Document:

EX-10.1

Exhibit 10.1

JMAR Balanced Scorecard Performance Based Compensation Plan

The following resolutions were approved by the Board’s Compensation Committee at its February
11, 2005 meeting and represent the amended terms and conditions of the JMAR Balanced Scorecard
Performance Based Compensation Plan:

WHEREAS, the Compensation Committee previously adopted the JMAR Balanced Scorecard Performance
Based Compensation Plan; and

WHEREAS, in order to provide competitive compensation for its executive officers, the
Committee has concluded that it is in the best interests of the Company to amend the Plan to
provide for a modest increase in the potential bonus awards for executive officers; and

NOW, THEREFORE, BE IT RESOLVED, that the amended Balanced Scorecard Plan as presented to this
Committee, the material terms of which are set forth on Attachment A hereto, be, and it hereby is,
approved and authorized by this Company.

1

Attachment A

The material terms of the Amended JMAR Balanced Scorecard Performance Based Compensation Plan (the
“BSC Plan”) are:

	 	•	 	All exempt JMAR employees shall participate in the BSC Plan;

	 	•	 	The maximum annual bonus that may be awarded to each participant under the BSC Plan is
10% of the employee’s base salary for employees who are not executive officers, and 12% of
the employee’s base salary for employees who are executive officers;

	 	•	 	Management shall approve and communicate the individual “scorecards” for the plan year
within 60 days after the beginning of the calendar year. The potential bonus of up to 10%
of base salary (up to 12% for executive officers) will be based upon Corporate, Division
and individual objectives which are derived from the Board-approved Business Plan for that
year. Individual scorecards shall allocate the potential bonus among several performance
areas, with the specific percentage allocation based upon the employee’s relative
responsibility and ability to influence the achievement of the specific objectives.
Initially, these performance areas will include the following, with the Compensation
Committee approving significant changes to the specific areas of emphasis on an annual
basis:

	 	•	 	Financial performance and shareholder value;

	 	•	 	Customer development;

	 	•	 	Internal operational effectiveness; and

	 	•	 	Organizational learning and growth.

	 	•	 	The actual bonus awarded to each participant will be determined within 60 days after
the end of plan year based upon the achievement of the pre-established Corporate, Division
and individual objectives.

	 	•	 	Any deviations to the material terms of the BSC Plan must be approved by the
Compensation Committee of the Board of Directors.

2EX-10.1

Exhibit 10.1

STOCK OPTION TERMS

FOR A NON-QUALIFIED STOCK OPTION (NQSO)

UNDER THE MERCK & CO., INC. 2004 INCENTIVE STOCK PLAN

This is a summary of the terms applicable to the stock option specified on this document.
Different terms may apply to any prior or future stock option. These Stock Option Terms apply to
the Annual and Quarterly Stock Options granted in 2005.

I. GENERAL INFORMATION

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

II. TERMINATION OF EMPLOYMENT

A. General Rule. If your employment is terminated for any reason other than those specified in
the following paragraphs, the portion of this stock option that is unvested will expire on the date
your employment ends; the portion of this stock option that is vested will expire on the day before
the same date of the third month after your employment ends, but in no event later than the
original Expiration Date.

B. Retirement. If you retire from service with the Company, this stock option will continue to
become exercisable on applicable Vesting Dates and will expire on its original Expiration Date.

C. Separation. If your employment is terminated and the Company determines that such termination
resulted from the elimination of your job or the sale of your subsidiary, division or joint
venture, the portion of this stock option that is unvested will vest immediately upon such
termination. Whether already vested on the date of your separation or vested as a result of your
separation, this stock option will expire the day before the second anniversary of the date your
employment with the Company ends, but in no event later than the original Expiration Date.
Notwithstanding the foregoing, the Compensation and Benefits Committee of the Board of Directors of
Merck & Co., Inc., may determine, for purposes of this stock option grant, whether employment with
an entity that is established from the Company’s spin off, split off, split up or distribution of
equity securities in connection with that entity constitutes a termination of employment or
separation, and may make adjustments, if any, as it deems appropriate, at the time of the
distribution of such equity securities, in the kind and/or number of shares subject to this option,
and/or in the option price of such option.

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

E. Death. If you die, the portion of this stock option that is unvested will vest immediately
upon your death. Whether already vested on the date of your death or vested as a result of your
death, this stock option will expire on the earlier of: (a) the day before the third anniversary of
your death, or (b) the later of (i) the Original Expiration date or (ii) the day before the first
anniversary of your death. This stock option will expire on such earlier date than otherwise
specified in this paragraph as may be required under applicable non-U.S. law (e.g., in France, six
months from the date of death).

F. Change in Control. Upon a change in control of the Company, this stock option will become
fully vested and will remain exercisable for five years following termination of your employment
following a change in control (but not beyond the Expiration Date). This extended exercise period
does not apply in the case of termination by reasons of retirement, misconduct or death, as
described in paragraphs B, D and E above or termination prior to a change in control. If this stock
option does not remain outstanding following the change in control and is not converted into a
successor stock option, then you will be entitled to receive cash for this option in an amount at
least equal to the difference between the price paid to stockholders in the change in control and
the Option Price of this stock option. A “change in control” has the same meaning that it has
under the Merck & Co., Inc. Change in Control Separation Benefits Plan.

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

III. TRANSFERABILITY

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

This stock option is subject to the provisions of the 2004 Incentive Stock Plan and the Rules and
Regulations thereunder established by the Compensation and Benefits Committee of the Board of
Directors of Merck & Co., Inc. For further information regarding your stock options, you may
access the Merck Stock Option homepage at http://humres.merck.com/stockoptions, which
includes links to the Prospectus for the 2004 Incentive Stock Plan and the Company’s Annual Report
and Proxy Statement.EX-10.2

Exhibit 10.2

RESTRICTED STOCK UNIT TERMS

FOR ANNUAL GRANT

UNDER THE MERCK & CO., INC. 2004 INCENTIVE STOCK PLAN

This is a summary of the terms applicable to the Restricted Stock Unit (RSU) Award specified on
this document. Different terms may apply to any prior or future RSU Awards. These are the grant
terms for the 2005 Annual Restricted Stock Unit Grant. They may be amended by the Merck
Compensation and Benefits Committee of the Board of Directors as permitted by the ISP.

I. GENERAL INFORMATION

A. Restricted Period. The Restricted Period is the period during which this RSU Award is
restricted and subject to forfeiture. The Restricted Period begins on the Grant Date and ends on
the earlier of (a) the third anniversary of the Grant Date and (b) a Change in Control, as such
term is defined in the Change in Control Separation Benefits Plan, except as to awards that are
deferred compensation subject to the American Jobs Creation Act of 2004 (the “AJCA”), in which
event the definition as modified to the extent necessary to comply with the AJCA will apply.

B. Dividend Equivalents. During the Restricted Period, dividend equivalents will be paid to the
holder (“you”) around the same time dividends, if any, are paid by the Company on Merck Common
Stock. Any payment of dividend equivalents will be reduced to the extent necessary for the Company
to satisfy any tax or other withholding obligations. No voting rights apply to this RSU Award.

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

II. TERMINATION OF EMPLOYMENT

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

A. General Rule. If your employment is terminated during the Restricted Period for any reason
other than those specified in the following paragraphs, this RSU Award will be forfeited on the
date your employment ends.

B. Separation. If your employment is terminated during the Restricted Period and the Company
determines that such termination resulted from the elimination of your job or the sale of your
subsidiary, division or joint venture, a pro rata portion (based on the number of completed months
held) will be distributed as soon as possible after such separation date. The remainder will be
forfeited on the date your employment ends.

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

D. Death. If you die during the Restricted Period, a pro rata portion of this RSU Award (based on
the number of completed months held) will be distributed to your estate as soon as possible after
your death.

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

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

III. TRANSFERABILITY

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

This RSU Award is subject to the provisions of the 2004 Incentive Stock Plan and the Rules and
Regulations thereunder established by the Compensation and Benefits Committee of the Board of
Directors of Merck & Co., Inc.

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