Document:

EX-10.2

 Exhibit 10.2 

EMPLOYEE MATTERS AGREEMENT 

BY AND BETWEEN 

MERCK & CO., INC. 

AND 
 ORGANON &
CO. 
 DATED AS OF JUNE 2, 2021 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	 
			
	 Section 1.01
	 	Defined Terms	  	 	1	 
		
	 ARTICLE II GENERAL PRINCIPLES
	  	 	8	 
			
	 Section 2.01
	 	Allocation of Liabilities	  	 	8	 
	 Section 2.02
	 	Employment with Organon	  	 	10	 
	 Section 2.03
	 	Establishment of Organon Plans	  	 	12	 
	 Section 2.04
	 	Post-Distribution Organon Employees	  	 	13	 
	 Section 2.05
	 	Collective Bargaining	  	 	14	 
		
	 ARTICLE III U.S. QUALIFIED AND
NON-QUALIFIED RETIREMENT PLANS
	  	 	14	 
			
	 Section 3.01
	 	Pension Plan	  	 	14	 
	 Section 3.02
	 	Savings Plan	  	 	15	 
	 Section 3.03
	 	Supplemental Pension Plan	  	 	16	 
	 Section 3.04
	 	Deferred Compensation Plan	  	 	16	 
	 Section 3.05
	 	Failure to Notify of Employment Termination	  	 	17	 
		
	 ARTICLE IV NON-U.S. RETIREMENT
PLANS
	  	 	17	 
			
	 Section 4.01
	 	Establishment of Non-U.S. Retirement Plans and Transfers of Assets and Liabilities	  	 	17	 
		
	 ARTICLE V WELFARE AND FRINGE BENEFIT PLANS
	  	 	19	 
			
	 Section 5.01
	 	Health and Welfare Plans	  	 	19	 
	 Section 5.02
	 	COBRA	  	 	22	 
	 Section 5.03
	 	Vacation, Holidays and Leaves of Absence	  	 	22	 
	 Section 5.04
	 	Severance and Unemployment Compensation	  	 	23	 
	 Section 5.05
	 	Workers’ Compensation	  	 	23	 
		
	 ARTICLE VI EQUITY, INCENTIVE, AND DIRECTOR AND EXECUTIVE COMPENSATION
PROGRAMS
	  	 	23	 
			
	 Section 6.01
	 	Equity Incentive Programs	  	 	23	 
	 Section 6.02
	 	Annual Bonus	  	 	27	 
	 Section 6.03
	 	Directors’ Plan	  	 	28	 
	 Section 6.04
	 	Directors’ Deferred Compensation Plan	  	 	28	 
		
	 ARTICLE VII POST-DISTRIBUTION COVENANTS
	  	 	28	 
			
	 Section 7.01
	 	Non-Hire; Non-Solicit	  	 	28	 
		
	 ARTICLE VIII TAXES
	  	 	29	 
		
	 ARTICLE IX MISCELLANEOUS
	  	 	30	 
			
	 Section 9.01
	 	Transfer of Records and Information	  	 	30	 
	 Section 9.02
	 	Cooperation	  	 	31	 
	 Section 9.03
	 	Employee Agreements	  	 	31	 
	 Section 9.04
	 	Recoupment Assets	  	 	31	 

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 Section 9.05
	 	Compliance	  	 	31	 
	 Section 9.06
	 	Preservation of Rights	  	 	31	 
	 Section 9.07
	 	Reimbursement	  	 	32	 
	 Section 9.08
	 	Not a Change in Control	  	 	32	 
	 Section 9.09
	 	Incorporation by Reference	  	 	32	 
	 Section 9.10
	 	Limitation on Enforcement	  	 	32	 
	 Section 9.11
	 	Further Assurances and Consents	  	 	32	 
	 Section 9.12
	 	Third Party Consent	  	 	33	 
	 Section 9.13
	 	Effect if Distribution Does Not Occur	  	 	33	 
	 Section 9.14
	 	Disputes	  	 	33	 

 Schedule 6.01(d) - Non-U.S. Equity Adjustment Exceptions 

  
 ii 

 This EMPLOYEE MATTERS AGREEMENT dated as of June 2, 2021, is by and between
Merck & Co., Inc., a New Jersey corporation (“Merck”) and Organon & Co., a Delaware corporation (“Organon”) (each a “Party” and together, the “Parties”). 

RECITALS: 
 WHEREAS, the
board of directors of Merck has determined that it is appropriate and advisable to separate the Organon Business from the Merck Business (the “Spin-Off”); 

WHEREAS, to achieve the foregoing, the Parties have executed a Separation and Distribution Agreement (the “Separation and Distribution
Agreement”), which provides for, among other things, distribution, on a pro rata basis, to holders of the outstanding Merck Common Shares on the Record Date of all of the outstanding shares of Organon Common Stock, and the execution and
delivery of this Agreement and certain other agreements to facilitate and provide for the foregoing, in each case subject to the terms and conditions set forth therein; 

WHEREAS, the Employees of the Organon Business are currently or were previously employed by the Merck Group and are expected to or have
previously become Employees of the Organon Group in connection with the Spin-Off; and 
 WHEREAS,
this Agreement describes the principal employment, compensation and employee benefit plan arrangements between the Parties in connection with the Spin-Off. 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as
follows: 
 AGREEMENT 

ARTICLE I 
 DEFINITIONS

 Section 1.01 Defined Terms. Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Separation and Distribution Agreement. The following capitalized terms as used in this Agreement shall have the meaning set forth below unless otherwise specified herein: 

“Adjusted Merck Award” means a Merck Option, Merck PSU Award, or Merck RSU Award, as adjusted in accordance with
Section 6.01(a). 
 “Adjusted Merck Phantom Share” means a Merck Phantom Share, as adjusted in
accordance with Section 3.04(c). 
 “Adjusted Organon Stock Value” means the product obtained by
multiplying (i) the Organon Price by (ii) the Distribution Ratio. 

  
 1 

 “Affiliate” means any corporation, partnership, limited liability company,
or entity directly or indirectly controlled by the entity in question. 
 “Agreement” means this Employee Matters Agreement
and each of the Schedules hereto. 
 “Applicable Closing Date” has the meaning set forth in
Section 4.01(a). 
 “Benefit Plan” means any (i) “employee benefit plan,” as defined in
ERISA Section 3(3) (whether or not such plan is subject to ERISA); and (ii) employment, compensation, severance, salary continuation, bonus, thirteenth month, incentive, retirement, thrift, superannuation, savings, pension, workers’
compensation, termination benefit (including termination notice requirements), termination indemnity, other indemnification, supplemental unemployment benefit, redundancy pay, profit sharing, deferred compensation, stock ownership, stock purchase,
stock option, stock appreciation right, restricted stock, “phantom” stock, performance share unit, restricted stock unit, other stock-based incentive, change in control, paid time off, perquisite, fringe benefit, vacation, disability,
life, or other insurance, death benefit, hospitalization, medical, or other compensatory or benefit plan, program, fund, agreement, arrangement, or policy of any kind (whether written or oral, qualified or nonqualified, funded or unfunded, foreign
or domestic, currently effective or terminated), and any trust, escrow or similar agreement related thereto, whether or not funded, excluding any plan, program, fund, agreement, arrangement, or policy (other than for workers’ compensation
Liabilities) that is mandated by and maintained solely pursuant to applicable Law. 
 “COBRA” means the U.S. Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended.

 “Core Benefits” means retirement, separation pay, paid time off, medical (excluding retiree medical), dental, vision,
life, short-term and long-term disability plans or coverage. 
 “Core Benefit Plans” means Benefit Plans offering any of
the Core Benefits. 
 “Core Merck Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or
contributed to by the Merck Group offering any of the Core Benefits. 
 “Core Non-U.S.
Organon Benefit Plan” means an Organon Benefit Plan established, maintained, or contributed to by the Organon Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States which
offers any of the Core Benefits. 
 “Core Organon Health and Welfare Plans” means a Health and Welfare Plan sponsored by,
maintained by, or contributed to by the Organon Group which offers any of the Core Benefits. 

  
 2 

 “Employee” means an employee of the Merck Group or the Organon Group, as
applicable, including any employee absent from work on account of long-term disability or workers’ compensation leave (in each case, unless treated as a separated employee for employment purposes), vacation, jury duty, funeral leave, personal
leave, sickness, short-term disability, military leave, family leave, pay continuation leave, or other approved leave of absence or for whom an obligation to recall, rehire or otherwise return to employment exists under a contractual obligation or
Law. 
 “Employee Agreement” means any employment contract, whether written or unwritten, between a member of the Merck
Group and an Employee or Former Employee, including any standard form employee agreement customarily signed by certain Employees of the Merck Group and any other form of employment agreement, employment letter or notice with respect to the terms of
employment between a member of the Merck Group and an Employee or Former Employee signed or otherwise effective under applicable local Law. The term Employee Agreement also includes any cash retention agreement. 

“Employee Recoupment Asset” means an employer’s right to repayment from an employee in respect of a tax equalization
payment, sign-on bonus payment, relocation expense payment, tuition payment, reimbursement, loan, or other similar item, including any agreement related thereto. 

“Employment Tax” means withholding, payroll, social security, workers compensation, unemployment, disability and any similar
tax imposed by any Tax Authority, and any interest, penalties, additions to tax or additional amounts with respect to the foregoing imposed on any taxpayer or consolidated, combined or unitary group of taxpayers. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended. 

“Former Employee” means any individual whose employment with the Merck Group terminated on or prior to the Distribution Date,
excluding any employee absent from work immediately prior to the Distribution Date on account of long-term disability or workers’ compensation leave (in each case, to the extent not treated as a separated employee for employment purposes),
vacation, jury duty, funeral leave, personal leave, sickness, short-term disability, military leave, family leave, pay continuation leave, or other approved leave of absence or for whom an obligation to recall, rehire or otherwise return to
employment exists under a contractual obligation or Law. 
 “Health and Welfare Plan” means any Benefit Plan established or
maintained to provide, through the purchase of insurance or otherwise, medical, dental, prescription, vision, short-term disability, long-term disability, death benefits, life insurance, accidental death and dismemberment insurance, business travel
accident insurance, employee assistance program, group legal services, wellness, cafeteria (including premium payment, health care flexible spending account, and dependent care flexible spending account components), travel reimbursement,
transportation, vacation benefits, apprenticeship or other training programs, day care centers, or prepaid legal services benefits, including any “employee welfare benefit plan” (as defined in ERISA Section 3(1)) that is not a
severance plan. 

  
 3 

 “Incurred Claim” means a Liability related to services or benefits provided
under a Benefit Plan, and shall be deemed to be incurred: (i) with respect to medical, dental, vision, and prescription drug benefits, upon the rendering of services giving rise to such Liability; (ii) with respect to death benefits, life
insurance, accidental death and dismemberment insurance, and business travel accident insurance, upon the occurrence of the event giving rise to such Liability; (iii) with respect to disability benefits, upon the date of disability, as
determined by the disability benefit insurance carrier or claim administrator, giving rise to such Liability; (iv) with respect to a period of continuous hospitalization, upon the date of admission to the hospital; and (v) with respect to
tuition reimbursement or adoption assistance, upon completion of the requirements for such reimbursement or assistance, whichever is applicable. 

“Local Closing Transaction” means the local closing transaction involving a Deferred Organon Local Business. 

“Merck” has the meaning set forth in the Preamble. 

“Merck Benefit Plan” means a Benefit Plan sponsored by, maintained by, or contributed to by the Merck Group. 

“Merck Board” means the Merck board of directors. 

“Merck Change of Control” has the meaning set forth in Section 6.01(b). 

“Merck Compensation & Benefits Committee” means the compensation and benefits committee of the Merck
Board. 
 “Merck Conversion Ratio” means the quotient obtained by dividing (i) the Merck Pre-Spin Value by (ii) the Merck Post-Spin Value. 
 “Merck DCP” means the
Merck & Co., Inc. Deferral Program. 
 “Merck Deferred Stock Unit” means a deferred unit (a.k.a. a phantom share)
credited under a non-employee director’s Merck Common Stock account under the Merck Directors’ DCP. 

“Merck Directors’ DCP” means the Merck & Co., Inc. Plan for Deferred Payment of Directors’ Compensation.

 “Merck Group” means Merck and its Affiliates (excluding, after the Distribution, any member of the Organon Group). 

“Merck Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or contributed to by the Merck
Group. 
 “Merck Pension Plan” means the Merck U.S. Pension Plan. 

“Merck Phantom Share” means a Merck common-stock-denominated investment pursuant to the Merck DCP. 

  
 4 

 “Merck Pre-Spin Value” means the
price per share of Merck Common Stock trading “regular-way” as reported on the NYSE at the close on the Distribution Date. 

“Merck Post-Spin Value” means the volume weighted average trading price per share of Merck Common Stock on the NYSE on the
trading day immediately following the Distribution Date, as reported by Bloomberg. 
 “Merck Retained Employee” means any
Employee other than an Organon Employee. 
 “Merck Retiree Health Care Plan” means the Merck Retiree Medical Plan. 

“Merck Savings Plan ” means the Merck US Savings Plan. 

“Merck SERP” means the MSD Supplemental Retirement Plan. 

“Merck Separation Plan” means the Merck U.S. Separation Benefits Plan. 

“Merck Stock Programs” means, collectively, (i) the Merck 2007 Incentive Stock Plan, (ii) the Merck & Co.,
Inc. 2010 Incentive Stock Plan, (iii) the Merck & Co., Inc. 2019 Incentive Stock Plan and (iv) any similar prior Merck plans and all sub-plans or equity plans related to any of the
foregoing, together with any incentive compensation program or arrangement that governs the terms of equity-based incentive awards assumed by the Merck Group in connection with a corporate transaction and that is maintained by the Merck Group
immediately prior to the Distribution Date, and any sub-plans established under those programs. 

“Non-U.S. Merck Benefit Plan” means a Merck Benefit Plan established, maintained, or
contributed to by the Merck Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States. 

“Non-U.S. Organon Benefit Plan” means an Organon Benefit Plan established,
maintained, or contributed to by the Organon Group that is primarily for the benefit of Employees or Former Employees who work primarily outside of the United States. 

“Non-U.S. Organon Employee” means an Organon Employee who works primarily outside of
the United States. 
 “Non-U.S. Health and Welfare Plan” means a Health and Welfare
Plan established, maintained, or contributed to by the Merck Group or the Organon Group, as applicable, that is primarily for the benefit of Employees (including Former Employees, as appropriate) who work primarily outside of the United States. 

“Organon” has the meaning set forth in the Preamble. 

“Organon Award” means an Organon Option, Organon PSU Award, or Organon RSU Award granted pursuant to
Section 6.01. 
 “Organon Benefit Plan” means each Benefit Plan sponsored by, maintained by, or
contributed to by the Organon Group, including, following the consummation of a Local Closing Transaction, each Benefit Plan sponsored by, maintained by, or contributed to by the applicable Deferred Organon Local Business. 

  
 5 

 “Organon Board” means the Organon board of directors. 

“Organon Change of Control” has the meaning set forth in Section 6.01(b). 

“Organon Conversion Ratio” means the quotient obtained by dividing (i) the Merck
Pre-Spin Value by (ii) the Adjusted Organon Stock Value. 
 “Organon DCP”
means the Organon & Co. U.S. Non-Qualified Savings Plan. 
 “Organon
Employee” means any Employee who is (i) employed by the Organon Group as of the Distribution Date, or (ii) a Post-Distribution Organon Employee. 

“Organon Equity Plan” means the Organon & Co. 2021 Incentive Stock Plan. 

“Organon Group” means Organon and its Affiliates. 

“Organon Health and Welfare Plan” means a Health and Welfare Plan sponsored by, maintained by, or contributed to by the
Organon Group. 
 “Organon Price” means the volume weighted average trading price per share of Organon Common Stock on the
NYSE on the trading day immediately following the Distribution Date, as reported by Bloomberg. 
 “Organon Retiree
Liability” means that portion of the aggregate incremental cost of providing early retirement subsidies, service crediting bridges, and retiree healthcare benefits to Transferred Employees under the Merck Pension Plan, the Merck SERP and
the Merck Retiree Health Care Plan, as described in Sections 3.01, 3.03 and 5.01(d) hereof, that is attributable to future service, with such aggregate incremental cost as determined based on reasonable estimates in the discretion of the
actuaries designated by Merck to calculate such amounts. 
 “Organon Savings Plan” means the Organon U.S. Savings Plan.
“Option” means (i) when immediately preceded by “Merck,” an option to purchase one or more Merck Common Shares granted under a Merck Stock Program and outstanding immediately prior to the Distribution Date (whether or
not then vested or exercisable); (ii) when immediately preceded by “Adjusted Merck,” an option to purchase one or more Merck Common Shares adjusted in accordance with Section 6.01; and (iii) when
immediately preceded by “Organon,” an option to purchase one or more shares of Organon Common Stock granted by Organon in accordance with Section 6.01. 

“Parties” has the meaning set forth in the Preamble. 

“Post-Distribution Organon Employee” means each Employee named as a Post-Distribution Organon Employee on a record maintained
by Merck, which includes designated secondees from the Merck Group to the Organon Group and those Employees transferring only upon a Local Closing Transaction if employed in connection with a Deferred Organon Local Business, including any Employee
hired on or after the Distribution Date to the extent such Employee is primarily related to a Deferred Organon Local Business or is hired to replace any terminated or departing Employee who would have otherwise been a Post-Distribution Organon
Employee. 

  
 6 

 “PSU Award” means (i) when immediately preceded by “Merck,”
a performance share unit award granted pursuant to a Merck Stock Program and outstanding immediately prior to the Distribution Date; (ii) when immediately preceded by “Adjusted Merck,” a performance share unit award granted pursuant
to a Merck Stock Program adjusted in accordance with Section 6.01; and (iii) when immediately preceded by “Organon,” a performance share unit award granted by Organon in accordance with
Section 6.01. 
 “Regular Trading Hours” means the period beginning at 9:30 A.M. New York City
time and ending 4:00 P.M. New York City time. 
 “RSU Award” means (i) when immediately preceded by “Merck,”
a restricted stock unit award granted pursuant to a Merck Stock Program and outstanding immediately prior to the Distribution Date; (ii) when immediately preceded by “Adjusted Merck,” a restricted stock unit award granted pursuant to
a Merck Stock Program adjusted in accordance with Section 6.01 or Section 6.03; and (iii) when immediately preceded by “Organon,” a restricted stock unit award granted by Organon in
accordance with Section 6.01 or Section 6.03. 
 “Securities Act” means
the U.S. Securities Act of 1933, as amended. 
 “Separation and Distribution Agreement” has the meaning set forth in the
recitals. 
 “Trading Day” means the period of time during any given calendar day, commencing with the determination of the
opening price on the NYSE and ending with the determination of the closing price on the NYSE, in which trading and settlement in Merck Common Shares or Organon Common Stock, as applicable, is permitted on the NYSE. 

“Transfer Date” means the date on which such person first becomes employed by the Organon Group (whether prior to, on or
following the Distribution Date). 
 “Transferred Employee” has the meaning set forth in
Section 2.02(a)(i). 
 “Transferred Flexible Spending Account Balances” has the meaning set forth
in Section 5.01(c)(iii). 
 “Transferred Non-U.S.
Employee” means a Transferred Employee who works primarily outside of the United States. 
 “United States” means,
when used in a territorial sense, the fifty states of the United States of America and the District of Columbia, but does not, unless otherwise specifically provided, include Puerto Rico or any other territory of the United States. 

“USERRA” means the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended. 

  
 7 

 ARTICLE II 

GENERAL PRINCIPLES 

Section 2.01 Allocation of Liabilities. 

(a) Organon Liabilities. Except as expressly provided in this Agreement, the Separation and Distribution Agreement or any Transaction
Document, Organon hereby assumes (or retains) and agrees to pay, perform, fulfill, and discharge all Liabilities to the extent relating to, arising out of, or resulting from or with respect to: 

(i) the employment (or termination of employment), including with respect to any statutory or other Liabilities (whether those
Liabilities are otherwise the legal responsibility of the Merck Group or the Organon Group) triggered by or in connection with the Spin-Off, of each Transferred Employee by the Merck Group up to the applicable
Transfer Date and by the Organon Group on and after the applicable Transfer Date (including, in each case, all Liabilities with respect to any such Organon Employee relating to, arising out of, or resulting from Employment Taxes, Employee
Agreements, any Merck Benefit Plan or any Organon Benefit Plan); provided, however, that, Organon shall assume only the Organon Retiree Liability with respect to any Liabilities relating to, arising out of, or resulting from the Merck Retiree Health
Care Plan, the Merck Pension Plan, the Merck SERP, the Merck DCP and Merck Directors’ DCP, which Liabilities shall otherwise be expressly retained by Merck; 

(ii) the employment (or termination of employment) of each Former Employee to the extent such individual was last employed
prior to his or her termination of employment with a manufacturing plant or entity located outside of the United States and wholly transferring to the Organon Group in connection with the Spin-Off (including
all Liabilities to the extent relating to, arising out of, or resulting from Employment Taxes, Employee Agreements, any Merck Benefit Plan or any Organon Benefit Plan); 

(iii) the retention of any individual who is, or was, an independent contractor, temporary employee, temporary service worker,
consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker or any other individual in any other similar
relationship to the extent the services provided by any such individual were primarily related to the Organon Group or the Organon Business and such individual is identified to be transferred to the Organon Group in connection with the Spin-Off; provided that, for the avoidance of doubt, this Agreement is not intended to, and does not, address any Liabilities in respect of the services provided by consulting firms, investment advisory
firms, valuation advisory firms, legal advisors or other third-party entities retained to provide advice with respect to or in connection with the Spin-Off; 

(iv) all Liabilities under any Organon Benefit Plan established or adopted by any member of the Organon Group, regardless of
whether established prior to, on or following the Distribution Date; and 

  
 8 

 (v) Liabilities and responsibilities expressly assumed or retained by
Organon pursuant to this Agreement. 
 (b) Merck Liabilities. Except as expressly provided in this Agreement, the Separation and
Distribution Agreement or any Transaction Document, Merck hereby retains (or assumes) and agrees to pay, perform, fulfill, and discharge all Liabilities to the extent relating to, arising out of, or resulting from: 

(i) the employment (or termination of employment) of each Merck Retained Employee by the Merck Group prior to, on, or after the
Distribution Date (including all Liabilities with respect to any such Merck Retained Employee to the extent relating to, arising out of, or resulting from Employment Taxes, Employee Agreements or any Merck Benefit Plan); 

(ii) except as provided in Section 2.01(a)(ii) or (iv), the employment (or termination of employment) of each Former
Employee and each Organon Employee unless and until such Organon Employee becomes a Transferred Employee (including all Liabilities to the extent relating to, arising out of, or resulting from Employment Taxes, Employee Agreements or any Merck
Benefit Plan); 
 (iii) the retention of any individual who is, or was, an independent contractor, temporary employee,
temporary service worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental worker, non-payroll worker or any other individual in any
other similar relationship to the extent the services provided by any such individual were primarily related to the Merck Group or the Merck Business; provided that, for the avoidance of doubt, this Agreement is not intended to, and does not,
address any Liabilities in respect of the services provided by consulting firms, investment advisory firms, valuation advisory firms, legal advisors or other third-party entities retained to provide advice with respect to or in connection with the Spin-Off; and 
 (iv) Liabilities and responsibilities expressly retained or assumed by
Merck pursuant to this Agreement. 
 (c) Other Liabilities. To the extent that this Agreement does not cover particular Liabilities or
responsibilities that relate to, arise out of, or result from employment (or termination of employment), Employment Taxes, Employee Agreements or any Benefit Plan and the Parties later determine that they should be allocated in connection with the Spin-Off, such Liabilities and responsibilities shall be handled in a manner similar to the manner in which this Agreement handles comparable Liabilities and responsibilities, subject to the mutual agreement of the
Parties, as evidenced by the written consent of an authorized officer of each Party. 
 (d) Labor Relations. To the extent required by
applicable Law or any contract or arrangement with a labor union, works council or similar employee organization, Organon shall provide notice, engage in consultation and take any similar action which may be required after the Distribution Date on
its part in connection with the Spin-Off and shall fully indemnify each member of the Merck Group against any Liabilities arising from its failure to comply with such requirements. 

  
 9 

 Section 2.02 Employment with Organon. 

(a) Employment Transfers. The Parties intend for Organon Employees to transfer to the Organon Group and shall use their respective best
efforts and cooperate with each other to effectuate this intent. 
 (i) Except as otherwise mutually agreed upon by the
Parties, as of each Organon Employee’s Transfer Date, the Organon Group shall: (A) continue to employ (on a basis consistent with Section 2.02(b)) each Organon Employee employed in a jurisdiction where employment
continues automatically by operation of Law (and such individual does not object, where such right exists under applicable Law); (B) offer to employ (on a basis consistent with Section 2.02(b)) each Organon Employee
employed in a jurisdiction where employment does not continue automatically by operation of Law; and (C) offer to employ (on a basis consistent with Section 2.02(b) or as otherwise required by applicable Law) each
former Employee who would have been an Organon Employee had such former Employee been employed on the Distribution Date, and whose right to re-employment is protected by any applicable Law. Each Organon
Employee who accepts an offer of employment with the Organon Group, or who continues employment with the Organon Group following his or her Transfer Date automatically by operation of Law (and does not object where such right exists under applicable
Law), as the case may be, will be referred to in this Agreement as a “Transferred Employee.” 
 (ii) The
Merck Group may terminate the employment of any Organon Employee who does not become a Transferred Employee as of his or her intended Transfer Date, or, if such Organon Employee cannot be terminated in accordance with applicable Law or otherwise,
then the Merck Group may terminate any other Employee of the Merck Group whose employment (in the sole judgment of Merck) is made redundant as a result of the continued retention of such Organon Employee. The Merck Group may also terminate the
employment of any Organon Employee if retaining such Employee would constitute a violation of applicable Laws or the Merck Code of Conduct. Organon will be responsible for, and will indemnify the Merck Group from and against, any Liabilities
incurred or payments made (including any severance payments made) in connection with the termination of an Organon Employee or any other Employee of the Merck Group pursuant to this Section 2.02(a)(ii) to the extent of any
payment occurring on or after the Distribution Date. 
 (b) Compensation and Benefits. 

(i) Except as expressly provided in this Agreement or in local Conveyance and Assumption Instruments, no Transferred Employee
shall participate in any Merck Benefit Plan following the later of (i) the Distribution Date; and (ii) his or her Transfer Date. 

  
 10 

 (ii) Except as expressly provided in this Agreement, as otherwise required
by applicable Law or with respect to any Transferred Employee who experiences a change in primary country of employment as part of his or her transfer, from the applicable Transfer Date through December 31, 2022, the Organon Group shall provide
to each Transferred Employee (A) at least the same rate of base salary as provided to that Transferred Employee immediately prior to the later of the Distribution Date and his or her Transfer Date (or if greater, as provided to that Transferred
Employee pursuant to the terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off), (B) at least the same cash incentive compensation opportunities
and long-term incentive compensation opportunities as provided to that Transferred Employee immediately prior to the later of the Distribution Date and his or her Transfer Date (or if greater, as provided to that Transferred Employee pursuant to the
terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off), (C) Core Benefits under the Organon Benefit Plans that are substantially comparable in
the aggregate to benefits provided under the corresponding Merck Benefit Plans immediately prior to the earlier of the Distribution Date or the date as of which the comparable Organon Benefit Plan is established or adopted by any member of the
Organon Group (but, for the avoidance of doubt, Organon is not required to establish any particular types of plans (such as defined benefit pension plans) to satisfy this obligation), and (D) at least the same separation pay and comparable
post-termination continuation of Health and Welfare Benefits providing Core Benefits (excluding, for the avoidance of doubt, retiree healthcare and retiree life insurance benefits) as were provided to that Transferred Employee immediately prior to
the earlier of the Distribution Date or the date as of which the comparable Organon Health and Welfare Benefits is established or adopted by any member of the Organon Group (or if greater, as provided to that Transferred Employee pursuant to the
terms of any Employee Agreement that becomes effective upon the consummation of or immediately following the Spin-Off). Nothing in this Section 2.02(b)(ii) shall prevent the Organon Group from terminating
the employment of any Transferred Employee or adopting, amending or terminating any Organon Benefit Plan. 
 (c) Service Credit.
Except as otherwise expressly provided in this Agreement or to the extent it would result in a duplication of benefits, Organon and each Organon Benefit Plan shall, to the extent permitted in accordance with applicable Law, give each Transferred
Employee credit for vesting, eligibility, and accrual purposes for all service with the Merck Group (except for defined benefit pension plans and post-employment welfare benefits and, solely if a Transferred Employee receives severance benefits in
connection with his or her termination of employment with the Merck Group, for purpose of determining severance benefits under any Organon Benefit Plan that provides severance benefits) (other than as required by law)) and shall calculate such
service as it would be calculated by Merck or under the corresponding Merck Benefit Plan as of the applicable Transfer Date. 

  
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 Section 2.03 Establishment of Organon Plans. 

(a) Generally. 

(i) U.S. On or prior to the Distribution Date, Organon shall adopt Core Benefit Plans (and related trusts, if
applicable, as determined by the Parties), with terms substantially comparable in the aggregate to those of the corresponding Merck Benefit Plans in the U.S., but excluding defined benefit pension plans, deferred compensation plans and
post-employment welfare benefit plans; provided, however, that Organon may limit participation in any Organon Benefit Plan to Transferred Employees who participated in the corresponding Merck Benefit Plan immediately prior to the
applicable Transfer Date. 
 (ii) Non-U.S. (including Puerto Rico). On or
prior to the Distribution Date, the Organon Group shall, except as otherwise mutually agreed upon by the Parties, adopt Core Non-U.S. Organon Benefit Plans, with terms substantially comparable in the aggregate
to those of the corresponding Non-U.S. Merck Benefit Plans immediately prior to the Distribution Date; provided, however, that Organon may limit participation in any such Core Non-U.S. Organon Benefit Plan to Non-U.S. Organon Employees who are Transferred Employees and who participated in the corresponding
Non-U.S. Merck Benefit Plan. As described in Article IV, or as otherwise mutually agreed upon by the Parties from time to time, the Merck Group shall, or shall cause the applicable Non-U.S. Merck Benefit Plan’s related trust to, transfer to the Organon Group or the relevant Core Non-U.S. Organon Benefit Plan’s related trust, trust Assets,
insurance reserves, and other Assets of each Non-U.S. Merck Benefit Plan. To the extent a Non-U.S. Merck Benefit Plan is not required to be funded by applicable Law or
is not voluntarily funded, there shall be no transfer of assets by the Non-U.S. Merck Benefit Plan or by the Merck Group. As described in Article IV, or as otherwise mutually agreed upon by the Parties
from time to time, the Organon Group shall, or shall cause the relevant Core Non-U.S. Organon Benefit Plan to, assume the Liabilities of the corresponding Non-U.S. Merck
Benefit Plan with respect to all benefits accrued under that Non-U.S. Merck Benefit Plan by Non-U.S. Organon Employees who are Transferred Employees. 

(b) Plan Information and Operation. Merck shall provide Organon with information describing each Merck Benefit Plan election made by a
Transferred Employee that may have application following the applicable Transfer Date. Organon shall determine, in its sole discretion (and in compliance with Code Section 409A to the extent applicable), whether to administer the Organon
Benefit Plans using those elections or to require Transferred Employees to submit new elections with respect to the Organon Benefit Plans. Except as provided in this Agreement, the Distribution and the transfer of any Employee’s employment to
the Organon Group shall not cause a distribution from or payment of benefits under any Merck Benefit Plan. Each Party shall, upon reasonable request, provide the other Party and the other Party’s respective Affiliates, agents, and vendors all
information reasonably necessary to the other Party’s operation or administration of its Benefit Plans and to accommodate the transfer of benefits. 

  
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 Section 2.04 Post-Distribution Organon Employees. 

(a) The following provisions shall apply to all Post-Distribution Organon Employees. During the period commencing on the Distribution Date and
ending on the applicable Transfer Date, Merck or its appropriate Affiliate shall manage the employment of each Post-Distribution Organon Employee consistently with its management of the employment of similar Merck Employees in the ordinary course of
business (including with respect to compensation, annual and other bonuses, and other compensation, subject to Sections 2.04(a)(iii)(E) and 6.02 below); provided that Merck and its Affiliates shall have no obligation to make any
equity grant or provide any other equity incentive to any Post-Distribution Organon Employee on or after the Distribution Date, and Organon shall have no obligation to Merck or any of its Affiliates in respect of any equity grant or other equity
incentive that is provided by Merck or its appropriate Affiliate to any Post-Distribution Organon Employee on or after the Distribution Date unless and except where the Parties have agreed, as evidenced by the written consent of an authorized
officer of each Party, otherwise. Organon shall be responsible for all cash compensation and benefits liabilities arising with respect to such Post-Distribution Organon Employee during such period pursuant to the terms of the applicable Transaction
Document. Merck shall until the time of the applicable Local Closing Transaction (or such other Transfer Date with respect to any other Post-Distribution Organon Employee): 

(i) provide Organon or its appropriate Affiliate with notice of (A) any material amendment to the Merck Code of Conduct to
the extent applicable to the employment of a Post-Distribution Organon Employee or (B) the termination of any Post-Distribution Organon Employee due to a violation or potential violation of Law or the Merck Code of Conduct, or otherwise
pursuant to Section 2.02(a)(ii); 
 (ii) provide Organon or its appropriate Affiliate with at least
30 days’ advance written notice prior to (A) making any material substantive change to the Employee Agreement of a Post-Distribution Organon Employee unless such change is required by applicable Law; (B) making any material change to
the base salary of a Post-Distribution Organon Employee, other than an increase in the ordinary course of business, any change required by Law or any contract existing as of the Distribution Date, or as otherwise approved by Organon; or
(C) making any modification to a Merck Benefit Plan in which a Post-Distribution Organon Employee participates if such modification would result in a significant change in the cost of such plan to the employer or the participant unless such
change is required by applicable Law; and 
 (iii) consult with and request a recommendation from Organon or its appropriate
Affiliate prior to (A) hiring any individual (other than in the ordinary course to replace any individual whose employment has terminated) who will be classified as an Organon Employee unless such headcount addition was authorized prior to the
Distribution Date, (B) terminating any Post-Distribution Organon Employee, except due to a violation of Law or the Merck Code of Conduct, or otherwise pursuant to Section 2.02(a)(ii), (C) promoting any Post-Distribution Organon
Employee to a compensation and career band of 700 or higher (other than in the ordinary course to replace any individual whose employment has terminated) unless such promotion was authorized prior to the Distribution Date, (D) demoting any
Post-Distribution Organon Employee or otherwise materially changing the role or responsibility of any Post-Distribution Organon Employee, or (E) establishing targets or goals for bonus and other incentive compensation awards granted to
Post-Distribution Organon Employees by Merck or any member of the Merck Group. Organon will be responsible for, and will indemnify the Merck Group from and against, any Liabilities incurred or payments made (including any severance payments made) in
connection with the termination of a Post-Distribution Organon Employee pursuant to this Section 2.04(a)(iii) to the extent of any amount owed on or after the Distribution Date in accordance with the terms of the applicable Transaction
Document. 

  
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 (b) Except as otherwise mutually agreed upon by the Parties (including in a Conveyance and
Assumption Instrument), if an Organon Employee’s transfer of employment to the Organon Group upon the consummation of a Local Closing Transaction or otherwise causes, at the time of such transfer, a forfeiture of awards granted under a Merck
Stock Program (or successor thereto), Merck shall not have any obligation, Liability or responsibility to such Organon Employee with respect to such forfeited awards, and Organon shall equitably compensate the affected Organon Employee for such
forfeited awards in a manner determined by Organon in its sole discretion. Merck shall inform Organon on a regular basis of any such forfeited awards. The foregoing sentence shall not preclude the Parties from making arrangements, if allowed by the
Merck Stock Program (or successor thereto) and applicable Law, to permit affected Organon Employees to continue to hold, after the Local Closing Transaction or other Transfer Date, awards granted under a Merck Stock Program (or successor thereto).

 Section 2.05 Collective Bargaining. Organon shall cause the appropriate member of the Organon Group to assume all Liabilities
arising under any collective bargaining agreement (including but not limited to any national, sector or local collective bargaining agreement), works council agreement, or other similar agreement with respect to any Transferred Employee. To the
extent necessary, Organon shall cause the appropriate member of the Organon Group to join any industrial, employer or similar association or federation if membership is required for the relevant collective bargaining, works council, or other similar
agreement to continue to apply. 
 ARTICLE III 

U.S. QUALIFIED AND NON-QUALIFIED RETIREMENT PLANS 

Section 3.01 Pension Plan. The Merck Pension Plan shall continue to be responsible for Liabilities in respect of all Employees
(including Transferred Employees) and Former Employees. No Employees of the Organon Group shall accrue any additional benefits under the Merck Pension Plan following the later of (i) the Distribution Date, and (ii) their applicable
Transfer Date. The accrued benefits of Transferred Employees under the Merck Pension Plan shall become fully vested as of the later of (i) the Distribution Date, and (ii) their applicable Transfer Dates. In addition, until distributions
commence under the Merck Pension Plan for a Transferred Employee, the Merck Pension Plan shall continue to credit service earned with Organon and its Affiliates for purposes of early retirement eligibility and subsidies under the Merck Pension Plan.
Furthermore, Merck shall provide any pension service crediting bridges offered under the Merck Separation Plan to any Transferred Employee who otherwise meets, on or prior to December 31, 2022, the age and service requirements for such pension
service crediting bridges in the event that such Transferred Employee experiences a separation of employment from the Organon Group that would have entitled the Transferred Employee to benefits under the Merck Separation Plan prior to the Spin-Off (including satisfying any requirement to execute a release of claims against Merck and its affiliates). 

  
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 Section 3.02 Savings Plan. 

(a) Establishment of Organon Savings Plan. Effective as of or prior to the Distribution Date, Organon shall establish the Organon
Savings Plan. As of the Distribution Date, the Organon Savings Plan shall include provisions so that, subject to the applicable nondiscrimination rules under Code Sections 401(a)(4) and 401(m), the aggregate contributions during any plan year
through at least December 31, 2022 for Transferred Employees shall be no less than the aggregate sum of such contributions under the Merck Savings Plan and the pay credits under the Merck Pension Plan as in effect immediately prior to the
Distribution Date. On or prior to the Distribution Date, Organon shall provide Merck with (i) a copy of the Organon Savings Plan; and (ii) a copy of certified resolutions of the Organon Board (or its authorized committee or other delegate)
evidencing adoption of the Organon Savings Plan and the related trust(s) and the acceptance by the Organon Savings Plan of the Liabilities described in Section 3.02(b) as and when rollovers occur. 

(b) Elective Rollovers of Account Balances. As soon as practicable after the later of (i) the Distribution Date, and (ii) the
Transferred Employee’s applicable Transfer Date, Organon shall take all actions necessary to permit Transferred Employees to directly roll over their account balances in the Merck Savings Plan to the Organon Savings Plan. Such rollovers may be
made in cash, promissory notes evidencing outstanding loans or any combination thereof, as elected by the Transferred Employee. 
 (c)
Organon Savings Plan Provisions. The Organon Savings Plan shall provide that: 
 (i) Transferred Employees shall
(A) be eligible to participate in the Organon Savings Plan as of the later of (i) the Distribution Date, and (ii) their applicable Transfer Date, to the extent they were eligible to participate in the Merck Savings Plan as of
immediately prior to such date, and (B) receive credit for vesting and benefit accrual purposes for all service credited for that purpose under the Merck Savings Plan as of the later of (y) the Distribution Date, and (z) their
applicable Transfer Date, as if that service had been rendered to Organon; and 
 (ii) the Organon Savings Plan shall provide
the opportunity to make up elective deferrals, and any employer contributions, required by USERRA for a Former Employee who is employed by the Organon Group following the Distribution Date pursuant to Section 2.02(a)(i)(C),
including any amount that relates to the period of military leave that occurred prior to the Distribution Date. 
 (d) Determination
Letter Request. Unless the Organon Savings Plan may rely on a favorable opinion letter from the Internal Revenue Service, Organon shall submit an application to the Internal Revenue Service either prior to, or as soon as practicable following,
the Distribution Date for a determination regarding the qualification of the Organon Savings Plan as of the Distribution Date and shall make any amendments reasonably requested by the Internal Revenue Service to receive a favorable determination
letter regarding the Organon Savings Plan. 

  
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 (e) Merck Savings Plan after Distribution Date. From and after the Distribution Date
the Merck Savings Plan shall continue to be responsible for Liabilities in respect of all Employees (including Transferred Employees) and Former Employees. From and after the later of (ii) the Distribution Date, and (ii) their applicable
Transfer Date, no Employees of the Organon Group shall accrue any benefits under the Merck Savings Plan. Without limiting the generality of the foregoing, Transferred Employees shall cease to be active participants in the Merck Savings Plan
effective as of their applicable Transfer Date. For the avoidance of doubt, Merck Employees and Transferred Employees, until their respective Transfer Dates, shall accrue benefits under the Merck Savings Plan. 

(f) Plan Fiduciaries. For all periods whether before or after the Distribution Date, the Parties agree that the applicable fiduciaries
of each of the Merck Savings Plan and the Organon Savings Plan, respectively, shall have the authority with respect to the Merck Savings Plan and the Organon Savings Plan, respectively, to determine the investment alternatives, the terms and
conditions with respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA Section 404. Without limiting the generality of the foregoing, Merck or its designate may recommend initial
investment funds available under the Organon Savings Plan, which Organon shall be free to accept or reject in accordance with its fiduciary duties. 

Section 3.03 Supplemental Pension Plan. The Merck SERP shall continue to be responsible for Liabilities in respect of all
Employees (including Transferred Employees) and Former Employees accrued thereunder. No Employees of the Organon Group shall accrue any benefits under the Merck SERP following the later of the Distribution Date and their applicable Transfer Date,
but the Merck SERP shall credit such Employee’s continuous service with the Organon Group following the Transfer Date for purposes of early retirement eligibility and early retirement subsidies. Except as otherwise provided by Code
Section 409A, a Transferred Employee shall not be considered to have undergone a “separation from service” for purposes of Code Section 409A and the Merck SERP solely by reason of the
Spin-Off, and, following his or her Transfer Date, the determination of whether a Transferred Employee has incurred a separation from service with respect to his or her benefit in the Merck SERP shall be based
solely upon his performance of services for the Organon Group. 
 Section 3.04 Deferred Compensation Plan. 

(a) Establishment of Organon DCP. Effective as of or before the Distribution Date, Organon shall establish the Organon DCP to permit
company credits to Organon Savings Plan participant accounts to the extent contributions cannot be made to the Organon Savings Plan by reason of the limits under the Code, such as Code Section 401(a)(17). 

  
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 (b) Merck DCP after Spin-Off. From and after
the later of the Distribution Date and a Transferred Employee’s Transfer Date, such individual shall not actively participate in or accrue any benefits under the Merck DCP. The Merck DCP shall continue to be responsible for Liabilities in
respect of all Employees (including Transferred Employees) and Former Employees. Except as otherwise provided by Code Section 409A, a Transferred Employee shall not be considered to have undergone a “separation from service” for
purposes of Code Section 409A and the Merck DCP solely by reason of the Spin-Off, and, following his Transfer Date, the determination of whether a Transferred Employee has incurred a separation from
service with respect to his or her benefit in the Merck DCP shall be based solely upon his or her performance of services for the Organon Group. 

(c) Adjustment of Merck Common-Stock-Denominated Investments (“Merck Phantom Shares”). Each Merck Phantom Share that remains
outstanding in the Merck DCP as of immediately prior to the Distribution Date, regardless of by whom held shall be converted concurrently with the Distribution on the Distribution Date into an “Adjusted Merck Phantom Share.” The
number of units represented by an Adjusted Merck Phantom Share shall be equal to (1) the number of Merck Phantom Shares immediately prior to the Distribution Date, divided by (2) the Merck Conversion Ratio, rounded to the nearest unit.

 Section 3.05 Failure to Notify of Employment Termination. Organon shall notify Merck of the “separation from
service” (as determined pursuant to Section 409A of the Code) of any Transferred Employee by the 15th day of the calendar month following the calendar month of such Transferred
Employee’s separation from service. At that time, Organon shall also notify Merck whether the Transferred Employee is a “specified employee” as determined pursuant to Code Section 409A. In the event that a distribution of
benefits to a Transferred Employee is not made at the proper time pursuant to any Merck plan because Organon did not timely notify Merck of any such separation from service, or specified employee status, Organon shall reimburse Merck for all costs,
including incidental and consequential damages incurred by Merck in connection therewith (including but not limited to additional benefit plan payments, legal fees, accounting fees and advisor fees, service provider fees, the costs of preparing and
making any governmental filings, any “gross-up” Merck determines to pay to such Transferred Employee in connection with a violation of Code Section 409A) and any other amounts Merck reasonably
determines would have been avoided if Organon had timely notified Merck of such separation from service or specified employee status. 

ARTICLE IV 
 NON-U.S. RETIREMENT PLANS 
 Section 4.01 Establishment of
Non-U.S. Retirement Plans and Transfers of Assets and Liabilities. Except as mutually agreed upon by the Parties or required under this Article IV, effective as of or before the Distribution Date, Organon
or its appropriate Affiliate will establish pension and retirement plans (whether defined contribution or defined benefit pension plans) with terms that are substantially comparable in the aggregate to those offered to Transferred Non-U.S. Employees immediately prior to the earlier of (i) the Distribution Date or (ii) their applicable Transfer Date. 

(a) Transfer of Non-U.S. Retirement Plan Assets and Liabilities. As soon as practicable
following the establishment of a Non-U.S. Organon Benefit Plan, except as otherwise provided in this Agreement or as mutually agreed upon by the Parties, the Assets and Liabilities (determined as of the date
of the applicable local closing, whether occurring prior to, on or after 

  
 17 

 
the Distribution Date (such date, the “Applicable Closing Date”)) under the corresponding Non-U.S. Merck Benefit Plan attributable to
Transferred Non-U.S. Employees who are participants in such plan, along with any other Assets and Liabilities that Organon agrees to assume with respect to such plan, shall be transferred to such Non-U.S. Organon Benefit Plan. The Non-U.S. Merck Benefit Plan shall retain all Assets and Liabilities related to Merck Retained Employees, Former Employees and
Post-Distribution Organon Employees (subject to Section 4.01(c)). Except as otherwise mutually agreed upon by the Parties, assets will be allocated between the plans based on the proportion of Liabilities borne by each
plan. Except as otherwise mutually agreed upon by the Parties, such Liabilities will be valued using the projected benefit obligation based on plan provisions as in effect at the Applicable Closing Date and applying demographic and other assumptions
used in the most recently completed valuation of the applicable Non-U.S. Merck Benefit Plan (and taking into account the requirements of ASC 715 as it exists as of the Applicable Closing Date);
provided, however, that all economic assumptions will be updated as of the Applicable Closing Date. The transfer amount described above shall be credited or debited, as applicable, with a pro rata share of the actual investment
earnings or losses allocable to the transfer amount for the period between the Applicable Closing Date and an assessment date set by Merck that is as close as practicable, taking into account the timing and reporting of valuation of the applicable Non-U.S. Merck Benefit Plan’s Assets, to the date upon which Assets equal in value to the transfer amount are actually transferred from the applicable Non-U.S. Merck
Benefit Plan to the applicable Non-U.S. Organon Benefit Plan; provided that, if actual investment earnings or losses are not then determinable, Merck and Organon shall then agree on a reasonable
alternative methodology (which may include expected or estimated returns used for other similar purposes by Merck in the ordinary course of business). During this period, benefits payable to Transferred
Non-U.S. Employees shall be paid from the Non-U.S. Merck Benefit Plan. Except as otherwise mutually agreed upon by the Parties, the ultimate transfer amount shall be
reduced by the amount of these benefits and credited or debited by the actual investment earnings or losses from the payment date to the assessment date set by Merck above. Any third party fees, costs or expenses incurred under the applicable Non-U.S. Merck Benefit Plan during the period from the Applicable Closing Date to the assessment date set by Merck shall be shared by the Parties based on the proportion of Liabilities borne by the applicable Non-U.S. Merck Benefit Plan and the applicable Non-U.S. Organon Benefit Plan. The Parties agree to use commercially reasonable efforts to accomplish each transfer as soon as
practicable on or following the Applicable Closing Date and to cooperate with each other to make such filings and disclosures and obtain such approvals as may be deemed necessary or advisable in accordance with applicable Law. Notwithstanding the
foregoing, to the extent a Non-U.S. Merck Benefit Plan is not required to be funded by applicable Law or is not voluntarily funded, there shall be no transfer of Assets by the
Non-U.S. Merck Benefit Plan or by the Merck Group in respect thereof. 
 (b) Non-U.S. Organon Retirement Plan Provisions. Each Non-U.S. Organon Benefit Plan shall provide, except as otherwise provided in this Agreement or local Conveyance and
Assumption Instruments, that: 
 (i) Transferred Non-U.S. Employees shall (A) be
eligible to participate in the Non-U.S. Organon Benefit Plan to the extent they were eligible to participate in the corresponding Non-U.S. Merck Benefit Plan, and
(B) receive credit for vesting, eligibility and benefit service to the same extent recognized by Merck as of immediately prior to their Transfer Date for all service credited for those purposes under the corresponding Non-U.S. Merck Benefit Plan as if that service had been rendered to Organon; 

  
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 (ii) the compensation paid by the Merck Group to a Transferred Non-U.S. Employee that is recognized under the Non-U.S. Merck Benefit Plan shall be credited and recognized for all applicable purposes under the corresponding Non-U.S. Organon Benefit Plan as though it were compensation from the Organon Group; and 

(iii) the accrued benefit of each Transferred Non-U.S. Employee under the Non-U.S. Merck Benefit Plan that is transferred to the corresponding Non-U.S. Organon Benefit Plan pursuant to Section 4.01(a) shall be paid under
such Non-U.S. Organon Benefit Plan in accordance with the terms of such Non-U.S. Organon Benefit Plan and applicable Law, with employment by the Merck Group treated as
employment by the Organon Group under the Non-U.S. Organon Benefit Plan for purposes of determining eligibility for optional forms of benefit, early retirement benefits, or other benefit forms. 

(c) Subsequent Transfers. Periodically, at such times as agreed upon by the Parties after the initial transfer described in
Section 4.01(a), Organon shall cause the applicable Non-U.S. Organon Benefit Plan to receive Assets and assume all Liabilities under the applicable
Non-U.S. Merck Benefit Plan for Post-Distribution Organon Employees who become Transferred Employees (including Assets and Liabilities in respect of beneficiaries and/or alternate payees) and the applicable Non-U.S. Merck Benefit Plan shall transfer all such Assets and be relieved of such Liabilities. The amount of such Assets to be transferred shall be determined as provided in
Section 4.01(a) (and shall include any employee contributions made by such Post-Distribution Organon Employee between the Distribution Date and the applicable Transfer Date) and shall be subject to the applicable provisions
of Section 4.01(a). 
 (d) Notwithstanding the foregoing, if pension benefits are funded by individually linked
insurance contracts, such contracts in respect of Transferred Employees shall be assigned to Organon or its applicable Subsidiary in lieu of the transfers of (and calculations of value with respect to) other Assets otherwise contemplated hereby.

 ARTICLE V 
 WELFARE
AND FRINGE BENEFIT PLANS 
 Section 5.01 Health and Welfare Plans. 

(a) Establishment of Organon Health and Welfare Plans. Effective as of or before the Distribution Date, Organon shall establish the Core
Organon Health and Welfare Plans, with terms substantially comparable in the aggregate to those of the corresponding Core Merck Health and Welfare Plans unless otherwise provided in this Article V. For the avoidance of doubt, Organon shall not be
required to provide retiree medical benefits to any employee hired on or after the Distribution Date. 
 (b) Waiver of Conditions; Benefit
Maximums. Organon shall, to the extent commercially reasonable and permitted under applicable Law and, with respect to Non-U.S. Health and Welfare Plans, to the extent applicable, cause the Organon Health
and Welfare Plans to: 

  
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 (i) with respect to initial enrollment (whether passive or active) prior to,
as of or following an individual’s applicable Transfer Date: 
 (A) waive all limitations as to preexisting conditions,
exclusions, and service conditions with respect to participation and coverage requirements applicable to any Transferred Employee, other than limitations that were in effect with respect to the Transferred Employee under the applicable Merck Health
and Welfare Plan as of immediately prior to such individual’s Transfer Date; 
 (B) waive any waiting period limitation
or evidence of insurability requirement applicable to a Transferred Employee other than limitations or requirements that were in effect with respect to such Transferred Employee under the applicable Merck Health and Welfare Plan as of immediately
prior to such individual’s Transfer Date; 
 (C) with respect to aggregate annual, lifetime, or similar maximum benefits
available under the Organon Health and Welfare Plans, recognize a Transferred Employee’s prior claim experience under the Merck Health and Welfare Plans and any Benefit Plan that provides leave benefits; and 

(D) cause any eligible expenses incurred by a Transferred Employee and his or her covered dependents during the portion of the
plan year of the applicable Merck Health and Welfare Plan ending on the date that the Transferred Employee’s coverage commences under the Organon Health and Welfare Plan to be taken into account under such Organon Health and Welfare Plan for
purposes of satisfying all deductible, coinsurance, and maximum out-of-pocket requirements applicable to such Transferred Employee and his or her covered dependents for
the applicable plan year as if such amounts had been paid in accordance with such Organon Health and Welfare Plan. 
 (c) Allocation of
Health and Welfare Assets and Liabilities. 
 (i) General Principles. Notwithstanding any other provision hereof
and except as otherwise agreed between the Parties, (A) Merck shall retain all Liabilities relating to Incurred Claims of Merck Retained Employees and Former Employees under the Merck Health and Welfare Plans, and shall also retain Assets
(including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items) associated with such Incurred Claims and (B) Organon shall be responsible for Incurred Claims of Organon Employees from and after the applicable
Transfer Date. Organon shall be responsible for all Liabilities relating to Incurred Claims under any Organon Health and Welfare Plan and shall also retain Assets (including, without limitation, Medicare reimbursements, pharmaceutical rebates, and
similar items) associated with such Incurred Claims. Merck shall retain any Assets (including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items) that are not associated with any specific Incurred Claim. 

  
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 (ii) Disability Benefits. Notwithstanding any other provision hereof
and except as otherwise agreed between the Parties, (A) Merck shall be responsible for Incurred Claims (including ongoing benefit payments) of Merck Retained Employees and Former Employees for short- and long-term disability benefits,
regardless of when the applicable Incurred Claim was incurred and (B) subject to the immediately following sentence, Organon shall be responsible for Incurred Claims (including ongoing benefit payments) of Organon Employees from and after the
applicable Transfer Date for short-term disability benefits and long-term disability benefits. Notwithstanding the foregoing, an Organon Employee who is on short-term disability leave on the Transfer Date under a U.S. Health and Welfare Plan and who
subsequently qualifies for long-term disability without an intervening new Incurred Claim shall receive long-term disability benefits from the Merck long-term disability plan, but all other benefits attributable to his or her disability (including
continued pension accrual, if applicable, and participation in any medical or life insurance plan for disabled persons, if applicable) shall be provided by the applicable Organon Benefit Plan, if any, or otherwise be the responsibility of Organon,
and if Organon does not sponsor a plan providing any such benefits, such Organon Employee shall not be entitled to such benefits from any Merck Benefit Plan. 

(iii) U.S. Flexible Spending Accounts. The Parties shall take all actions necessary to ensure that, effective as of the
later of the Distribution Date and the applicable Employee’s Transfer Date, (A) the health care and dependent care flexible spending accounts of the applicable Transferred Employees (whether positive or negative) (the “Transferred
Flexible Spending Account Balances”) under the applicable Merck Health and Welfare Plan shall be transferred to the corresponding Organon Health and Welfare Plan; (B) the elections, contribution levels and coverage of the Transferred
Employees shall apply under the Organon Health and Welfare Plan in the same manner as under the corresponding Merck Health and Welfare Plan; and (C) the Transferred Employees shall be eligible for reimbursement from the Organon Health and
Welfare Plan on the same basis and the same terms and conditions as under the corresponding Merck Health and Welfare Plan. As soon as practicable after the Distribution Date (and any later Transferred Employee’s Transfer Date), and in any event
within 30 business days after the amount of the Transferred Flexible Spending Account Balances is determined, Merck shall pay Organon the net aggregate amount of the Transferred Flexible Spending Account Balances, if such amount is positive, and
Organon shall pay Merck the net aggregate amount of the Transferred Flexible Spending Account Balances, if such amount is negative. 
 (d)
Retiree Health Care Plan and Retiree Life Insurance. Notwithstanding any other provision hereof (or any other action taken by Merck and Organon on or prior to the Distribution Date, including any assignment and assumption of Assets or
Liabilities related thereto), Merck shall retain the Liabilities and responsibility for all obligations under the Merck Retiree Health Care Plan for benefits due to Merck Retained Employees, Transferred Employees and Former Employees, and shall also
retain Assets, including, without limitation, Medicare reimbursements, pharmaceutical rebates, and similar items, associated with such benefits. For 

  
 21 

 
each Transferred Employee, Merck shall (i) cause the Merck Retiree Health Care Plan to credit service with Organon and its Affiliates after a Transferred Employee’s Transfer Date for
purposes of benefit eligibility under the Merck Retiree Health Care Plan, and (ii) in the event of a separation of employment that occurs on or prior to December 31, 2022, that would have entitled the Transferred Employee to benefits under
the Merck Separation Plan prior to the Spin-Off (including any requirement to execute a release of claims against Merck and its affiliates), provide any retiree medical bridges that would have been offered
under the Merck Separation Plan. For the avoidance of doubt, nothing herein shall be deemed to restrict the right of Merck to amend or terminate the Merck Retiree Health Care Plan at any time; provided, however, that Merck may not amend the Merck
Retiree Health Care Plan in any manner that disproportionately, materially and adversely effects the rights of Organon Employees vis-à-vis the Merck Employees.

 (e) Merck Health and Welfare Plans after Distribution Date. Except as otherwise provided in Section 5.01, Transferred
Employees shall cease to participate in the Merck Health and Welfare Plans effective as of their respective Transfer Dates. 

Section 5.02 COBRA. Merck shall continue to be responsible for compliance with the health care continuation requirements of COBRA,
and the corresponding provisions of the Merck Health and Welfare Plans with respect to any (a) Merck Retained Employees and any Former Employees (and their covered dependents) who incur a qualifying event under COBRA on, prior to, or following
the Distribution Date, (b) Organon Employees who do not at any time become Transferred Employees (and their covered dependents) who incur a qualifying event under COBRA on, prior to, or following the Distribution Date, and (c) subject to
Section 2.04, other Organon Employees (and their covered dependents), with respect to qualifying events under COBRA incurred prior to the applicable Transfer Date. Organon shall assume responsibility for compliance with the
health care continuation requirements of COBRA and the corresponding provisions of the Organon Health and Welfare Plans with respect to any Transferred Employees (and their covered dependents) who incur a qualifying event or loss of coverage under
the Organon Health and Welfare Plans on or after their respective Transfer Dates. The Parties agree that the consummation of the transactions contemplated by the Separation and Distribution Agreement shall not constitute a COBRA qualifying event for
any purpose of COBRA. 
 Section 5.03 Vacation, Holidays and Leaves of Absence. Effective as of the applicable Transfer Date in
accordance with Section 2.01(a)(i), Organon shall be responsible for any and all Liabilities to, or relating to, Transferred Employees in respect of vacation, holiday, personal days, sick days, annual leave or other leave
of absence, and required payments related thereto (whether accruing prior to, on or after the applicable Transfer Date), including any such Liabilities, and any such required payments related thereto, reasonably determined by Merck in its sole
discretion. Merck shall retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Merck Retained Employee and Former Employee, as well as Organon Employees until
the applicable Transfer Date of such Organon Employees. 

  
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 Section 5.04 Severance and Unemployment Compensation. Effective as of the
applicable Transfer Date, Organon shall be responsible for any and all Liabilities to, or relating to, Transferred Employees in respect of severance and unemployment compensation. Transferred Employees shall receive credit for service with Merck as
of the applicable Transfer Date as if that service had been rendered to Organon for determining severance entitlements subject to the limitations on service crediting in Section 2.02(c). Subject to any specific agreement to
the contrary in the Separation and Distribution Agreement or any Transaction Document and subject to Sections 2.02(a)(ii) and 2.04 hereof, Merck shall be responsible for any and all Liabilities to, or relating to, Merck Retained
Employees and Former Employees, as well as Organon Employees until an applicable Transfer Date occurs with respect to such Organon Employees, in respect of severance and unemployment compensation, regardless of whether the event giving rise to the
Liability occurred prior to, on, or following the Distribution Date. 
 Section 5.05 Workers’ Compensation.
Except as required by applicable Law or as otherwise determined jointly by the Parties as a result of the requirements of any Governmental Authority, all United States workers’ compensation Liabilities relating to, arising out of, or resulting
from any claim shall be assumed, or retained as the case may be, by the Party (or its applicable Subsidiary) that employed such Employee as of the time of such claim. The Merck Group shall be responsible for all Liabilities relating to, arising out
of, or resulting from any United States workers’ compensation claims incurred prior to an applicable Transferred Employee’s Transfer Date unless expressly specified otherwise in the immediately preceding sentence or as required by
applicable Law. Each member of the Organon Group and the Merck Group shall cooperate with respect to any notification to appropriate governmental agencies of the disposition and the issuance of new, or the transfer of existing, workers’
compensation insurance policies and claims handling contracts. 
 ARTICLE VI 

EQUITY, INCENTIVE, AND DIRECTOR AND EXECUTIVE COMPENSATION PROGRAMS 

Section 6.01 Equity Incentive Programs. 

(a) Options, PSUs and RSUs. The Parties shall use commercially reasonable efforts to take all actions necessary or appropriate so that
each outstanding Merck Option, Merck PSU Award, and Merck RSU Award granted under a Merck Stock Program shall be adjusted or converted as set forth in this Section 6.01. This Section 6.01(a) shall
not apply to grants made under the Merck Directors’ DCP (or any successor or predecessor plan), and the sole provisions with respect to the adjustment and conversion of those grants are set forth in Section 6.03. 

(i) Merck Options. Each Merck Option outstanding as of immediately prior to the Distribution Date, whether vested or
unvested and regardless of by whom held shall be converted concurrently with the Distribution on the Distribution Date into (x) an Adjusted Merck Option in the case of Merck Employees, Post-Distribution Organon Employees and Former Employees or
(y) an Organon Option in the case of Organon Employees (excluding any Post-Distribution Organon Employee). Each such adjusted or converted Option shall, except as otherwise provided in this Section 6.01, be subject to
the same terms and conditions (including with respect to vesting) after the Distribution Date as applicable to such Merck Option immediately prior to the Distribution Date; provided, however, that upon such adjustment or conversion:

  
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 (A) the number of Merck Common Shares subject to such Adjusted Merck Option
(if any) shall be equal to (1) the number of Merck Common Shares subject to the Merck Option immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded down to the nearest whole share; 

(B) the number of shares of Organon Common Stock subject to the Organon Option into which such Merck Option is converted (if
any) shall be equal to (1) (xx) the number of Merck Common Shares subject to the Merck Option immediately prior to the Distribution Date multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio, rounded down to
the nearest whole share; 
 (C) the per share exercise price of each Adjusted Merck Option, shall be equal to (1) the
per share exercise price of the Merck Option immediately prior to the Distribution Date divided by (2) the Merck Conversion Ratio, rounded up to the nearest cent; and 

(D) the per share exercise price of each Organon Option, shall be equal to (1) the per share exercise price of the Merck
Option immediately prior to the Distribution Date divided by (2) the Organon Conversion Ratio divided by (3) the Distribution Ratio, rounded up to the nearest cent; 

provided, however, that the exercise price, the number of Merck Common Shares and the number of shares of Organon Common Stock subject to such
options, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Code Section 409A. 

(ii) Merck PSU Awards. 

(A) Merck Employees, Post-Distribution Organon Employees and Former Employees. Merck shall, concurrently with the
Distribution on the Distribution Date and notwithstanding the existing terms of such awards, cause the performance goals under each outstanding Merck PSU Award held by a Merck Employee, a Post-Distribution Organon Employee or a Former Employee to be
equitably adjusted, as determined in its sole discretion. Each such Merck PSU Award held by a Merck Employee, a Post-Distribution Organon Employee or a Former Employee shall be converted concurrently with the Distribution on the Distribution Date
into an Adjusted Merck PSU Award. Such converted award shall be (in all other respects) subject to substantially the same terms and conditions immediately following the Distribution Date as applicable immediately prior to the Distribution Date;
provided, however, that the number of units represented by the Adjusted Merck PSU Award shall be equal to (1) the number of units subject to the Merck PSU Award immediately prior to the Distribution Date, multiplied by (2) the Merck
Conversion Ratio, rounded to the nearest whole unit. 

  
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 (B) Organon Employees’ (other than Post-Distribution Organon
Employees’) 2019 Merck PSU Awards. Effective as of immediately prior to the Distribution on the Distribution Date, the Merck Compensation and Benefits Committee, pursuant to its authority under the applicable Merck Stock Program and
notwithstanding the existing terms of such awards, shall determine and certify the level of attainment of all applicable performance goals under each outstanding Merck PSU Award with a 2019 to 2021 performance period that is held by an Organon
Employee (other than a Post-Distribution Organon Employee), whether vested or unvested, as of immediately prior to the Distribution (with December 31, 2020 treated as the last day of the applicable performance period and such level of attained
performance applied to 100% of the shares subject to the Merck PSU Award). Any such earned Merck PSU Award shall be converted, concurrently with the Distribution on the Distribution Date, into an Organon RSU Award with respect to a number of shares
of Organon Common Stock equal to (1) (xx) the number of units subject to the earned Merck PSU Award immediately prior to the Distribution Date (as determined pursuant to the foregoing sentence) multiplied by (yy) the Distribution Ratio, multiplied
by (2) the Organon Conversion Ratio, rounded to the nearest unit. Such Organon RSU Award shall be (in all other respects, including time-based vesting) subject to substantially the same terms and conditions immediately following the
Distribution Date as applicable to the Merck PSU Award from which it was converted. Any portion of such Merck PSU Award that is not earned shall be immediately forfeited as of the Distribution Date without the payment of any consideration therefore.

 (C) Organon Employees (other than Post-Distribution Organon Employees), 2020 and 2021 Merck PSU Awards. Effective
as of immediately prior to the Distribution on the Distribution Date, a number of shares equal to the target number of shares subject to each outstanding Merck PSU Award with a 2020 to 2022 performance period and each outstanding Merck PSU Award
with a 2021 to 2023 performance period that is held by an Organon Employee (other than a Post-Distribution Organon Employee), whether vested or unvested, as of immediately prior to the Distribution shall be deemed earned. Any such earned Merck PSU
Award shall be converted, concurrently with the Distribution on the Distribution Date, into an Organon RSU Award with respect to a number of shares of Organon Common Stock equal to (1) (xx) the number of units subject to the earned Merck PSU Award
immediately prior to the Distribution Date (as determined pursuant to the foregoing sentence) multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio, rounded to the nearest unit. Such Organon RSU Award shall
be (in all other respects, including time-based vesting) subject to substantially the same terms and conditions immediately following the Distribution Date as applicable to the Merck PSU Award from which it was converted. Any portion of such Merck
PSU Award that is not earned shall be immediately forfeited as of the Distribution Date without the payment of any consideration therefore. 

  
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 (iii) Merck RSU Awards. Each Merck RSU Award that remains outstanding
as of immediately prior to the Distribution Date, regardless of by whom held, whether vested or unvested, shall be converted concurrently with the Distribution on the Distribution Date into (A) an Adjusted Merck RSU Award in the case of Merck
Employees, Post-Distribution Organon Employees and Former Employees or (B) an Organon RSU Award in the case of Organon Employees (other than Post-Distribution Organon Employees). Except as set forth in this
Section 6.01(a)(iii), all Adjusted Merck RSU Awards and Organon RSU Awards issued in accordance with this Section 6.01(a)(iii) shall be subject to substantially the same terms and conditions
(including with respect to vesting) immediately following the Distribution Date as applicable immediately prior to the Distribution Date for those Merck RSU Awards from which such Adjusted Merck RSU Awards and Organon RSU Awards were converted;
provided, however, that upon such adjustment or conversion: 
 (A) the number of units represented by an
Adjusted Merck RSU Award shall be equal to (1) the number of units subject to the Merck RSU Award immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded to the nearest unit; and 

(B) the number of units represented by an Organon RSU Award shall be equal to (1) (xx) the number of units subject to the Merck
RSU Award immediately prior to the Distribution Date multiplied by (yy) the Distribution Ratio, multiplied by (2) the Organon Conversion Ratio, rounded to the nearest unit. 

(iv) Notwithstanding the foregoing, the Parties may mutually agree not to adjust (or to otherwise adjust as they deem
appropriate) certain outstanding Merck equity-based awards pursuant to the foregoing provisions of this Section 6.01 to the extent such actions would create or trigger adverse legal, accounting, administrative, tax
consequences or in order to comply with any Employee Agreement or similar agreement with any affected Employee. 
 (b) Miscellaneous Award
Terms. After the Distribution Date, Adjusted Merck Awards, regardless of by whom held, shall be settled by Merck, and Organon Awards, regardless of by whom held, shall be settled by Organon. Except as otherwise provided in this Agreement, with
respect to grants described in this Section 6.01, no Transferred Employee (other than a Post-Distribution Organon Employee) shall be treated as having incurred a termination of employment or separation from service with
respect to any Merck Award solely by reason of his or her transfer of employment. Following the Distribution Date, for any award adjusted or otherwise received in accordance with this Section 6.01, any reference to a
“change in control,” “change of control” or similar definition in an award agreement, employment agreement or Merck Stock Program applicable to such award (A) with respect to Adjusted Merck Awards, shall be deemed to refer
to a “change in control,” “change of control” or similar defined term as set forth in the applicable award agreement, employment agreement or Merck Stock Program (a “Merck Change of Control”) and (B) with
respect to Organon Awards, shall be deemed to refer to a “change in control,” “change of control” or similar defined term as set forth in the Organon Equity Plan (a “Organon Change of Control”). The Distribution
shall not, in and of itself, be treated as either a Merck Change of Control or an Organon Change of Control. 

  
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 (c) Registration and Other Regulatory Requirements. As soon as possible following (or
prior to) the Distribution Date, but in any case before the date of issuance of any shares of Organon Common Stock pursuant to the Organon Equity Plan, Organon agrees to file a Form S-8 Registration Statement
(or such other registration statement as may be permitted in lieu thereof if a Form S-8 Registration Statement is not then available for any such awards to be granted in accordance with the terms of this
Agreement) with respect to, and to cause to be registered pursuant to the Securities Act, the shares of Organon Common Stock authorized for issuance under the Organon Equity Plan as required pursuant to the Securities Act. The Parties shall take
such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 6.01, including compliance with securities Laws and other legal requirements associated with equity
compensation awards in affected non-U.S. jurisdictions. 
 (d) Merck Equity-Based Awards in
Certain Non-U.S. Jurisdictions. Notwithstanding the foregoing provisions of this Section 6.01, the Parties may mutually agree, in their sole discretion (including as set forth in
Schedule 6.01(d)), not to adjust certain outstanding Merck equity-based awards pursuant to the foregoing provisions of this Section 6.01, where those actions would create or trigger adverse legal, accounting or tax
consequences for Merck, Organon, and/or the affected non-U.S. award holders. In such circumstances, Merck and/or Organon may take any action necessary or advisable to prevent any such adverse legal, accounting
or tax consequences, including, but not limited to, agreeing that the outstanding Merck equity-based awards of the affected non-U.S. award holders shall terminate in accordance with the terms of the Merck
Stock Programs and the underlying award agreements, in which case Organon or Merck, as applicable, shall equitably compensate the affected non-U.S. award holders in an alternate manner determined by Organon or
Merck, as applicable, in its sole discretion, or apply an alternate adjustment method. Where and to the extent required by applicable Law or tax considerations outside the United States, the adjustments described in this
Section 6.01 shall be deemed to have been effectuated immediately prior to the Distribution Date. 

Section 6.02 Annual Bonus. The Organon Group shall be responsible for all annual bonus payments or other forms of cash incentive
compensation (including commissions) payable to Transferred Employees (including Post-Distribution Organon Employees) the performance period for which ends after the applicable Transferred Employee’s Transfer Date. For the avoidance of doubt,
the Merck Group shall have no obligation or responsibility to pay such amounts to such Transferred Employees (including Post-Distribution Employees) in respect of any portion of such performance period and annual bonus payments or other forms of
cash incentive compensation (including commissions) for such full performance period shall be the sole obligation and responsibility of the Organon Group pursuant to the final applicable program terms and conditions established and administered by
the Organon Group. The Merck Group shall be responsible for any annual bonus payments or other forms of cash incentive compensation payable to Transferred Employees (including Post-Distribution Organon Employees) the performance period for which
ends on or prior to the applicable Transferred Employee’s Transfer Date. 

  
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 Section 6.03 Merck Deferred Stock Units. Each outstanding Merck Deferred Stock
Unit shall be adjusted or convertedas set forth in this Section 6.03. For the avoidance of doubt, the remainder of this Section 6.03 applies only to grants made under the Merck Directors’ DCP
(or any successor or predecessor plan), while Section 6.01 is intended to apply to other programs included within the Merck Stock Programs. Each holder of a Merck Deferred Stock Unit that remains outstanding as of
immediately prior to the Distribution Date (regardless of by whom held, whether vested or unvested), shall be converted concurrently with the Distribution on the Distribution Date into an Adjusted Merck Deferred Stock Unit Award. Except as set forth
in this Section 6.03(a), all Adjusted Merck Deferred Stock Unit Awards issued in accordance with this Section 6.03(a) shall be subject to substantially the same terms and conditions (including with respect to vesting)
immediately following the Distribution Date as applicable immediately prior to the Distribution Date for those Merck Deferred Stock Units from which such Adjusted Merck Deferred Stock Unit Awards were converted; provided, however, that with respect
to each Merck Deferred Stock Unit converted in accordance with the immediately preceding sentence the number of units represented by an Adjusted Merck RSU Award (if any) shall be equal to (1) the number of units subject to the Merck Deferred
Stock Unit immediately prior to the Distribution Date, multiplied by (2) the Merck Conversion Ratio, rounded to the nearest unit. To the maximum extent permitted by Treasury Regulations
Section 1.409A-1(h)(4), a member of the Merck Board who no longer serves on the Merck Board immediately following the Distribution Date shall be considered to have undergone a “separation from
service” for purposes of Code Section 409A and the Merck Directors’ DCP. 
 Section 6.04
Directors’ Deferred Compensation Plan. 
 (a) Retention of Directors’ DCP Liabilities. Merck shall
retain all of the Liabilities under the Merck Directors’ DCP following the Distribution Date. To the maximum extent permitted by Treasury Regulations Section 1.409A-1(h)(4), a member of the Merck
Board who no longer serves on the Merck Board immediately following the Distribution Date shall be considered to have undergone a “separation from service” for purposes of Code Section 409A and the Merck Directors’ DCP. 

(b) Merck Directors’ DCP after Transfer Date. From and after the Distribution Date, each person who no longer serves on the Merck
Board, as of immediately following the Distribution Date, shall not accrue any additional benefits under the Merck Directors’ DCP. 

ARTICLE VII 

POST-DISTRIBUTION COVENANTS 

Section 7.01 Non-Hire; Non-Solicit. 

(a) To the fullest extent permitted by applicable Law, from the Distribution Date through the first anniversary of the Distribution Date,
Organon shall not, and shall cause the Organon Group not to, recruit, solicit or hire (whether as an employee, consultant, contractor or 

  
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otherwise) any individual who was an Employee of the Merck Group as of or within six months prior to the Distribution Date and who both (i) rejected any offer of employment made by the
Organon Group in connection with the Separation and Distribution and (ii) received severance payments in connection with the termination of their employment with the Merck Group, for a position that is the same as or similar to such previously
rejected position. 
 (b) Organon specifically acknowledges and agrees that this provision does not impede the Organon Group from competing
in the marketplace or obtaining sufficient talent to effectively innovate, develop, grow, or sustain its business. 
 (c) The Parties further
specifically acknowledge and agree that any remedy at law for any breach of this Section 7.01 shall be inadequate and that in the event of any actual or threatened breach of this Section 7.01, the
non-breaching party, in addition to any other relief available to it, shall be entitled to temporary and permanent injunctive relief without the necessity of proving actual damage. 

(d) The Parties specifically acknowledge and agree that an exception may be made to this provision at the sole discretion and with the written
consent of Organon’s Chief Human Resources Officer. Any exception made shall not be used as precedent to compel or allow any further exceptions. 

ARTICLE VIII 
 TAXES

 Section 8.01 Reporting, Withholding and Deductions. Unless otherwise provided under this Agreement, the Party that has
been allocated a Liability under this Agreement shall take responsibility for tax reporting and withholding (including paying any corresponding employer tax obligation and remitting both the employer taxes and the withheld taxes) with respect to
that Liability, and shall be entitled to claim the benefit of any corresponding tax deductions on an applicable income tax return. The Party with responsibility for reporting and withholding shall prepare all associated Tax Returns (as defined in
the Tax Matters Agreement) and shall be Liable and shall indemnify and hold harmless the other Party for any Taxes (as defined in the Tax Matters Agreement), including interest, penalties, additions to Tax, or additional amounts in respect of Taxes.
The Party responsible for preparing and filing the required Tax Returns shall be determined as set forth in Sections 3.1 and 3.3 of the Tax Matters Agreement, and each Party shall provide to the other Party all information and assistance requested
to fulfill the obligations set forth herein applying the standards set forth in Section 3.2 of the Tax Matters Agreement. 
 For the
avoidance of doubt, the allocation of Tax deductions in this Section 8.01 shall be taken into account for purposes of the allocation of Tax Attributes under Section 2.10 of the Tax Matters Agreement and for purposes of all other provisions
of the Tax Matters Agreement relating to Income Taxes, including Section 2.2 (Allocation of Income Taxes), Section 2.6 (Determination of Tax Attributable to Merck Business and Organon Business), Section 2.9 (Carrybacks and Claims for
Refund), and Article III (Tax Returns, Tax Contests, and Other Administrative Matters) of the Tax Matters Agreement. 

  
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 (a) Qualified Retirement Plans. Unless otherwise required by non-U.S. law, where applicable, Merck will report and withhold, as necessary, on distributions with respect to Liabilities it retains with respect to Merck Employees, Former Employees, and Organon Employees under
the Merck Pension Plan under Section 3.01 of this Agreement. Merck shall be entitled to claim the benefit of any tax deductions for amounts it contributes to the Merck Pension Plan. 

(b) Nonqualified Retirement Plans. Unless otherwise required by non-U.S. law, where applicable,
Merck will report and withhold, as necessary, on Merck SERP and Merck DCP distributions with respect to Liabilities it retains under Sections 3.03 and 3.04(b) with respect to Merck Employees, Former Employees, and Organon Employees. Merck shall be
entitled to claim the benefit of any tax deductions with respect to the amounts paid under such plans. 
 (c) Health and Welfare
Plans. Unless otherwise required by non-U.S. law, where applicable, Merck shall be entitled to claim the benefit of any tax deductions with respect to amounts contributed to fund obligations to Transferred
Employees and Former Employees under Section 5.01(d) under the Merck Retiree Health Care Plan on the applicable income tax return. 

(d) Equity Compensation. Unless otherwise required by non-U.S. law, where applicable, Merck
shall report and withhold on any Adjusted Merck Options, Adjusted Merck PSU Awards, and Adjusted Merck RSU Awards and Organon shall report and withhold on any Organon Options and Organon RSU Awards. The entity that transfers its stock shall be
entitled to claim the benefit of any tax deduction on any applicable income tax returns. 
 (e) Annual Bonus. Unless otherwise
required by non-U.S. law, where applicable, the 2021 annual bonuses paid to Transferred Employees by the Organon Group shall be reported and withheld upon by Organon. Organon shall be entitled to claim the
benefit of any tax deduction of such payments on any applicable income tax returns. 
 ARTICLE IX 

MISCELLANEOUS 

Section 9.01 Transfer of Records and Information. Merck shall transfer to Organon originals or copies of employment records and
information with respect to Transferred Employees that are reasonably required by Organon to enable Organon properly to carry out its obligations under this Agreement. Such transfer of records and information generally shall occur as soon as
administratively practicable on or after the Distribution Date (or, if later, the applicable Transfer Date) and shall in each case be required and shall occur only to the extent permitted by applicable local Law; provided that it is
understood and agreed that certain records required to effect the contemplated transfer of employment may be provided prior to the Transfer Date to the extent required by applicable local Law. Each Party will permit the other Party reasonable access
to Employee records and information, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder. 

  
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 Section 9.02 Cooperation. Each Party shall upon reasonable request provide the
other Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to the other Party’s performance of its obligations hereunder. The Parties agree to use their respective best efforts and to
cooperate with each other in order to carry out their obligations hereunder and to effectuate the terms of this Agreement. 

Section 9.03 Employee Agreements. Effective as of the applicable Transfer Date of each Transferred Employee, or such earlier date
as may be required by applicable Law, Merck and the applicable members of the Merck Group hereby assign to Organon or another member of the Organon Group, to the extent a Transferred Employee did not otherwise sign an Employee Agreement to affect
his or her transfer to and hiring by the Organon Group, each Employee Agreement entered into between a member of the Merck Group and any Organon Employee, and all rights and obligations thereunder; provided, however, that Merck and the Merck
Group shall retain all rights under each Employee Agreement to the extent that such rights are related to any continuing Liability of the Merck Group not assumed by Organon in connection with the Separation and Distribution. 

Section 9.04 Recoupment Assets. Effective as of the Distribution Date, the Merck Group shall be entitled to all Employee
Recoupment Assets in respect of Merck Retained Employees and all Former Employees. The Organon Group shall be entitled to all Employee Recoupment Assets in respect of Organon Employees, effective as of the applicable Transfer Date. 

Section 9.05 Compliance. The agreements and covenants of the Parties hereunder shall at all times be subject to the requirements
and limitations of applicable Law (including, for purposes of Article IV, local rules and customs relating to the treatment of pension plans) and collective bargaining, works council, or other similar agreements. Where an agreement or covenant of a
Party hereunder cannot be effected in compliance with applicable Law or an applicable collective bargaining, works council, or other similar agreement, the Parties agree to negotiate in good faith to modify such agreement or covenant to the least
extent possible in keeping with the original agreement or covenant in order to comply with applicable Law or such applicable collective bargaining agreement. Each provision of this Agreement is subject to and qualified by this
Section 9.05, whether or not such provision expressly states that it is subject to or limited by applicable Law or by applicable collective bargaining, works council, or other similar agreements. Each reference to the Code,
ERISA, or the Securities Act or any other Law shall be deemed to include the rules, regulations, and guidance issued thereunder. 

Section 9.06 Preservation of Rights. Unless expressly provided otherwise in this Agreement, nothing herein shall be construed as a
limitation on the right of the Merck Group or the Organon Group to (a) amend, modify or terminate any Benefit Plan or (b) terminate the employment of any Employee. 

  
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 Section 9.07 Reimbursement. The Parties acknowledge that the Merck Group, on the
one hand, and the Organon Group, on the other hand, may incur costs and expenses (including, without limitation, contributions to Benefit Plans and the payment of insurance premiums) which are, as set forth in this Agreement, the responsibility of
the other Party. Accordingly, the Parties agree to reimburse each other for Liabilities and obligations for which such Party is responsible, and shall provide such reimbursement reasonably promptly and in accordance with the terms of any agreement
between the Parties or their Affiliates expressly addressing such matters. 
 Section 9.08 Not a Change in Control. The Parties
acknowledge and agree that the transactions contemplated by the Separation and Distribution Agreement and this Agreement do not constitute a “change in control” or a “change of control” for purposes of any U.S. Benefit Plan. 

Section 9.09 Incorporation by Reference. The following sections of the Separation and Distribution Agreement are hereby
incorporated into this Agreement by reference: Section 10.01. Counterparts, Entire Agreement, Corporate Power, Facsimile or Electronic Signatures; Section 10.02. Governing Law; Section 10.03. Assignability; Section 10.04. Third
Party Beneficiaries; Section 10.05. Notices; Section 10.06. Severability; Section 10.07. Force Majeure; Section 10.08. No Set Off; Section 10.09. Responsibility for Expenses; Section 10.10. Headings; Section 10.11.
Survival of Covenants; Section 10.12. Subsidiaries and Employees; Section 10.13. Waivers; Section 10.14. Amendments; Section 10.15. Interpretation; Section 10.16. Public Announcements; Section 10.17. Specific
Performance; and Section 10.18. Mutual Drafting. 
 Section 9.10 Limitation on Enforcement. This Agreement is an agreement
solely between the Parties. Nothing in this Agreement, whether express or implied, shall be construed to: (a) confer upon any current or former Employee of the Merck Group or the Organon Group, or any other person any rights or remedies,
including, but not limited to any right to (i) employment or recall; (ii) continued employment or continued service for any specified period; or (iii) claim any particular compensation, benefit or aggregation of benefits, of any kind
or nature; or (b) create, modify, or amend any Benefit Plan. 
 Section 9.11 Further Assurances and Consents. In addition
to the actions specifically provided for elsewhere in this Agreement, each of the Parties hereto shall use commercially reasonable efforts to (a) execute and deliver such further instruments and documents and take such other actions as the
other party may reasonably request to effectuate the purposes of this Agreement and carry out the terms hereof; (b) take, or cause to be taken, all actions, and do, or cause to be done, all things, reasonably necessary, proper or advisable
under applicable Laws and agreements or otherwise to consummate and make effective the transactions contemplated by this Agreement, including, without limitation, using commercially reasonable efforts to obtain any consents and approvals and to make
any filings and applications necessary or desirable to consummate the transactions contemplated by this Agreement; provided that no Party shall be obligated to pay any consideration therefor (except for filing fees and other similar charges) to any
third party from whom those consents, approvals and amendments are required or to take any action or omit to take any action if the taking of action or the omission to take action would be unreasonably burdensome to the Party or the business
thereof. 

  
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 Section 9.12 Third Party Consent. If the obligation of any Party under this
Agreement depends on the consent of a third party, such as a vendor or insurance company, and that consent is withheld, the Parties shall use commercially reasonable efforts to implement the applicable provisions of this Agreement to the fullest
extent practicable. If any provision of this Agreement cannot be implemented due to the failure of a third party to consent, the Parties shall negotiate in good faith to implement the provision in a mutually satisfactory manner, taking into account
the original purposes of the provision in light of the Spin-Off and communications to affected individuals. 

Section 9.13 Effect if Distribution Does Not Occur. If the Spin-Off does not occur, then
all actions and events that are to be taken under this Agreement, or otherwise in connection with the Distribution, shall not be taken or occur, except to the extent specifically provided by Merck. 

Section 9.14 Disputes. The Parties agree to use commercially reasonable efforts to resolve in an amicable manner any and all
controversies, disputes and claims between them arising out of or related in any way to this Agreement. The Parties agree that any controversy, dispute or claim (whether arising in contract, tort or otherwise) arising out of or related in any way to
this Agreement that cannot be amicably resolved informally will be resolved pursuant to the dispute resolution procedures set forth in Article VIII of the Separation and Distribution Agreement. 

[SIGNATURE PAGE FOLLOWS] 

  
 33 

 The Parties have caused this Agreement to be signed by their authorized representatives as
of the date of this Agreement. 
  

			
	
	Merck & Co., Inc.
		
	By:	 	  

		
	Title:	 	
	
	Organon & Co.
		
	By:	 	  

		
	Title:	 	

 [Signature Page to Employee Matters Agreement]EX-10.13

 Exhibit 10.13 

ORGANON & CO. 

2021 INCENTIVE STOCK PLAN 

(Effective May 24, 2021) 
  

	1.	 PURPOSE 

The Plan is established to encourage employees of the Company, its subsidiaries, its affiliates and its joint ventures to acquire common stock in the Company.
The Plan shall be available to provide Incentives, including cash incentives, to Eligible Employees of the Company, its subsidiaries, its affiliates and its joint ventures, as provided under the terms of the Plan. It is believed that the Plan will
serve the interests of the Company and its stockholders because it allows service providers to have a greater personal financial interest in the Company through ownership of, or the right to acquire the Company’s Common Stock and to earn cash
incentives based on the achievement of performance goals, which in turn will stimulate such individuals’ efforts on the Company’s behalf and maintain and strengthen their desire to remain with the Company. It is believed that the Plan also
will assist in the recruitment and retention of service providers of the Company, its subsidiaries, its affiliates and its joint ventures. 
  

	2.	 DEFINITIONS 

“Award Period” has the meaning set forth in Section 10(a). 

“Board of Directors” means the Board of Directors of the Company. 

“Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following
events: 
  

	 	(a)	 any Person becomes the owner, directly or indirectly, of securities of the Company representing more than 50%
of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account
of the acquisition of securities of the Company directly from the Company, (B) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Person that acquires the Company’s securities in a
transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (C) solely because the level of ownership held by any Person (the “Subject
Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a
Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional voting securities
that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject Person over the designated percentage threshold, then a Change in Control will be deemed to
occur; 

	 	(b)	 there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the
Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities
representing 50% or more of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) 50% or more of the combined outstanding voting power of the parent of the surviving entity in such
merger, consolidation or similar transaction, in each case in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such transaction; 

 

	 	(c)	 there is consummated a sale, lease, license or other disposition of all or substantially all of the
consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity, more than 50% of the combined
voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or
other disposition; or 

  

	 	(d)	 individuals who, on the Effective Date, are members of the Board of Directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the members of the Board of Directors; provided, however, that if the appointment or election (or nomination for election) of any new Board of Directors member was approved
or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be considered as a member of the Incumbent Board. 

Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control will not include a sale of
assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any
affiliate and the Eligible Employee will supersede the foregoing definition with respect to Incentives subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual
written agreement, the foregoing definition will apply. 
 If required for compliance with Section 409A of the Code, in no event will a
Change in Control be deemed to have occurred if such transaction is not also a “change in the ownership or effective control of” the Company or “a change in the ownership of a substantial portion of the assets of” the Company as
determined under U.S. Treasury Regulation Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder). The Board of Directors may, in its sole discretion and without an Eligible
Employee’s consent, amend the definition of “Change in Control” to conform to the definition of “Change in Control” under Section 409A of the Code, and the regulations thereunder. 

  
 2 

 “Code” means the Internal Revenue Code of 1986, as amended. 

“Committee” means the Talent Committee of the Board of Directors of the Company or subcommittee thereof, or such other successor committee of
the Board of Directors. 
 “Common Stock” means the common stock, $0.01 par value per share, of the Company and any other securities into
which such shares are changed or for which such shares are exchanged. 
 “Company” means Organon & Co., a Delaware corporation.

 “Eligible Employees” shall have the meaning set forth in Section 4(a). 

“Employee” means a person employed on a regular full-time or part-time basis by the Company, or its subsidiaries, its affiliates or its joint
ventures, including officers, whether or not directors of the Company, and employees of a joint venture partner or affiliate of the Company who provide services to the joint venture with such partner or affiliate. The term “Employee” shall
not include any of the following: a person who is an independent contractor, or agrees or has agreed that he/she is an independent contractor of the Company; a person who has any agreement or understanding with the Company, or any of its affiliates
or joint venture partners that he/she is not an employee or an Eligible Employee, even if he/she previously had been an employee or Eligible Employee; or a person who is employed by a temporary or other employment agency, regardless of the amount of
control, supervision or training provided by the Company or its affiliates; a “leased employee” as defined under Section 414(n) of the Code, in each case, even if a court, agency or other authority rules that he/she is a common-law employee of the Company or its affiliates. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
 “Fair Market Value” means as of any date, unless otherwise determined by the Committee the value of the Common
Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange, system or market, its Fair Market Value shall be the closing price for the Common Stock as quoted on such exchange, system or market as reported
in the Wall Street Journal or such other source as the Committee deems reliable (or, if no sale of Common Stock is reported for such date, on the next preceding date on which any sale shall have been reported); and (ii) in the absence of an
established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Committee by the reasonable application of a reasonable valuation method, taking into account factors consistent with Treas. Reg. § 409A-1(b)(5)(iv)(B) as the Committee deems appropriate. 
 “Incentive Stock Option” or “ISO”
means a stock option satisfying the requirements of Section 422 of the Code and designated by the Committee as an Incentive Stock Option. 

“Incentive” means a grant of Stock Options, Stock Appreciation rights, Restricted Stock Grants, Performance Awards, Share Awards, Phantom
Stock Awards, and cash or any or all of them. 

  
 3 

 “Nonqualified Option” means a stock option that is not an Incentive Stock Option. 

“Performance Shares” means an award denominated in shares granted to an Eligible Employee under Section 10. 

“Performance Awards” means Performance Units or Performance Shares or either or both of them. 

“Performance Goals” has the meaning set forth in Section 10(a). 

“Performance Units” means an award denominated in shares of Common Stock or cash granted to an Eligible Employee under Section 10. 

“Person” means any individual, corporation, partnership, association, limited liability company, joint-stock company, trust or unincorporated
organization. 
 “Phantom Stock Award” means an award of phantom shares of Common Stock granted to an Eligible Employee under
Section 12. 
 “Plan” means this Organon & Co. 2021 Incentive Stock Plan, as amended from time to time. 

“Restricted Period” has the meaning set forth in Section 11. 

“Restricted Stock” means shares of Common Stock issued or transferred to an Eligible Employee under Section 11. 

“Restricted Stock Grants” has the meaning set forth in Section 11. 

“Restricted Stock Units” means a right granted to an Eligible Employee under Section 11 representing a number of phantom shares of
Common Stock. 
 “Section 16 Officer” means an individual who serves as an “officer” of the Company as such
term is defined in Rule 16(a)-1(f) of the Exchange Act. 
 “Securities Act” means the Securities
Act of 1933, as amended. 
 “Share Award” means an award of actual shares of Common Stock granted to an Eligible Employee under
Section 12. 
 “Spread” shall have the meaning set forth in Section 9(b). 

“Stand Alone SAR” means a Stock Appreciation Right granted without an underlying Stock Option as provided in Section 9. 

“Stock Appreciation Right” means a right to receive the appreciation in the Fair Market Value of shares of Common Stock, as provided in
Section 9. 
 “Stock Option” means a Nonqualified Option or an Incentive Stock Option, or either or both of them. 

  
 4 

 “Substitute Incentive” means an Incentive granted in assumption of, or in substitution or
exchange for, awards previously granted, or the right or obligation to make future awards, in each case by a company acquired by the Company or any subsidiary or affiliate with which the Company or any subsidiary or affiliate combines. 

“Successor Incentive” shall have the meaning set forth in Section 25(a). 

“Tandem SAR” means a Stock Appreciation Right granted with respect to an underlying Stock Option as provided in Section 9. 

“Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more
than 10% of the total combined voting power of all classes of stock of the Company or any “parent” or “subsidiary of the Company, as such terms are defined in Rule 405 of the Securities Act. 

 

	3.	 ADMINISTRATION 

The Plan shall be administered by the Committee or any designated subcommittee thereof (and references in this Plan to the Committee shall be to such
subcommittee, acting in accordance with their governing documents). A Director may serve on the Committee only if he or she is a “Non-Employee Director” of the Company for purposes of Rule 16b-3 under the Exchange Act. The Committee shall be responsible for the administration of the Plan including, without limitation, determining which Eligible Employees receive Incentives, the types of Incentives
they receive under the Plan, the number of shares covered by Incentives granted under the Plan, and the other terms and conditions of such Incentives. Determinations by the Committee under the Plan including, without limitation, determinations of
the Eligible Employees, the form, amount and timing of Incentives, the terms and provisions of Incentives and the writings evidencing Incentives, need not be uniform and may be made selectively among Eligible Employees who receive, or are eligible
to receive, Incentives hereunder, whether or not such Eligible Employees are similarly situated. 
 The Committee shall have the responsibility of
construing and interpreting the Plan and any instrument or agreement relating to the Plan, including but not limited to, the right to correct any defect or supply any omission, construe disputed or doubtful provisions, reconcile any inconsistency in
the Plan or in any related instrument or agreement, and of establishing, amending, rescinding and construing such rules and regulations as it may deem necessary or desirable for the proper administration of the Plan, related instrument or agreement.
Any decision or action taken or to be taken by the Committee, arising out of or in connection with the construction, administration, interpretation and effect of the Plan, related instrument or agreement, and the Plan’s rules and regulations,
shall, to the maximum extent permitted by applicable law, be within its absolute discretion (except as otherwise specifically provided herein) and shall be final, binding and conclusive upon the Company, all Eligible Employees and any person
claiming under or through any Eligible Employee. 

  
 5 

 The Committee, as permitted by applicable state law, may delegate to one or more officers of the Company any
or all of its power and authority hereunder, including the authority to do one or both of the following: (i) designate Eligible Employees who are not Section 16 Officers or Directors to receive Incentives and the terms of such Incentives;
and (ii) determine the number of shares of Common Stock, if any, subject to such Incentives; provided, however, that the Committee resolutions regarding such delegation will specify the total number of shares of Common Stock that
may be subject to the Incentives granted by such delegate and such delegate may not grant any Incentive to himself or herself; and provided further, that such officer of the Company may further delegate such authority in accordance with the
Company’s policy on delegation of authority. 
 For the purpose of this section and all subsequent sections, the Plan shall be deemed to include this
Plan and any comparable sub-plans established by subsidiaries which, in the aggregate, shall constitute one Plan governed by the terms set forth herein. 

 

	4.	 ELIGIBILITY 

  

	 	(a)	 Employees. Employees shall be eligible to participate in the Plan if designated by the Committee
(“Eligible Employees”). 

  

	 	(b)	 No Right To Continued Employment. Nothing in the Plan shall interfere with or limit in any way the right
of the Company, its subsidiaries, its affiliates or its joint ventures to terminate the employment of any person at any time, nor confer upon any person the right to continue in the employ of the Company, its subsidiaries, its affiliates or its
joint ventures. No Eligible Employee shall have a right to receive an Incentive or any other benefit under this Plan or having been granted an Incentive or other benefit, to receive any additional Incentive or other benefit. Neither the award of an
Incentive nor any benefits arising under such Incentives shall constitute an employment contract with the Company, its subsidiaries, its affiliates or its joint ventures, and accordingly, this Plan and the benefits hereunder may be terminated at any
time in the sole and exclusive discretion of the Company without giving rise to liability on the part of the Company, its subsidiaries, its affiliates or its joint ventures for severance. Except as may be otherwise specifically stated in any other
employee benefit plan, policy or program, neither any Incentive under this Plan nor any amount realized from any such Incentive shall be treated as compensation for any purposes of calculating an employee’s benefit under any such plan, policy
or program. 

  

	5.	 TERM OF THE PLAN 

This Plan was approved by the Board of Directors and the sole stockholder of the Company on May 24, 2021, and is effective as of that same day (the
“Effective Date”). No Incentive that is an Incentive Stock Option shall be granted under the Plan following the tenth anniversary of the Effective Date (or such earlier date that the Plan may be terminated by the Board of
Directors), but the term and exercise of Incentives granted theretofore may extend beyond such expiration date. 
  

	6.	 INCENTIVES 

Incentives under the Plan may be granted in any one or a combination of (a) Incentive Stock Options, (b) Nonqualified Options, (c) Stock
Appreciation Rights, (d) Restricted Stock Grants, (e) Performance Awards, (f) Share Awards, (g) Phantom Stock Awards, and (h) cash. All Incentives shall be subject to the terms and conditions set forth herein and to such
other terms and conditions as may be established by the Committee. Notwithstanding anything to the contrary, any Incentives granted to an individual who is not an Eligible Employee or otherwise in error shall be void ab initio. 

  
 6 

	7.	 SHARES AVAILABLE FOR INCENTIVES 

 

	 	(a)	 Shares Available. Subject to adjustment as described in subsection (b), the maximum number of shares of
Common Stock that may be issued under the Plan is 35,000,000 (the “Share Reserve”). No more than an aggregate of 35,000,000 shares may be issued as Incentive Stock Options during the term of the Plan. For the avoidance of doubt, any
stock options, performance share units or restricted share units of Merck & Co., Inc. (“Merck”) converted into Company Incentives in connection with the separation of the Company’s business from Merck in accordance
with the terms and conditions of that certain Employee Matters Agreement dated as of June 2, 2021 by and between Merck and the Company shall count against the Share Reserve. 

 

	 	(i)	 The following shares of Common Stock shall be added to the maximum share limitation described in the first
sentence of paragraph (a): (1) shares tendered or withheld by the Company in payment of all or part of the exercise price of a Stock Option; (2) shares tendered or withheld by the Company to satisfy all or part of the tax withholding obligation
of an Incentive on the vesting or exercise thereof; and (3) shares not issued upon exercise of all or a portion of a Stock Appreciation Right that is settled in shares. Shares under this Plan may be delivered by the Company from its authorized
but unissued shares of Common Stock or from issued and reacquired Common Stock held as treasury stock, or both. In no event shall fractional shares of Common Stock be issued under the Plan. For purposes of determining the number of shares of Common
Stock remaining available for issuance under the Plan, only Incentives payable in shares of Common Stock shall be counted. 

  

	 	(ii)	 In the event that a company acquired by the Company or any subsidiary or affiliate or with which the Company or
any subsidiary or affiliate combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for
issuance pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or
combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Incentives and shall not be counted as issued for purposes of determining the number of
shares remaining available for issuance under the first sentence of this paragraph (a); provided that such Incentives shall not be made after the date awards or grants could have been made under the terms of the
pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employees or directors of the Company or any subsidiary or affiliate prior to such acquisition or
combination. 

  
 7 

	 	(iii)	 The following shares of Common Stock relating to Incentives are not counted as issued for purposes of
determining the number of shares remaining available for issuance under the Plan: 

  

	 	(1)	 Shares of Common Stock subject to an Incentive that is settled in cash in lieu of shares;

  

	 	(2)	 Shares of Common Stock subject to an Incentive that expires, is forfeited, cancelled or terminates for any
reason without issuance of shares; 

  

	 	(3)	 Shares of Common Stock subject to a Substitute Incentive; and 

 

	 	(4)	 Shares of Restricted Stock that are forfeited and returned to the Company upon a participant’s termination
of employment. 

  

	 	(b)	 Adjustment of Shares. In the event of a reorganization, recapitalization, reclassification, stock split
or reverse stock split, stock dividend, extraordinary cash dividend, combination or exchange of shares, repurchase of shares, merger, consolidation, rights offering, spin off, split off, split up, change in corporate structure, or other event
identified by the Committee, the Committee shall make such equitable adjustments, in a manner it may deem appropriate, in (i) the number and kind of shares authorized for issuance under the Plan, (ii) the number and kind of shares subject
to outstanding Incentives, (iii) the option price of Stock Options, (iv) the grant price of Stock Appreciation Rights; and (v) the terms and conditions of any outstanding Incentives (including, without limitation, any applicable
performance targets or criteria with respect thereto). Any such determination shall be final, binding and conclusive on all parties. 

  

	8.	 STOCK OPTIONS 

The Committee may grant options qualifying as ISOs and Nonqualified Options. Such Stock Options shall be subject to the following terms and conditions and such
other terms and conditions as the Committee may prescribe: 
  

	 	(a)	 Stock Option Price. The option price per share with respect to each Stock Option shall be determined by
the Committee, but shall not be less than 100 percent of the Fair Market Value of the Common Stock on the date the Stock Option is granted other than Stock Options that are Substitute Incentives, as determined by the Committee. Notwithstanding
the foregoing, a Ten Percent Stockholder will not be granted an ISO unless the exercise price of the ISO is at least 110 percent of the Fair Market Value of the Common Stock on the date the ISO is granted. 

  
 8 

	 	(b)	 Period of Stock Option. The period of each Stock Option shall be fixed by the Committee, provided that
the period for all Stock Options shall not exceed ten years from the grant, provided further, however, that, (i) in the event of the death of an Optionee prior to the expiration of a Nonqualified Option, such Nonqualified Option may, if the
Committee so determines, be exercisable for up to 11 years from the date of the grant, (ii) the Committee may provide in a grant agreement that the term of any Stock Option shall be extended during any period that such Stock Option may not be
exercised under any applicable law or during an applicable blackout period, and (iii) an ISO granted to a Ten Percent Stockholder will not be exercisable after the expiration of five years from the date of grant. The Committee may, subsequent
to the granting of any Stock Option, extend the term thereof, but in no event shall the extended term exceed ten years from the original grant date (11 in case of a grantee’s death). 

 

	 	(c)	 Exercise of Stock Option and Payment Therefore. No shares shall be issued until full payment of the
option price has been made. The option price may be paid in cash or, if the Committee determines, in shares of Common Stock (by tendering previously acquired Shares, either actually or by attestation, or by the Company withholding shares otherwise
issuable in connection with the exercise of the Option), a combination of cash and shares of Common Stock, or through a cashless exercise procedure that allows grantees to sell immediately some or all of the shares underlying the exercised portion
of the Option in order to generate sufficient cash to pay the option price. If the Committee approves the use of shares of Common Stock as a payment method, the Committee shall establish such conditions as it deems appropriate for the use of Common
Stock to exercise a Stock Option. Stock Options awarded under the Plan shall be exercised through such procedure or program as the Committee may establish or define from time to time, which may include a designated broker that must be used in
exercising such Stock Options. 

  

	 	(d)	 First Exercisable Date. The Committee shall determine how and when shares covered by a Stock Option may
be purchased. The Committee may establish waiting periods, the dates on which Stock Options become exercisable or non-forfeitable and, subject to paragraph (b) of this section, exercise periods. The
Committee may accelerate the exercisability of any Stock Option or portion thereof. 

  

	 	(e)	 Termination of Employment. Unless determined otherwise by the Committee, upon the termination of a Stock
Option grantee’s employment (for any reason other than gross misconduct), Stock Option privileges shall be limited to the shares that were immediately exercisable at the date of such termination. The Committee, however, in its discretion, may
provide that any Stock Options outstanding but not yet exercisable upon the termination of a Stock Option grantee’s employment may become exercisable in accordance with a schedule determined by the Committee. Such Stock Option privileges shall
expire unless exercised within such period of time after the date of termination of employment as may be established by the Committee, but in no event later than the expiration date of the Stock Option. 

  
 9 

	 	(f)	 Termination Due to Misconduct. If a Stock Option grantee’s employment is terminated for gross
misconduct, as determined by the Company, all rights under the Stock Option shall expire upon the date of such termination. 

  

	 	(g)	 Limits on ISOs. Except as may otherwise be permitted by the Code, an Eligible Employee may not receive a
grant of ISOs for stock that would have an aggregate Fair Market Value in excess of $100,000 (or such other amount as the Internal Revenue Service may decide from time to time), determined as of the time that the ISO is granted, that would be
exercisable for the first time by such person during any calendar year. If any grant is made in excess of the limits provided in the Code, such grant shall automatically become a Nonqualified Option. In addition, ISOs may only be granted to
Employees of the Company and its subsidiaries. 

  

	 	(h)	 Dividends. Anything in the Plan to the contrary notwithstanding, no dividends or dividend equivalents
may be paid on Stock Options. 

  

	9.	 STOCK APPRECIATION RIGHTS 

The Committee may, in its discretion, grant a Stock Appreciation Right either singly or in combination with an underlying Stock Option granted hereunder. Such
Stock Appreciation Right shall be subject to the following terms and conditions and such other terms and conditions as the Committee may prescribe: 
  

	 	(a)	 Time and Period of Grant. If a Stock Appreciation Right is granted as a Tandem SAR, it may be granted at
the time of the Stock Option grant or at any time thereafter but prior to the expiration of the Stock Option grant. At the time the Tandem SAR is granted the Committee may limit the exercise period for such Stock Appreciation Right, before and after
which period no Stock Appreciation Right shall attach to the underlying Stock Option. In no event shall the exercise period for a Tandem SAR exceed the exercise period for such Stock Option. If a Stock Appreciation Right is granted as a Stand Alone
SAR the period for exercise of the Stock Appreciation Right shall be set by the Committee. The maximum term of a Stand Alone SAR shall not exceed ten years from the grant, provided further, however, that, in the event of the death of the grantee
prior to the expiration of such Stand Alone SAR, such Stand Alone SAR may, if the Committee so determines, be exercisable for up to eleven years from the date of the grant and the Committee may provide in a grant agreement that the term of any Stock
Option shall be extended during any period that such Stock Option may not be exercised under any applicable law or during an applicable blackout period. 

  

	 	(b)	 Value of Stock Appreciation Right. The grantee of a Tandem SAR will be entitled to surrender the Stock
Option which is then exercisable and receive in exchange therefore an amount equal to the excess of the Fair Market Value of the Common Stock on the date the election to surrender is received by the Company in accordance with exercise procedures
established by the Company over the Stock Option price (the “Spread”) multiplied by the number of shares covered by the Stock Option which is surrendered. The grantee of a Stand Alone SAR will receive upon exercise of the Stock
Appreciation Right an amount equal to the excess of the 

  
 10 

	 	
Fair Market Value of the Common Stock on the date the election to surrender such Stand Alone SAR is received by the Company in accordance with exercise procedures established by the Company over
the Fair Market Value of the Common Stock on the date of grant multiplied by the portion being exercised of the number of shares covered by the grant of the Stand Alone SAR. Notwithstanding the foregoing, in its sole discretion the Committee at the
time it grants a Stock Appreciation Right may provide that the Spread covered by such Stock Appreciation Right may not exceed a specified amount. 

  

	 	(c)	 Payment of Stock Appreciation Right. Payment of a Stock Appreciation Right shall be in the form of
shares of Common Stock, cash or any combination of shares and cash. The form of payment upon exercise of such a right shall be determined by the Committee either at the time of grant of the Stock Appreciation Right or at the time of exercise of the
Stock Appreciation Right. 

  

	 	(d)	 Dividends. Anything in the Plan to the contrary notwithstanding, no dividends or dividend equivalents
may be paid on Stock Appreciation Rights. 

  

	 	(e)	 Termination of Employment. Unless determined otherwise by the Committee, upon the termination of a Stock
Appreciation Right grantee’s employment (for any reason other than gross misconduct), Stock Appreciation Right privileges shall be limited to the shares that were immediately exercisable at the date of such termination. The Committee, however,
in its discretion, may provide that any Stand Alone Stock Appreciation Right outstanding but not yet exercisable upon the termination of a Stock Appreciation Right grantee’s employment may become exercisable in accordance with a schedule
determined by the Committee. Such privileges shall expire unless exercised within such period of time after the date of termination of employment as may be established by the Committee, but in no event later than the expiration date of the Stock
Appreciation Right. 

  

	 	(f)	 Termination Due to Misconduct. If a Stock Appreciation Right grantee’s employment is terminated for
gross misconduct, as determined by the Company, all rights under the Stock Appreciation Right shall expire upon the date of such termination. 

  

	10.	 PERFORMANCE AWARDS 

The Committee may grant Performance Awards, including Performance Shares or Performance Units, if the performance of the Company or its parent or any
subsidiary, division, business unit, affiliate or joint venture of the Company selected by the Committee during the Award Period meets certain goals established by the Committee. Performance Awards shall be subject to the following terms and
conditions and such other terms and conditions as the Committee may prescribe: 
  

	 	(a)	 Award Period and Performance Goals. The Committee shall determine and include in the terms and
conditions of a Performance Award the period of time for which a Performance Award is made (“Award Period”). The Committee also shall establish performance objectives (“Performance Goals”) to be met by the Company,
its subsidiary, division, business unit, affiliate or joint venture of the Company during the Award Period as a condition to payment of the Performance Award. The Performance Goals may include minimum and optimum objectives or a single set of
objectives, may be applied to either the Company as a whole or to a subsidiary, division, business unit, affiliate or joint venture, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period
of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the Committee. 

 

	 	(b)	 Payment of Performance Awards. The Committee shall establish the method of calculating the amount of
payment to be made under a Performance Award if the Performance Goals are met, including the fixing of a maximum payment. After the completion of an Award Period, the performance of the Company, its subsidiary, division, business unit, affiliate or
joint venture of the Company shall be measured against the Performance Goals, and the Committee shall determine, 

  
 11 

	 	
in accordance with the terms of such Performance Award, whether all, none or any portion of a Performance Award shall be paid. The Committee, in its discretion, may elect to make payment in
shares of Common Stock, cash or a combination of shares and cash. Any cash payment of an award measured relative to Common Stock shall be based on the Fair Market Value of shares of Common Stock on, or as soon as practicable prior to, the date of
payment. The Committee may establish rules and procedures to permit a grantee to defer recognition of income upon the attainment of a Performance Award. 

  

	 	(c)	 Revision of Performance Goals. The Committee may revise the Performance Goals and the computation of
payment if one or more events occur which have a substantial effect on the performance of the Company, subsidiary, division, affiliate or joint venture of the Company and which, in the judgment of the Committee, make the application of the
Performance Goals unfair unless a revision is made, including without limitation, to reflect losses from discontinued operations, extraordinary, unusual or nonrecurring gains and losses, the cumulative effect of accounting changes, acquisitions or
divestitures, structural changes/outsourcing, foreign exchange impacts, the impact of specified corporate transactions, accounting or tax law changes and other extraordinary or nonrecurring events. 

 

	 	(d)	 Requirement of Employment. Except as otherwise provided in the grant agreement evidencing the Incentive,
a grantee of a Performance Award must remain in the employ of the Company, its subsidiary, affiliate or joint venture until the completion of the Award Period in order to be entitled to payment under the Performance Award; provided that the
Committee may, in its discretion, provide for a full or partial payment where such an exception is deemed equitable. 

  

	 	(e)	 Dividends. The Committee may, in its discretion, at the time of the Performance Award grant, determine
if any dividends declared on the Common Stock during the Award Period which would have been paid with respect to Performance Shares had they been owned by a grantee or dividend equivalents be either (i) accumulated for the benefit of the
grantee and used to increase the number of Performance Shares of the grantee, or paid as cash, at the end of the Award Period or (ii) not paid or accumulated. Notwithstanding anything to the contrary, such dividends or dividend equivalents
shall only be payable following the end of the Performance Period to the extent that the Performance Shares have been earned. 

  

	11.	 RESTRICTED STOCK GRANTS 

The Committee may grant Restricted Stock or Restricted Stock Units to an Eligible Employee, which shall be subject to the following terms and conditions and
such other terms and conditions as the Committee may prescribe (“Restricted Stock Grants”). Such grants shall not be free from restriction during the period designated by the Committee (the “Restricted Period”).

  
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	 	(a)	 Requirement of Employment. A grantee of a Restricted Stock Grant must remain in the employment of the
Company during the Restricted Period in order to receive the shares, cash or combination thereof under the Restricted Stock Grant. Except as otherwise provided in the grant agreement evidencing the Incentive, if the grantee leaves the employment of
the Company prior to the end of the Restricted Period, the Restricted Stock Grant shall terminate and any shares of Common Stock shall be returned immediately to the Company, provided that the Committee may provide for the employment restriction to
lapse with respect to a portion or portions of the Restricted Stock Grant at different times during the Restricted Period. The Committee may, in its discretion, also provide for such complete or partial exceptions to the employment restriction as it
deems equitable. 

  

	 	(b)	 Restrictions on Transfer and Legend on Stock Certificates. During the Restricted Period, the grantee may
not sell, assign, transfer, pledge or otherwise dispose of the Restricted Stock Grant, including but not limited to any shares of Common Stock. Any certificate for shares of Common Stock issued hereunder shall contain a legend giving appropriate
notice of the restrictions in the grant. 

  

	 	(c)	 Escrow Agreement. The Committee may require the grantee to enter into an escrow agreement providing that
any certificates representing the Restricted Stock Grant will remain in the physical custody of an escrow holder until all restrictions are removed or expire. 

 

	 	(d)	 Lapse of Restrictions. All restrictions imposed under the Restricted Stock Grant shall lapse upon the
expiration of the Restricted Period if the conditions as to employment set forth above have been met. The grantee shall then be entitled to have the legend removed from any certificates for Restricted Stock. Restricted Stock Units may be paid in the
form of shares of Common Stock, cash or any combination of shares and cash as determined by the Committee. The Committee may establish rules and procedures to permit a grantee to defer recognition of income upon the expiration of the Restricted
Period. 

  

	 	(e)	 Dividends. The Committee may, in its discretion, at the time of the Restricted Stock Grant, provide that
any dividends declared on Common Stock during the Restricted Period or dividend equivalents be (i) accumulated for the benefit of the grantee and used to increase the number of shares of Common Stock subject to the Restricted Stock Grant, or
paid as cash, to the grantee at the expiration of the Restricted Period or (ii) not accumulated. Notwithstanding anything to the contrary, such dividends or dividend equivalents shall only be payable following the expiration of the Restricted
Period to the extent that the Restricted Stock Grant has been earned. 

  

	12.	 OTHER SHARE-BASED AWARDS 

The Committee may grant a Share Award or Phantom Stock Award to any Eligible Employee on such terms and conditions as the Committee may determine in its sole
discretion. Share Awards may be made as additional compensation for services rendered by the Eligible Employee or may be in lieu of cash or other compensation to which the Eligible Employee is entitled from the Company. The Committee may, in its
discretion, at the time a Share Award or Phantom Award is granted, provide that any dividends declared on Common Stock during the applicable Restricted Period or dividend equivalents be (i) accumulated for the benefit of the grantee and

  
 13 

 
used to increase the number of shares of Common Stock subject to the applicable Share Award or Phantom Award, or paid as cash, to the grantee at the expiration of the Restricted Period or
(ii) not accumulated. Notwithstanding anything to the contrary, such dividends or dividend equivalents shall only be payable to the extent that the applicable Share Award or Phantom Award has been earned. 

 

	13.	 CASH AWARDS 

The Committee may grant a Cash Award to any Eligible Employee on such terms and conditions as the Committee may determine in its sole discretion. Cash Awards
may be made as additional compensation for services rendered by the Eligible Employee or may be in lieu other compensation to which the Eligible Employee is entitled from the Company. A Cash Award may or may not be subject to vesting conditions,
including performance-based vesting conditions consistent with other forms of Performance Awards. 
  

	14.	 TRANSFERABILITY 

Each Stock Option and Stock Appreciation Right granted under the Plan shall not be transferable other than by will or the laws of descent and distribution;
each other Incentive granted under the Plan will not be transferable or assignable by the recipient, and may not be made subject to execution, attachment or similar procedures, other than by will or the laws of descent and distribution or as
determined by the Committee in accordance with the Exchange Act or any other applicable law or regulation. Notwithstanding the foregoing, the Committee, in its discretion, may adopt rules permitting the transfer, solely as gifts during the
grantee’s lifetime, of Stock Options (other than ISOs) and Stock Appreciation Right to members of a grantee’s immediate family or to trusts, family partnerships or similar entities for the benefit of such immediate family members. For this
purpose, immediate family member means the grantee’s spouse, parent, child, stepchild, grandchild and the spouses of such family members. The terms of a Stock Option and Stock Appreciation Right shall be final, binding and conclusive upon the
beneficiaries, executors, administrators, heirs and successors of the grantee. 
  

	15.	 DISCONTINUANCE OR AMENDMENT OF THE PLAN 

The Board of Directors may discontinue the Plan at any time and may from time to time amend or revise the terms of the Plan as permitted by applicable
statutes, except that it may not, without the consent of the grantees affected, revoke or alter, in a manner that is materially unfavorable to the grantees of any Incentives hereunder, any Incentives then outstanding, nor may the Board of Directors
amend the Plan without stockholder approval where the absence of such approval would cause the Plan to fail to comply with any requirement of applicable law or regulation or the listing requirements of any national securities exchange or association
on which the Common Stock is then listed. Notwithstanding the foregoing, without consent of affected grantees, Incentives may be amended, revised or revoked when necessary to avoid penalties under Section 409A of the Code, to ensure compliance
with the listing requirements any national securities exchange or association on which the Common Stock is then listed, or as may be required or appropriate to comply with changes in applicable laws and regulations. Unless approved by the
Company’s stockholders or as otherwise specifically provided under this Plan, no adjustments or reduction of the exercise price of any outstanding Stock Appreciation Rights or Stock Options 

  
 14 

 
shall be made in the event of a decline in stock price, either by reducing the exercise price of outstanding Incentives or through cancellation of outstanding Incentives in connection with
regranting of Incentives at a lower price to the same individual, nor may Stock Appreciation Rights or Stock Options be cancelled in exchange for a cash payment to account for a decline in stock price. 

 

	16.	 NO LIMITATION ON COMPENSATION 

Nothing in the Plan shall be construed to limit the right of the Company to establish other plans or to pay compensation to its service providers, in cash or
property, in a manner which is not expressly authorized under the Plan. 
  

	17.	 NO CONSTRAINT ON CORPORATE ACTION 

Nothing in the Plan shall be construed (i) to limit, impair or otherwise affect the Company’s right or power to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of its business or assets, or (ii) except as provided in Section 15, to limit the right
or power of the Company, or any subsidiary, affiliate or joint venture to take any action which such entity deems to be necessary or appropriate. 
  

	18.	 WITHHOLDING TAXES 

The Company shall be entitled to deduct from any payment under the Plan, regardless of the form of such payment, the amount of all applicable income, excise
and employment taxes required or permitted by law to be withheld with respect to such payment or may require the Eligible Employee to pay to it such tax prior to and as a condition of the making of such payment. In accordance with any applicable
administrative guidelines it establishes, the Committee may allow an Eligible Employee to pay the amount of taxes required by law to be withheld from an Incentive by withholding from any payment of Common Stock due as a result of such Incentive, or
by permitting the Eligible Employee to deliver to the Company, shares of Common Stock having a Fair Market Value, as determined by the Committee, equal to the amount of such required or permitted withholding taxes. 

 

	19.	 COMPLIANCE WITH SECTION 16 OF THE EXCHANGE ACT 

With respect to Eligible Employees who are Section 16 Officers, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successor under the Exchange Act. To the extent that compliance with any Plan provision applicable solely to the Section 16 Officers is not required in order to bring a transaction by such
Section 16 Officer into compliance with Rule 16b-3, it shall be deemed null and void as to such transaction, to the extent permitted by law and deemed advisable by the Committee and its delegees. To the
extent any provision of the Plan or action by the Plan administrators involving such Section 16 Officers is deemed not to comply with an applicable condition of Rule 16b-3, it shall be deemed null and
void as to such Section 16 Officers, to the extent permitted by law and deemed advisable by the Plan administrators. 

  
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	20.	 COMPLIANCE WITH SECTION 409A OF THE CODE 

To the extent applicable, to the extent an Incentive is granted to an Eligible Employee subject to the Code, it is intended that such Incentive be exempt from
Section 409A of the Code or be structured in a manner that would not cause the Eligible Employee to be subject to taxes and interest pursuant to Section 409A of the Code. Notwithstanding anything to the contrary in the Plan (and unless the
award document specifically provides otherwise), if an Eligible Employee holding an Incentive that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of
Section 409A of the Code and the Eligible Employee is otherwise subject to Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation from service” (as defined in Section 409A of
the Code without regard to alternative definitions thereunder) will be issued or paid before the date that is six months following the date of such Eligible Employee’s “separation from service” or, if earlier, the date of the Eligible
Employee’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the
balance paid thereafter on the original schedule. 
  

	21.	 USE OF PROCEEDS 

Any proceeds received by the Company under the Plan shall be added to the general funds of the Company and shall be used for such corporate purposes as the
Board of Directors shall direct. 
  

	22.	 GOVERNING LAW 

The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware without giving effect to the
principles of conflicts of laws. Unless otherwise set forth in the applicable grant agreement, the State and Federal courts located in the State of Delaware shall have exclusive jurisdiction for any action brought under the Plan or pursuant to any
Incentive. 
  

	23.	 REGISTRATION AND APPROVALS 

The obligation of the Company to sell or deliver shares of Common Stock with respect to Incentives granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. Each Incentive is subject to the
requirement that, if at any time the Committee determines, in its discretion, that the listing, registration or qualification of shares of Common Stock issuable pursuant to the Plan is required by any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Incentive or the issuance of shares of Common Stock, no Incentives shall be granted or
payment made or shares of Common Stock issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions as acceptable to the Committee. Notwithstanding anything
contained in the Plan, the terms and conditions related to the Incentive, or any other agreement to the contrary, in the event that the disposition of shares of Common Stock acquired pursuant to the Plan is not covered by a then current registration
statement under the Securities Act, and is not otherwise exempt from such registration, such shares of Common Stock shall be restricted against transfer to the extent required by the Securities Act and Rule 144 or other

  
 16 

 
regulations thereunder. The Committee may require any individual receiving shares of Common Stock pursuant to an Incentive granted under the Plan, as a condition precedent to receipt of such
shares of Common Stock, to represent and warrant to the Company in writing that the shares of Common Stock acquired by such individual are acquired without a view to any distribution thereof and will not be sold or transferred other than pursuant to
an effective registration thereof under said Act or pursuant to an exemption applicable under the Securities Act or the rules and regulations promulgated thereunder. The certificates evidencing any of such shares of Common Stock shall be
appropriately amended or have an appropriate legend placed thereon to reflect their status as restricted securities as aforesaid. 
  

	24.	 OFFSET AND SUSPENSION OF EXERCISE 

Anything to the contrary in the Plan notwithstanding, the Plan administrators may (i) offset any Incentive by amounts reasonably believed to be owed to
the Company by the grantee and (ii) disallow an Incentive to be exercised or otherwise payable during a time when the Company is investigating reasonably reliable allegations of gross misconduct by the grantee. 

 

	25.	 EFFECT OF A CHANGE IN CONTROL 

The following provisions will apply to Incentives in the event of a Change in Control unless otherwise provided in the grant agreement evidencing the Incentive
or any other written agreement between the Company or any affiliate and the Eligible Employee or unless otherwise expressly provided by the Committee at the time of grant of an Incentive. In the event of a Change in Control, then, notwithstanding
any other provision of this Plan, the Committee will take one or more of the following actions with respect to each outstanding Incentive, contingent upon the closing or completion of the Change in Control: 

 

	 	(a)	 arrange for the surviving corporation or acquiring corporation (or the surviving or acquiring
corporation’s parent company) to assume or continue the Incentive or to substitute a similar award for the Incentive (including, but not limited to, an award to acquire the same consideration per share paid to the stockholders of the Company
pursuant to the Change in Control); 

  

	 	(b)	 accelerate the vesting, in whole or in part, of the Incentive (and, if applicable, the time at which the
Incentive may be exercised) to a date prior to the effective time of such Change in Control as the Committee determines, with such Incentive terminating if not exercised (if applicable) at or prior to the effective time of the Change in Control, and
with such exercise reversed if the Change in Control does not become effective; 

  

	 	(c)	 cancel or arrange for the cancellation of the Incentive, to the extent not vested or not exercised prior to the
effective time of the Change in Control, in exchange for such cash consideration, if any, as the Committee, in its reasonable determination, may consider appropriate as an approximation of the value of the canceled Incentive, taking into account the
value of the Common Stock subject to the canceled Incentive, the possibility that the Incentive might not otherwise vest in full, and such other factors as the Committee deems relevant; and 

  
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	 	(d)	 cancel or arrange for the cancellation of the Incentive, to the extent not vested or not exercised prior to the
effective time of the Change in Control, in exchange for a payment, in such form as may be determined by the Committee equal to the excess, if any, of (A) the value in the Change in Control of the property the Eligible Employee would have
received upon the exercise of the Incentive immediately prior to the effective time of the Change in Control, over (B) any exercise price payable by such holder in connection with such exercise 

The Committee need not take the same action or actions with respect to all Incentives or portions thereof or with respect to all Participants.
The Committee may take different actions with respect to the vested and unvested portions of an Incentive. 
 In the absence of any
affirmative determination by the Committee at the time of a Change in Control, each outstanding Incentive will be assumed or an equivalent award will be substituted by such successor corporation or a parent or subsidiary of such successor
corporation (the “Successor Corporation”), unless the Successor Corporation does not agree to assume the Incentive or to substitute an equivalent award, in which case the vesting of such Incentive will accelerate in its entirety
(along with, if applicable, the time at which the Incentive may be exercised) to a date prior to the effective time of such Change in Control as the Committee determines, with such Incentive terminating if not exercised (if applicable) at or prior
to the effective time of the Change in Control, and with such exercise reversed if the Change in Control does not become effective. 
 An
Incentive may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the grant agreement evidencing the Incentive or as may be provided in any other written agreement between the
Company or any affiliate and the Eligible Employee, but in the absence of such provision, no such acceleration will occur. 
  

	26.	 CLAWBACK, RECOUPMENT 

The Committee may specify in a grant agreement evidencing an Incentive that the Eligible Employee’s right, payment and benefits with respect to an
Incentive shall be subject to reduction, cancellation, forfeiture, clawback or recoupment upon the occurrence of certain specified events or as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, in
addition to any otherwise applicable forfeiture provisions that apply to the Incentive. Without limiting the generality of the foregoing, any Incentive under the Plan shall be subject to the terms of any clawback policy maintained by the Company or
as required by law, as it may be amended from time to time. 

  
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