Document:

Merck & Co., Inc. Schering-Plough 2006 Stock Incentive Plan

 Exhibit 10.13 
 MERCK & CO., INC. 
 SCHERING-PLOUGH 
 2006 STOCK INCENTIVE PLAN 
 (As Amended and Restated) 
 I. ESTABLISHMENT AND PURPOSE 
 1.1. Transaction. As of the Closing Date (“Closing Date”) of the Agreement and Plan of Merger as of March 8, 2009, by
and among Merck & Co., Inc., Schering-Plough Corporation, SP Merger Subsidiary One, Inc. and SP Merger Subsidiary Two, Inc. (the “Merger”), the Schering-Plough Corporation 2006 Stock Incentive Plan is amended and restated as the
Merck & Co., Inc. Schering-Plough 2006 Stock Incentive Plan (the “Plan”) and (1) to reflect the new corporate structure resulting from the Merger, including clarification that the sponsoring entities of the Plan shall be
Merck & Co., Inc. (formerly known as Schering-Plough Corporation) (“Parent”) and Schering Corporation, a subsidiary of Parent; (2) to provide that all awards that have been granted pursuant to the Plan to acquire common stock
will be exercisable for, or settled in, Shares of the Parent; and (3) to further provide that any award to acquire stock granted after the Merger, will be granted with respect to Parent Shares. 
 1.2. Purpose. The purpose of the Plan is to enable superior financial performance, as reflected in the performance of Shares and
other key financial or operating indicators by (i) providing incentives and rewards to certain Employees who are in a position to contribute materially to the success and long-term objectives of Parent, (ii) aiding in the recruitment and
retention of Employees of outstanding ability and (iii) providing Employees an opportunity to acquire or expand equity interests in Parent, thus aligning the interests of such Employees with those of Parent’s shareholders. Parent expects
that it will benefit from the added interest that such Employees will have in its welfare as a result of their ownership or increased ownership of Shares. 
 1.3. Effective Date; Shareholder Approval. The Plan was originally effective as of May 19, 2006, upon the approval of the Plan by the affirmative vote of the holders of a majority of the
Shares present in person or by proxy and entitled to vote at the 2006 Annual Meeting of Shareholders of Schering-Plough Corporation. The Plan is being amended and restated effective as of the Closing Date. 
 II. DEFINITIONS 
 Capitalized terms used in the Plan have the following meanings, unless another definition is indicated clearly by particular usage and context. 
 “Acquired Company” means any business, corporation or other entity acquired by Schering-Plough or its Affiliates (other than the Parent and Merck Shape & Dohme Corp. after the
Closing Date) or Subsidiaries. 
 “Acquired Grantee” means the grantee of a stock-based award of an Acquired
Company. 

 “Affiliate” means a corporation or other entity controlled by, controlling
or under common control with Parent. 
 “Award” means any form of incentive or performance award granted under
the Plan, whether singly or in combination, to a Participant by the Committee pursuant to such terms, conditions, restrictions and/or limitations (if any) as the Committee may establish and set forth in the applicable Award Certificate. Awards
granted under the Plan may consist of: 
 (a) “Stock Options” awarded pursuant to Section 4.4; 
 (b) “Restricted Stock” awarded pursuant to Section 4.5; 
 (c) “Deferred Stock Units” awarded pursuant to Section 4.6; 
 (d) “Other Stock-Based Awards” awarded pursuant to Section 4.7; 
 (e) “Performance Awards”, including “Qualified Performance Awards,” awarded pursuant to Section 4.8; and

 (f) “Substitute Awards” awarded pursuant to Section 4.9. 
 “Award Certificate” means the document issued, either in writing or by electronic means, by Schering-Plough to a
Participant evidencing the grant of an Award and setting forth the specific terms, conditions, restrictions and limitations applicable to the Award. 
 “Beneficiary” means the person or persons designated by the Participant in accordance with Section 7.6 to acquire the Participant’s right in the Plan in the event of the
Participant’s death. 
 “Board” means the Board of Directors of Parent. 
 “Change in Control” means the happening of any of the following events for grants made on or prior to the Closing Date:

 (a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of securities of Schering-Plough Corporation where such acquisition causes such Person to own more than 50% of
either (x ) the then outstanding Shares of Schering-Plough Corporation (the “Outstanding Shares”) or (y) the combined voting power of the then outstanding voting securities of Schering-Plough Corporation entitled to vote generally in
the election of directors (the “Outstanding Voting Securities”); provided, however, that for purposes of this subsection (a) the following acquisitions will not constitute a Change in Control: (i) any acquisition directly from
Schering-Plough Corporation, (ii) any acquisition by Schering-Plough Corporation, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Schering-Plough Corporation or any corporation controlled by
Schering-Plough Corporation or (iv) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) below; and provided, further, that if any Person’s beneficial
ownership of

  

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the Outstanding Shares or Outstanding Voting Securities reaches or exceeds 50% as a result of a prior transaction, and such Person subsequently acquires beneficial ownership of additional Shares
or additional voting securities of Schering-Plough Corporation, such subsequent acquisition will not be treated as an acquisition that causes such Person to own more than 50% of the Outstanding Shares or Outstanding Voting Securities; 
 (b) during any 12-month period, individuals who, as of the first day of such period, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the beginning of such 12-month period whose election, or nomination for election by the Schering-Plough
Corporation’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board will be considered as though such individual were a member of the Incumbent Board; 
 (c) consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving
Schering-Plough Corporation, or the acquisition of assets or stock of another entity by Schering-Plough Corporation (each a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially
all of the individuals and entities who were beneficial owners, respectively, of the Outstanding Shares or Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of,
respectfully, the then outstanding shares of the common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such transaction owns Schering-Plough Corporation or substantially all of Schering-Plough Corporation’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Shares and Outstanding Voting Securities, as the case may be, (ii) no Person (excluding any corporation
resulting from such Business Combination or any employee benefit plan (or related trust) of Schering-Plough Corporation or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, more than 50% of,
respectfully, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation, except to the extent that such
ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board on the later of
(A) the time of the execution of the initial agreement, (B) the action of the Board providing for such Business Combination or (C) the beginning of the 12-month period ending on the effective date of the Business Combination;

 (d) any one Person acquires (or has acquired during any 12-month period ending on the date of the most recent acquisition by
such Person) assets of Schering-Plough Corporation having a fair market value equal to or more than 40% of the total gross fair market value of all of the assets of Schering-Plough Corporation immediately prior to such sale, other than an
acquisition by (i) a Person who was a shareholder of Schering-Plough Corporation immediately before the asset acquisition in exchange for or with respect to such Person’s Shares, (ii) an entity whose total or voting power immediately
after the transfer is at least 50% owned,

  

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directly or indirectly, by Schering-Plough Corporation, (iii) a person or group that, immediately after the transfer, directly or indirectly owns at least 50% of the total value or voting
power of the outstanding stock of Schering-Plough Corporation or (iv) an entity whose total value or voting power immediately after the transfer is at least 50% owned, directly or indirectly, by a person described in clause (iii) above; or

 (e) the complete liquidation of Schering-Plough Corporation. 
 The definition of Change in Control for purposes of the Plan is intended to conform to the description of “Change in Control
Events” in Treasury Regulation section 1.409A-3(i)(5), or in subsequent IRS guidance describing what constitutes a change in control event for purposes of Code section 409A. Accordingly, no Change in Control will be deemed to occur with respect
to a transaction or event described in paragraphs (a) through (e) above unless the transaction or event would constitute a “Change in Control Event” as described in Treasury Regulation section 1.409A-3(i)(5), or in subsequent IRS
guidance under Code section 409A. 
 For grants made after the Closing Date, Change in Control means “change in
control” as set forth in the Parent’s Change in Control Separation Benefits Plan; provided, however, that in any event, as to any award under the Plan that consists of deferred compensation subject to Section 409A of the Code, the
definition of “Change in Control” shall be deemed modified to the extent necessary to comply with Section 409A of the Code. 
 “Change in Control Price” means (x) on or prior to the Closing Date the higher of (a) the highest reported sales price of a Share in any transaction reported on the New York
Stock Exchange Composite Tape or other national exchange on which Shares may then be listed during the 60-day period prior to and including the effective date of a Change in Control or (b) if the Change in Control is the result of a tender or
exchange offer or a business combination, the highest price per Share paid in such tender or exchange offer or business combination; provided, however, that in the case of Stock Options, the Change in Control Price shall be in all cases the Fair
Market Value of a Share on the date such Stock Option is exercised or cancelled, and (y) after the Closing Date with respect to Parent shares, the higher of (A) the highest reported sales price, regular way, of such share in any
transaction reported on the New York Stock Exchange Composite Tape or other national exchange on which such shares are listed or on the NASDAQ National Market during the ten-day period prior to and including the date of a Change in Control and
(B) if the Change in Control is the result of a tender or exchange offer, merger, or other, similar corporate transaction, the highest price per such share paid in such tender or exchange offer, merger or other, similar corporate transaction;
provided that, to the extent all of part of the consideration paid in any such transaction consists of securities or other noncash consideration, the value of such securities or other noncash consideration shall be determined by the Committee. To
the extent that the consideration paid in any transaction described in clause (b) above consists all or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in
the sole discretion of the Committee. 
 “Code” means the Internal Revenue Code of 1986, as amended.

  

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 “Committee” means the Compensation Committee of the Board of Parent, or
such other successor committee or subcommittee of the Board formed to act on performance-based compensation for Covered Employees, which is comprised solely of two or more persons who are outside directors within the meaning of
Section 162(m)(4)(C)(i) of the Code and the applicable regulations and non-employee directors within the meaning of Rule 16b-3(b)(3) under the Exchange Act. 
 “Controlled Group Member” means Schering-Plough Corporation and each other company that is required to be aggregated with Schering-Plough Corporation under Code Sections 414(b),
(c) and (m) on or before the Closing Date and Merck & Co., Inc. after the Closing Date and each other company that is required to be aggregated with Merck & Co., Inc. under Code Sections 414(b), (c) and
(m) after the Closing Date. 
 “Covered Employee” means an Employee who is, or who the Committee
determines may be, a “covered employee” within the meaning of Section 162(m)(3) of the Code in the fiscal year in which Parent would expect to be able to claim a tax deduction with respect to a Performance Award. 
 “Deferred Stock Account” means a hypothetical bookkeeping account established and maintained by Schering-Plough on behalf
of a Participant pursuant to Section 4.6(a) to track Deferred Stock Units awarded to the Participant pending the distribution of Shares in settlement of such units. 
 “Deferred Stock Unit” means the Award of an unfunded contractual right granted under Section 4.6 to receive one Share in the future, subject to any restrictions, as the Committee, in
its discretion, may determine. 
 “Disabled” or “Disability” means an inability to engage in
any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 
 “Dividend Equivalent” means an amount equal to the cash dividend or the Fair Market Value of the stock dividend that would
be paid on each Share underlying an Award if the Share were duly issued and outstanding on the dividend record date. 
 “Effective Date” means May 19, 2006. 
 “Employee” means any individual who
performs services as a common law employee for Parent or an Affiliate or Subsidiary. 
 “Exchange Act” means
the United States Securities Exchange Act of 1934, as amended. 
 “Exercise Price” means the price per Share,
as fixed by the Committee, at which Shares may be purchased under a Stock Option. 
 “Fair Market Value” of a
Share means either: 
  

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 (a) The closing sales price of a Share as reported on the New York Stock Exchange on the
applicable date, 
 (b) If no sales of Shares are reported for such date, the mean between the bid and asked price of a Share on
such Exchange at the close of the market on such date, or 
 (c) In the event that the method for determining fair market value
described in clauses (a) or (b) is not practicable, the fair market value of a Share determined in accordance with any other reasonable method approved by the Committee in its discretion. 
 “GAAP” means United States generally accepted accounting principles. 
 “Incentive Stock Option” means a Stock Option granted under Section 4.4 of the Plan that meets the requirements of
Section 422 of the Code and any regulations or rules promulgated thereunder and is designated in the Award Certificate to be an Incentive Stock Option. 
 “Involuntary Termination” means a Termination of Employment initiated by Parent or an Affiliate or Subsidiary other than a Termination for Cause or a Termination Due to Business
Divestiture. 
 “Nonqualified Stock Option” means any Stock Option granted under Section 4.4 of the Plan
that is not an Incentive Stock Option. 
 “Other Stock-Based Award” means an Award (other than a Stock Option,
Restricted Stock or Deferred Stock Unit) granted under Section 4.7 of the Plan that consists of, or is denominated in, payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares. 
 “Parent” means Schering-Plough Corporation on or before the Closing Date and Merck & Co., Inc. after the Closing
Date. 
 “Participant” means an Employee or Acquired Grantee whose Award under the Plan has not been expired,
cancelled or forfeited. 
 “Performance Award” means an Award granted under Section 4.8 of the Plan that
is granted, vested or paid solely on account of the attainment of a specified performance target in relation to one or more Performance Measures. 
 “Performance Cycle” means a period typically measured by Parent’s fiscal year or years over which the level of attainment of one or more Performance Measures shall be assessed;
provided, however, that the Committee, in its discretion, may determine to designate a Performance Cycle that is less than a full fiscal year. 
 “Performance Measure” means, with respect to any Performance Award, the business criteria selected by the Committee to measure the level of performance of Parent during a Performance
Cycle. The Committee may select as the Performance Measure for a Performance Cycle any one or combination of the following corporate measures, as interpreted by the Committee: 
  

	 	(a)	Net operating profit after taxes; 

  

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 (b) Operating profit before taxes; 
 (c) Return on equity; 
 (d) Return on assets or net assets; 
 (e) Total shareholder return; 
 (f) Total shareholder return (as compared with a peer group of Parent); 
 (g) Earnings before income taxes; 
 (h) Earnings per Share; 
 (i) Net income; 
 (j) Free cash flow; 
 (k) Free cash flow per Share; 
 (l) Revenue (or any component thereof); 
 (m) Revenue growth; 
 (n) Share performance; 
 (o) Relative Share performance; 
 (p) Economic value added; and/or 
 (q) Return on capital. 
 “Plan” means the Merck & Co.,
Inc. Schering-Plough 2006 Stock Incentive Plan, as set forth in this document and as may be amended from time to time. 
 “Prior Plan” means the Schering-Plough Corporation 2002 Stock Incentive Plan. 
 “Qualified
Performance Award” means a Performance Award that is intended by the Committee to meet the requirements for “qualified performance-based compensation” within the meaning of Code Section 162(m) and Treasury
Regulation
 Section 1.162-27(e). 
 “Qualified Performance Award Determination Period” means the
period within which Committee determinations regarding Performance Measures, targets and payout formulas in connection with a Qualified Performance Award must be made. The Qualified Performance Award Determination Period is the period beginning on
the first day of a Performance Cycle and ending no later than 90 days after commencement of the Performance Cycle; provided, however, that in the case of a Performance Cycle that is less than 12 months in duration, the Qualified
Performance Award Determination Period shall end no later than the date on which 25% of the Performance Cycle has elapsed. 
  

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 “Reporting Person” means an Employee who is subject to the reporting
requirements of Section 16(a) of the Exchange Act. 
 “Restricted Stock” means Shares issued pursuant to
Section 4.5, which are subject to such restrictions as the Committee, in its discretion, shall impose. 
 “Restriction Period” means the period of time during which the Restricted Stock Awards will remain subject to restrictions imposed by the Committee and set forth in the Award Certificate. 
 “Retirement” means, for purposes of a particular Award, an Employee’s “retirement” as defined in the
Committee’s grant guidelines in effect as of the date the Award is granted to the Employee or, if no such grant guidelines are in effect as of the date of grant (or if such guidelines are in effect, but do not define “retirement”), an
Employee’s Termination of Employment on or after the earliest date the Employee is eligible to retire under the tax-qualified retirement plans of Parent or its Affiliates or Subsidiaries applicable to U.S.-based Employees in which the Employee
is a participant, or in the case of a non-U.S. Employee, under the Worldwide Retirement Plan. 
 “Schering-Plough” means Schering-Plough Corporation, Schering Corporation and Schering Corporation’s subsidiaries on or prior to the Closing Date and Merck & Co., Inc., Schering Corporation and Schering
Corporation’s subsidiaries after the Closing Date. 
 “Section 409A Specified Employee” means a
“specified employee” within the meaning of Section 409A(2)(B)(i) of the Code, as amended, as determined by the Committee. 
 “Shares” means shares of common stock, $0.50 par value per share, of Schering-Plough Corporation through the Closing Date and thereafter, $0.50 par value per share of Merck &
Co., Inc. 
 “Stock Option” means a right granted under Section 4.4 of the Plan to purchase from the
Parent a stated number of Shares at the Exercise Price. Stock Options awarded under the Plan shall be in the form of either Incentive Stock Options or Nonqualified Stock Options. 
 “Subsidiary” means any corporation, partnership, joint venture or other entity during any period in which at least a 50%
voting or profit interest is owned, directly or indirectly, by Parent or any successor to Parent. 
 “Termination Due to
Business Divestiture” means a Termination of Employment due to a transaction or series of related transactions (other than a transaction or series of transactions that are a part of a Change in Control) that result in a divestiture, sale,
transfer, assignment or other disposition of any division, subsidiary, business unit, product line or group, or any other asset of Schering-Plough or any of its affiliates. 
  

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 “Termination for Cause” shall have the definition prescribed in the current
employment agreement, if any, between Schering-Plough and the relevant Employee or, in the absence of such definition, shall mean a Termination of Employment initiated by Schering-Plough or an Affiliate or Subsidiary incident to or connected with a
determination that the Employee has engaged in misappropriation, theft, embezzlement, kick-backs, bribery or similar deliberate, gross or willful misconduct or dishonest acts or omissions. Termination for Cause shall also include such a Termination
of Employment incident to or in connection with acts or omissions of the Employee that the Committee reasonably determines to be willfully or wantonly harmful to, or detrimental to the interests of, Schering-Plough or any of its Affiliates or
Subsidiaries, monetarily or otherwise. 
 “Termination of Employment” means the date of cessation of an
Employee’s employment relationship with Schering-Plough and any Affiliate or Subsidiary for any reason, with or without cause, as determined by Schering-Plough. A transfer of an Employee between and among Schering-Plough, an Affiliate or a
Subsidiary shall not be deemed a Termination of Employment for purposes of the Plan. Notwithstanding the foregoing, the date of an Employee’s Termination of Employment for purposes of determining the date that any payment or benefit that is
treated as nonqualified deferred compensation under Section 409A of the Code is to be paid or provided (or in determining whether an exemption to such treatment applies), and for purposes of determining whether the Employee is a
Section 409A Specified Employee on the termination date, shall be the date on which the Employee has incurred a “separation from service” within the meaning of Treasury Regulation section 1.409A-1(h), or in subsequent IRS guidance
under Code section 409A. 
 III. ADMINISTRATION 
 3.1. The Committee. The Plan shall be administered by the Committee. 
 3.2.
Authority of the Committee. The Committee shall have authority, in its sole and absolute discretion and consistent with applicable law and regulation, and subject to the terms of the Plan, to: 
 (a) Interpret and administer the Plan and any instrument or agreement relating to the Plan; 
 (b) Prescribe the rules and regulations that it deems necessary for the proper operation and administration of the Plan, and amend or
rescind any existing rules or regulations relating the Plan; 
 (c) Select Employees to receive Awards under the Plan;

 (d) Determine the form of an Award, the number of Shares subject to each Award, all the terms and conditions of an Award,
including, without limitation, the conditions on exercise or vesting, the designation of Stock Options as Incentive Stock Options or Nonqualified Stock Options, and the circumstances in which an Award may be settled in cash or Shares or may be
cancelled, forfeited or suspended, and the terms of the Award Certificate; 
  

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 (e) Determine whether Awards will be granted singly, in combination or in tandem;

 (f) Establish and interpret Performance Measures in connection with Performance Awards, evaluate the level of performance
over a Performance Cycle and, in the case of Qualified Performance Awards, certify the level of performance attained with respect to Performance Measures; 
 (g) Waive or amend any terms, conditions, restrictions or limitations on an Award, except that the prohibition on the repricing of Stock Options, as described in Section 4.4(h), and the limitations
on elections to defer payment of Deferred Stock Units, as described in Section 4.6(e), may not be waived; 
 (h) Except to
the extent that any such action would result in the imposition on a Participant of an “additional tax” under Section 409A of the Code, accelerate the vesting, exercise or lapse of restrictions on an Award when such action or actions
would be in the best interest of Schering-Plough; 
 (i) Make any adjustments permitted by the Plan (including but not limited
to adjustment of the number of Shares available under the Plan or any Award) and any Award granted under the Plan as may be appropriate pursuant to Article V; 
 (j) Subject to the requirements of Section 409A of the Code, determine under which circumstances Awards may be deferred and the extent to which a deferral will be credited with Dividend Equivalents
and interest thereon; 
 (k) Determine whether a Nonqualified Stock Option or Restricted Stock Award may be transferable to
family members, a family trust or a family partnership; 
 (l) Establish any sub-plans and make any modifications to the Plan
that the Committee may determine to be necessary to implement and administer the Plan in countries outside the United States; 
 (m) Appoint such agents as it shall deem appropriate for proper administration of the Plan; and 
 (n) Take any and all
other actions it deems necessary or advisable for the proper operation or administration of the Plan. 
 3.3. Committee
Determinations. All determinations of the Committee shall be made in its sole discretion, in the best interest of the Parent, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated
individuals. Committee determinations shall be made by a majority of its members present at a meeting at which a quorum is present and shall be final, conclusive and binding on all persons having an interest in the Plan and any Awards granted under
the Plan. Any determination of the Committee that is reduced to writing and signed by all of the members of the Committee shall be as fully effective as if it had been made at a meeting duly held. 
  

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 3.4. Delegation of Authority. The Committee, in its discretion and consistent with
applicable law and regulations, may delegate some or all of its authority and duties under the Plan to such other individual, individuals or committee as it may deem advisable, under such conditions and subject to such limitations as the Committee
may establish. Notwithstanding the foregoing, only the Committee shall have authority to grant and administer Awards to Covered Employees and other Reporting Persons, to establish and certify Performance Measures for Qualified Performance Awards and
to grant Awards to any Employee who is acting as a delegate of the Committee in respect of the Plan. 
 3.5. Employment of
Advisors. The Committee may employ attorneys, consultants, accountants and other advisors, and the Committee, Schering-Plough and the officers and directors of Schering-Plough may rely upon the advice, opinions or valuations of the advisors
employed. 
 3.6. No Liability. No member of the Committee, nor any person acting as a delegate of the Committee in
respect of the Plan, shall be liable for any losses incurred by any person resulting from any action, interpretation or construction made in good faith with respect to the Plan or any Award granted under the Plan. 
 IV. AWARDS 
 4.1.
Eligibility. All Employees shall be eligible to receive Awards under the Plan. 
 4.2. Participation. The
Committee, at its sole discretion, shall select from time to time Participants from those persons eligible under Section 4.1 to receive Awards under the Plan. 
 4.3. Forms of Award. Awards shall be in the form determined by the Committee, in its discretion, and shall be evidenced by an Award Certificate. Awards may be granted singly or in combination or
tandem with other Awards. 
 4.4. Stock Options. The Committee may grant Stock Options under the Plan to those Employees
whom the Committee may from time to time select, in the amounts and pursuant to such other terms and conditions that the Committee, in its discretion, may determine and set forth in the Award Certificate, subject to the following provisions.

 (a) Form. Stock Options granted under the Plan may, at the discretion of the Committee, be in the form of Nonqualified
Stock Options, Incentive Stock Options or a combination of the two, subject to the restrictions set forth in paragraph (g) below with respect to grants of Incentive Stock Options. The Committee shall designate the form of the Stock Option at
the time of grant and such form shall be specified in the Award Certificate. Where both a Nonqualified Stock Option and an Incentive Stock Option are granted to an Employee at the same time, such Awards shall be deemed to have been granted in
separate grants, shall be clearly identified, and in no event will the exercise of one such Award affect the right to exercise the other Award. 
 (b) Amount of Shares. The Committee may grant Stock Options to an Employee in such amounts as the Committee may determine, subject to the limitations set forth in Section 5.1 of the Plan. The
number of Shares subject to a Stock Option shall be set forth in the Award Certificate. 
  

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 (c) Exercise Price. The Exercise Price of Stock Options granted under the Plan shall
be determined by the Committee at the time of grant and set forth in the Award Certificate. In no event shall the Exercise Price with respect to any Share subject to a Stock Option be set at a price that is less than the grant date Fair Market Value
of a Share. 
 (d) Option Term. Except as otherwise provided in paragraph (e)(v) of this Section 4.4, all Stock
Options granted under the Plan shall lapse no later than the tenth anniversary of the date of grant. 
 (e) Timing of
Exercise. Except as the Committee may otherwise determine at the time of grant, and subject to (1) the Committee’s authority under Section 3.2(g) to waive or amend any terms, conditions, limitations or restrictions of an Award,
(2) Section 5.4 relating to Changes in Control and (3) the special forfeiture provisions of Section 7.2, each Stock Option granted under the Plan shall be exercisable in whole or in part, subject to the following conditions,
limitations and restrictions. 
 (i) Vesting. The Committee will determine and set forth in the
Award Certificate the date on which the Stock Options subject to the Award may first be exercised. Unless the Award Certificate provides otherwise, and except as otherwise provided in this Section 4.4(e) and in Section 5.4 relating to
Changes in Control, no Stock Option shall be exercisable prior to the one-year anniversary of the date of grant. 
 (ii) Retirement. Upon a Participant’s Retirement, 
 (A) All Stock Options granted to
the Participant during the one-year period immediately preceding the Participant’s Retirement date that have not become exercisable as of the such Retirement date shall be forfeited; 
 (B) All Stock Options granted to the Participant more than one year prior to the Participant’s Retirement date that have
not become exercisable as of such Retirement date shall continue to become exercisable in accordance with the vesting schedule set out in the applicable Award Certificate; and 
 (C) To the extent that Stock Options have become exercisable as of the Participant’s Retirement date, or become
exercisable after such date in accordance with paragraph (B) above, such Stock Options must be exercised, if at all, within five years after the Participant’s Retirement date, or, if earlier, no later than the original expiration date of
the Stock Option. 
 (D) In the event the Participant’s death occurs after Retirement, the
Participant’s Stock Options that have not become exercisable in accordance with paragraph (B) as of the date of the Participant’s death shall become immediately exercisable and all of the Participant’s Stock Options must be
exercised, if at all, within the later of (x) five years from the Participant’s Retirement date or, if earlier, the original expiration date of Stock Option and (y) one year from the Participant’s date of death. 
  

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 (iii) Termination Due to Business Divestiture. Upon a
Participant’s Termination Due to Business Divestiture, all Stock Options granted to the Participant that have not become exercisable as of the date of such Termination Due to Business Divestiture shall become immediately exercisable and must be
exercised, if at all, within five years after such termination date, but in no event later than the original expiration date of the Stock Option. 
 (iv) Disability. Upon the Disability of a Participant, all Stock Options granted to the Participant that have not become exercisable as of the date of Disability shall become immediately
exercisable and shall remain exercisable for the full duration of the Stock Option’s original term. 
 (v)
Death. Upon a Participant’s Termination of Employment due to his or her death during the term of a Stock Option, all Stock Options held by the Participant at the time of his or her death that are not already exercisable shall
become immediately exercisable and all Stock Options shall remain exercisable for the longer of (A) the full duration of the Stock Option’s original term and (B) one year from the Participant’s date of death. Stock Options of a
deceased Participant may be exercised only by the Participant’s Beneficiary or, if none, by the legal representative of the Participant’s estate or by the person given authority to exercise such Stock Options by the Participant’s will
or by operation of law. In the event a Stock Option is exercised by the executor or administrator of a deceased Participant, or by the person or persons to whom the Stock Option has been transferred under the Participant’s will or the
applicable laws of descent and distribution, Parent shall be under no obligation to deliver Shares unless and until Parent is satisfied that the person or persons exercising the Stock Option is or are the duly appointed executor(s) or
administrator(s) of the deceased Participant or the person to whom the Stock Option has been transferred under the Participant’s will or by the applicable laws of descent and distribution. 
 (vi) Other Terminations. Upon an Employee’s Termination of Employment for any reason other than death,
Disability, Retirement, Termination Due to Business Divestiture or Termination for Cause, all Stock Options that have not become exercisable as of the date of termination shall be forfeited and to the extent that Stock Options have become
exercisable as of such date, such Stock Options must be exercised, if at all, within three months after such Termination of Employment (one year in the case of an Involuntary Termination), but in no event later than the original expiration date of
the Stock Option. 
 (f) Method of Exercise; Payment of Exercise Price. A Stock Option may be exercised by giving written
notice to Parent specifying the number of Shares to be purchased, which shall be accompanied by full payment of the Exercise Price plus applicable taxes, if any. No Stock Option shall be exercised for less than the lesser of 100 Shares or the full
number of Shares for which the Stock Option is then exercisable. No stock certificates shall be registered and delivered, and no Participant shall have any rights to dividends or other rights of a

  

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shareholder with respect to Shares subject to the Stock Option until the Participant has given written notice of exercise, made full payment of the Exercise Price for such Shares (including
taxes) and, if requested by Parent, has given the representation described in Section 7.4. Payment of the Exercise Price may be made in cash or by certified check, bank draft, wire transfer, or postal or express money order. In addition, at the
discretion of the Committee, payment of all or a portion of the Exercise Price may be made by — 
 (i)
Delivering a properly executed exercise notice to Parent or its agent, together with irrevocable instructions to a broker to deliver promptly to Parent the amount of sale proceeds with respect to the portion of the Shares to be acquired having a
Fair Market Value on the date of exercise equal to the sum of the applicable portion of the Exercise Price being so paid; 
 (ii) Tendering (actually or by attestation) to Parent previously acquired Shares that have been held by the Participant for at least six months, subject to paragraph (iv), and that have a Fair Market
Value on the day prior to the date of exercise equal to the applicable portion of the Exercise Price being so paid, provided that the Board has specifically approved the repurchase of such Shares (unless such approval is not required by the terms of
the By-Laws of Parent) and the Committee has determined that, as of the date of repurchase, Parent is, and after the repurchase will continue to be, able to pay its liabilities as they become due; or 
 (iii) Provided such payment method has been expressly authorized by the Board or the Committee in advance and subject to any
requirements of applicable law and regulations, instructing Parent to reduce the number of Shares that would otherwise be issued by such number of Shares as have in the aggregate a Fair Market Value on the date of exercise equal to the applicable
portion of the Exercise Price being so paid. 
 (iv) The Committee, in consideration of applicable accounting
standards, may waive any holding period on Shares required to tender pursuant to clause (ii). 
 (g) Incentive Stock
Options. Incentive Stock Options granted under the Plan shall be subject to the following additional conditions, limitations and restrictions: 
 (i) Eligibility. Incentive Stock Options may be granted only to Employees of Parent or an Affiliate or Subsidiary that is a “subsidiary” or “parent corporation”, within
the meaning of Code Section 424, of Parent. In no event may an Incentive Stock Option be granted to an Employee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of Parent or such Affiliate or
Subsidiary. 
 (ii) Timing of Grant. No Incentive Stock Option shall be granted under the Plan
after the 10-year anniversary of earlier of (A) the date the Plan is adopted by the Board and (B) the date the Plan is approved by Parent’s shareholders. 
 (iii) Amount of Award. The aggregate Fair Market Value on the date of grant of the Shares with respect to which
such Incentive Stock Options first become

  

 14 

 
exercisable during any calendar year under the terms of the Plan for any Participant may not exceed $100,000. For purposes of this $100,000 limit, the Participant’s Incentive Stock Options
under this Plan and all Plans maintained by Parent and its Affiliates and Subsidiaries shall be aggregated. To the extent any Incentive Stock Option first becomes exercisable in a calendar year and such limit would be exceeded, such Incentive Stock
Option shall thereafter be treated as a Nonqualified Stock Option for all purposes. 
 (iv) Timing of
Exercise. In the event that an Incentive Stock Option is exercised by a Participant more than three months after a Participant’s Termination of Employment (or more than 12 months after the Participant is Disabled), such Incentive
Stock Option shall thereafter be treated as a Nonqualified Stock Option for all purposes. For this purpose, an Employee’s employment relationship shall be treated as continuing intact while the Employee is on military leave, sick leave or other
bona fide leave of absence (such as temporary employment with the Government) duly authorized in writing by Parent if the period of such leave does not exceed three months or, if longer, so long as the Employee’s right to reemployment with
Parent or an Affiliate or Subsidiary is guaranteed either by statute or by contract. If the period of leave exceeds three months and the Employee’s right to reemployment is not guaranteed either by statute or by contract, the employment
relationship will be deemed to terminate on the first date immediately following such three-month period. 
 (v)
Transfer Restrictions. In no event shall the Committee permit an Incentive Stock Option to be transferred by a Participant other than by will or the laws of descent and distribution, and any Incentive Stock Option granted hereunder
shall be exercisable, during his or her lifetime, only by the Participant. 
 (h) No Repricing. Except as otherwise
provided in Section 5.3, in no event shall the Committee decrease the Exercise Price of a Stock Option after the date of grant or cancel outstanding Stock Options and grant replacement Stock Options with a lower Exercise Price without first
obtaining the approval of the holders of a majority of the Shares present in person or by proxy at a meeting of Parent’s shareholders and entitled to vote at such meeting. 
 4.5. Restricted Stock. The Committee may grant Restricted Stock under the Plan to such Employees as the Committee may from time to
time select, in such amounts and subject to such terms, conditions and restrictions (including, without limitation, transfer restrictions) and Restriction Periods as the Committee, in its discretion, may determine and set forth in the Award
Certificate. The Committee, in its discretion, may condition an Award of Restricted Stock on the Participant giving the representation described in Section 7.4. 
 (a) Payment of Restricted Stock. As soon as practicable after Restricted Stock is awarded, a certificate or certificates for all such Shares of Restricted Stock shall be registered in the name of
the Participant and, at the discretion of Parent, be either (i) delivered to the Participant or (ii) held by Parent on behalf of the Participant until all restrictions have lapsed. The Participant shall thereupon have all the rights of a
shareholder with respect to such Shares, including the right to vote and receive dividends or other distributions made or paid with respect to such Shares, except that such Shares shall be subject to the forfeiture provisions of clause
(i) below. The Committee may, in its discretion, impose and set forth in the Award Certificate

  

 15 

 
such other restrictions on Restricted Stock for such Restriction Period or Periods as it deems appropriate. Except as the Committee may otherwise determine, and subject to (1) the
Committee’s authority under Section 3.2 to waive or amend any terms, conditions, limitations or restrictions of an Award, (2) Section 5.4 relating to Changes in Control and (3) the special forfeiture provisions of
Section 7.2, such Shares shall be subject to the following provisions. 
 (i) Forfeiture and Lapse of
Restriction. Shares of Restricted Stock shall be forfeited by a Participant upon the Participant’s Termination of Employment during the Restriction Period for any reason other than the Participant’s death, Disability or Termination
Due to Business Divestiture. Subject to clause (ii) below and Section 5.4 relating to Changes in Control, restrictions on Shares of Restricted Stock shall lapse at the end of the Restriction Period set forth in the Award Certificate.

 (ii) Accelerated Lapse. Notwithstanding the foregoing, all restrictions on Shares of Restricted
Stock shall immediately lapse upon the death or Disability of the Participant. The Committee may, in its discretion, provide in the applicable Award Certificate that restrictions on Shares of Restricted Stock shall also lapse upon the
Participant’s Retirement or Involuntary Termination. 
 (b) Legend. In order to enforce any restrictions that the
Committee may impose on Restricted Stock, the Committee shall cause a legend or legends setting forth a specific reference to such restrictions to be placed on all certificates for Shares of Restricted Stock. As restrictions are released, a new
certificate, without the legend, for the number of Shares with respect to which restrictions have been released shall be issued and delivered to the Participant as soon as possible thereafter. 
 4.6. Deferred Stock Units. The Committee may grant Deferred Stock Units under the Plan to those Employees whom the Committee may from
time to time select, in such amounts and pursuant to such other terms and conditions that the Committee, in its discretion, may determine and set forth in the Award Certificate, subject to the following provisions. 
 (a) Deferred Stock Account. Deferred Stock Units awarded to a Participant shall be credited to a Deferred Stock Account established
and maintained by Schering-Plough on behalf of the Participant. No Participant shall be a shareholder with respect to any Shares underlying Deferred Stock Units credited to his Deferred Stock Account, nor shall the Participant (or the
Participant’s Beneficiary) have any right to or interest in any specific assets of Parent or its Affiliates or Subsidiaries, including any Shares reserved for issuance under the Plan, until such Shares are actually distributed to the
Participant. 
 (b) Dividend Equivalents. Unless the Committee determines otherwise at the time of grant and sets forth
in the applicable Award Certificate, in the event of Parent’s payment of dividends on Shares, Dividend Equivalents shall be applied as follows. 
 (i) Stock Dividends. Dividend Equivalents relating to stock dividends shall be credited to a Participant’s Deferred Stock Account as of the dividend payment date in the form of
additional Deferred Stock Units, based on the Fair Market Value of a Share on the dividend payment date. 
  

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 (ii) Non-Stock Dividends. Dividend Equivalents relating to
dividends other than stock dividends shall be distributed immediately to the Participant as additional compensation on the dividend payment date. 
 (c) Payment of Shares. Unless the Award Certificate provides otherwise, subject to paragraph (d) below and Section 5.4 relating to Changes in Control, Deferred Stock Units shall be paid
in Shares, at the rate of one Share per each Deferred Stock Unit, at such time or times and in such manner as the Committee shall determine at the time of grant and set forth in the applicable Award Certificate, which can be either: 
 (i) Lump Sum. A single lump sum payable on a specified date not earlier than the six-month anniversary of the
date the Deferred Stock Units were awarded to the Participant, or 
 (ii) Installments. In a set
number of equal or unequal periodic installments commencing on a specified date not earlier than the six-month anniversary of the date the Deferred Stock Units were awarded to the Participant. 
 The timing and form of payment of Shares in settlement of Deferred Stock Units shall be set forth in the Award Certificate at the time of grant and, to the
extent such Deferred Stock Units are subject to the requirements of Section 409A of the Code, shall not be subject to modification or acceleration by the Committee, except as provided in paragraph (d) below and in Section 5.4. The
Committee, in its discretion, may condition the issuance of Shares in connection with Deferred Stock Units on the Participant giving the representation described in Section 7.4. 
 (d) Termination and Forfeiture. Unless the Award Certificate provides otherwise, and subject to (1) the Committee’s
authority under Section 3.2 to waive or amend any terms, conditions, limitations or restrictions of an Award, (2) Section 5.4 relating to Changes in Control and (3) the special forfeiture provisions of Section 7.2, any
undistributed Deferred Stock Units remaining in a Participant’s Deferred Stock Account shall be forfeited by the Participant upon the Participant’s Termination of Employment for any reason other than other than the death, Disability,
Retirement, Termination Due to Business Divestiture or Involuntary Termination of the Participant. 
 (i) Death. Upon the death of a Participant prior to full payment of the Participant’s Deferred Stock Account, the remaining balance of the Participant’s Deferred Stock Account shall be paid in Shares to the
Participant’s Beneficiary or, if none, to the legal representative of the Participant’s estate or to the person to whom the Participant’s Deferred Stock Unit payment rights are transferred under Participant’s will or by operation
of law, in a single lump sum payment as soon as administratively feasible after the Participant’s death, but in no event later than the last day of the calendar year of the Participant’s death or, if later, the 15 th day of the third month following the Participant’s death.
Parent shall be under no obligation to deliver Shares in satisfaction of a Deferred Stock Unit unless and until Parent is satisfied that the person or persons to whom the Shares are being transferred are the duly appointed executor(s) or
administrator(s) of the deceased Participant or the person to whom the Deferred Stock Units have been transferred under the Participant’s will or by the applicable laws of descent and distribution. 
  

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 (ii) Disability. In the event a
Participant becomes Disabled prior to full payment of the Participant’s Deferred Stock Account, the remaining balance of the Participant’s Deferred Stock Account shall be paid in Shares at the scheduled time and in the scheduled manner set
out in the applicable Award Certificate at the time of grant; provided, however that the Committee may determine at the time of grant and set forth in an Award Certificate that if the Participant becomes Disabled prior to the scheduled payment date
or dates of the Deferred Stock Units, the remaining balance the Participant’s Deferred Stock Account shall be paid to the Participant in a single lump sum distribution as soon as administratively feasible after the date the Participant becomes
Disabled, but in no event later than the last day of the calendar year in which the Participant becomes Disabled or, if later, the 15 th day of the third month following the date the Participant becomes Disabled. 
 (iii) Retirement. Upon the Retirement of a Participant prior to full payment of the
Participant’s Deferred Stock Account, the Participant shall forfeit all unpaid Deferred Stock Units that were awarded to the Participant during the one-year period immediately preceding the Participant’s Retirement date and all other
Deferred Stock Units remaining in the Participant’s Deferred Stock Account shall be paid at the scheduled time and in the scheduled manner set out in the applicable Award Certificate at the time of grant; provided, however that the Committee
may determine at the time of grant and set forth in an Award Certificate that the entire unpaid balance of the Participant’s Deferred Stock Account shall be forfeited upon the Participant’s Retirement. Alternatively, to the extent
permitted under Section 409A of the Code, the Committee may determine at the time of grant and set forth in an Award Certificate that, in the event of the Participant’s Retirement prior to the scheduled payment date or dates of the
Deferred Stock Units, the remaining balance the Participant’s Deferred Stock Account shall be paid to the Participant in a single lump sum distribution as soon as administratively feasible after the Participant’s Retirement date, but in no
event later than the last day of the calendar year in which the Participant retires or, if later, the 15 th day of the third month following the date of the Participant’s Retirement. Notwithstanding the forgoing, if the
Participant is a Section 409A Specified Employee on his or her Retirement date, payment may not be made earlier than the six-month anniversary of the Participant’s Retirement date. 
 (iv) Termination Due to Business Divestiture. Upon a Participant’s Termination Due to Business Divestiture
prior to full payment of the Participant’s Deferred Stock Account, the remaining balance of the Participant’s Deferred Stock Account shall be paid in Shares at the scheduled time and in the scheduled manner set out in the applicable Award
Certificate at the time of grant. Alternatively, to the extent permitted under Section 409A of the Code, the Committee may determine at the time of grant and set forth in an Award Certificate that, in the event of the Participant’s
Termination Due to Business Divestiture prior to the scheduled payment date or dates of the Deferred Stock Units, the remaining balance the Participant’s Deferred Stock Account shall be paid to the Participant in a single lump sum distribution
as soon as

  

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administratively feasible after the Participant’s termination date, but in no event later than the last day of the calendar year of the Participant’s termination or, if later, the 15
th day of the third month following the date of the
Participant’s termination. Notwithstanding the forgoing, if the Participant is a Section 409A Specified Employee on his or her termination date, payment may not be made earlier than the six-month anniversary of the Participant’s
termination date. 
 (v) Involuntary Termination. Upon the Involuntary Termination of a Participant
prior to full payment of the Participant’s Deferred Stock Account, the Participant shall forfeit — 
 (A) All unpaid Deferred Stock Units that were awarded to the Participant during the one-year period immediately preceding the Participant’s Involuntary Termination date; and 
 (B) A prorated portion of the remaining Deferred Stock Units under each Deferred Stock Unit Award determined by subtracting
from the number of unpaid Deferred Stock Units remaining under such Award the product of (I) the number of unpaid Deferred Stock Units remaining under such Award, multiplied by (II) a fraction, the numerator of which is the number of full
months worked by the Participant between the date of grant and the Involuntary Termination date, and the denominator of which is the total number of full months between the date of grant and the originally scheduled payment date. 
 All other Deferred Stock Units remaining in the Participant’s Deferred Stock Account shall be paid at the scheduled time and in the
scheduled manner set out in the applicable Award Certificate at the time of grant. 
 (e) Payment Deferrals. Subject to
the requirements of Section 409A of the Code, the Committee may from time to time and on a case by case basis permit a Participant to elect to defer payment of his Deferred Stock Units, or change the form of payment of Shares issued in
connection with Deferred Stock Units. Elections to defer the payment date or change the form of payment shall be subject to the following limitations, which may not be waived by the Committee: 
 (i) Such election must be made, if at all, no less than 12 months prior to the originally scheduled payment date set out
in the Award Certificate for the Deferred Stock Units with respect to which the election is made; 
 (ii) Such
election may not take effect until at least 12 months after the date on which the election is made; and 
 (iii) Except with respect to an election to receive payment upon Disability, the first scheduled payment must be deferred pursuant to the election for a period of at least five years from the original payment date set out in the Award
Certificate for the Deferred Stock Units with respect to which the election is made. 
  

 19 

 For purposes of Section 409A of the Code, each scheduled installment payment under a Deferred Stock
Unit Award shall be deemed to be a separate payment. 
 (f) Committee Discretion. Notwithstanding anything in the Plan to
the contrary (including anything in Section 3.2 relating to the authority of the Committee or Section 5.4 relating to Changes in Control) in no event shall the Committee have discretion under the Plan to accelerate the payment date or
deferred payment date of Deferred Stock Units, except to the extent permitted under Section 409A of the Code and applicable U.S. Treasury Department or Internal Revenue Service guidance issued in connection with Section 409A of the Code.

 4.7. Other Stock-Based Awards. Subject to compliance with the requirements of Section 409A of the Code, the
Committee may, from time to time, grant to an Employee Other Stock-Based Awards under the Plan. These Awards may include, among other things Shares, restricted stock options, stock appreciation rights that are settled in Shares, and phantom or
hypothetical Shares. The Committee shall determine, in its discretion, the terms, conditions, restrictions and limitations, if any, that shall apply to Other Stock-Based Awards granted pursuant to this Section 4.7 (including whether Dividend
Equivalents shall be credited or paid with respect to any such Award), which terms, conditions, restrictions and/or limitations shall be set forth in the Award Certificate. The Committee, in its discretion, may condition the delivery of Shares in
connection with an Award under this Section 4.7 on the Participant giving the representation described in Section 7.4. 
 4.8. Performance Awards. The Committee may grant Performance Awards under the Plan only to such Employees as the Committee may from time to time select, in such amounts and subject to such terms and conditions as the Committee, in
its discretion, may determine. Performance Awards granted under the Plan shall be subject to the following provisions. 
 (a)
General. Performance Awards that are not Qualified Performance Awards shall be based on such Performance Cycles, Performance Measures and vesting or payout formulas (which may be the same as or different than those applicable to Performance
Awards that are designated as Qualified Performance Awards) as the Committee, in its discretion, may establish for such purposes. 
 (b) Form of Payment. Performance Awards may be paid in cash, Shares, Stock Options, Restricted Stock, Deferred Stock Units, Other Stock-Based Awards or any combination of the foregoing in such proportions as the Committee may
determine, in its discretion, and set forth in the Award Certificate. To the extent that a Performance Award is paid in Shares, Stock Options, Restricted Stock, Deferred Stock Units and/or Other Stock-Based Awards, the amount of each such form of
Award that is payable shall be based on the Fair Market Value of a Share on the date of grant, subject to such reasonable Restricted Stock and Deferred Stock Unit discount factors and/or Stock Option valuation methodologies as the Committee may, in
its discretion, apply. Stock Options, Restricted Stock, Deferred Stock Units and Other Stock-Based Awards granted in connection with a Performance Award shall be subject to the provisions of Sections 4.4, 4.5, 4.6 and 4.7, respectively.

  

 20 

 (c) Qualified Performance Awards. A Performance Award granted to a Covered Employee
under the Plan may, at the discretion of the Committee, be designated as a Qualified Performance Award. Qualified Performance Awards under the Plan may be granted either separately or at the same time as Awards that are not designated as Qualified
Performance Awards; provided, however, that in no event may the payment of an Award that is not a Qualified Performance Award be contingent upon the failure to attain a specific level of performance on the Performance Measure(s) applicable to a
Qualified Performance Award for the same Performance Cycle. In the event the Committee designates an Award as a Qualified Performance Award, any determinations of the Committee pertaining to Performance Measures and other terms and conditions of
such Qualified Performance Award (other than a determination under paragraph (iii)(D) below to reduce the amount of the Award) shall be in writing and made within the Qualified Performance Award Determination Period. A Performance Award that the
Committee designates as a Qualified Performance Award shall be subject to the following additional requirements. 
 (i) Performance Cycles. Performance Awards that are designated as Qualified Performance Awards shall be awarded in connection with a Performance Cycle. The Committee shall determine the length of a Performance Cycle within the
Qualified Performance Award Determination Period. In the event that the Committee determines that a Performance Cycle shall be a period greater than one fiscal year, a new Qualified Performance Award may be granted and a new Performance Cycle may
commence prior to the completion of the Performance Cycle associated with the prior Qualified Performance Award. 
 (ii) Participants. Within the Qualified Performance Award Determination Period, the Committee shall determine the Covered Employees who shall be eligible to receive a Qualified Performance Award for such Performance Cycle.

 (iii) Performance Measures; Targets; Vesting and Payout Formulas. 
 (A) Within the Qualified Performance Award Determination Period, the Committee shall fix and establish, in writing,
(1) the Performance Measure(s) that shall apply to the Qualified Performance Award for the Performance Cycle; (2) the target amount of such Qualified Performance Award that shall be payable to each such Covered Employee; and (3) the
vesting and/or payout formula for computing the actual amount of such Qualified Performance Award that shall become vested and/or payable with respect to each level of attained performance. Towards this end, such vesting and/or payout formula shall,
based on objective criteria, set forth for the applicable Performance Measure(s) the minimum level of performance that must be attained during the Performance Cycle before any such Qualified Performance Award shall become vested and/or payable and
the percentage of the target amount of such Award that shall be vested and/or payable to each Covered Employee upon attainment of various levels of performance that equal or exceed the minimum required level. 
 (B) The Committee may, in its discretion, select Performance Measures that measure the performance of Schering-Plough or one
or more

  

 21 

 
business units, divisions, Affiliates or Subsidiaries of SCHERING-PLOUGH. The Committee may select Performance Measures that are absolute or relative to the performance of one or more comparable
companies or an index of comparable companies. 
 (C) In applying Performance Measures, the Committee may, in its
discretion, exclude unanticipated, unusual or infrequently occurring items (including any event described in Section 5.3 and the cumulative effect of changes in the law, regulations or accounting rules), and may determine within the Qualified
Performance Award Determination Period to exclude other items. 
 (D) Notwithstanding anything in this paragraph
(c)(iii) to the contrary, the Committee may, on a case by case basis and in its sole discretion, reduce, but not increase, the amount of any Qualified Performance Award that is payable to a Covered Employee with respect to a Performance Cycle,
provided, however, that no such reduction shall result in an increase in the dollar amount of any such Qualified Performance Award payable to any other Covered Employee. 
 (iv) Committee Certification. No Qualified Performance Award shall vest or be paid to a Covered Employee under
the Plan unless and until the Committee certifies in writing the level of attainment of the applicable Performance Measure(s) for the applicable Performance Cycle. 
 (v) Limitation on Awards. Subject to Sections 5.1 and 5.3, the dollar value of any Qualified Performance
Award payable in cash to any Covered Employee shall not exceed $3 million (or, in the case of the Chief Executive Officer, $6,000,000 on or prior to the Closing Date) for any 12-month Performance Cycle; provided that for any Performance Cycle
that is the same as a performance period under the Operations Management Team Incentive Plan, such amounts shall serve as combined limits under both this Plan and the Operations Management Team Incentive Plan. For any Performance Cycle greater than
12 months in duration, this maximum will be adjusted proportionately. 
 (vi) Code
Section 162(m). It is the intent of Schering-Plough that Qualified Performance Awards granted to Covered Employees under the Plan shall satisfy the applicable requirements of Code Section 162(m) and the regulations thereunder so
that Schering-Plough’s tax deduction for Qualified Performance Awards is not disallowed in whole or in part by operation of Code Section 162(m). If any provision of this Plan pertaining to Qualified Performance Awards, or any Award to a
Covered Employee under the Plan that the Committee designates as a Qualified Performance Award, would otherwise frustrate or conflict with such intent, that provision or Award shall be interpreted and deemed amended so as to avoid such conflict.

 4.9. Substitute Awards. The Committee may make Awards under the Plan to Acquired Grantees through the assumption of,
or in substitution for, outstanding stock-based awards previously granted to such Acquired Grantees. Such assumed or substituted Awards will be subject to the terms and conditions of the original awards made by the Acquired Company, with such

  

 22 

 
adjustments therein as the Committee considers appropriate to give effect to the relevant provisions of any agreement for the acquisition of the Acquired Company. Any grant of Stock Options
pursuant to this Section 4.9 will be subject to the rules set out in Section 424 of the Code and any final regulations published thereunder, regardless of whether the Stock Option is intended to be an Incentive Stock Option or a
Nonqualified Stock Option. 
 4.10. Termination for Cause. Notwithstanding anything to the contrary herein, if a
Participant incurs a Termination for Cause, then all of the Participant’s outstanding Awards under the Plan (whether or not vested or exercisable) will immediately be cancelled and forfeited and the special forfeiture provisions of
Section 7.2 shall apply, unless otherwise determined by the Committee. The exercise of any Stock Option or the payment of any Award may be delayed, in the Committee’s discretion, in the event that a potential Termination for Cause is
pending. 
 V. SHARES SUBJECT TO THE PLAN; ADJUSTMENTS 
 5.1. Shares Available. The Shares issuable under the Plan are authorized but unissued Shares or Shares held in Parent’s treasury. Subject to adjustment in accordance with Section 5.3, the
total number of Shares with respect to which Awards may be issued under the Plan may not exceed 92,000,000 Shares, which includes the number of Shares that have been approved by Parent shareholders for issuance under the Prior Plan, but which have
not been awarded under the Prior Plan as of the Effective Date and which are no longer available for issuance under Prior Plan for any reason (including without limitation, the discontinuance or termination of the Prior Plan). Subject to adjustment
in accordance with Section 5.3, from such aggregate limit: 
 (a) No more than an aggregate of 46,000,000 Shares may be
issued under Incentive Stock Options during the term of the Plan; 
 (b) No more than an aggregate of 46,000,000 Shares may be
issued in the form of Restricted Stock, Deferred Stock Units or Other Stock-Based Awards payable in Shares during the term of the Plan; and 
 (c) The maximum aggregate number of Shares with respect to which Stock Options may be granted to any one Participant during any fiscal year of Parent may not exceed 3,000,000 Shares. 
 5.2. Counting Rules. 
 (a) Shares Counted. For purposes of determining the number of Shares remaining available for issuance under the Plan (including Shares originally approved under the Prior Plan, but made available
for issuance under this Plan in accordance with Section 5.1), only Awards payable in Shares shall be counted. In addition, Shares that are tendered or withheld in payment of all or part of the Exercise Price of a Stock Option, or in
satisfaction of the withholding obligations of an Award shall be counted against the remaining Shares and shall no longer be available for issuance under the Plan. 
 (b) Shares Not Counted. The following Shares relating to Awards under this Plan (or Awards under the Prior Plan that are outstanding as of the Effective Date) are not counted as issued Shares for
purposes of determining the number of Shares remaining available for issuance under the Plan, and shall remain available for issuance under the Plan. 
  

 23 

 (i) Shares underlying awards that are settled in cash in lieu of Shares;

 (ii) Shares underlying Awards that expire, are forfeited, cancelled or terminate for any other reason without
the issuance of Shares; 
 (iii) Shares issued in connection with Awards that are assumed, converted or
substituted as the result of Parent’s acquisition of an Acquired Company or the combination of Parent with another company; and 
 (iv) Shares of Restricted Stock that are forfeited and returned to Parent upon a Participant’s Termination of Employment. 
 5.3. Adjustments. If there is a change in the outstanding Shares by reason of any stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, Shares, other securities or other property), extraordinary cash dividend, recapitalization, split-up, spin-off, reorganization, combination, repurchase or exchange of Shares or other securities, the
issuance of warrants or other rights to purchase Shares or other securities, or other similar corporate transaction or event, then in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under
the Plan, an adjustment in the number or kind of Shares that may be issued under the Plan, the number of Shares underlying an outstanding Award, the Exercise price of a Stock Option or the number of Deferred Stock Units credited to a Deferred Stock
Account will be made by the Committee and such adjustment will be conclusive and binding for all purposes under the Plan. Notwithstanding the foregoing, no adjustments shall be made with respect to Qualified Performance Awards granted to a Covered
Employee to the extent such adjustment would cause the Award to fail to qualify as performance-based compensation under Section 162(m) of the Code. 
 5.4. Consequences of a Change in Control. Notwithstanding any other provision of the Plan, Awards that are outstanding as of the effective date of a Change in Control shall be subject to the
following provisions, unless determined otherwise by the Committee at the time of grant. 
 (a) Replacement Awards. Any
Award granted hereunder shall be deemed to apply to the securities, cash or other property (subject to adjustment by cash payment in lieu of fractional interests) to which a holder of the number of Shares equal to the number of Shares underlying the
Participant’s Awards would have been entitled pursuant to the Change in Control, and proper provisions shall be made to ensure that this clause is a condition to any transaction that would result in a Change in Control; provided, however, that
during the 60-day period beginning on the date of Change in Control, the Committee (or, if applicable, the board of directors of the entity assuming Parent’s obligations under the Plan) may, in its discretion, take any of the following actions
with respect to each Award that is outstanding as of the effective date of Change in Control: 
 (i) Modify or
adjust the Award to reflect the Change in Control; or 
  

 24 

 (ii) Cancel the Award and cause the acquiring or surviving corporation to
replace it with an equivalent right after the Change in Control. 
 (b) Stock Options. All outstanding Stock Options that
have not become exercisable as of the effective date of a Change in Control shall continue to become exercisable in accordance with the vesting schedule set out in the applicable Award Certificate. Notwithstanding the foregoing, in the event a
Participant incurs an Involuntary Termination within two years after the effective date of a Change in Control, all of the Participant’s outstanding Stock Options shall become immediately vested and exercisable as of the date of such
Involuntary Termination and shall remain exercisable for the full duration of the Stock Option’s original term, notwithstanding the Participant’s Termination of Employment. In addition, during the 60-day period beginning on the date of
Change in Control, the Committee may, in its discretion, cancel all or a portion of a Participant’s remaining Stock Options and, in consideration of such cancellation, pay the Participant with respect to each Share issuable under the cancelled
Stock Option an amount in cash equal to the amount by which the Change in Control Price exceeds the Exercise Price of the cancelled Stock Option. 
 (c) Deferred Stock Units. All Deferred Stock Units credited to a Participant’s Deferred Stock Account but not yet distributed as of the effective date of the Change in Control shall be paid in
Shares at the scheduled time and in the scheduled manner set out in the applicable Award Certificate at the time of grant. Notwithstanding the foregoing, in the event a Participant incurs an Involuntary Termination within two years after the
effective date of a Change in Control, all Deferred Stock Units credited to a Participant’s Deferred Stock Account but not yet distributed as of the date of such Involuntary Termination shall become immediately vested and non-forfeitable and
shall be distributed in a single lump sum cash payment, in lieu of Shares, as soon practicable thereafter (but in no event more than 30 days after the date of such Involuntary Termination) at a dollar value per Deferred Stock Unit equal to the
Fair Market Value of a Share on the date of termination. 
 (d) Restricted Stock and Other Stock-Based Awards. All
restrictions and conditions on any Shares of Restricted Stock or Other Stock-Based Awards shall continue to apply for the duration of the Restriction Period. Notwithstanding the foregoing, in the event a Participant incurs an Involuntary Termination
within two years after the effective date of a Change in Control, all restrictions and conditions on any Shares of Restricted Stock or Other Stock-Based Awards shall immediately lapse or be deemed satisfied, as the case may be, as of the date of
such Involuntary Termination and all such Awards shall become vested and non-forfeitable as of such date. 
 (e) Performance
Awards. The Committee shall set out in the Award Certificate for each Performance Award the terms and conditions that shall apply to such Performance Award in the event the Award is outstanding as of the effective date of a Change in Control.

 5.5. Fractional Shares. No fractional Shares shall be issued under the Plan. In the event that a Participant acquires
the right to receive a fractional Share under the Plan, such Participant shall receive, in lieu of such fractional Share, cash equal to the Fair Market Value of the fractional Share as of the date of settlement. 
  

 25 

 VI. AMENDMENT AND TERMINATION 
 6.1. Amendment. The Plan may be amended at any time and from time to time by the Board without the approval of shareholders of Parent,
except that no material revision to the terms of the Plan will be effective without first obtaining the approval of the amendment by the holders of a majority of the Shares present in person or by proxy at a meeting of Parent’s shareholders and
entitled to vote at such meeting. A revision is “material” for this purpose if, among other changes, it (a) materially increases the number of Shares that may be issued under the Plan (other than an increase pursuant to
Section 5.3 of the Plan), (b) changes the types of Awards available under the Plan, (c) expands the class of persons eligible to receive Awards under the Plan, (d) extends the term of the Plan, (e) decreases the Exercise
Price at which Stock Options may be granted, (f) reduces the Exercise Price of outstanding Stock Options, or (g) results in the replacement of outstanding Stock Options with new Awards that have an Exercise Price that is lower than the
Exercise Price of the replaced Stock Options. No amendment of the Plan made without the Participant’s written consent may adversely affect any right of a Participant with respect to an outstanding Award. Notwithstanding the foregoing, this Plan
is intended to incorporate all applicable requirements of Section 409A of the Code and guidance issued thereunder by the U.S. Treasury Department and the Internal Revenue Service, and the Plan will be deemed to be amended as necessary to comply
with those requirements. 
 6.2. Termination. The Plan shall terminate upon the earlier of the following dates or events
to occur: 
 (a) The adoption of a resolution of the Board terminating the Plan; or 
 (b) December 31, 2011. 
 No Awards shall be granted under this Plan after it has been terminated. However, the termination of the Plan shall not alter or impair any of the rights or obligations of any person, without such
person’s consent, under any Award theretofore granted under the Plan. After the termination of the Plan, any previously granted Awards shall remain in effect and shall continue to be governed by the terms of the Plan and the applicable Award
Certificate. 
 VII. GENERAL PROVISIONS 
 7.1. Nontransferability of Awards. No Award under the Plan shall be subject in any manner to alienation, anticipation, sale, assignment, pledge, encumbrance or transfer, and no other persons will
otherwise acquire any rights therein, except as provided below. 
 (a) Any Award may be transferred by will or by the laws of
descent or distribution. 
 (b) The Committee may provide in the Award Certificate that all or any part of the vested portion of
a Nonqualified Stock Option may, subject to the prior written consent of the Committee, be transferred to one or more of the following classes of donees: 
 (i) a family member; 
  

 26 

 (ii) a trust for the benefit of a family member; or 
 (iii) a limited partnership whose partners are solely family members, or any other legal entity set up for the benefit of
family members. 
 For purposes of this paragraph (b), a family member means a Participant’s spouse, children,
grandchildren, parents, grandparents, siblings, nieces, nephews, grandnieces and grandnephews, including adopted, in-laws and step family members. 
 (c) Any transferred Award will be subject to all of the same terms and conditions as provided in the Plan and the applicable Award Certificate. The Participant or the Participant’s estate will remain
liable for any withholding tax that may be imposed by any federal, state or local tax authority. The Committee may, in its discretion, disallow all or a part of any transfer of an Award pursuant to paragraph (b) above unless and until the
Participant makes arrangements satisfactory to the Committee for the payment of any withholding tax. The Participant must immediately notify the Committee, in the form and manner required by the Committee, of any proposed transfer of an Award
pursuant to paragraph (b). No transfer will be effective until the Committee consents to the transfer in writing. 
 (d) Except
as otherwise provided in the Award Certificate, any Nonqualified Stock Option transferred by a Participant pursuant to this paragraph (d) may be exercised by the transferee only to the extent that the Award would have been exercisable by the
Participant had no transfer occurred. The transfer of Shares upon exercise of the Award will be conditioned on the payment of any withholding tax. 
 (e) Restricted Stock may be freely transferred after the restrictions lapse or are satisfied and the Shares are delivered; provided, however, that Restricted Stock awarded to an affiliate of Parent may be
transferred only pursuant to Rule 144 under the Securities Act, or pursuant to an effective registration for resale under the Securities Act. For purposes of this paragraph (e), “affiliate” will have the meaning assigned to that term
under Rule 144. 
 (f) In no event may a Participant transfer an Incentive Stock Option other than by will or the laws of
descent and distribution. 
 7.2. Special Forfeiture Provision. Except as otherwise provided in the current employment
agreement between Schering-Plough and the relevant Employee (which agreement shall take precedent over this Section 7.2), and if the Committee, in its discretion, provides otherwise in the applicable Award Certificate, if a Participant either
— 
 (a) incurs a Termination for Cause or 
 (b) incurs a Termination of Employment for any reason other than other than death, Disability, Retirement, Termination Due to Business Divestiture or Involuntary Termination and, within one year after
such Termination of Employment, without prior written approval of the Committee, enters into an employment or consulting arrangement (including service as an agent, partner, stockholder, consultant, officer or director) with any entity or person
engaged in any business in which Parent or its Affiliates or Subsidiaries is engaged that, in the sole judgment of the Committee, is competitive with Parent or any Affiliate or Subsidiary, then the Participant shall forfeit and return to Parent
— 
  

 27 

 (i) the amount of any profit realized upon the exercise of any Stock Options
at any time on or after the date that is ninety (90) days immediately prior to the date of the Participant’s Termination of Employment; 
 (ii) all shares of Restricted Stock that are not then vested or which vested during the three-month period immediately preceding such Termination of Employment; and 
 (iii) all Shares issued to the Participant in payment of the Participant’s Deferred Stock Units during the three-month
period immediately preceding such Termination of Employment. 
 7.3. Withholding of Taxes. The Committee, in its
discretion, may satisfy a Participant’s tax withholding obligations by any of the following methods or any method as it determines to be in accordance with the laws of the jurisdiction in which the Participant resides, has domicile or performs
services. 
 (a) Stock Options. As a condition to the delivery of Shares pursuant to the exercise of a Stock Option, the
Committee may require that the Participant, at the time of exercise, pay to Parent by cash, certified check, bank draft, wire transfer or postal or express money order an amount sufficient to satisfy any applicable tax withholding obligations. The
Committee may, however, in its discretion, accept payment of tax withholding obligations through any of the Exercise Price payment methods described in Section 4.4(f). 
 (b) Other Awards Payable in Shares. The Participant shall satisfy the Participant’s tax withholding obligations arising in
connection with the release of restrictions on Restricted Stock or the payment of Deferred Stock Units or Other Stock-Based Awards by payment to Parent by cash, certified check, bank draft, wire transfer or postal or express money order an amount
sufficient to satisfy any applicable tax withholding obligations, provided that the format is approved by Parent or a designated third-party administrator. Notwithstanding the foregoing, subject to the requirements of applicable law, Parent may also
satisfy the Participant’s tax withholding obligations by other methods, including selling or withholding Shares that would otherwise be available for delivery, provided that the Committee has specifically approved such payment method in
advance. 
 (c) Cash Awards. Parent may satisfy a Participant’s tax withholding obligations arising in connection
with the payment of any Award in cash by withholding cash from such payment. 
 7.4. Investment Representation. As a
condition to any distribution of Shares pursuant to Awards under the Plan, Parent may require a Participant to represent in writing that such Shares are being acquired for the Participant’s own account for investment and not with a view to, or
for sale in connection with, the distribution of any part thereof. 
  

 28 

 7.5. Code Section 83(b) Elections. Neither Parent, any Affiliate or Subsidiary,
nor the Committee shall have any responsibility in connection with a Participant’s election, or attempt to elect, under Code Section 83(b) to include the value of a Restricted Stock Award in the Participant’s gross income for the year
of payment. Any Participant who makes a Code Section 83(b) election with respect to any such Award shall promptly notify the Committee of such election and provide the Committee with a copy thereof. 
 7.6. Beneficiary Designations. Designations of Beneficiaries by a Participant shall be made in writing and filed with Parent in such
form and in such manner as the Committee may from time to time prescribe. A Participant may change his or her Beneficiaries in the same manner at any time prior to the death of the Participant. If a Participant dies without having designated any
surviving Beneficiaries, the Participant’s remaining interests in Awards under the Plan shall be distributed to the legal representative of his estate or in accordance with the Participant’s will. 
 7.7. No Implied Rights. The establishment and operation of the Plan, including eligibility as a Participant, shall not be construed
as conferring any legal or other right upon any Employee for the continuation of his or her employment for any Performance Cycle or any other period. Parent expressly reserves the right, which may be exercised at any time and in Parent’s sole
discretion, to discharge any individual and/or treat him or her without regard to the effect which such treatment might have upon him or her as a Participant in the Plan. 
 7.8. No Obligation to Exercise Options. The granting of a Stock Option shall impose no obligation upon the Participant to exercise such Stock Option. 
 7.9. No Rights as Shareholders. A Participant granted an Award under the Plan shall have no rights as a shareholder of Parent with
respect to the Award unless and until such time as certificates for the Shares underlying the Award are registered in such Participant’s name. The right of any Participant to receive an Award by virtue of participation in the Plan shall be no
greater than the right of any unsecured general creditor of Parent. 
 7.10. Indemnification of Committee. Parent shall
indemnify, to the full extent permitted by law, each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that he, or his testator or intestate, is or was a member of the Committee or a
delegate of the Committee so acting. 
 7.11. No Required Segregation of Assets. Neither Parent nor any Affiliate or
Subsidiary shall be required to segregate any assets that may at any time be represented by Awards granted pursuant to the Plan. In no event shall any interest be paid or accrued on any Award, including unpaid installments of an Award. 

7.12. Nature of Payments. All Awards made pursuant to the Plan are in consideration of services for Parent or its Affiliates or
Subsidiaries. Any gain realized pursuant to Awards under the Plan constitutes a special incentive payment to the Participant and shall not be taken into account as compensation for purposes of any of the employee benefit plans of Schering- Plough or
any Affiliate or Subsidiary except as may otherwise be specifically provided in the applicable employee benefit plan. 
  

 29 

 7.13. Compliance with Applicable Law. The obligations of Parent to issue or transfer
Shares pursuant to Awards shall be subject to (a) the effectiveness of a registration statement under the Securities Act of 1933, as amended, with respect to the Shares, (b) the condition that the Shares be listed (or authorized for
listing upon official notice of issuance) upon each stock exchange upon which Shares are listed and (c) compliance with all applicable laws and approvals by all governmental or regulatory agency as may be required. With respect to Reporting
Persons, it is the intent of Parent that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. If any provision or this Plan or of any grant of an Award would
otherwise frustrate or conflict with such intent, that provision shall be interpreted and deemed amended so as to avoid such conflict. No Participant will be entitled to a grant, exercise, transfer or payment of any Award if the grant, exercise,
transfer or payment would violate the provisions of the Sarbanes-Oxley Act of 2002 or any other applicable law. In addition, it is the intent of Parent that the Plan and applicable Awards under the Plan comply with the applicable provisions of
Sections 162(m) and 422 of the Code, and to the extent an Award is subject to the requirements of Section 409A of the Code, it is the intent of Parent that the Award be administered in a manner that satisfies such requirements. To the extent
that any legal requirement of Section 16 of the Exchange Act or Section 162(m), 409A or 422 of the Code as set forth in the Plan ceases to be required under such Section, that Plan provision shall cease to apply. The Committee may revoke
any Award if it is contrary to law or modify a Award (to the extent permitted by applicable law) to bring it into compliance with any valid and mandatory government regulation. 
 7.14. Headings. Section and paragraph headings are for reference only. In the event of a conflict between the title and content of a
section or paragraph, the content shall control. 
 7.15. Governing Law; Severability. The Plan and all determinations
made and actions taken thereunder shall be governed by the internal substantive laws, and not the choice of law rules, of the State of New Jersey and construed accordingly, to the extent not superseded by applicable federal law. If any provision of
the Plan shall be held unlawful or otherwise invalid or unenforceable in whole or in part, the unlawfulness, invalidity or unenforceability shall not affect any other provision of the Plan or part thereof, each of which shall remain in full force
and effect. 
  

 30Merck & Co., Inc.Change in Control Separation Benefits Plan

 Exhibit 10.14 
 MERCK & CO., INC. 
 CHANGE IN CONTROL SEPARATION BENEFITS PLAN

 (Effective as Amended and Restated, as of the Restatement Date) 
 ARTICLE I  
 PURPOSE 
 All capitalized terms used in this Article I are defined in Article II, below. 
 The MSD Board originally adopted the Merck & Co., Inc. Change in Control Separation Benefits Plan, effective November 23,
2004, in recognition that the possibility of a Change in Control existed and that the threat or the occurrence of a Change in Control would have resulted in significant distractions of its key executive personnel because of the uncertainties
inherent in such a situation. In addition, the MSD Board determined that it was essential and in the best interest of MSD and its stockholders at that time to retain the services of its key executive personnel in the event of a threat of a Change in
Control and to ensure their continued dedication and efforts in such event without undue concern for their personal financial and employment security. 
 In light of the Merck/Schering Plough Merger and the belief that the same Change in Control risks continue to exist, the Compensation & Benefits Committee of the MSD Board, pursuant to its
authority under the terms of the Plan, amended and restated the Plan to be effective as of the Restatement Date. Consistent with the intent of the original Plan, the amended and restated Plan, maintains the protections and benefits for key executive
personnel of MSD and its subsidiaries that were established by the original Plan. Changes reflected in the amendment and restatement include, generally, (1) an update to the definition of Change in Control to reflect that the applicable
triggering event under the terms of the Plan is a Change in Control of the Company (but not MSD), subject to the amendment provisions regarding the effectiveness of this amendment, and (2) other technical changes that have been determined to be
necessary for the proper operation of the Plan in light of the Merck/Schering-Plough Merger. 
 In addition to the MSD
Board’s Compensation & Benefits Committee action, in order to retain and acknowledge the protections and benefits provided under the Plan to key executive personnel of MSD and its subsidiaries, the Board has also adopted, effective as
of the Restatement Date, the Plan as set forth in this document. 
 ARTICLE II  
 DEFINITIONS 
 As used herein, the following words and phrases shall have the following meanings: 
 2.1. Affiliate. The term
“Affiliate” shall mean, with respect to any person or entity, any entity directly or indirectly controlled by, controlling or under common control with such person or entity. 
 2.2. Base Salary. The term “Base Salary” shall mean, as to any Participant, the amount a Participant is entitled to receive
as base wages or base salary on an annualized basis as in effect immediately prior to a Change in Control or, if greater, at any time thereafter, in each case without reduction for any pre-tax contributions to benefit plans. Base Salary does not
include bonuses, commissions, overtime pay, shift pay, premium pay, cost of living allowances or income from stock options, stock grants or other incentives. 

 2.3. Board. The term “Board” shall mean the Board of Directors of the
Company. 
 2.4. Bonus Amount. The term “Bonus Amount” shall mean, as to any Participant, an amount equal to
the Participant’s annual cash bonus which would have been payable under the Bonus Plan in which he or she participates (x) as of immediately prior to the Change in Control had he or she continued in employment until the end of the fiscal
year of the Employer in which the Change in Control occurs and had bonuses been payable at “target” levels for such year or (y) if greater, as of the Termination Date had he or she continued in employment until the end of the fiscal
year of the Employer in which the Termination Date occurs and had bonuses been payable at “target” levels for such year. 
 2.5. Bonus Plans. The term “Bonus Plans” shall mean the Merck & Co., Inc. Executive Incentive Plan and the Merck & Co., Inc. Annual Incentive Plan (or successors thereto). 
 2.6. Cause. “Cause” for termination by the Employer of the Participant’s employment shall mean (i) willful and
continued failure by the Participant to substantially perform the Participant’s duties on behalf of the Company or any of its subsidiaries (other than any such failure resulting from the Participant’s incapacity due to physical or mental
illness or any such actual or anticipated failure after the issuance of a Notice of Termination for Good Reason by the Participant) for a period of at least thirty consecutive days after a written demand for substantial performance has been
delivered to the Participant by the Responsible Person, which demand specifically identifies the manner in which the Responsible Person believes that the Participant has not substantially performed the Participant’s duties, (ii) willful
misconduct or gross negligence by the Participant which is demonstrably and materially injurious to the Company or any of its subsidiaries, or (iii) the Participant is convicted of, or has entered a plea of nolo contendere to, (x) a
felony or (y) any crime (whether or not a felony) involving dishonesty, fraud, embezzlement or breach of trust. For purposes of clauses (i) and (ii) of this definition, an act, or failure to act, on the Participant’s part shall
not be deemed “willful” if done, or omitted to be done, by the Participant in good faith and with reasonable belief that the Participant’s act, or failure to act, was in the best interest of the Employer. In addition, as to any
Participant who is an Executive Committee Member, the Participant shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote
of not less than three-quarters of the entire membership of the Board at a meeting of the Board (after reasonable notice to the Participant and an opportunity for the Participant, together with the Participant’s counsel, to be heard before the
Board), finding in good faith that the Participant has committed Cause as set forth in such clauses and specifying the circumstances constituting Cause. For purposes of this definition, “Responsible Person” shall mean (i) for a
Participant who is an Executive Committee Member, the Board, and (ii) for a Participant who is an Other Executive, the Executive Committee Member who is the direct or indirect supervisor of the Participant. 
  

 2 

 2.7. Change in Control. Following the Restatement Date, a “Change in
Control” shall mean the occurrence of any of the following: 
 (a) An acquisition (other than directly from the Company) of
any voting securities of the Company (the “Voting Securities”) by any “Person” (as the term “person” is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than twenty percent (20%) of (i) the then-outstanding Shares
or (ii) the combined voting power of the Company’s then-outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred pursuant to this paragraph (a), the acquisition of Shares
or Voting Securities in a Non-Control Acquisition (as defined below) shall not constitute a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof)
maintained by (A) the Company or (B) any corporation or other Person the majority of the voting power, voting equity securities or equity interest of which is owned, directly or indirectly, by the Company (for purposes of this definition,
a “Related Entity”), (ii) the Company or any Related Entity, or (iii) any Person in connection with a Non-Control Transaction (as defined below); 
 (b) The individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least a majority of the members of the Board or,
following a Merger (as defined below), the board of directors of (i) the corporation resulting from such Merger (the “Surviving Corporation”), if fifty percent (50%) or more of the combined voting power of the then-outstanding
voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly, by another Person (a “Parent Corporation”) or (ii) if there is one or more than one Parent Corporation, the ultimate Parent Corporation;
provided, however, that if the election, or nomination for election by the Company’s common shareholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for
purposes of the Plan, be considered a member of the Incumbent Board; and provided, further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result
of an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”), including by reason of any agreement intended to avoid or settle any Proxy Contest; or 
 (c) The consummation of: 
 (i) A merger, consolidation or reorganization (x) with or into the Company or (y) in which securities of the Company are issued (a “Merger”), unless such Merger is a “Non-Control Transaction.” A
“Non-Control Transaction” shall mean a Merger in which: 
 (A) the stockholders of the Company immediately before
such Merger own, directly or indirectly, immediately following such Merger at least sixty percent (60%) of the combined voting power of the outstanding voting securities of (1) the Surviving Corporation, if there is no Parent Corporation
or (2) if there is one or more than one Parent Corporation, the ultimate Parent Corporation; 
  

 3 

 (B) the individuals who were members of the Incumbent Board immediately prior to the
execution of the agreement providing for such Merger constitute at least a majority of the members of the board of directors of (1) the Surviving Corporation, if there is no Parent Corporation, or (2) if there is one or more than one
Parent Corporation, the ultimate Parent Corporation; and 
 (C) no Person other than (1) the Company or another
corporation that is a party to the agreement of Merger, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to the Merger, was maintained by the Company or any Related Entity,
or (4) any Person who, immediately prior to the Merger had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Shares or Voting Securities, has Beneficial Ownership, directly or indirectly, of twenty percent
(20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more than one Parent Corporation, the
ultimate Parent Corporation; provided, however, that any Person described in clause (4) of this subsection (C) may not, immediately following the Merger, Beneficially Own more than thirty percent (30%) of the combined
voting power of the outstanding voting securities of the Surviving Corporation or the Parent Corporation, as applicable, for the Merger to constitute a Non-Control Transaction; 
 (ii) A complete liquidation or dissolution of the Company; or 
 (iii) The sale or other disposition of all or substantially all of the assets of the Company and its subsidiaries taken as a whole to any
Person (other than (x) a transfer to a Related Entity or (y) the distribution to the Company’s shareholders of the stock of a Related Entity or any other assets). 
 Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”)
acquired Beneficial Ownership of more than the permitted amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares or Voting Securities by the Company which, by reducing the number of Shares or Voting
Securities then outstanding, increases the proportional number of Shares Beneficially Owned by the Subject Persons; provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of
Shares or Voting Securities by the Company and, after such acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 
 Prior
to the Restatement Date, a “Change in Control” shall mean an “MSD Change in Control” as defined in Section 2.26 of the Plan, subject to the terms of Section 7.2 of the Plan. 
 2.8. Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 2.9. Company. The term “Company” shall mean Merck & Co., Inc. after the Restatement Date. 
  

 4 

 2.10. Credited Service. The term “Credited Service” shall have the meaning
ascribed to it in the Pension Plan. 
 2.11. Effective Date. The “Effective Date” of the Plan is
November 23, 2004, the date of its approval by the Board of Directors of MSD. 
 2.12. Employer. The term
“Employer” shall mean, as applicable to any Participant, MSD or a subsidiary of MSD that employs the Participant or an Affiliate which adopts the Plan pursuant to Section 4.1(d). 
 2.13. ERISA. The term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 2.14. Excise Tax. The term “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with
any interest or penalties imposed with respect to such excise tax. 
 2.15. Executive Committee Member. The term
“Executive Committee Member” shall mean each individual who is an employee of an Employer and whom the Company’s Chief Executive Officer has designated as a member of the Company’s Executive Committee. 
 2.16. Executive Health Plan. The term “Executive Health Plan” shall mean the Retiree Healthcare Plan for Key Executives or
other similar or successor plan adopted by the MSD Board to provide medical, dental and prescription drug benefits under an insurance policy to certain employees of MSD or its subsidiaries who, on the date their employment with MSD ends, do not meet
the requirements to be considered a retiree under the Health Plan. 
 2.17. Good Reason. “Good Reason” for
termination by the Participant of the Participant’s employment shall mean the occurrence (without the Participant’s express written consent) of any one of the following acts by the Employer, or failures by the Employer to act, following
the occurrence of a Change in Control: 
 (a) solely as to Participants who are Executive Committee Members: a
significant adverse change in the Participant’s authority, duties, responsibilities or position (including title, reporting level and status as an executive officer subject to Section 16(b) of the Exchange Act) from those in effect
immediately prior to the Change in Control; provided that, notwithstanding the foregoing, the following is not “Good Reason”: (A) an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by
the Employer promptly after receipt of notice thereof given by the Participant, (B) a change in the person to whom (but not the position to which) the Participant reports, or (C) a transfer of the Participant’s employment to an
Affiliate of the Employer, if such transfer occurs before a Change in Control; 
 (b) solely as to Participants who are Other
Executives: a significant adverse change in the Participant’s authority, duties, responsibilities or position from those in effect immediately prior to the Change in Control; provided that, notwithstanding the foregoing, the
following is not “Good Reason”: (A) an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Employer promptly after receipt of notice thereof given by the Participant, or (B) a change
of less than two levels in the position to which the

  

 5 

 
Participant reports, (C) a change in the person to whom the Participant reports, (D) the Participant ceasing to be an executive officer subject to Section 16(b) of the Exchange
Act, or (E) a transfer of the Participant’s employment to an Affiliate of the Employer, if such transfer occurs before a Change in Control and 
 (c) as to Participants who are either Executive Committee Members or Other Executives: 
 (i) a reduction in the Participant’s annual base salary as in effect immediately prior to the Change in Control or as the same may be increased from time to time following the Change in Control, or a reduction in the level of the
Participant’s bonus opportunity under the Bonus Plans as in effect immediately prior to the Change in Control or as the same may be increased from time to time following the Change in Control; 
 (ii) the Employer’s requiring the Participant to change the office location at which the Participant is based which results in the
Participant having a commute to such location from the Participant’s residence in excess of 50 miles or in excess of 120% (in miles) of the Participant’s commute immediately prior to the date of such change of location, whichever is
greater; 
 (iii) the failure by the Employer to pay to the Participant (x) any portion of the Participant’s annual
base salary, (y) any awards earned pursuant to the Bonus Plans or (z) any portion of an installment of deferred compensation under any deferred compensation program of the Company or its subsidiaries, including the Employer, in each case
within seven days of the date such compensation is due; 
 (iv) (x) the failure by the Company or its subsidiaries,
including the Employer, to continue in effect any compensation plan or program in which the Participant participates immediately prior to the Change in Control and which is material to the Participant’s total compensation, including, without
limitation, the Bonus Plans and the Company’s or Employer’s Incentive Stock Plans, or any plans or programs adopted in substitution therefor prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute
or alternative plan or program) has been made with respect to such plan or program, or (y) the failure by the Company or the Employer (as applicable) to continue the Participant’s participation therein (or in such substitute or alternative
plan or program) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the Participant’s participation relative to other positions as existed at the time of the Change in Control;

 (v) (x) the failure by the Company or its subsidiaries, including the Employer, to continue to provide the Participant
with benefits substantially similar to those enjoyed by the Participant under any of the Company’s or the Employer’s pension and retirement (including, without limitation, the Pension Plan and the Savings Plan), life insurance, medical,
health and accident, disability, and vacation plans and programs (including, without limitation, the Health Plan, the Executive Health Plan and the Life Insurance Plan) in which the Participant participates immediately prior to the Change in Control
or (y) the taking of any action by the Company or its subsidiaries, including the Employer, which would directly or indirectly materially reduce any of such benefits or deprive the Participant of any material fringe benefit enjoyed by the
Participant immediately prior to the Change in Control; 
  

 6 

 (vi) the failure of the Company to obtain a satisfactory agreement from any successor to
assume and agree to perform this Plan, as contemplated in Article VII hereof, if required to do so; or 
 (vii) any purported
termination of the Participant’s employment by the Company or its subsidiaries, including the Employer, which is not effected pursuant to a Notice of Termination satisfying the requirements of Article V hereof (and for purposes of this Plan, no
such purported termination shall be effective). 
 The Participant’s right to terminate the Participant’s employment
for Good Reason shall not be affected by the Participant’s incapacity due to physical or mental illness. The Participant’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to
act constituting Good Reason hereunder. 
 Notwithstanding the foregoing, the occurrence of an event that would otherwise
constitute Good Reason hereunder shall cease to be an event constituting Good Reason if (i) the Participant fails to provide the Employer with notice of the occurrence of any of foregoing within the six-month period immediately following the
date on which the Participant first becomes aware (or reasonably should have become aware) of the occurrence of such event, (ii) the Participant fails to provide the Employer with a period of at least thirty days from the date of such notice to
cure such event prior to terminating his or her employment for Good Reason or (iii) Notice of Termination is not provided to the Employer by the Participant within ninety days following the day on which the thirty-day period set forth in the
preceding clause (ii) expires; provided, that the thirty-day notice period required by clause (ii) and referred to in clause (iii) shall end two days prior to the second anniversary of the Change in Control in the event that
the second anniversary of the Change in Control would occur during such thirty-day period. With respect to communications addressed to the Employer, all such communications shall be sent to the Corporate Secretary of the Company at its headquarters.

 2.18. Gross-Up Payment. The term “Gross-Up Payment” shall have the meaning given thereto in
Section 6.1(a). 
 2.19. Health Plan. The term “Health Plan” shall mean the one or more plans sponsored by
the Company or its subsidiaries that provide medical and dental benefits, but only to the extent that such plans apply to salaried U.S.-based employees of an Employer and to former salaried U.S.-based employees of an Employer who are considered
retirees thereunder and to the eligible dependents of each of the foregoing. 
 2.20. Leave of Absence. The term
“Leave of Absence” shall mean any leave of absence, whether or not approved by the Company or the Employer, other than (i) family medical leave, (ii) personal leave for jury duty, (iii) military leave, (iv) any leave of
absence approved for a period of less than six months (including vacation time and paid time off) and (v) any leave of absence approved for a period of six months or more from which the Participant actually returns to work in less than six
months. 
  

 7 

 2.21. Life Insurance Plan. The term “Life Insurance Plan” shall mean one or
more plans sponsored by the Company or its subsidiaries that provide life insurance benefits, but only to the extent that such plan applies to salaried U.S.-based employees of an Employer and to former salaried U.S.-based employees of an Employer
who are considered retirees thereunder and to the eligible dependents of each of the foregoing. 
 2.22.
Merck/Schering-Plough Merger. The term “Merck/Schering-Plough Merger” shall mean, collectively, the series of transactions contemplated by the Agreement and Plan of Merger, dated March 8, 2009, among MSD (formerly known as
Merck & Co, Inc.), Schering-Plough Corporation, SP Merger Subsidiary One, Inc., and SP Merger Subsidiary Two, Inc. 
 2.23. Multiple. The “Multiple” applicable to a Participant shall be as follows: 
 (a) if the
Participant is an Executive Committee Member as of the Termination Date, three; 
 (b) if the Participant is an Other Executive
and reports directly to an Executive Committee Member as of the Termination Date, two; and 
 (c) if the Participant is an Other
Executive and does not report directly to an Executive Committee Member as of the Termination Date, one and one-half. 
 2.24.
MSD. The term “MSD” shall mean Merck Sharp & Dohme Corp., formerly known as Merck & Co., Inc. prior to the Restatement Date. 
 2.25. MSD Board. The term “MSD Board” shall mean the Board of Directors of Merck & Co., Inc. prior to the Restatement Date and the Board of Directors of Merck Sharp &
Dohme Corp. on or after the Merck/Schering-Plough Merger. 
 2.26. MSD Change in Control. An “MSD Change in
Control” shall mean the occurrence of any of the following: 
 (a) An acquisition (other than directly from MSD) of any
voting securities of MSD (the “MSD Voting Securities”) by any “Person” (as the term “person” is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than twenty percent (20%) of (i) the then-outstanding shares of common
stock of MSD (“MSD Shares”) or (ii) the combined voting power of MSD’s then-outstanding MSD Voting Securities; provided, however, that in determining whether a MSD Change in Control has occurred pursuant to this
paragraph (a), the acquisition of MSD Shares or MSD Voting Securities in a MSD Non-Control Acquisition (as defined below) shall not constitute a MSD Change in Control. A “MSD Non-Control Acquisition” shall mean an acquisition by
(i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) MSD or the Company or (B) any corporation or other Person the majority of the voting power, voting equity securities or equity interest of which is
owned, directly or indirectly, by MSD (for purposes of this definition, an “MSD Related Entity”), (ii) MSD or any MSD Related Entity, or (iii) any Person in connection with a MSD Non-Control Transaction (as defined below);

  

 8 

 (b) The individuals who, as of the Restatement Date, are members of the MSD Board (the
“Incumbent MSD Board”), cease for any reason to constitute at least a majority of the members of the MSD Board or, following a MSD Merger (as defined below), the board of directors of (i) the corporation resulting from such MSD Merger
(the “MSD Merger Surviving Corporation”), if fifty percent (50%) or more of the combined voting power of the then-outstanding voting securities of the MSD Merger Surviving Corporation is not Beneficially Owned, directly or indirectly,
by another Person (an “MSD Merger Parent Corporation”) or (ii) if there is one or more than one MSD Merger Parent Corporation, the ultimate MSD Merger Parent Corporation; provided, however, that if the election, or
nomination for election by MSD’s common shareholders, of any new director was approved by a vote of at least two-thirds of the Incumbent MSD Board, such new director shall, for purposes of the Plan, be considered a member of the Incumbent MSD
Board; and provided, further, however, that no individual shall be considered a member of the Incumbent MSD Board if such individual initially assumed office as a result of an actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the MSD Board (an “MSD Proxy Contest”), including by reason of any agreement intended to avoid or settle any MSD Proxy Contest; or 
 (c) The consummation of: 
 (i) A merger, consolidation or reorganization (x) with or into MSD or (y) in which securities of MSD are issued (an “MSD Merger”), unless such MSD Merger is an “MSD Non-Control Transaction.” A “MSD
Non-Control Transaction” shall mean a MSD Merger in which: 
 (A) the stockholders of MSD immediately before such MSD
Merger own, directly or indirectly, immediately following such MSD Merger at least sixty percent (60%) of the combined voting power of the outstanding voting securities of (1) the MSD Merger Surviving Corporation, if there is no MSD Merger
Parent Corporation or (2) if there is one or more than one MSD Merger Parent Corporation, the ultimate MSD Merger Parent Corporation; 
 (B) the individuals who were members of the Incumbent MSD Board immediately prior to the execution of the agreement providing for such MSD Merger constitute at least a majority of the members of the board
of directors of (1) the MSD Merger Surviving Corporation, if there is no MSD Merger Parent Corporation, or (2) if there is one or more than one MSD Merger Parent Corporation, the ultimate MSD Merger Parent Corporation; and 
 (C) no Person other than (1) MSD or another corporation that is a party to the agreement of MSD Merger, (2) any MSD Related
Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to the MSD Merger, was maintained by MSD, any MSD Related Entity, or the Company or (4) any Person who, immediately prior to the MSD Merger
had Beneficial Ownership of twenty percent (20%) or more of the then outstanding MSD Shares or MSD Voting Securities, has Beneficial Ownership, directly or indirectly, of twenty percent (20%) or more of the combined voting power of the
outstanding voting securities or common stock of (x) the MSD Merger Surviving Corporation, if there is no MSD Merger Parent Corporation, or (y) if there is one or more than one MSD Merger

  

 9 

 
Parent Corporation, the ultimate MSD Merger Parent Corporation; provided, however, that any Person described in clause (4) of this subsection (C) may not, immediately
following the MSD Merger, Beneficially Own more than thirty percent (30%) of the combined voting power of the outstanding voting securities of the MSD Surviving Corporation or the MSD Merger Parent Corporation, as applicable, for the MSD Merger
to constitute a MSD Non-Control Transaction; 
 (ii) A complete liquidation or dissolution of MSD; or 
 (iii) The sale or other disposition of all or substantially all of the assets of MSD and its subsidiaries taken as a whole to any Person
(other than (x) a transfer to a MSD Related Entity or (y) the distribution to MSD’s shareholders of the stock of a MSD Related Entity or any other assets). 
 Notwithstanding the foregoing, a MSD Change in Control shall not be deemed to occur solely because any Person (the “MSD Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding MSD Shares or MSD Voting Securities as a result of the acquisition of MSD Shares or MSD Voting Securities by MSD which, by reducing the number of MSD Shares or MSD Voting Securities then outstanding, increases the
proportional number of MSD Shares Beneficially Owned by the MSD Subject Persons; provided that if a MSD Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of MSD Shares or MSD Voting
Securities by MSD and, after such acquisition by MSD, the MSD Subject Person becomes the Beneficial Owner of any additional MSD Shares or MSD Voting Securities and such Beneficial Ownership increases the percentage of the then outstanding MSD Shares
or MSD Voting Securities Beneficially Owned by the MSD Subject Person, then a MSD Change in Control shall occur. 
 2.27.
Notice of Termination. The term “Notice of Termination” shall mean a notice that indicates the specific provisions in this Plan relied upon as the basis for any termination of employment and sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of a Participant’s employment under the provision so indicated. No purported termination of employment shall be effective without a Notice of Termination. 
 2.28. Operating Unit. The term “Operating Unit” shall mean any subsidiary, division or other operating unit of MSD.

 2.29. Other Executive. The term “Other Executive” shall mean each employee of the Employer (whether located
in the United States or in another country) designated as Grade 1 or Grade 2 (including subcategories within such Grades, if any), excluding Executive Committee Members. 
 2.30. Participant. The term “Participants” shall mean those Executive Committee Members and Other Executives who meet the eligibility requirements of Article III of the Plan, excluding
(x) individuals on Leave of Absence, (y) individuals who remain employed solely pursuant to a separation agreement with the Company or the Employer, and (z) individuals who provide services primarily to or in respect of Merck Capital
Ventures, LLC. An individual excluded as a Participant pursuant to clause (x) of this Section 2.30 shall be so excluded only during such Leave of Absence. 
  

 10 

 2.31. Payment. The term “Payment” shall mean any payment or distribution in
the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of a Participant, whether paid or payable pursuant to this Plan or otherwise. 
 2.32. Pension Plan. The term “Pension Plan” shall mean the Retirement Plan for Salaried Employees of MSD. 
 2.33. Permanent Disability. The term “Permanent Disability” shall mean (i) that a Participant is receiving long-term
disability benefits under a disability plan of the Company or its subsidiaries, including the Employer, in which the Participant participates as of the Termination Date, or (ii) if there is no such plan as of the Termination Date, that the
Participant has been substantially unable to perform his or her duties, services and responsibilities by reason of a physical or mental infirmity for 180 consecutive days. 
 2.34. Plan. The term “Plan” shall mean the Merck & Co., Inc. Change in Control Separation Benefits Plan, as
amended and restated, as set forth in this document. 
 2.35. Prior Equity Plans. The term “Prior Equity Plans”
shall mean the MSD 2004 Incentive Stock Plan, the MSD 2001 Incentive Stock Plan, and the MSD 1996 Incentive Stock Plan (formerly known as the Merck & Co., Inc. 2004 Incentive Stock Plan, Merck & Co., Inc. 2001 Incentive Stock Plan,
Merck & Co., Inc. 1996 Incentive Stock Plan, respectively). 
 2.36. Restatement Date. The term
“Restatement Date” shall mean the closing date of the Merck/Schering-Plough Merger. 
 2.37. Pro-Rata Bonus.
The term “Pro-Rata Bonus” shall mean, with respect to the fiscal year in which a Participant’s Termination Date occurs, an amount equal to the Bonus Amount multiplied by a fraction the numerator of which is the number of whole and
partial months that have elapsed in such fiscal year through the Termination Date (counting any partial month as a whole month for this purpose) and the denominator of which is twelve; provided, however, that the Pro-Rata Bonus shall
be reduced, but not below zero, to the extent of any annual cash bonus the Participant receives from the Employer in respect of the fiscal year in which the Termination Date occurs. 
 2.38. Savings Plan. The term “Savings Plan” shall mean the MSD Employee Savings and Security Plan. 
 2.39. Severance Benefits. The term “Severance Benefits” shall mean the payments and benefits payable in accordance with
Article IV of the Plan. 
 2.40. Shares. The term “Shares” shall mean the shares of common stock, par value
$0.50 per share, of the Company as of and after the Restatement Date. 
 2.41. Supplemental Plan. The term
“Supplemental Plan” shall mean the MSD Supplemental Retirement Plan. 
  

 11 

 2.42. Termination Date. The term “Termination Date” shall mean the date of
the termination of a Participant’s employment with the Employer as determined in accordance with Articles V and IX. 
 ARTICLE III  
 ELIGIBILITY 
 3.1. Commencement of Participation. 
 (a) Executive Committee Members. Each
Executive Committee Member as of the Restatement Date who is employed by an Employer shall automatically be a Participant in the Plan as of the Restatement Date. Each individual who is designated by the Chief Executive Officer as an Executive
Committee Member following the Restatement Date and who is employed by an Employer shall automatically be a Participant in the Plan as of the date of such designation. 
 (b) Other Executives. Each Other Executive as of the Restatement Date who is employed by an Employer shall automatically be a Participant in the Plan as of the Restatement Date. Each individual who
is employed by an Employer and becomes an Other Executive (whether by reason of being hired by an Employer or promoted from lower grades) shall automatically be a Participant in the Plan as of the date that he or she becomes an Other Executive.

 (c) Further Participation Restrictions. An Executive Committee Member or Other Executive must be an employee of an
Employer to be eligible to participate in the Plan. 
 3.2. Duration of Participation. 
 (a) Executive Committee Members. A Participant who is an Executive Committee Member shall cease to be a Participant in the Plan
(i) if, prior to a Change in Control (but subject to Sections 4.2 and 8.2), he or she ceases to be an Executive Committee Member, or (ii) if his or her employment with an Employer is terminated under circumstances where he or she is not
entitled to Severance Benefits under the terms of this Plan; provided, however, that, subject to Sections 4.2 and 8.2, if an Executive Committee Member ceases to be an Executive Committee Member but remains an Other Executive, he or
she shall continue to participate in the Plan as an Other Executive. 
 (b) Other Executives. A Participant who is an
Other Executive shall cease to be a Participant in the Plan (i) if, prior to a Change in Control (but subject to Sections 4.2 and 8.2), he or she ceases to be an Other Executive (other than by reason of becoming an Executive Committee Member),
or (ii) if his or her employment is terminated under circumstances where he or she is not entitled to Severance Benefits under the terms of this Plan. 
 (c) Notwithstanding anything to the contrary, in the event of a Change in Control, a Participant on or immediately prior to such Change in Control shall continue to be a Participant after the Change in
Control even if his or her employment is transferred to an Affiliate either on or following the Change in Control. 
  

 12 

 (d) A Participant entitled to Severance Benefits under the terms of this Plan shall remain a
Participant in the Plan until the full amount of the Severance Benefits has been paid to him or her. 
 ARTICLE IV 

 SEVERANCE BENEFITS 
 4.1. Right to Severance Benefits. 
 (a) Subject to Section 4.1(b): 

a Participant shall be entitled to receive Severance Benefits from the Employer in the amount provided in Section 4.3(a) if
(i) a Change in Control has occurred and (ii) within two years thereafter, the Participant’s employment with the Employer terminates for any reason, except that, notwithstanding the foregoing provisions of this Section 4.1(a)(i),
no Severance Benefits under Section 4.3(a) shall be payable to a Participant should the Participant’s termination of employment be (A) initiated by the Employer for Cause, (B) by reason of Permanent Disability, (C) initiated
by the Participant other than for Good Reason, (D) by reason of the Participant’s death or (E) an Excluded Termination (as defined in Section 4.1(c)); and 
 a Participant shall be entitled to receive Severance Benefits from the Employer in the amount provided in Section 4.3(b) if (i) a
Change in Control has occurred and (ii) within two years thereafter, the Participant’s employment with the Employer terminates for any reason, except that, notwithstanding the foregoing provisions of this Section 4.1(a)(ii), no
Severance Benefits under Section 4.3(b) shall be payable to a Participant should the Participant’s termination of employment be (A) initiated by the Employer for Cause, (B) by reason of Permanent Disability, (C) initiated by
the Participant other than for Good Reason or (D) by reason of the Participant’s death. 
 (b) No Severance Benefits
shall be provided to a Participant unless the Participant has properly executed and delivered to the Employer a release of claims and that release of claims has become irrevocable as provided therein. Such release of claims shall not be accepted by
the Employer unless it is executed on or after the Participant’s Termination Date. The initial release of claims is attached to this Plan as Appendix A. Prior to the occurrence of a Change in Control, but subject to Section 8.2, the
release of claims may be revised by the Employer. The Employer may in any event modify the release of claims to conform it to the laws of the local jurisdiction applicable to a Participant so long as such modification does not increase the
obligations of the Participant thereunder. 
 (c) If, following a Change in Control, a Participant’s employment with the
Employer terminates in connection with the sale, divestiture or other disposition of the stock or assets of any Operating Unit (or part thereof) (a “Transaction”), such termination shall not be a termination of employment of the
Participant for purposes of the Plan, and (notwithstanding the rights provided to the Participant by Section 4.1(a)(i)) the Participant shall not be entitled to Severance Benefits as a result of such termination of employment if (i) the
Participant is offered

  

 13 

 
continued employment, or continues in employment, with the divested Operating Unit (or part thereof) or the purchaser of the stock or assets of the Operating Unit (or part thereof), or one of
their respective Affiliates (the “Post-Transaction Employer”), as the case may be, on terms and conditions that would not constitute Good Reason and (ii) the Company obtains an agreement from the acquiror of the stock or assets of the
divested Operating Unit (or part thereof), enforceable by the Participant, to provide or cause the Post-Transaction Employer to provide severance pay and benefits, if the Participant accepts the offered employment or continues in employment with the
Post-Transaction Employer or its Affiliates following the Transaction, (A) at least equal to the Severance Benefits set forth in Section 4.3(a) and (B) payable upon a termination of the Participant’s employment with the
Post-Transaction Employer and its Affiliates within such portion of the two-year period described in Section 4.1(a)(i) as is then remaining and under the same circumstances set forth in Section 4.1(a)(i). For purposes of this
Section 4.1(c), the terms “Cause” and “Good Reason” shall have the meanings ascribed to them in Sections 2.6 and 2.16 respectively, but the term “Employer” as it is used in those Sections shall be deemed to refer
to the entity employing the Participant after the Transaction, the term “Company” as used in those Sections shall be deemed to refer to such entity or, if applicable, the ultimate parent corporation of such entity, and the term
“Board” as used in those Sections shall refer to the body serving the function of a board of directors for such entity or, if applicable, the ultimate parent corporation of such entity. 
 A termination of employment described in this Section 4.1(c) is herein referred to as an “Excluded Termination.” In the
circumstances described in this Section 4.1(c), the Participant shall not be entitled to receive Severance Benefits under Section 4.3(a) of this Plan whether or not the Participant accepts the offered employment or continues in employment.
The provisions of this Section 4.1(c) do not create any entitlement to Severance Benefits from the Employer in any circumstances whatsoever and are to be construed solely as a limitation on such entitlement in the circumstances herein set
forth. 
 (d) For purposes of determining a Participant’s and the Employer’s rights and obligations under the Plan,
the transfer of employment of a Participant from the Employer or one of its subsidiaries to an Affiliate of an Employer, or from such Affiliate to the Employer or one of its subsidiaries, in each case whether before or after the Change in Control,
shall not constitute a termination of employment for purposes of the Plan; provided, however, that if such transfer takes place on or after the Change in Control, the Affiliate employing the Participant shall, with respect to that
Participant, become the Employer for all purposes under the Plan. 
 4.2. If (i) a Participant’s employment is
terminated by the Employer without Cause prior to the date of a Change in Control or (ii) an action is taken with respect to the Participant prior to the date of a Change in Control that would constitute Good Reason if taken after a Change in
Control, and the Participant reasonably demonstrates that such termination or action (A) was at the request of a third party that has indicated an intention or taken steps reasonably calculated to effect a Change in Control or
(B) otherwise arose in connection with, or in anticipation of, a Change in Control that has been threatened or proposed, such termination or action shall be deemed to have occurred after such Change in Control for purposes of the Plan, so long
as such Change in Control actually occurs. If any such termination or action occurs while an agreement is pending and the effective provisions of such agreement provide for a transaction or transactions which if consummated would constitute a Change
in Control, then such termination or action shall conclusively be presumed to have occurred in connection with a Change in Control. 
  

 14 

 4.3. Amount of Severance Benefits. 
 (a) Subject to Sections 4.3(c) through 4.3(f), if a Participant’s employment is terminated in circumstances entitling him or her to the
Severance Benefits provided in this Section 4.3(a), such Participant shall be entitled to each of the following: 
 (i)
The Employer shall pay to the Participant a Pro-Rata Bonus in a lump sum within thirty days following the Termination Date. 
 (ii) The Employer shall pay to the Participant, as severance pay and in lieu of any further Base Salary for periods subsequent to the Termination Date, an amount of cash equal to the Multiple times the sum of (A) the Base Salary and
(B) the Bonus Amount, with such severance pay to be paid in substantially equal installments not less often than monthly over a number of years equal to the Multiple, or, as to any Participant whose Multiple has been reduced pursuant to the
following proviso, over the period from the Termination Date through the date on which the Participant attains age 65; provided, however, that, for purposes of this Section 4.3(a)(2), (i) the Multiple shall be reduced if the
number of days from the Termination Date to the date on which the Participant attains age 65 is less than (x) 1,095, if the Multiple applicable to the Participant is three, (y) 730, if the Multiple applicable to the Participant is two or
(z) 547, if the Multiple applicable to the Participant is one and one-half (in each case determined without regard to the proviso) (whichever of (x), (y) or (z) is applicable to the Participant, the “Applicable Number”), and
(ii) the Multiple as so reduced shall be determined by multiplying the Multiple (determined without regard to this proviso) times a fraction, the numerator of which is the number of days from the Termination Date through the date that the
Participant attains age 65 and the denominator of which is the Applicable Number. 
 (iii) For Participants
who are U.S.-based employees eligible to participate in the Health Plan and Life Insurance Plan, for a period (the “Continuation Period”) equal to the lesser of (i) the number of full and partial years subsequent to the
Participant’s Termination Date equal to the Multiple or (ii) the period beginning on the Participant’s Termination Date and ending on his or her 65th birthday, the Employer shall continue, on behalf of the Participant and his or her
dependents and beneficiaries, the medical, dental and life insurance benefits that were being provided to the Participant and his or her dependents and beneficiaries under the Health Plan and Life Insurance Plan immediately prior to the Change in
Control or, if greater, as of the Termination Date. The cost to the Participant of such coverage and the terms and conditions of such coverage, in each case during the Continuation Period, shall be the same as those applicable to similarly situated
active U.S-based employees of the Employer during the Continuation Period. Following the Continuation Period, the Participant and his or her dependents and beneficiaries shall be eligible to elect medical and/or dental continuation coverage pursuant
to Section 601 of ERISA and Section 4980B of the Code, and the cost of such medical and dental continuation coverage shall be the same as is charged to terminated former salaried U.S.-based employees of the Employer and its subsidiaries
during such period. The obligation under this Section 4.3(a)(3) with respect to the foregoing benefits shall be reduced to the extent that the Participant obtains any such benefits pursuant to a

  

 15 

 
subsequent employer’s benefit plans, in which case the Employer may reduce or eliminate the coverage and benefits it is required to provide the Participant hereunder as long as the aggregate
coverages and benefits of the combined benefit plans are no less favorable to the Participant than the coverages and benefits required to be provided hereunder. In addition, no benefits shall be provided pursuant to this Section 4.3(a)(3) to
the extent that the Participant is entitled to the same type of benefits as a retiree of the Employer, including those eligible for treatment as a retiree under Section 4.3(b)(2), Section 4.3(b)(3) or Section 4.3(b)(4). 
 (iv) If the Participant is U.S.-based and is eligible to receive Employer-provided financial planning services as of the Termination Date,
the Employer shall, at its expense, continue to provide such financial planning services to the Participant during the calendar year in which the Termination Date occurs and during the next following calendar year. 
 (v) The Employer shall, at its expense, permit the Participant to participate in outplacement assistance services which are (1) as to
Executive Committee Members, at a level appropriate for senior management of a public company but not less than the same as at the highest level provided under the MSD Separation Benefits Plan for Nonunion Employees as in effect from time to time
and (2) as to Other Executives, the same as at the highest level provided under the MSD Separation Benefits Plan for Nonunion Employees as in effect from time to time. Outplacement benefits shall be provided in kind; cash shall not be paid in
lieu thereof, nor will cash Severance Benefits be increased if a Participant declines or does not use the outplacement benefits. 
 (b) Subject to Sections 4.3(c) through 4.3(f), if a Participant’s employment is terminated in circumstances entitling him or her to the Severance Benefits provided in this Section 4.3(b), such Participant shall be entitled to each
of the following: 
 (i) The Participant shall be entitled to the pension benefits as described in Appendix B. 
 (ii) For Participants who are U.S.-based employees eligible to participate in the Health Plan, if the Participant on his or her Termination
Date is not at least age 55 with the requisite amount of service with an Employer to satisfy the requirements to be considered a retiree under the Health Plan but would attain at least age 50 and meet the service requirements to be considered a
retiree under the Health Plan within two years following the date of the Change in Control (assuming continued employment during the entirety of such two-year period), then the Participant shall be eligible for retiree healthcare benefits under the
Health Plan on his or her Termination Date on the same terms and conditions applicable to salaried U.S.-based employees of the Employer whose employment terminated the last day of the month prior to the Participant’s Termination Date who were
treated as retirees under the Health Plan as of that date. 
 (iii) For Participants who are U.S.-based employees eligible to
participate in the Executive Health Plan who on their Termination Date are not eligible to be considered retirees under the Health Plan (including under Section 4.3(b)(2)), if the Participant on his or her Termination Date does not satisfy the
age requirement (or for Participants who are Executive Committee Members, the age or service requirements) to be considered a retiree under

  

 16 

 
the Executive Health Plan but would satisfy such requirements to be considered a retiree under the Executive Health Plan within two years following the date of the Change in Control (assuming
continued employment during the entirety of such two-year period), then the Participant shall be eligible for retiree healthcare benefits under the Executive Health Plan on his or her Termination Date on the same terms and conditions applicable to
salaried U.S.-based employees of the Employer whose employment terminated the last day of the month prior to the Participant’s Termination Date who were treated as retirees under the Executive Health Plan as of that date. 
 (iv) For Participants who are U.S.-based employees eligible to participate in the Life Insurance Plan, if the Participant on his or her
Termination Date is not either at least age 65 or at least age 55 with the requisite amount of service with an Employer to satisfy the requirements to be considered a retiree under the Life Insurance Plan but would attain at least age 65 or at least
age 50 and meet the service requirements to be considered a retiree under the Life Insurance Plan within two years following the date of the Change in Control (assuming continued employment during the entirety of such two-year period), then the
Participant shall be eligible for retiree life insurance benefits under the Life Insurance Plan on his or her Termination Date on the same terms and conditions applicable to salaried U.S.-based employees of the Employer whose employment terminated
the last day of the month prior to the Participant’s Termination Date who were treated as retirees under the Life Insurance Plan as of that date. 
 (v) The Employer may, to the extent it deems necessary or appropriate (including to comply with applicable law and to preserve grandfathered status of arrangements subject to Section 409A of the
Code), (1) cause the benefits set forth in Appendix B to be paid from the Supplemental Plan, from new arrangements or otherwise from the Employer’s general assets and (2) cause the benefits set forth in Section 4.3(b)(2),
4.3(b)(3) or 4.3(b)(4) to be provided from insured arrangements (including the Executive Health Plan), or pursuant to new arrangements, individual arrangements or otherwise. 
 (c) The payments and benefits under this Plan to a Participant are intended to constitute the exclusive payments in the nature of severance
or termination pay that shall be due to a Participant upon termination of his or her employment without Cause or for Good Reason following a Change in Control and shall be in lieu of any such other payments under any agreement, plan, practice or
policy of the Company or its subsidiaries, including the Employer,. Accordingly, if a Participant is a party to an employment, severance, termination, salary continuation or other or similar agreement with the Company or its subsidiaries, including
the Employer, or is a participant in any other severance plan, practice or policy of the Company or its subsidiaries, including the Employer, the severance pay to which the Participant is entitled under this Plan shall be reduced (but not below
zero) by the amount of severance pay to which he or she is entitled under such other agreement, plan, practice or policy; provided that the reduction set forth in this sentence shall not apply as to any other such agreement, plan, practice or
policy that contains a reduction provision substantially similar to this Section 4.3(c) so long as the reduction provision of such other agreement, plan, practice or policy is applied. The severance pay to which a Participant is otherwise
entitled shall be further reduced (but not below zero) by any cash payments to which the Participant may be entitled (x) under any federal, state or local plant-closing (or similar or analogous) law (including, without limitation, pursuant to
the U.S.

  

 17 

 
Worker Adjustment and Retraining Notification Act) or (y) under any law outside the U.S. with respect to the payment of severance, termination indemnities or other, similar payments. In
addition, cash Severance Benefits shall be reduced by the amount of short-term or long term disability benefits payable to a Participant under any plan, program or arrangement of the Company or its subsidiaries, including the Employer, in the event
that cash Severance Benefits payable hereunder cannot, by law, reduce the amount of short-term or long-term disability benefits payable to a Participant under such plan, program, or arrangement. Non-cash Severance Benefits shall be provided under
this Plan without duplication of the same or similar benefits to which a Participant may be entitled under any such agreement, plan, practice or policy. 
 (d) The Participant shall not be required to mitigate the amount of any payment provided for in this Plan by seeking other employment or otherwise and, except as provided in Section 4.3(a)(3), no
such payment shall be offset or reduced by the amount of any compensation or benefits provided to the Executive in any subsequent employment. 
 (e) The Employer’s obligation to provide the Severance Benefits to a Participant, other than those set forth in Section 4.3(b)(1), shall be conditioned on the Participant’s continued
compliance in all material respects with the restrictive covenants set forth in Section 6 of the release of claims attached hereto as Appendix A. 
 (f) Any action taken by the Company or its subsidiaries, including the Employer, that (i) forms a basis of a Participant’s termination of employment for Good Reason or (ii) is taken
following the provision of a Notice of Termination and would constitute Good Reason shall be disregarded in calculating the payments and benefits to be provided pursuant to this Section 4.3. 
 ARTICLE V  
 TERMINATION OF EMPLOYMENT 
 5.1. Written Notice Required. Any purported termination of employment,
whether by the Employer or by the Participant, shall be communicated by written Notice of Termination to the other. With respect to communications addressed to the Employer, such communication shall be sent to the Corporate Secretary of the Company
at its headquarters. 
 5.2. Termination Date. In the case of the Participant’s death, the Participant’s
Termination Date shall be his or her date of death. In all other cases, the Participant’s Termination Date shall be the date specified in the Notice of Termination subject to the following: 
 (a) If the Participant’s employment is terminated by the Employer for Cause or due to Permanent Disability, the date specified in the
Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Participant, provided that in the case of Permanent Disability the Participant shall not have returned to the full-time performance of his or her
duties during such period of at least thirty days; and 
 (b) If the Participant terminates his or her employment for Good
Reason, the date specified in the Notice of Termination shall not be more than sixty days from the date the Notice of Termination is given to the Employer. 
  

 18 

 5.3. If the Participant terminates his or her employment for Good Reason, the Employer may,
in its discretion, require the Participant to remain employed for transition purposes for not more than thirty days after the Termination Date (such period, the “Extension Period”). If the Employer elects to continue the Participant’s
employment during the Extension Period pursuant to this Section 5.3, then (i) during the Extension Period, the Participant shall continue to receive compensation and employee benefits that are the same as in effect prior to the
commencement of the Extension Period and (ii) no act, circumstance or occurrence during the Extension Period shall affect the right of the Participant to receive the Severance Benefits determined as of the Termination Date, or if greater,
determined as of the end of the Extension Period. 
 ARTICLE VI  
 EFFECT OF SECTIONS 280G AND 4999 OF THE CODE 
 6.1.
Executive Committee Members. This Section 6.1 shall be applicable solely to Participants who are Executive Committee Members. 
 (a) Anything in this Plan to the contrary notwithstanding, in the event it shall be determined that any Payment to or in respect of a Participant would be subject to the Excise Tax, then the Participant
shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that, after payment by the Participant of all taxes (and any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
The Employer’s obligation to make Gross-Up Payments under this Section 6.1 shall not be conditioned upon the Participant’s termination of employment. 
 (b) Subject to the provisions of Section 6.1(c), all determinations required to be made under this Section 6.1, including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company’s independent accounting firm (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting
calculations both to the Employer and the Participant within thirty business days of the receipt of notice from the Participant that there has been a Payment or such earlier time as is requested by the Employer. In the event that the Accounting Firm
is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm
shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 6.1, shall be paid by the Employer to
the Participant within thirty days of the receipt of the Accounting Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Employer and the Participant. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Employer should have been made (the “Underpayment”),
consistent with the calculations required to be made hereunder. In the event the Employer exhausts its remedies pursuant to

  

 19 

 
Section 6.1(c) and the Participant thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any
such Underpayment shall be promptly paid by the Employer to or for the benefit of the Participant. 
 (c) The Participant shall
notify the Employer in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Employer of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than ten
business days after the Participant is informed in writing of such claim. The Participant shall apprise the Employer of the nature of such claim and the date on which such claim is requested to be paid. The Participant shall not pay such claim prior
to the expiration of the thirty-day period following the date on which the Participant gives such notice to the Employer (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Employer
notifies the Participant in writing prior to the expiration of such period that the Employer desires to contest such claim, the Participant shall: 
 (i) give the Employer any information reasonably requested by the Employer relating to such claim, 
 (ii) take such action in connection with contesting such claim as the Employer shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Employer, 
 (iii) cooperate with the Employer in good faith in
order effectively to contest such claim, and 
 (iv) permit the Employer to participate in any proceedings relating to such
claim; 
 provided, however, that the Employer shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest, and shall indemnify and hold the Participant harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 6.1(c), the Employer shall control all proceedings taken in connection with such contest, and, at its sole discretion, may
pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either pay the tax claimed to the appropriate taxing authority
on behalf of the Participant and direct the Participant to sue for a refund or contest the claim in any permissible manner, and the Participant agrees to prosecute such contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Employer shall determine; provided, however, that, if the Employer pays such claim and directs the Participant to sue for a refund, the Employer shall indemnify and hold
the Participant harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such payment or with respect to any imputed income in connection with such payment; and provided,
further, that any extension of the statute of

  

 20 

 
limitations relating to payment of taxes for the taxable year of the Participant with respect to which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Employer’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and the Participant shall be entitled to settle or contest, as the case may be, any other issue
raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after the receipt by the Participant of a
Gross-Up Payment or payment by the Employer of an amount on the Participant’s behalf pursuant to Section 6.1(c), the Participant becomes entitled to receive any refund with respect to the Excise Tax to which such Gross-Up Payment relates
or with respect to such claim, the Participant shall (subject to the Employer’s complying with the requirements of Section 6.1(c), if applicable) promptly pay to the Employer the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after payment by the Employer of an amount on the Participant’s behalf pursuant to Section 6.1(c), a determination is made that the Participant shall not be entitled to any refund with
respect to such claim and the Employer does not notify the Participant in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then the amount of such payment shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid. 
 Notwithstanding any other provision of this Section 6.1,
the Employer may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Participant, all or any portion of any Gross-Up Payment, and the Participant hereby
consents to such withholding and payment. 
 6.2. Other Executives. This Section 6.2 shall be applicable solely to
Participants who are Other Executives. 
 (a) Anything in this Plan to the contrary notwithstanding, in the event it shall be
determined that any Payment to or in respect of a Participant would be subject to the Excise Tax, then the Payments shall be reduced (but not below zero) if and to the extent that a reduction in the Payments would result in the Participant retaining
a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax) than if the Participant received the entire amount of such Payments. Unless the Participant shall have given prior written notice
specifying a different order to the Employer to effectuate the foregoing, the Employer shall reduce or eliminate the Payments by first reducing or eliminating the portion of the Payments which are not payable in cash and then by reducing or
eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Determination (as defined below). Any notice given by the Participant pursuant to the preceding sentence
shall take precedence over the provisions of any other plan, arrangement or agreement governing the Participant’s rights and entitlements to any benefits or compensation. 
 (b) The determination of whether the Payments shall be reduced as provided in Section 6.2(a) and the amount of such reduction shall be
made at the Employer’s expense by the Accounting Firm, which shall provide its determination (the “Determination”), together with detailed supporting calculations and documentation to the Employer and the Participant within

  

 21 

 
thirty business days after the Termination Date. If the Accounting Firm determines that no Excise Tax is payable by the Participant with respect to the Payments, it shall furnish the Participant
with an opinion reasonably acceptable to the Participant that no Excise Tax will be imposed with respect to any such payments and, absent manifest error, such Determination shall be binding, final and conclusive upon the Employer and the
Participant. 
 ARTICLE VII  
 SUCCESSORS TO EMPLOYER 
 7.1. Successors. This Plan shall bind any
successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company and its subsidiaries including the Employer, in the same manner and to the same extent
that the Company and its subsidiaries including the Employer would be obligated under this Plan if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be
bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the obligations of the Company and each Employer under this Plan, in the same manner and to the same extent that the Company
and each Employer would be required to perform if no such succession had taken place. 
 7.2. Impact of Merck/Schering-Plough
Merger. 
 (a) This Plan, as amended and restated shall be assumed by Merck & Co, Inc. upon the effective time of the
Merck/Schering-Plough Merger. 
 (b) For Participant’s who were active Participants in the Plan prior to the Restatement
Date, with respect to the determination of such Participant’s right to Severance Benefits, and for all other purposes under the Plan, a “Change in Control” shall mean both a “Change in Control” defined in Section 2.7 of
the Plan and an “MSD Change in Control” defined in Section 2.26 of the Plan for the period beginning on the Restatement Date and ending on the first anniversary of the Restatement Date. 
 (c) With respect to awards of stock options, restricted stock, restricted stock units or other forms of equity awards issued pursuant to the
MSD 2007 Stock Incentive Plan (formerly known as the Merck & Co., Inc. Stock Incentive Plan) or any other incentive plans of the Company or its subsidiaries following the effective date of the Merck/Schering-Plough Merger, a “Change in
Control” shall mean a “Change in Control” defined in Section 2.7 of the Plan; provided, however, that for any stock options, restricted stock, restricted stock units or other forms of equity awards that were issued prior
to the effective date of the Merck/Schering-Plough Merger pursuant to the MSD 2007 Stock Incentive Plan and the Prior Equity Plans, a “Change in Control” shall mean both a “Change in Control” defined in Section 2.7 of the
Plan and an “MSD Change in Control” defined in Section 2.26 of the Plan for the remaining term of such outstanding awards. 
  

 22 

 ARTICLE VIII  
 DURATION, AMENDMENT AND PLAN TERMINATION 
 8.1.
Duration. This Plan shall continue in effect until terminated in accordance with Section 8.2. If a Change in Control occurs, this Plan shall continue in full force and effect and shall not terminate or expire until after all Participants
who have become entitled to Severance Benefits hereunder shall have received such payments in full. 
 8.2. Amendment and
Termination. Prior to a Change in Control, the Plan may be amended or modified in any respect, and may be terminated, in any such case by resolution adopted by two-thirds of the Compensation and Benefits Committee of the Board; provided,
however, that no such amendment, modification or termination that would adversely affect the benefits or protections hereunder of any individual who is a Participant as of the date such amendment, modification or termination is adopted shall
be effective as it relates to such individual unless no Change in Control occurs within one year after such adoption, any such attempted amendment, modification or termination adopted within one year prior to a Change in Control being null and void
ab initio as it relates to all such individuals who were Participants prior to such adoption (it being understood, however, that, subject to Section 4.2, the hiring, termination of employment, promotion or demotion of any employee of the
Employer or transfer of an employee’s employment from an Employer to an Affiliate that is not an Employer prior to a Change in Control shall not be construed to be an amendment, modification or termination of the Plan); provided,
further, however, that the Plan may not be amended, modified or terminated, (i) at the request of a third party who has indicated an intention or taken steps to effect a Change in Control and who effectuates a Change in Control or
(ii) otherwise in connection with, or in anticipation of, a Change in Control which actually occurs, any such attempted amendment, modification or termination being null and void ab initio. Any action taken to amend, modify or
terminate the Plan which is taken after the execution of an agreement providing for a transaction or transactions which, if consummated, would constitute a Change in Control shall conclusively be presumed to have been taken in connection with a
Change in Control. From and after the occurrence of a Change in Control, the Plan may not be amended or modified in any manner that would in any way adversely affect the benefits or protections provided hereunder to any individual who is a
Participant in the Plan on the date the Change in Control occurs. The revision of the release of claims attached hereto as Appendix A shall be deemed to be a modification of the Plan for purposes of this Section 8.2. 
 8.3. Form of Amendment. The form of any amendment or termination of the Plan in accordance with Section 8.2 hereof shall be a
written instrument signed by a duly authorized officer or officers of the Company, certifying that the amendment or termination has been approved by the Compensation and Benefits Committee of the Board. 
 ARTICLE IX  
 SECTION 409A OF THE CODE 
 9.1. General. To the extent applicable, the provisions of this Plan shall be
construed in a manner consistent with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder (collectively, “Section 409A”). If the Compensation and Benefits Committee of the
Board believes, at any time, that any benefit or

  

 23 

 
right to which a Participant is entitled under the Plan that is either subject to Section 409A or exempt from Section 409A does not so comply, the Compensation and Benefits Committee of
the Board may in its sole discretion adopt such amendments to this Plan or take such other actions that the Compensation and Benefits Committee of the Board determines are necessary or appropriate to either exempt the such benefits and rights from
Section 409A or comply with the requirements of Section 409A; provided, however, that this Section 9.1 shall not create any obligation on the part of the Compensation and Benefits Committee of the Board to adopt any such amendment or
take any other action. 
 9.2. Distributions on Account of Separation from Service. Notwithstanding anything to the
contrary, if and to the extent required to comply with Section 409A, any payment or benefit required to be paid under this Plan as part of the Participant’s Severance Benefits shall be made upon the Participant incurring a “separation
of service” within the meaning of Code Section 409A as of the Participant’s Termination Date, or day after the end of any Extension Period, as set forth in Section 5.3, if later. 
 9.3. Timing of Severance Payments. In the case where this Plan provides for the payment of an amount that constitutes nonqualified
deferred compensation under Section 409A to be made to the Participant within a designated period (e.g. within 30 days after the Termination Date) and such period begins and ends in different calendar years, the exact payment date within such
range shall, subject to Section 9.4 below, be determined by the Compensation and Benefits Committee of the Board, in its sole discretion, and the Participant shall have no right to designate the year in which the payment shall be made.

 9.4. Delay of Payments for Specified Employees. Notwithstanding anything in this Plan to the contrary, if the
Participant is deemed to be a “specified employee” for purposes of Section 409A, no Severance Benefits or other payments pursuant to, or contemplated by, this Plan shall be made to the Participant before the date that is six months
after the Participant’s “separation from service” (or, if earlier, the date of the Participant’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred
compensation) under Section 409A. Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum without interest at the end of such required delay period in order to catch up to the original
payment schedule. 
 9.5. No Acceleration of Payments. No payment or benefit that is subject to Section 409A may be
accelerated, except in compliance with Section 409A and the provisions of this Plan, and no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

 9.6. Treatment of Each Installment as a Separate Payment. For purposes of applying the provisions of Section 409A
to this Plan, each separately identified amount to which a Participant is entitled under this Plan as part of the Severance Benefits shall be treated as a separate payment. In addition, to the extent permissible under Section 409A, any series
of installment payments under this Plan as part of the Severance Benefits shall be treated as a right to a series of separate payments. 
  

 24 

 9.7. Gross Up. In the event a Participant becomes entitled to a Gross-Up Payment
under Article VI, the Gross-Up Payment shall in no event be made later than December 31 of the year following the year during which the related Excise Tax is remitted to the Internal Revenue Service. 
 9.8. Continued Health Benefits. In the event that Participant receives continued health benefits pursuant to Section 4.3 of this
Plan that is not otherwise exempt under Section 409A, such expense or reimbursement shall meet the following requirements: (i) the amount of expenses eligible for reimbursement provided to the Participant during any calendar year will not
affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Participant in any other calendar year, (ii) the reimbursements for expenses for which the Participant is entitled to be reimbursed shall be made on or
before the last day of the calendar year following the calendar year in which the applicable expense is incurred, and (iii) the right to payment or reimbursement on in-kind benefits hereunder may not be liquidated or exchanged for any other
benefit. 
 9.9. Reimbursements. Notwithstanding anything in this Plan to the contrary, any payment, to the extent such
payment constitutes deferral of compensation under Section 409A, to reimburse the Participant, including but not limited to reimbursements pursuant to Section 9.8 above, shall be made no later than the end of the Participant’s taxable
year next following the Participant’s taxable year in which the Participant incurs such expense. 
 ARTICLE X 

 MISCELLANEOUS 
 10.1. Legal Fees and Expenses. The Employer shall pay all legal fees and related expenses (including the costs of experts, evidence and counsel) reasonably and in good faith incurred by a
Participant if the Participant prevails on his or her claim for relief in an action (i) by the Participant to obtain or enforce any right or benefit provided by this Plan or (ii) by the Company or the Employer to enforce post-termination
covenants against the Participant. 
 10.2. Employment Status. This Plan does not constitute a contract of employment or
impose on any Employer any obligation to retain any Participant as an employee, to change the status of any Participant’s employment as an Executive Committee Member or Other Executive (as applicable), or to change any employment policies of
any Employer. 
 10.3. Withholding of Taxes. The Employer shall withhold from any amounts payable under this Plan all
federal, state, local or other taxes that are legally required to be withheld. 
 10.4. No Effect on Other Benefits.
Severance Benefits shall not be counted as compensation for purposes of determining benefits under other benefit plans, programs, policies and agreements, except to the extent expressly provided therein or herein. 
 10.5. Validity and Severability. The invalidity or unenforceability of any provision of the Plan shall not affect the validity or
enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

  

 25 

 10.6. Settlement of Claims. The Employer’s obligation to make the
payments provided for in this Plan and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, defense, recoupment, or other right which the Employer may
have against a Participant or others. 
 10.7. Unfunded Obligation. All Severance Benefits provided under this Plan shall
constitute an unfunded obligation of the Employer. Payments shall be made, as due, from the general funds of the Employer. This Plan shall constitute solely an unsecured promise by the Employer to provide such benefits to Participants to the extent
provided herein. For avoidance of doubt, any pension, health or life insurance benefits to which a Participant may be entitled under this Plan shall be provided under other applicable employee benefit plans of the Company or the Employer. This Plan
does not provide the substantive benefits under such other employee benefit plans, and nothing in this Plan shall restrict the Company’s or Employer’s ability to amend, modify or terminate such other employee benefit plans (whether before
or after a Change in Control (but subject to Section 2.17 following a Change in Control)). 
 10.8. Governing Law.
It is intended that the Plan be an “employee welfare benefit plan” within the meaning of Section 3(1) of ERISA, and the Plan shall be administered in a manner consistent with such intent. The Plan and all rights thereunder shall be
governed and construed in accordance with ERISA and, to the extent not preempted by federal law, with the laws of the state of New Jersey, wherein venue shall lie for any dispute arising hereunder. This Plan shall also be subject to all applicable
non-U.S. laws as to Participants employed by subsidiaries of the Company located outside of the United States. Subject to the express terms and conditions set forth in the Plan, the Compensation and Benefits Committee of the Board shall have the
power from time to time to construe and interpret the Plan and to establish, amend and revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect or supplying any omission, or reconciling
any inconsistency in the Plan, in the manner and to the extent it shall deem necessary or advisable, including so that the Plan and the operation of the Plan complies with the Code and other applicable law, and otherwise to make the Plan fully
effective. 
 10.9. Assignment. This Plan shall inure to the benefit of and shall be enforceable by a Participant’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If a Participant should die while any amount is still payable to the Participant under this Plan had the Participant continued to
live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the Participant’s estate. A Participant’s rights under this Plan shall not otherwise be transferable or subject to lien or
attachment. 
 10.10. Enforcement. This Plan is intended to constitute an enforceable contract between the Employer and
each Participant subject to the terms hereof. 
 10.11. Restatement Date. This Plan was originally effective as of
November 23, 2004 and is Amended and Restated effective as of the date of the consummation of the Merck/Schering-Plough Merger. 
  

 26 

 Appendix A 
 Form of Release of Claims 
 GENERAL RELEASE 

 1. General Release. 
 In consideration of the payments and benefits to be made under the Merck & Co., Inc. Change in Control Separation Benefits Plan (the “Plan”),
                     (the “Employee”), with the intention of binding the Employee and the Employee’s heirs, executors,
administrators and assigns, does hereby release, remise, acquit and forever discharge Merck and Co., Inc. (the “Company”) and each of its subsidiaries and affiliates (the “Company Affiliated Group”), including Merck
Sharp & Dohme Corp. or its subsidiaries (the “Employer”), their present and former officers, directors, executives, agents, attorneys, employees and employee benefits plans (and the fiduciaries thereof), and the successors,
predecessors and assigns of each of the foregoing (collectively, the “Company Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money,
accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown,
suspected or unsuspected which the Employee, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, against any Company Released Party in any capacity, including, without limitation, any and
all claims (i) arising out of or in any way connected with the Employee’s service to any member of the Company Affiliated Group (or the predecessors thereof) in any capacity, or the termination of such service in any such capacity,
(ii) for severance or vacation benefits, unpaid wages, salary or incentive payments, (iii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort
and (iv) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices), any and all claims based on the Employee Retirement
Income Security Act of 1974 (“ERISA”), any and all claims arising under the civil rights laws of any federal, state or local jurisdiction, including, without limitation, Title VII of the Civil Rights Act of 1964 (“Title
VII”), the Americans with Disabilities Act (“ADA”), Sections 503 and 504 of the Rehabilitation Act, the Family and Medical Leave Act, the Age Discrimination in Employment Act (“ADEA”), the Pennsylvania
Human Relations Act, the New Jersey Law Against Discrimination and any and all claims under any whistleblower laws or whistleblower provisions of other laws including, without limitation, the New Jersey Conscientious Employee Protection Act,
excepting only: 
 (a) rights of the Employee under this General Release and the Plan; 
 (b) rights of the Employee relating to equity awards held by the Employee as of his or her Termination Date (as defined in the Plan);

  

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 (c) the right of the Employee to receive COBRA continuation coverage in accordance with
applicable law; 
 (d) rights to indemnification the Employee may have (i) under applicable corporate law, (ii) under
the by-laws or certificate of incorporation of any Company Released Party or (iii) as an insured under any director’s and officer’s liability insurance policy now or previously in force; 
 (e) claims (i) for benefits under any health, disability, retirement, deferred compensation, life insurance or other, similar employee
benefit plan or arrangement of the Company Affiliated Group and (ii) for earned but unused vacation pay through the Termination Date in accordance with an applicable policy of the Company or its subsidiaries, including the Employer; and

 (f) claims for the reimbursement of unreimbursed business expenses incurred prior to the Termination Date pursuant to an
applicable policy of the Company or its subsidiaries, including the Employer. 
 2. No Admissions. The Employee
acknowledges and agrees that this General Release is not to be construed in any way as an admission of any liability whatsoever by any Company Released Party, any such liability being expressly denied. 
 3. Application to all Forms of Relief. This General Release applies to any relief no matter how called, including, without
limitation, wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages for pain or suffering, costs and attorney’s fees and expenses. 
 4. Specific Waiver. The Employee specifically acknowledges that his or her acceptance of the terms of this General Release is, among other things, a specific waiver of his or her rights, claims and
causes of action under Title VII, ADEA, ADA and any state or local law or regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything herein purport, to be a waiver of
any right or claim or cause of action which by law the Employee is not permitted to waive. 
 5. No Complaints or Other
Claims. The Employee acknowledges and agrees that he or she has not, with respect to any transaction or state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any
governmental agency, court or tribunal. 
 6. Conditions of General Release. 
 (a) Terms and Conditions. From and after the Termination Date, the Employee shall abide by all the terms and conditions of this
General Release and the terms and conditions set forth in the Terms and Conditions of Employment signed by the Employee, which is incorporated herein by reference. 
  

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 (b) Confidentiality. The Employee shall not, without the prior written consent of the
Company or its subsidiaries, including the Employer, or as may otherwise be required by law or any legal process, or as is necessary in connection with any adversarial proceeding against any member of the Company Affiliated Group (in which case the
Employee shall cooperate with the Company or its subsidiaries, including the Employer, in obtaining a protective order at the Company’s (or its subsidiaries’) expense against disclosure by a court of competent jurisdiction), communicate,
to anyone other than the Company or its subsidiaries, including the Employer, and those designated by the Company or its subsidiaries, including the Employer, or on behalf of the Company or its subsidiaries, including the Employer, in the
furtherance of its business, any trade secrets, confidential information, knowledge or data relating to any member of the Company Affiliated Group, obtained by the Employee during the Employee’s employment by the Company or its subsidiaries,
including the Employer, that is not generally available public knowledge (other than by acts by the Employee in violation of this General Release). 
 (c) Return of Company Material. The Employee represents that he or she has returned to the Company or its subsidiaries, including the Employer, all Company Material (as defined below). For purposes
of this Section 6(c), “Company Material” means any documents, files and other property and information of any kind belonging or relating to (i) any member of the Company Affiliated Group, (ii) the current and former
suppliers, creditors, directors, officers, employees, agents and customers of any of them or (iii) the businesses, products, services and operations (including without limitation, business, financial and accounting practices) of any of them, in
each case whether tangible or intangible (including, without limitation, credit cards, building and office access cards, keys, computer equipment, cellular telephones, pagers, electronic devices, hardware, manuals, files, documents, records,
software, customer data, research, financial data and information, memoranda, surveys, correspondence, statistics and payroll and other employee data, and any copies, compilations, extracts, excerpts, summaries and other notes thereof or relating
thereto), excluding only information (x) that is generally available public knowledge or (y) that relates to the Employee’s compensation or employee benefits. 
 (d) Cooperation. Following the Termination Date, the Employee shall reasonably cooperate with the Company or its subsidiaries,
including the Employer, upon reasonable request of the Board and be reasonably available to the Company or its subsidiaries, including the Employer, with respect to matters arising out of the Employee’s services to the Company Affiliated Group.

 (e) Nondisparagement. The Employee agrees not to communicate negatively about or otherwise disparage any Company
Released Party or the products or businesses of any of them in any way whatsoever. 
 (f) Nonsolicitation. The Employee
agrees that for the period of time beginning on the date hereof and ending on the second anniversary of the date of the Change in Control, the Employee shall not, either directly or indirectly, solicit, entice, persuade, induce or otherwise attempt
to influence any person who is employed by any member of the Company Affiliated Group to terminate such person’s employment by such member of the Company Affiliated Group. The Employee also agrees that for the same period of time he or she
shall not assist any person or entity in the recruitment of any person who is employed by any member of the Company Affiliated Group. The Employee’s provision of a reference to or in respect of any individual shall not be a violation this
Section 6(f). 
  

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 (g) No Representation. The Employee acknowledges that, other than as set forth in
this Agreement and the Plan, (i) no promises have been made to him or her and (ii) in signing this General Release the Employee is not relying upon any statement or representation made by or on behalf of any Company Released Party and each
or any of them concerning the merits of any claims or the nature, amount, extent or duration of any damages relating to any claims or the amount of any money, benefits, or compensation due the Employee or claimed by the Employee, or concerning the
General Release or concerning any other thing or matter. 
 (h) Injunctive Relief. In the event of a breach or threatened
breach by the Employee of this Section 6, the Employee agrees that the Company or its subsidiaries, including the Employer, shall be entitled to injunctive relief in a court of appropriate jurisdiction to remedy any such breach or threatened
breach, the Employee acknowledging that damages would be inadequate or insufficient. 
 7. Voluntariness. The Employee
agrees that he or she is relying solely upon his or her own judgment; that the Employee is over eighteen years of age and is legally competent to sign this General Release; that the Employee is signing this General Release of his or her own free
will; that the Employee has read and understood the General Release before signing it; and that the Employee is signing this General Release in exchange for consideration that he or she believes is satisfactory and adequate. 
 8. Legal Counsel. The Employee acknowledges that he or she has been informed of the right to consult with legal counsel and has been
encouraged to do so. 
 9. Complete Agreement/Severability. This General Release constitutes the complete and final
agreement between the parties and supersedes and replaces all prior or contemporaneous agreements, negotiations, or discussions relating to the subject matter of this General Release. All provisions and portions of this General Release are
severable. If any provision or portion of this General Release or the application of any provision or portion of the General Release shall be determined to be invalid or unenforceable to any extent or for any reason, all other provisions and
portions of this General Release shall remain in full force and shall continue to be enforceable to the fullest and greatest extent permitted by law. 
 10. Acceptance. The Employee acknowledges that he or she has been given a period of twenty-one (21) days within which to consider this General Release, unless applicable law requires a longer
period, in which case the Employee shall be advised of such longer period and such longer period shall apply. The Employee may accept this General Release at any time within this period of time by signing the General Release and returning it to the
Employer. 
 11. Revocability. This General Release shall not become effective or enforceable until seven
(7) calendar days after the Employee signs it. The Employee may revoke his or her acceptance of this General Release at any time within that seven (7) calendar day period by sending written notice to the Company, addressed to the
Company’s Corporate Secretary at its headquarters. Such notice must be received by the Company within the seven (7) calendar day period in order to be effective and, if so received, would void this General Release for all purposes.

  

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 12. Amendment, Termination of Plans. The Company retains the right (to the extent
permitted by law) to amend, modify or terminate the Plan in accordance with its terms, and nothing in this General Release affects or alters that right. If the Employee signs and returns the General Release, any later amendment, modification or
termination shall have no effect on the amount of Severance Benefits the Employee is eligible to receive as set forth in the Plan as in effect on the date that the Employee signs this General Release. 
 13. Governing Law. Except for issues or matters as to which federal law is applicable, this General Release shall be governed by and
construed and enforced in accordance with the laws of the State of New Jersey without giving effect to the conflicts of law principles thereof. 
 Please indicate your acceptance of this General Release by signing and dating this letter and returning it to the Company. A duplicate of this letter is enclosed for your records. 
  

			
	Very truly yours,
	
	  

	Name:	 	  

	 Title:
	 	  

  

	
	ACCEPTED AND AGREED:
	
	  
 

  

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 Appendix B 
 Description of Change-in-Control Benefits under the MSD Salaried Retirement Plan 
 This Appendix describes benefits under the Pension Plan and the Supplemental Plan provided to a Participant in the Plan if such Participant
signs and returns the release of claims in use under the Plan. 
 1. If a Participant’s employment is terminated in
circumstances entitling him or her to the Severance Benefits provided in Section 4.3(b) of the Plan, 
 a) For a
Participant who participates in the Pension Plan and on his or her Termination Date is not at least age 55 with at least ten years of Credited Service under the Pension Plan but would attain at least age 50 and have at least ten years of Credited
Service under the Pension Plan within two years following the date of the Change in Control (assuming continued employment during the entirety of such two-year period), then the Participant shall be deemed to be eligible for a subsidized early
retirement benefit under the Pension Plan commencing no earlier than age 55 based on his or her Credited Service under the Pension Plan accrued as of his or her Termination Date. 
 b) For a Participant who participates in the Pension Plan and on his or her Termination Date is not at least age 65 but would attain at
least age 65 within two years following the date of the Change in Control without regard to years of Credited Service (assuming continued employment during the entirety of such two-year period), then the Participant shall be deemed to be eligible
for a benefit unreduced for early commencement under the Pension Plan commencing as soon after his or her Termination Date that he or she elects to commence to receive benefits. 
 c) For a Participant who participates in the Pension Plan and on his or her Termination Date is not eligible for the “Rule of 85
Transition Benefit” (as such term is defined in the Pension Plan) but would have been eligible for the Rule of 85 Transition Benefit within two years following the date of the Change in Control (assuming continued employment during the entirety
of such two-year period), then the Participant shall be deemed to be eligible for the Rule of 85 Transition Benefit upon commencement of his or her pension benefit under the Pension Plan. 
 2. If a Participant’s employment is terminated in circumstances entitling him or her to the Severance Benefits provided in
Section 4.3(a) of the Plan, 
 a) If the Participant participates in the Supplemental Plan at any time prior to the
Termination Date, the Employer shall adjust the benefit payable thereunder (a) by adding a number of years of additional Credited Service to the Participant’s existing Credited Service as of the Termination Date equal to the Multiple,
(b) by assuming for each of the years of Credited Service added pursuant to clause (a) that the Participant’s Compensation (as such term is defined in the Pension Plan) was equal to the sum of the Participant’s Base Salary and
Bonus Amount, (c) by adding a number of years of age to the Participant thereunder equal to the Multiple and (d) then by calculating the Participant’s pension in accordance with the formula provided therein as of immediately prior to
the Change in Control or, if greater, as of the Termination Date. Anything in this Article II to the contrary notwithstanding, the application of the Multiple and any additional years of age shall not cause the Participant’s total years of
Credited Service or age to exceed the amount that would have applied to the Participant if his or her employment had continued to age 65. 
  

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 3. The benefits described in Article I of this Appendix shall be payable from the Pension
Plan and, to the extent that such benefits cannot be paid from the Pension Plan, then such benefits shall be paid under the Supplemental Plan or under new arrangements or from the Employer’s general assets as provided by Section 4.3(b)(5)
of the Plan. The benefits provided under Article II shall be paid from the Supplemental Plan or under new arrangements or from the Employer’s general assets as provided by Section 4.3(b)(5) of the Plan. 
  

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