Separation Pay you are eligible to receive under the Special Separation Program.

Notwithstanding anything in the Special Separation Program to the contrary, benefits under the
Program that are subject to Section 409A of the Internal Revenue Code of 1986, as amended, will be
adjusted to avoid the excise tax under Section 409A. MSD will take any and all steps it determines
are necessary, in its sole and absolute discretion, to adjust benefits under the Special Separation
Program to avoid the excise tax under Section 409A, including but not limited to, reducing or
eliminating benefits, changing the time or form of payment of benefits, etc.

Payments made on account of separation from service are limited during the six months following the
termination of employment of a “Specified Employee” as defined in Treas. Reg. Sec. 1.409A-1(i) or
any successor thereto, which in general includes the top 50 employees of a company ranked by
compensation. Notwithstanding anything contained in the Special Separation Program to the
contrary, if a Covered Employee is a “Specified Employee” on his or her Separation Date, to the
extent required by Section 409A of the Internal Revenue Code of 1986, as amended, no payments will
be made during the six-month period following termination of employment. Instead, amounts that
would otherwise have been paid during that six-month period will be accumulated and paid, without
interest, as soon as administratively feasible following the end of such six-month period after
termination of employment.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

18

 

Glossary of Definitions

As used in this document, the following terms have the following meanings.

“Basic Employee Group Term Life Coverage” is (i) prior to January 1, 2011, 1x base pay for those
who are considered New Format and 2x base pay (with the 1st $20,000 company-paid and the
remainder up to 2x base pay employee paid at .25/1,000) for those who are considered Old Format and
(ii) on and after January 1, 2011, 1x base pay.

“Credited Service” is as defined in the Retirement Plan.

“Employer” means individually and collectively, Merck Sharp & Dohme Corp., Merck Holdings, Inc.,
Merck and Company Incorporated, KBI Enterprises, Inc., Rosetta Inpharmatics LLC, Merck HDAC
Research, LLC, Abmaxis, Inc., Glycofi, Inc. and Sirna Therapeutics, Inc.

“Merck” means Merck & Co., Inc., ultimate parent of Merck Sharp & Dohme Corp.

“MSD” means Merck Sharp & Dohme Corp.

“MSD Benefits Book” means summary plan descriptions of various employee benefit plans sponsored by
MSD (formerly known as the Merck Benefits Book).

“Retirement Plan” means the Retirement Plan for Salaried Employees of MSD.

“Separation Benefits Plan” means the MSD Separation Benefits Plan for Nonunion Employees

“Separation Date” means a Separated Employee’s last day of employment with the Employer.

“Separated Employees” are certain nonunionized employees of the Employer

(1) who experience a Separation From Service (as that term is defined in the Separation
Benefits Plan) on or between January 1, 2009 through December 31, 2011; and

(2) who, as of their Separation Date, is:

	 	•	 	Less than age 49 or
	 
	 	•	 	At least age 49 but not yet age 64 with less than nine years of Credited
Service

Separated Employees are only those employees who are designated by MSD as “Separated Employees.”
“Separated Employees” do not include employees who terminate employment in any way that does not
constitute a Separation From Service as determined by MSD, including employees who resign for any
reason.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

19

 

“Separation Letter” means the MSD-provided letter that will describe the Special Separation Program
benefits and include a release of claims against Merck and its subsidiaries and affiliates,
including the Employer and may include such other terms such as non-solicitation and
non-competition provisions, as MSD determines.

“Separation Letter Return Date” is the date stated in the Separation Letter by which Separated
Employees must sign and return it to MSD.

“Separation Pay Period” is the number of full or partial workweeks for which a Separated Employee
is being paid Separation Pay.

“Special Separation Program” means the separation benefits that Separated Employees receive if they
sign (and, if a revocation period is applicable to them, do not revoke) the Separation Letter.

Separated Employees

Effective as of October 1, 2010

Revised as of October 1, 2010

20

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