Document:

exv10w42

Exhibit 10.42

Schering-Plough Corporation

Savings Advantage Plan

(amended and restated as of November 4, 2009)

 

 

Schering-Plough Corporation

Savings Advantage Plan

Table of Contents

	 	 	 	 	 
	 	 	Page
	PURPOSE
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 ELIGIBILITY AND PARTICIPATION
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3 DEFERRAL OF COMPENSATION
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4 BENEFIT ACCOUNTS
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 5 PAYMENT OF BENEFITS
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 6 BENEFICIARY DESIGNATION
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 7 ADMINISTRATION
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 8 AMENDMENT AND TERMINATION OF PLAN
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 9 MISCELLANEOUS
	 	 	17	 
	 
	 	 	 	 
	EXHIBIT A
	 	 	1	 

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PURPOSE

     The Schering-Plough Corporation Savings Advantage Plan (the “Plan”) is intended to attract and
retain qualified individuals to serve as officers and managers of Schering Corporation
(Schering-Plough Corporation prior to November 4, 2009) and its affiliates by providing a select
group of the Company’s management and highly compensated employees with the ability to defer the
receipt of a portion of their compensation. The Plan was originally effective as of January 1,
2004 and was subsequently amended and restated effective January 1, 2008. The Plan is further
amended and restated, effective as of November 4, 2009, to reflect the closing (the “Merck
Closing”) of the transactions contemplated by the Agreement and Plan of Merger, dated March 8,
2009, by and among Merck & Co., Inc., Schering-Plough Corporation, Blue, Inc. a wholly owned
subsidiary of Schering-Plough Corporation, and Purple, Inc., a wholly owned subsidiary of Merck &
Co., Inc., effective November 4, 2009.

ARTICLE 1

DEFINITIONS

     When used in this Plan and initially capitalized, the following words and phrases shall have
the meanings indicated below:

     1.01 Account. “Account” means the sum of a Participant’s Employer Contribution
Account, Non-Qualified Defined Benefit Plan Rollover Account, Non-Qualified Defined Contribution
Plan Rollover Account, Prior Plan Stock Rollover Account, Cash LTIP Rollover Account, Performance
Plan Rollover Account, and Elective Deferral Account.

     1.02 Base Compensation Elective Deferral Credit. “Base Compensation Elective Deferral
Credit” means the amount of Compensation (other than Bonus) that a Participant elects to defer
under the Plan pursuant to Section 3.02, and which the Employer credits to the Participant’s
Elective Deferral Account.

     1.03 Base Salary. “Base Salary” means that portion of an Eligible Employee’s
Compensation that represents his or her annual rate of pay (not including Bonus) prior to any
reduction for amounts deferred by the Eligible Employee pursuant to the Savings Plan or Section 125
or 132(f)(4) of the Code, or pursuant to this Plan or any other non-qualified plan that permits the
voluntary deferral of compensation.

     1.04 Beneficiary. “Beneficiary” means the person, persons, or entity designated by
the Participant pursuant to Article VI to receive any benefits payable under the Plan after the
Participant’s death.

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

     1.06 Bonus. “Bonus” means any regular, recurring bonus payable to an Eligible
Employee from one of the Company’s annual incentive plans prior to any reduction for any amounts
deferred by the Participant under the Savings Plan or Section 125 or 132(f)(4) of the Code, or
pursuant to this Plan or any other non-qualified plan that permits the voluntary deferral

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of compensation. The term Bonus only applies to amounts that are deemed performance-based in
accordance with Section 409A of the Code.

     1.07 Bonus Elective Deferral Credits. “Bonus Elective Deferral Credits” means the
amount of Bonus that a Participant elects to defer under the Plan pursuant to Section 3.03, and
which the Employer credits to the Participant’s Elective Deferral Account.

     1.08 Bonus Eligible Employee. “Bonus Eligible Employee” means any highly compensated
or management employee of an Employer who is paid on the Company’s U.S. payroll, who normally works
within the U.S., and whose Base Salary from his or her Employer equals or exceeds $230,000 (or such
other limit as set forth pursuant to Section 401(a)(17) of the Code) as of April 15 of the calendar
year in which the Bonus is earned.

     1.09 Cash LTIP. “Cash LTIP” means the Company’s Cash Long-Term Incentive Plan, as
amended from time to time.

     1.10 Cash LTIP Rollover Account. “Cash LTIP Rollover Account” means the account
maintained for the purpose of recording Cash LTIP Rollover Credits and the amount of deemed
investment earnings credited thereto pursuant to Article IV.

     1.11 Cash LTIP Rollover Credits. “Cash LTIP Rollover Credits” means the amount that
becomes distributable to a Participant under the Cash LTIP that is automatically deferred under the
Plan pursuant to Section 3.04(d).

     1.12 Change in Control. “Change in Control” means a Change of Control as defined in
the Schering-Plough Corporation 2006 Stock Incentive Plan, as may be amended from time to time, or
any successor to such plan.

     1.13 Code. “Code” means the Internal Revenue Code of 1986, as amended from time to
time.

     1.14 Committee. “Committee” means the Merck & Co., Inc., Global Benefits and
Compensation Oversight Committee or its delegate.

     1.15 Company. “Company” means:

          (a) following the Merck Closing, Schering Corporation and its direct or indirect subsidiaires,
provided that no entity that is a direct or indirect subsidiary of Merck Sharp & Dohme Corp. shall
be treated as part of the Company; and

          (b) prior to the Merck Closing, the Schering-Plough Corporation, a New Jersey corporation, and
any successor thereto.

     1.16 Company Stock. “Company Stock” means:

          (a) following the Merck Closing, the common stock of Merck & Co., Inc.; and

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          (b) prior to the Merck Closing, the common stock of Schering-Plough Corporation.

     1.17 Compensation. “Compensation” has the same meaning as set forth in the Savings
Plan without regard to any limitation thereon imposed by Section 401(a)(17) of the Code and without
deducting any amounts deferred under this Plan. Notwithstanding the foregoing, for purposes of
calculating the Employer Contribution Credit, Compensation also includes Base Compensation Elective
Deferral Credits and the Bonus Elective Deferral Credits.

     1.18 Covered Employee. “Covered Employee” means with respect to a particular calendar
year, a covered employee as defined in Treasury regulation Section 1.162-27(c)(2) or any
replacement regulation thereof. At the time of the adoption of this Plan, this includes any
individual who, as of the last day of the Company’s taxable year, is the Chief Executive Officer or
one of the four highest compensated officers (other than the Chief Executive Officer) as determined
under the Securities Exchange Act of 1934, as amended.

     1.19 Deferral Election. “Deferral Election” means the written election made by a
Participant to defer Compensation pursuant to Article III.

     1.20 Disability. “Disability” means any condition in which the Participant is
considered Disabled as defined in Section 409A of the Code.

     1.21 Elective Deferral Account. “Elective Deferral Account” means the account
maintained on the books of the Employer for the purpose of accounting for the Base Compensation
Elective Deferral Credits and Bonus Elective Deferral Credits that a Participant elects to defer
under the Plan, and for the amount of deemed investment return credited thereto pursuant to Article
IV.

     1.22 Eligible Employee. “Eligible Employee” means any employee who is a Salary
Eligible Employee, a Bonus Eligible Employee, or an Expatriated Employee, but excluding any
employee of an entity that is a direct or indirect subsidiary of Merck Sharp & Dohme Corp.

     1.23 Employer. “Employer” means, with respect to a Participant, the Company or the
Selected Affiliate that pays such Participant’s Compensation.

     1.24 Employer Contribution Account. “Employer Contribution Account” means the account
maintained on the books of the Employer for the purpose of accounting for the Employer Contribution
Credits that are credited to a Participant pursuant to Section 3.01 of the Plan, and for the amount
of deemed investment return credited thereto pursuant to Article IV.

     1.25 Employer Contribution Credit. “Employer Contribution Credit” means the amount
credited to a Participant’s Employer Contribution Account pursuant to Section 3.01.

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

     1.27 Expatriated Employee. “Expatriated Employee” means an employee who receives
Compensation from an Employer, but does not meet the definition of a Salary Eligible

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Employee or a Bonus Eligible Employee only because he or she either is not paid on the
Company’s U.S. payroll or normally works outside the U.S.

     1.28 Hardship Withdrawal. “Hardship Withdrawal” has the meaning set forth in Section
5.05.

     1.29 Investment Committee. “Investment Committee” means the Merck & Co., Inc.
Management Pension Investment Committee or its delegate.

     1.30 Investment Return Rate. “Investment Return Rate” means:

     (a) In the case of an investment named in Exhibit A of a fixed income nature, the interest
deemed to be credited as determined in accordance with the procedures applicable to the same
investment option provided under the Savings Plan;

     (b) In the case of an investment named in Exhibit A of an equity investment nature, the
increase or decrease in deemed value and dividends deemed to be credited as determined in
accordance with the procedures applicable to the same investment option provided under the Savings
Plan; or

     (c) In the case of the Company Stock Investment Option, the increase or decrease in the deemed
value, and the reinvestment in the Company Stock of any dividends deemed to be credited, as
determined in accordance with the procedures established by the Investment Committee.

     1.31 Non-Qualified Defined Benefit Plan Rollover Account. “Non-Qualified Defined
Benefit Plan Rollover Account” means the account maintained on the books of the Employer for the
purpose of accounting for the Non-Qualified Defined Benefit Plan Rollover Credits that are credited
to a Participant pursuant to Section 3.04(a) of the Plan, and for the amount of deemed investment
return credited thereto pursuant to Article IV.

     1.32 Non-Qualified Defined Benefit Plan Rollover Credit. “Non-Qualified Defined
Benefit Plan Rollover Credit” means the amount that becomes distributable to a Participant under
the Company’s non-qualified defined benefit plan that the is automatically deferred pursuant to
Section 3.04(a) of the Plan.

     1.33 Non-Qualified Defined Contribution Plan Rollover Account. “Non-Qualified Defined
Contribution Plan Rollover Account” means the account maintained on the books of the Employer for
the purpose of accounting for the Non-Qualified Defined Contribution Credits that are credited to a
Participant pursuant to Section 3.04(b) of the Plan, and for the amount of deemed investment return
credited thereto pursuant to Article IV.

     1.34 Open Enrollment Period. “Open Enrollment Period” means the period or periods
established by the Company in any calendar year for making various elections described in the Plan
that affect the rights of Participants and Beneficiaries with respect to subsequent periods.

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     1.35 Participant. “Participant” means an Eligible Employee who elects to participate
by executing and delivering any agreements required by the Committee in order to participate in the
Plan.

     1.36 Performance Plan. “Performance Plan” means the Company’s Long-Term Performance
Share Unit Incentive Plan, as amended from time to time.

     1.37 Performance Plan Rollover Account. “Performance Plan Rollover Account” means the
account maintained for the purpose of recording Performance Plan Rollover Credits and the amount of
deemed investment return credited thereto pursuant to Article IV.

     1.38 Performance Plan Rollover Credit. “Performance Plan Rollover Credit” means the
amount that becomes distributable to a Participant under the Performance Plan that is automatically
deferred under the Plan pursuant to Section 3.04(e).

     1.39 Plan. “Plan” means the Schering-Plough Corporation Savings Advantage Plan, as
amended from time to time.

     1.40 Plan Sponsor. “Plan Sponsor” means Schering Corporation.

     1.41 Plan Year. “Plan Year” means a twelve-month period commencing January 1 and
ending the following December 31.

     1.42 Prior Plan Stock Rollover Account. “Prior Plan Stock Rollover Account” means the
account maintained on the books of the Employer for the purpose of accounting for the amounts under
the Company’s Transformational Program that is automatically deferred pursuant to Section 3.04(c)
of the Plan, and for the amount of deemed investment return credited thereto pursuant to Article
IV.

     1.43 Prior Plan Stock Rollover Credit. “Prior Plan Stock Rollover Credit” means the
amount that becomes distributable to a Participant under the Company’s Transformational Program
that is automatically deferred under the Plan pursuant to Section 3.04(c) of the Plan.

     1.44 Salary Eligible Employee. “Salary Eligible Employee” means any highly
compensated or management employee of an Employer who is paid on the Company’s U.S. payroll, who
normally works within the U.S., and whose Base Salary and target incentive bonus from his or her
Employer equals or exceeds $230,000 (or such other limit as set forth pursuant to Section
401(a)(17) of the Code) as of October 15 of the prior year (or, in the case of a newly hired
employee, as of his or her employment commencement date).

     1.45 Savings Plan. “Savings Plan” means the Schering-Plough Employees’ Savings Plan,
as amended from time to time, or any successor thereto.

     1.46 Specified Employee. “Specified Employee” means a specified employee as defined
in Section 409A of the Code and Treasury regulations thereunder and as determined in accordance
with rules established and uniformly applied by the Committee in accordance with Section 409A of
the Code.

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     1.47 Transformational Program. “Transformational Program” means the Company’s
Transformational Performance Contingent Shares Program, as amended from time to time.

     1.48 Value. “Value” means, with respect to any applicable date, the fair market value
determined by the Investment Committee as of the previous Valuation Date.

     1.49 Valuation Date. “Valuation Date” means a date on which the amount of a
Participant’s Account is valued as provided in Article IV. The Valuation Date shall be each
trading day under the applicable market or exchange or on any date on which a net asset value is
calculated by the Plan’s third party administrator with respect to the applicable investment.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

     2.01 Eligibility.

     (a) 2004 Employer Contribution Credits. Any Eligible Employee whose Compensation
exceeds $205,000 during 2004 shall be eligible to receive Employer Contribution Credits to his or
her Employer Contribution Account in accordance with Section 3.01 below for the 2004 Plan Year.

     (b) 2005 and Later Employer Contribution Credits. Any person who is an Eligible
Employee with respect to the 2005 Plan Year or a later Plan Year shall be eligible to receive
Employer Contribution Credits to his or her Employer Contribution Account for that Plan Year in
accordance with Section 3.01 below after his or her Compensation exceeds the applicable Section
401(a)(17) limit for that year.

     (c) 2005 and Later Base Compensation Deferrals. Any person who is a Salary Eligible
Employee with respect to the 2005 Plan Year or a later Plan Year shall be eligible to elect to
defer a portion of his or her Compensation (not including Bonus) payable in such year in accordance
with Section 3.02 below. Any such election must be made during the Company’s applicable Open
Enrollment Period that precedes the year in which the deferrals are to be made, provided, however
that Eligible Employees hired during 2005 or a later Plan Year may make such an election at any
time within 30 days after their date of hire. An election made by a Participant within the 30 days
after his or her date of hire shall apply only to Compensation that has been earned after such
election has been made.

     (d) 2005 Bonus Deferrals. Any person who is a Bonus Eligible Employee with respect to
the 2005 Plan Year shall be eligible to elect to defer a portion of his or her Bonus that is
payable in 2005 in accordance with Section 3.03 below. Any such election must be made during the
period from April 23, 2004 until May 28, 2004, provided, however that Bonus Eligible Employees
hired during 2004 may make such an election at any time within 30 days after their date of
eligibility to participate in the Plan. An election made by a Participant within the 30 days after
his or her date of hire shall apply only to a Bonus (or portion of a Bonus) that has been earned
after such election has been made.

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     (e) 2006 and Later Bonus Deferrals. Any person who is a Bonus Eligible Employee with
respect to the 2006 Plan Year or a later Plan Year shall be eligible to elect to defer a portion of
his or her Bonus that is payable in 2006 or such later Plan Year, as applicable. Any such election
must be made during the applicable Open Enrollment Period to be completed not later than six months
into the Plan Year in which such Bonus is earned, provided, however that Bonus Eligible Employees
hired during any such Plan Year may make an election to defer their Bonus that is payable in the
following year at any time within 30 days after their date of hire. An election made by a
Participant within the 30 days after his or her date of hire shall apply only to a Bonus (or
portion of a Bonus) that has been earned after such election has been made.

     2.02 Participation. Notwithstanding anything herein to the contrary, Participation in
the Plan shall be limited to Eligible Employees who elect to participate in the Plan by executing
and filing the appropriate documentation required by the Committee, if any.

ARTICLE 3

DEFERRAL OF COMPENSATION

     3.01 Employer Contribution Credits. With respect to each Plan Year, the Employer
shall credit Employer Contribution Credits to the Employer Contribution Account of each Eligible
Employee who satisfies the requirements of Section 2.01(a) or (b), as applicable. The amount of
the Employer Contribution Credits shall be equal to five percent of such Eligible Employee’s
Compensation for the Plan Year that exceeds the lower of (a) $230,000 or such other limit as set
forth in Section 401(a)(17) of the Code for that year and (b) the Participant’s compensation
applicable under the Savings Plan. Employer Contribution Credits shall be credited to the
Participant’s Account on the same date on which the related employer contributions are made to the
Savings Plan or such other date as the Committee shall determine.

     3.02 Base Compensation Elective Deferral Credits. With respect to each Plan Year
beginning on or after January 1, 2005, an Eligible Employee who satisfies the requirements of
Section 2.01(c) may elect to defer a up to 80% of his or her Compensation (excluding Bonus) in 1%
increments by filing a complete and timely Deferral Election with the Committee. Any such election
must be made during the Company’s Open Enrollment Period that precedes the year in which the
Compensation being deferred is otherwise payable, provided, however that Eligible Employees hired
during a 2005 or later Plan Year may make such an election at any time within 30 days after their
date of hire. An election made by a Participant within the 30 days after his or her date of hire
shall apply only to Compensation that has been earned after such election has been made. A
Participant may change the percentage of his or her Compensation to be deferred by filing a new
Deferral Election with the Committee during the Company’s Open Enrollment Period or at such other
time as the Committee shall permit. Any such change shall be effective as of the first day of the
Plan Year immediately following the Plan Year in which such Deferral Election is filed with the
Committee. Base Compensation Elective Deferral Credits shall be credited to the Participant’s
Account on the same date for each pay period on which elective deferrals for the same pay period
are generally contributed to the Savings Plan or such other date as the Committee shall determine.
Notwithstanding anything herein to the contrary, the Committee may reduce the percentage of
Compensation that the Participant elects to defer if the Committee believes that the percentage
elected by the Participant is likely to result in a negative

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balance in the Participant’s pay in any pay period after considering all applicable deductions
(including garnishments).

     3.03 Bonus Elective Deferral Credits. With respect to each Plan Year beginning on or
after January 1, 2005, a Bonus Eligible Employee who satisfies the requirements of Section 2.01(d)
or (e), as applicable, may elect to defer up to 100% of his or her Bonus (in 1% increments) by
filing a complete and timely Deferral Election with the Committee. Any such election with respect
to a Bonus payable in 2005 must be made during the period from April 23, 2004 until May 28, 2004,
provided, however that Bonus Eligible Employees hired during 2004 may make such an election at any
time within 30 days after their date of first becoming eligible to participate in the Plan. An
election made by a Participant within the 30 days after his or her date of hire shall apply only to
a Bonus that has been earned after such election has been made. Any such election with respect to
a Bonus payable in 2006 or any year thereafter must be made during the Open Enrollment Period to be
completed not later than six months into the calendar year in which the Bonus is earned, provided,
however that Bonus Eligible Employees hired during any year may make an election at any time within
30 days after their date of hire to defer the Bonus. An election made by a Participant within the
30 days after his or her date of hire shall apply only to a Bonus that has been earned after such
election has been made. Unless modified in accordance with the terms of the Plan, such an election
shall apply to the first regular, recurring bonus to which the employee is entitled after his or
her date of hire and any subsequent bonus thereafter. Bonus Elective Deferral Credits shall be
credited to the Participant’s Account as soon as administratively practicable following the date
that such Bonuses are otherwise payable from the applicable incentive plan. Notwithstanding
anything herein to the contrary, the Committee may reduce the percentage of Bonus deferrals elected
by the Participant if the Committee believes that the percentage elected by the Participant is
likely to result in a negative balance in the Participant’s pay in any pay period after considering
all applicable deductions (including garnishments).

     3.04 Deferrals of Distributions from Non-Qualified Defined Benefit and Defined
Contribution Plans. Any deferral made pursuant to this Section 3.04 must be made at least
twelve months prior to the first scheduled payment under the transferor plan. In addition, no
payment previously scheduled under a transferor plan may be accelerated. Also, a Participant
cannot receive any payments of the transferred amounts for a period of at least five years from the
date that the distribution was originally scheduled to be made under the terms of the transferor
plan. Notwithstanding the preceding sentence, if a Participant has made or makes an election
pursuant to this Section 3.04 prior to January 1, 2007, he or she will be permitted to make a
special one-time only election regarding the form and timing of his or her Non-Qualified Defined
Benefit Plan Rollover Credits. Such special one-time election shall be effective regardless of
whether it complies with the five-year delay requirement. To the extent that any payroll taxes
become due as a result of any election under this Section 3.04, such taxes, together with federal
and state income taxes thereon, shall be paid by the Company and shall reduce the applicable
Account accordingly, to the extent permissible by law without resulting in adverse current income
tax consequences to the Participants.

     (a) Non-Qualified Defined Benefit Plan Rollover Credits. To the extent permitted by
the Committee, Eligible Employees who participate in the Company’s Supplemental Executive
Retirement Plan (the “SERP”) or the Company’s Retirement Benefits Equalization Plan

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(“RBEP”) may elect to defer under this Plan the actuarial single sum present value of benefits
(determined in the manner established by the Committee) that become payable under the SERP or the
RBEP. Notwithstanding the forgoing, any Participant who makes such an election with respect to the
SERP shall automatically be deemed to make such and election with respect to any benefits to which
he or she is entitled under the RBEP. Once the deferral referenced in this paragraph becomes
effective, (i) any amounts deferred pursuant to this paragraph shall be deemed to be invested in
this Plan in accordance with the Participant’s latest effective elections applicable to new
contributions; and (ii) any such deferrals shall be subject to the terms and conditions of this
Plan (including those terms governing distribution, withdrawal, and deemed investment) and shall
not be subject to the terms and conditions of, or payable from, the plan pursuant to which such
amounts were originally maintained.

     (b) Non-Qualified Defined Contribution Plan Rollover Credits. Eligible Employees who
participate in any 162(m) Deferred Compensation plans of the Company automatically shall have any
amounts deferred under such plan governed by the terms of this Plan with regard to administration,
deemed investment and timing and form of benefit distributions. Once the deferral referenced in
this paragraph becomes effective, (i) any amounts deferred pursuant to this paragraph shall be
deemed to be invested in this Plan in accordance with the Participant’s latest effective elections
applicable to new contributions; and (ii) any such deferrals shall be subject to the terms and
conditions of this Plan (including those terms governing distribution, withdrawal, and deemed
investment) and shall not be subject to the terms and conditions of, or payable from, the plan
pursuant to which such amounts were originally maintained.

     (c) Transformational Program Rollover Credits. With respect to any Eligible Employee
who participates in the Transformational Program, on or around March 15, 2009, the Company shall
credit the Fair Market Value (as defined in the Transformational Program) of each Eligible
Employee’s vested Share Units (as defined in the Transformational Program) to the Participant’s
stock rollover account under the Plan. Once the deferral referenced in this paragraph becomes
effective, (i) each stock unit deferred pursuant to this paragraph shall be deemed to be invested
in this Plan in a phantom share, which shall be the equivalent of one share of Company Stock; and
(ii) any such stock units shall be subject to the terms and conditions of this Plan (including
those terms governing distribution, withdrawal, and deemed investment) and shall not be subject to
the terms and conditions of, or payable from, the Transformational Program. Any dividends paid on
Company Stock shall be deemed to be reinvested in phantom shares of Company Stock at the then fair
market value of Company Stock. A Participant’s vested Prior Plan Stock Rollover Credit shall be
subject to his or her distribution election applicable to the year in which the Prior Plan Stock
Rollover Credit is made to the Plan.

     (d) Cash LTIP Rollover Credits. With respect to any Eligible Employee who
participates in the Cash LTIP, on or around March 15, 2007, the Company shall credit each such
Participant’s incentive award under the Cash LTIP to the Participant’s Account under the Plan. Once
the deferral referenced in this paragraph becomes effective, (i) any amounts deferred pursuant to
this paragraph shall be deemed to be invested in this Plan in accordance with the Participant’s
latest effective elections applicable to new contributions; and (ii) any such deferrals shall be
subject to the terms and conditions of this Plan (including those terms governing distribution,
withdrawal, and deemed investment) and shall not be subject to the terms and conditions of, or
payable from, the plan pursuant to which such amounts were originally

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maintained. Notwithstanding the preceding sentence, a Participant’s Cash LTIP Rollover
Account shall be subject to a vesting schedule as follows:

          (i) 25% of the Cash LTIP Rollover Credit shall vest immediately;

          (ii) The next 50% of the Cash LTIP Rollover Credit shall vest on December 31, 2007; and

          (iii) The remaining 25% of the Cash LTIP Rollover Credit shall vest on December 31, 2008.

          A Participant’s Cash LTIP Rollover Credit shall vest fully if the Participant retires, incurs
a Disability, dies or in the event of a change of control of the Company (as defined in the Cash
LTIP). If the Participant leaves the Company for any other reason, he or she shall forfeit any
unvested portion of the Cash LTIP Rollover Account. Any deemed earnings on a Cash LTIP Rollover
Credit shall vest in the same proportion as the rest of the Cash LTIP Rollover Credit. A
Participant’s vested Cash LTIP Rollover Credit shall be subject to his or her distribution election
applicable to the year in which the Cash LTIP Rollover Credit is made to the Plan.

     (e) Performance Plan Rollover Credits. With respect to any Eligible Employee who
participates in the Performance Plan, on or around March 15, 2007, the Company shall credit the
Fair Market Value (as defined in the Performance Plan) of each Eligible Employee’s vested Share
Units (as defined in the Performance Plan) to the Participant’s Account under the Plan. Once the
deferral referenced in this paragraph becomes effective, (i) any amounts deferred pursuant to this
paragraph shall be deemed to be invested in this Plan in accordance with the Participant’s latest
effective elections applicable to new contributions; and (ii) any such deferrals shall be subject
to the terms and conditions of this Plan (including those terms governing distribution, withdrawal,
and deemed investment) and shall not be subject to the terms and conditions of, or payable from,
the plan pursuant to which such amounts were originally maintained. Notwithstanding the preceding
sentence, a Participant’s Performance Plan Rollover Account shall be subject to a vesting schedule
as follows:

          (i) 25% of the Performance Plan Rollover Credit shall vest immediately;

          (ii) The next 50% of the Performance Plan Rollover Credit shall vest on December 31, 2007; and

          (iii) The remaining 25% of the Performance Plan Rollover Credit shall vest on December 31,
2008.

     A Participant’s Performance Plan Rollover Account shall vest fully if the Participant retires,
incurs a Disability, dies or in the event of a change of control of the Company (as defined in the
Performance Plan). If the Participant leaves the Company for any other reason, he or she shall
forfeit any unvested portion of the Performance Plan Rollover Account. Any deemed earnings on a
Performance Plan Rollover Credit shall vest in the same proportion as the rest of the Performance
Plan Rollover Credit. A Participant’s vested Performance Plan Rollover Credit

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shall be subject to his or her distribution election applicable to the year in which the
Performance Plan Rollover Credit is made to the Plan.

     3.05 Tax Withholding. Except as otherwise provided in Section 3.04, to the extent
that the Employer is required to withhold any taxes or other amounts from a Participant’s
Compensation subject to a Deferral Election pursuant to any state, federal, or local law, such
amounts shall be withheld only from his or her Compensation before any Elective Deferral Credits
are credited to his or her Account.

ARTICLE 4

BENEFIT ACCOUNTS

     4.01 Valuation of Account. As of each Valuation Date, a Participant’s Account shall
consist of the balance of the Participant’s Account as of the immediately preceding Valuation Date,
plus the Participant’s Elective Deferral Credits, Bonus Elective Deferral Credits, Employer
Contribution Credits, Non-Qualified Defined Benefit Plan Rollover Credits, Non-Qualified Defined
Contribution Plan Rollover Credits, Prior Plan Stock Rollover Credits, Performance Plan Rollover
Credits and Cash LTIP Rollover Credits that are credited pursuant to Article III since the
immediately preceding Valuation Date, plus or minus deemed investment gain or loss credited as of
such Valuation Date pursuant to Section 4.02, minus the aggregate amount of distributions, if any,
made from such Account since the immediately preceding Valuation Date.

     4.02 Crediting of Deemed Investment Return. As of each Valuation Date, each
Participant’s Account shall be increased or decreased by the amount of deemed investment gain or
loss earned since the immediately preceding Valuation Date. Deemed investment return shall be
credited at the Investment Return Rate as of such Valuation Date based upon the average balance of
the Participant’s Account since the immediately preceding Valuation Date, but after such Accounts
have been adjusted for any contributions or distributions to be credited or deducted for such
period or with such other method as the Investment Committee shall deem appropriate. Deemed
investment return for the period prior to the first Valuation Date applicable to an Account shall
be deemed earned ratably over such period. Until a Participant or his or her Beneficiary receives
his or her entire Account, the unpaid balance thereof shall earn a deemed investment return as
provided in this Section 4.02.

     4.03 Statement of Accounts. The Committee shall provide to each Participant, within
30 days after the close of each calendar quarter, a statement setting forth the balance of such
Participant’s Account as of the last day of the preceding calendar quarter and showing all
adjustments made thereto during such calendar quarter.

     4.04 Vesting of Amounts. Except with respect to Cash LTIP Rollover Credits and
Performance Plan Rollover Credits, a Participant shall be 100 percent vested in the amounts
credited to his or her Account.

     4.05 Deemed Investments.

     (a) New Money and Reallocation Elections. A Participant may direct that the amounts
credited to his or her Account under Article III be deemed invested in one or more of

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the investment options listed in Exhibit A, in increments of whole percentages or whole
dollars (a “New Money Election”). In the event that a Participant fails to designate a New Money
Election, new deferrals credited to the Participant’s Account shall be deemed to be invested in the
Treasury Money Market Fund or such other fund as the Committee shall designate. Unless determined
otherwise by the Committee, a Participant may not make more than one New Money Election per
calendar quarter; provided, however, that a Participant may make a Reallocation Election after the
Merck Closing and prior to January 1, 2010 regardless of whether the Participant has already made a
Reallocation Election on or after October 1, 2009 but prior to the Merck Closing. A Participant
also may direct that amounts previously credited to his or her Account and deemed invested in one
or more of the investment options listed in Exhibit A, be transferred, in increments of whole
percentages or whole dollars between and among the then available investment options listed in
Exhibit A (a “Reallocation Election”). Unless determined otherwise by the Committee, a Participant
may not make more than one Reallocation Election per calendar quarter. A New Money Election or a
Reallocation Election must be filed with the Committee in accordance with uniform rules established
by the Committee. A Reallocation Election shall not change a Participant’s existing New Money
election. The effective date of any New Money Election or Reallocation Election shall be the
Valuation Date on which such election is received by the Committee in accordance with uniform rules
established by the Committee.

     (b) Insider Trading Restrictions. The Company reserves the right to refuse to honor
any Participant direction related to deemed investments, including deemed contributions to,
distributions from, and transfers among investment options, and any other circumstances where the
Committee deems it necessary or desirable to refuse to honor such a direction in order to ensure or
facilitate compliance with applicable law including U.S. or other securities laws, or the Company’s
insider trading policies and practices. The Company, however, does not assume any responsibility
for compliance by officers or others with any such laws, and any failure by the Company to delay or
dishonor any such direction shall not be deemed to increase the Company’s legal exposure to the
Participant or third parties.

     (c) Prior Plan Stock Rollover Account. Notwithstanding the foregoing, a Participant’s
Prior Plan Stock Rollover Account shall always be deemed invested in the Company Stock Investment
Option.

ARTICLE 5

PAYMENT OF BENEFITS

     5.01 Distributions.

     (a) Reasons other than Death, Disability, or Change in Control. At the time at which
his or her initial deferral election is made, each Participant may elect to commence receiving
distributions of the balance of his or her Account (i) on or about the first day of any month
elected by the Participant, provided that such day is no less than three years from the day on
which the election is made; (ii) with respect to a Participant who elects a single sum payment,
within 60 days following the termination of his or her employment or, with respect to distributions
in any form other than a single sum, the first day of the month that is at least 60 days following
the termination of his or her employment; or (iii) the earlier of (i) or (ii); subject

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to any delays under Section 5.03. Elections made during Open Enrollment or, in the case of a
newly eligible Participant, within 30 days of such Participant’s eligibility date, shall be
immediately effective. Distributions under this Section 5.01(a) may be made in any form
permissible under Section 5.02. Except as otherwise provided in Sections 5.01(b) and (c), in the
event that a Participant fails to elect when to commence distribution of his or her Account or such
an election is not yet effective, the balance of his or her Account shall be distributed within 60
days after the Participant’s termination of employment, subject to any delays under Section 5.03.

     Notwithstanding the foregoing, effective for deferrals made in the 2006 Plan Year and
thereafter, a Participant must make a distribution election (relating to the timing and form of the
distribution ) during each Open Enrollment applicable to any deferrals made in such Plan Year only
(a “Class Year”). In the event a Participant does not make a distribution election during an Open
Enrollment for a Class Year, the distribution election that applied to the deferrals in the prior
Class Year shall apply to the deferrals in the current Class Year, to the extent permitted by law.

     With respect to Participants who participated in the Plan during the 2004 Plan Year and/or
2005 Plan Year, the distribution election that he or she elected during the applicable Open
Enrollment shall apply to deferrals made during these Plan Years and shall continue to apply to
future Class Years until he or she makes a new distribution election. If a Participant has not
participated in the Plan previously and does not make a distribution election, he or she shall be
deemed to have elected a lump sum payment within 60 days following the termination of his or her
employment.

     (b) Death. Notwithstanding Section 5.01(a), in the event of a Participant’s death
before the distribution of all of his or her Class Years have commenced, his or her Beneficiary
shall receive the Value of his or her entire Account balance in cash in a lump sum within 60 days
following the date of the Participant’s death. Also notwithstanding Section 5.01(a), in the event
of a Participant’s death after he or she has commenced receiving installment payments relating to a
Class Year, the Participant’s Beneficiary shall receive a lump sum cash distribution of the
remaining Value of the installment payments as soon as administratively practicable following the
Participant’s death, provided, however, that if the Participant so elected prior to his or her
death, the Participant’s Beneficiary shall continue to receive installment payments relating to
such Class Year on the same schedule as the Participant was receiving.

     (c) Disability. Notwithstanding Section 5.01(a), in the event that a Participant
incurs a Disability before the distribution of a Class Year has commenced, the Company shall
commence paying benefits relating to such Class Year to the Participant as soon as administratively
feasible after the Participant becomes disabled, provided, however, that if the Participant so
elects at least twelve months prior to the date of his or her Disability, he or she may commence
receiving his or her amounts relating to a Class Year as of the later of the first day of the month
following his or her 65th birthday or the first day of the month following the day on
which his or her long-term disability payments under the Company’s long-term disability plan cease.
Distributions under this Section 5.01(c) may be made in any form permissible under Section 5.02 as
elected by the Participant at least twelve months prior to the date of his or her Disability or
within 30 days of the Participant becoming eligible to participate in the Plan.

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     (d) Change of Control. Each Participant may make a separate election regarding when
the distribution of a Class Year(s) shall be paid following a Change of Control in the same manner
provided under Section 5.01(a). Any such election shall supersede all other elections if a Change
of Control occurs prior to the time when the Participant is in pay status under the Plan. Any such
election must be made at least twelve months prior to the Change of Control to be effective (or
within 30 days of the Participant becoming eligible to participate in the Plan). If a Participant
makes such an election, he or she may change it only by electing a later date on which to receive a
distribution. If the new date that the Participant elects turns out to be five or more years after
the date on which the distribution of such Class Year(s) otherwise would have commenced as a result
of the Change of Control under the Participant’s prior distribution election, the new election
shall be valid and the prior election shall be disregarded. If not, the distribution of the Class
Year(s) shall begin as soon as administratively feasible following the Change of Control pursuant
to the Participant’s old distribution election.

     (e) Changing Distribution Timing Elections. Except as otherwise provided in Section
Sections 5.01(d) and (f), a Participant may change any of his or her distribution elections at any
time; provided, however, any such change shall not become effective until twelve months after the
date that such election change is made. Once a Participant selects a specific date for a
distribution to begin, he or she may not change the timing of the distribution to an earlier date,
and any later date that the Participant selects must be at least five years after the date on which
the distribution would otherwise commence under the existing distribution election. If a
Participant previously elected to commence the distribution of his or her benefits upon the
termination of his or her employment or upon the earlier of his or her termination of employment or
a specified date, any new distribution election shall be valid only if the new election is made at
least twelve months in advance of the date on which the benefits would otherwise commence under the
existing distribution election and the date on which benefits will commence under the new election
is at least five years after the date on which the benefits would have otherwise commenced under
the existing distribution election.

     (f) Notwithstanding the foregoing, pursuant to the rules set forth in IRS Notice 2007-86, a
Participant who made a distribution election under this Section or Section 5.02 on or after January
1, 2006 but before January 1, 2009 will be permitted to revise such election provided that such
revised election satisfies the following criteria: (i) with respect to an election to change a time
of payment made on or after January 1, 2006 and on or before December 31, 2006, the election may
apply only to amounts that would not otherwise be payable in 2006 and may not cause an amount to be
paid in 2006 that would not otherwise be payable in 2006; (ii) with respect to an election to
change a time of payment made on or after January 1, 2007 and on or before December 31, 2007, the
election may apply only to amounts that would not otherwise be payable in 2007 and may not cause an
amount to be paid in 2007 that would not otherwise be payable in 2007; (iii) with respect to an
election to change a time of payment made on or after January 1, 2008 and on or before December 31,
2008, the election may apply only to amounts that would not otherwise be payable in 2008 and may
not cause an amount to be paid in 2008 that would not otherwise be payable in 2008; and (iv) the
revised election(s) are made during the Open Enrollment Periods prescribed by the Committee. A
Participant may revise any distribution elections made on or after January 1, 2009 to the extent
such revisions are permitted by future guidance and in accordance with any rules for such revisions
established by the Committee.

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     5.02 Form of Payment. Except as otherwise provided in Section 5.01, the benefits
payable pursuant to Section 5.01 shall be paid in cash in one of the following forms, as elected by
the Participant in his or her distribution election in connection with each Class Year:

     (a) Installments. Annual payments of a fixed amount that shall amortize the amount
relating to the Class Year as of the payment commencement date over a period not to exceed 20 years
(together, in the case of each annual payment, with deemed earnings thereon credited after the
payment commencement date pursuant to Section 5.01).

     (b) Single Sum Distribution. A single sum payment to the Participant or Beneficiary,
as applicable.

     In the event a Participant has never made a distribution election, his or her entire Account
balance shall be distributed in a single sum distribution.

     (c) Changing Distribution Form Elections. Except as otherwise provided in Section
5.01(f), a Participant may change a previous distribution election from installments to a lump sum
provided that the subsequent election is made at least twelve months in advance of the date that
the installments would have commenced otherwise and the lump sum is payable no earlier than five
years after the installments were to commence otherwise.

     5.03 Commencement of Benefits to 162(m) Covered Employees and 409A Specified
Employees. The distribution of a Covered Employee’s benefit applicable to a Class Year shall
be made upon the later of (a) the date elected by the Covered Employee for the distribution of his
or her Class Year to commence and (b) April 1 of the year following the Covered Employee’s
termination of employment. In the event a Class Year is payable on account of the separation of
service of a Specified Employee, the Committee shall delay the distribution of the lump sum payment
or the commencement of installment payments, as applicable, for a period of six months following
the separation from service, during which time earnings shall still accrue in accordance with the
applicable deemed investments.

     5.04 Small Benefit. In the event the Committee determines that the Value of a
Participant’s Account is $5,000 or less at the time of such Participant’s termination of
employment, or the Value of the balance of the Participant’s Account payable to any Beneficiary is
$5,000 or less at the time of the Participant’s death, the Committee shall pay the benefit in the
form of a lump sum, notwithstanding any provision of the Plan or a Participant’s election to the
contrary. Such lump sum payment shall be equal to the Value of the balance of the Participant’s
Account or the portion thereof payable to a Beneficiary.

     5.05 Hardship Withdrawal. In the event that the Committee receives a written request
of a Participant or Beneficiary that the Participant or Beneficiary has suffered an unforeseeable
financial emergency, the Committee shall cease the Participant’s Base Compensation Deferrals and
Bonus Deferrals. In the event the cessation of deferrals alleviates the circumstances giving rise
to the need for the withdrawal the Participant may resume Base Compensation Deferrals or Bonus
Deferrals as of the first day of the Plan Year following the cessation; provided the Participant
makes a timely deferral election in accordance with Article 3 with respect to such amounts. To the
extent that the cessation of deferrals will not alleviate the circumstances giving

-15-

 

rise to the need for the withdrawal, the Committee shall determine, in its sole discretion,
whether the Participant or Beneficiary has suffered an unforeseeable financial emergency. Employer
shall pay to the Participant or Beneficiary, as soon as practicable following such determination,
an amount necessary to meet the emergency (the “Hardship Withdrawal”), but not exceeding the
aggregate balance of the Participant’s or Beneficiary’s Account as of the date of such payment. In
that event, a Participant’s Base Compensation Deferrals and Bonus Deferrals shall cease until the
first day of the Plan Year following the last day of the twelve-month period after the Hardship
Withdrawal is made. The amount of the Hardship Withdrawal shall be deducted from the earliest
Class Year(s). For purposes of this Section 5.05, an “unforeseeable financial emergency” shall
mean an event that the Committee determines to give rise to an unexpected need for cash arising
from an illness, casualty loss, sudden financial reversal, or other such unforeseeable occurrence
as prescribed by Section 409A of the Code and the regulations promulgated thereunder. The amount
of a Hardship Withdrawal may not exceed the amount that the Committee reasonably determines to be
necessary to meet such emergency needs (including taxes incurred by reason of a taxable
distribution). The amount of the benefit otherwise payable under the Plan to such Participant or
Beneficiary shall be adjusted to reflect the early payment of the Hardship Withdrawal.

ARTICLE 6

BENEFICIARY DESIGNATION

     6.01 Beneficiary Designation. Each Participant shall have the sole right, at any
time, to designate any person(s) or entity as his or her Beneficiary to whom payment under the Plan
shall be made in the event of the Participant’s death prior to complete distribution of his or her
Account. Any Beneficiary designation shall be made in a written instrument provided by the
Committee. All Beneficiary designations must be filed in the manner required by the Committee and
shall be effective only when received by the Committee.

     6.02 Change of Beneficiary Designation. Any Beneficiary designation may be changed by
a Participant by the filing of a new Beneficiary designation, which shall cancel all Beneficiary
designations previously filed. The designation of a Beneficiary may not be made or changed at any
time without the consent of the applicable Participant except as required by a court of competent
jurisdiction.

     6.03 No Designation. If all designated Beneficiaries predecease the Participant or if
no designated Beneficiary is on file for the Participant at the time of the Participant’s death,
the Participant’s Account shall be paid to the Participant’s beneficiaries designated under the
Savings Plan, or, if no such beneficiaries are alive, the Participant’s estate.

     6.04 Effect of Payment. Payment to a Participant’s Beneficiary (or, upon the death of
a primary Beneficiary, to the contingent Beneficiary or, if none, to the Participant’s beneficiary
under the Savings Plan or, if none, to the Participant’s estate) shall completely discharge the
Employer’s obligations under the Plan.

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ARTICLE 7

ADMINISTRATION

     7.01 Committee. The Plan shall be administered by the Committee. The Committee shall
have (a) complete discretion to supervise the administration and operation of the Plan, (b)
complete discretion to adopt rules and procedures governing the Plan from time to time, and (c)
sole authority to interpret the terms of the Plan.

     7.02 Investments. The Investment Committee shall have the sole discretion to choose
the investment options available under the Plan and to change or eliminate such investment options,
from time to time, as it deems appropriate.

     7.03 Binding Effect of Decisions. Any decision or action of the Committee with
respect to any question arising out of or in connection with the administration, interpretation, or
application of the Plan shall be final and binding upon all persons having any interest in the
Plan.

     7.04 Indemnification of Committee. The Company shall indemnify and hold harmless the
members of the Committee and Investment Committee and their designees against any and all claims,
loss, damage, expense, or liability arising from any action or failure to act with respect to the
Plan, except in the case of gross negligence or willful misconduct by any such member or designee
of the Committee or Investment Committee.

ARTICLE 8

AMENDMENT AND TERMINATION OF PLAN

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

     8.02 Termination. The Board of Directors of the Company or its delegate, on behalf of
itself and of each Selected Affiliate, in its sole discretion, may terminate this Plan at any time
and for any reason whatsoever. On and after Plan termination, the Committee shall take those
actions necessary to administer any Accounts existing prior to the effective date of such
termination; provided, however, that a termination of the Plan shall not adversely affect the value
of a Participant’s Account, the crediting of investment return under Section 4.02, or the timing or
method of distribution of a Participant’s Account, without the Participant’s prior written consent.

ARTICLE 9

MISCELLANEOUS

     9.01 Funding. Participants, their Beneficiaries, and their heirs, successors, and
assigns shall have no secured interest or claim in any property or assets of the Employer. The
Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise

-17-

 

of the Employer to pay money in the future. Notwithstanding the foregoing, in the event of a
Change in Control, the Company shall create an irrevocable trust, or before such time the Company
may create an irrevocable or revocable trust, to hold funds to be used in payment of the
obligations of Employers under the Plan. In the event of a Change in Control or prior thereto, the
Employers shall fund such trust in an amount equal to not less than the total value of the
Participants’ Accounts under the Plan as of the Valuation Date immediately preceding the Change in
Control, provided that any funds contained therein shall remain available for the claims of the
respective Employer’s general creditors.

     9.02 Nonassignability. No right or interest under the Plan of a Participant or his or
her Beneficiary (or any person claiming through or under any of them) shall be assignable or
transferable in any manner or be subject to alienation, anticipation, sale, pledge, encumbrance, or
other legal process or in any manner be liable for or subject to the debts or liabilities of any
such Participant or Beneficiary. If any Participant or Beneficiary shall attempt to or shall
transfer, assign, alienate, anticipate, sell, pledge, or otherwise encumber his or her benefits
hereunder or any part thereof, or if by reason of his or her bankruptcy or other event happening at
any time such benefits would devolve upon anyone else or would not be enjoyed by him or her, the
Committee, in its discretion, may terminate his or her interest in any such benefit to the extent
the Committee considers necessary or advisable to prevent or limit the effects of such occurrence.
Termination shall be effected by filing a written “termination declaration” with the Company’s
highest ranking human resources official and making reasonable efforts to deliver a copy to the
Participant or Beneficiary whose interest is adversely affected (the “Terminated Participant”).

          As long as the Terminated Participant is alive, any benefits affected by the termination shall
be retained by the Employer and, in the Committee’s sole and absolute judgment, may be paid to or
expended for the benefit of the Terminated Participant, his or her spouse, his or her children, or
any other person or persons in fact dependent upon him or her in such a manner as the Committee
shall deem proper. Upon the death of the Terminated Participant, all benefits withheld from him or
her and not paid to others in accordance with the preceding sentence shall be disposed of according
to the provisions of the Plan that would apply if he or she died prior to the time that all
benefits to which he or she was entitled were paid to him or her.

     9.03 Claims Procedure

     (a) Claim. A person who believes that he or she is being denied a Supplemental
Benefit to which he or she is entitled under the Plan (hereinafter referred to as a “Claimant”) may
file a written request for such benefit with the Committee, setting forth the claim.

     (b) Claim Decision. Upon receipt of a claim, the Committee shall advise the Claimant
that a reply will be forthcoming within 90 days and shall, in fact, deliver such reply within such
period. The Committee may, however, extend the reply period for an additional 90 days for
reasonable cause.

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     (c) Information. If the claim is denied in whole or in part, the Claimant shall be
provided an opinion, drafted in a manner calculated to be understood by the Claimant, setting
forth:

	 	(i)	 	The specific reason or reasons for such denial;
	 
	 	(ii)	 	The specific reference to pertinent provisions of this Plan
upon which such denial is based;
	 
	 	(iii)	 	A description of any additional material or information
necessary for the Claimant to perfect his or her claim and an explanation why
such material or such information is necessary;
	 
	 	(iv)	 	Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review;
	 
	 	(v)	 	The time limits for requesting a review under subsection (d)
hereof; and
	 
	 	(vi)	 	A statement of the Claimant’s right to bring an action under
Section 502 of ERISA upon a claim denial on review.

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

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

     9.04 Governing Law. The Plan is intended to constitute an unfunded plan providing
retirement or deferred compensation benefits for officers and highly compensated employees exempt
from the requirements of parts 2, 3, and 4 of ERISA. Except to the extent otherwise provided in
ERISA and the Code, this Plan shall be construed, regulated, and administered under the laws of the
State of New Jersey.

     9.05 Successors. The provisions of the Plan shall bind and inure to the benefit of
the Company, its Selected Affiliates, and their respective successors and assigns. The term
successors as used herein shall include any corporate or other business entity that, whether by
merger, consolidation, purchase, or otherwise, acquires all or substantially all of the business
and

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assets of the Company or a Selected Affiliate and successors of any such Company or other
business entity.

     9.06 Right to Continued Service. Nothing contained herein shall be construed to
confer upon any Eligible Employee the right to continue to serve as an Eligible Employee of the
Employer or in any other capacity.

     9.07 Illegal or Invalid Provision. In case any provision of the Plan shall be held
illegal or invalid for any reason, such illegal or invalid provision shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced without regard to such illegal or
invalid provision.

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EXHIBIT A

     The following are the investment options that are used in determining the Investment Return
Rate under the Plan.

Account Name (Fund Code)

Vanguard 500 Index Fund Investor Shares (000040)

Vanguard Prime Money Market Fund (000030) – Default Investment Election

Vanguard Life Strategy Growth Fund (000122)

Vanguard Wellington Fund Investor Shares (000021)

Vanguard Windsor Fund Investor Shares (000022)

Vanguard Explorer Fund Investor Shares (000024)

Vanguard ST Investment Grade Fund Investor Shares (000039)

Vanguard Life Strategy Income Fund (00007L)

Vanguard Life Strategy Conservative Growth Fund (00007M)

Vanguard Life Strategy Moderate Growth Fund (000914)

Vanguard IT Investment Grade Fund Investor Shares (000071)

Vanguard US Growth Fund Investor Shares (000023)

Vanguard International Growth Fund Investor Shares (000081)

Merck Common Stock Fund (4807)

A-1exv10w43

Exhibit 10.43

SCHERING-PLOUGH CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(AMENDED AND RESTATED NOVEMBER 4, 2008)

PREAMBLE

Schering Corporation has adopted the Schering-Plough Corporation Supplemental Executive Retirement
Plan to ensure the payment of a competitive level of retirement income to attract, retain, and
motivate selected executives of the Corporation and its Affiliates. The Plan is intended to be a
non-qualified, supplemental retirement plan that is unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or highly compensated
employees of the Corporation or its Affiliates pursuant to Sections 201(2), 301(a)(3), and
401(a)(1) of ERISA and, as such, to be exempt from the provisions of Parts 2, 3, and 4 of Subtitle
B of Title I of ERISA. The Plan was originally effective as of January 1, 1983. The Plan was
amended and restated in its entirety effective January 1, 2005 and then again effective January 1,
2008. As a result of the closing of the transactions contemplated by the Agreement and Plan of
Merger, dated March 8, 2009, by and among Merck & Co., Inc., Schering-Plough, SP Merger Subsidiary
One, Inc. and SP Merger Subsidiary Two, Inc., the Plan is hereby further amended and restated,
effective November 4, 2009. Except as otherwise defined herein, all capitalized terms shall have
the meaning given to them in the Retirement Plan.

ARTICLE 1

DEFINITIONS

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

 

 

	1.9	 	“Corporation” means Schering Corporation, a New Jersey Corporation, and any successor or
assigns thereto, provided that, Merck Sharp & Dohme Corp. and its direct or indirect
subsidiaries shall not be treated as part of the Corporation.
	 
	1.10	 	“Deferral Rate” means, for each calendar quarter, a rate equal to the actual yield on
three-month U.S. Treasury bills as reported in the Wall Street Journal on the first business
day of such calendar quarter.
	 
	1.11	 	“Early Retirement Date” means:

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

	1.12	 	“Earnings” means Compensation under the Retirement Plan prior to the Participant’s Separation
from Executive Service plus, for periods prior to January 1, 2004, bonuses awarded for such
periods under any executive or management incentive plan of the Corporation or an Affiliate;
provided, however, that the amount of Earnings credited for any bonus earned in the calendar
year in which the Participant’s Separation from Executive Service occurs but not paid until
after the Participant’s Separation from Service shall be the estimated bonus as determined by
the Committee.
	 
	1.13	 	“Effective Date” means January 1, 1983.
	 
	1.14	 	“Equivalent Actuarial Value” means the equivalent value when computed on the basis of the
interest rate determined as of such date under the regulations of the Pension Benefit Guaranty
Corporation for determining the present value of a lump sum distribution on plan termination
that were in effect on September 1, 1993 and the 1994 Group Annuity Reserving mortality table.
Notwithstanding the foregoing, effective January 1, 2006, Equivalent Actuarial Value shall be
determined by using the market yield on U.S. Treasury securities at 10-year constant
maturities (non-inflation issues adjusted to constant maturities), as set forth in Federal
Reserve Statistical Release H.15 for the first business day of the month in which the
Participant’s Separation from Service occurs and the mortality table used to determine
automatic lump sum cash outs under the Retirement Plan.
	 
	1.15	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	1.16	 	“Executive Status” means:

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

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

 

 

	 	 	 	designation as a Participant of the Plan by the Chief Executive Officer of
the Corporation.

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

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

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

 

 

	 	 	completed at least 10 years of Benefit Service under the Retirement Plan, Service shall also
include the individual’s period of employment with the Corporation or an Affiliate for which
benefits are accrued under the Retirement Plan prior to the date he or she became a
Participant of this Plan; and provided further, that with respect to an individual who first
become a Participant in this Plan on or after January 1, 2005 but prior to January 1, 2008,
Service shall also include the individual’s Eligibility Service under the Retirement Plan
prior to membership in the Retirement Plan, up to one year, if not otherwise included in his
or her Service pursuant to the prior provisions of this Section 1.25. Notwithstanding
anything to the contrary, with respect to an individual who first becomes a Participant in
this Plan on or after January 1, 2008, Service shall mean only the individual’s period of
employment with the Corporation or an Affiliate as a Participant in the Plan prior to his
Separation from Executive Service for which benefits are accrued under the Retirement Plan.
	 
	1.27	 	“Supplemental Benefit” means a supplemental retirement benefit or survivor benefit as
determined under Article 4 or Article 5, respectively, as of any date of reference.
	 
	1.28	 	“Surviving Spouse” means a person of the opposite sex of the Participant or Former
Participant who is the Participant’s or Former Participant’s husband or wife as provided in
the Defense of Marriage Act of 1996, who has been married to the Participant throughout the
one-year period ending on the Participant’s date of death.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

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

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

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

ARTICLE 3

ELIGIBILITY FOR BENEFITS

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

 

 

ARTICLE 4

AMOUNT AND FORM OF RETIREMENT BENEFIT

	4.1	 	Normal Retirement Date or Postponed Retirement Date. The Supplemental Benefit of a
Participant or Former Participant whose Separation from Service occurs on or after his or her
Normal Retirement Age shall be calculated as an annual benefit payable monthly commencing on
the first day of the calendar month coincident with or next following his or her Retirement
equal to:

	 	(a)	 	the sum of:

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

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

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

 

 

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

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

	 	 	The annual benefit calculated under this Section 4.2 of a Participant or Former Participant
who was in Executive Status prior to the Effective Date and who has completed 10 years of
Service in Executive Status and reached age 60 on or prior to his or her Separation from
Service shall not be less than an annual benefit payable monthly commencing on the first day
of the calendar month coincident with or next following his or her Retirement

 

 

	 	 	equal to 35% of his or her Average Final Earnings reduced by his or her Other Retirement
Income and Retirement Plan Benefit.

	4.3	 	Other Termination. The Supplemental Benefit of a Participant or Former Participant
whose Separation of Service occurs for a reason other than Retirement, disability, death, or
following a Change of Control, shall be calculated as an annual benefit payable monthly
commencing on the first day of the calendar month coincident with his or her Normal Retirement
Date.
	 
	4.4	 	Disability. In the event that a Participant or Former Participant has become totally
and permanently disabled for the purposes of the Corporation’s long-term disability program,
disability retirement benefits shall be payable under this Plan, and shall be determined
pursuant to Section 4 hereof, with Earnings (as defined herein) and Service deemed to have
continued for such period, if any, as shall be applicable under the disability retirement
benefit provisions of the Retirement Plan.
	 
	4.5	 	Pre-March 1, 1987 Provisions. For the purpose of determining Supplemental Benefits
under the foregoing paragraphs of this Section 4:

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

	4.6	 	Form of Payment. Supplemental Benefits shall be payable in a lump sum as soon as
administratively practicable following the Participant’s Separation from Service. Such lump
sum shall be of Equivalent Actuarial Value to the benefit calculated under Sections 4.1, 4.2,
4.3, 4.4, and 4.5 above that would have been provided commencing as of the Participant’s
Normal Retirement Date, or the first day of the month following the Participant’s Separation
from Service, if later. Notwithstanding the preceding sentence, in the case of a Participant
whose Separation from Service is on or after his or her Early Retirement Date, the lump sum
shall be of Equivalent Actuarial Value to the benefit that would have been calculated under
Sections 4.1, 4.2, 4.4, and 4.5 above that would have provided commencing on the first day of
the month following the Participant’s Separation from Service. Notwithstanding the foregoing,
the portion of the Supplemental Benefit that is accrued after December 31, 2004, for any
Participant who is a specified employee as defined in Section 409A of the Code, shall be
delayed for a period of six (6) months following such Participant’s Separation from Service.
If a Participant or a Former Participant has a Separation from Service by Retirement and dies
before receiving full payment of his or her Supplemental Benefit, payment of the Supplemental
Benefit shall be made to his or her Beneficiary, subject to Section 5. Payment made in
accordance with this Section 4.6 shall constitute full and complete satisfaction of the
Corporation’s obligation in respect thereof. A Participant may elect to defer receipt of his
or her Supplemental Benefit in accordance with the terms of the Savings Advantage Plan to the
extent that such plan complies with Section 409A of the Code in a manner that will not result
in the incurrence of Section 409A excise taxes to the Participant.
	 
	4.7	 	Section 162(m) of the Code. The Committee may, in its sole discretion, defer the
payment of any lump sum to a Participant or a Former Participant who is a “covered employee”
as defined in Section 162(m) of the Code, if such payment would be subject to

 

 

	 	 	such Section’s limitation on deductibility; provided, however, that such payment shall not
be deferred to a date later than the earliest date in the year in which such payment would
not be subject to such limitation; and further provided that the Corporation shall, at the
time of payment of any amount so deferred, pay interest thereon from the due date thereof at
the Deferral Rate, compounded quarterly.
	 
	4.8	 	Delayed Payment. If a lump sum payment to a Participant or Former Participant, or
the Beneficiary thereof, including a payment delayed pursuant to Section 4.6, commences later
than the 15th day of the month following the month in which the Participant’s
Separation from Service occurs, the Corporation shall, at the time of payment of such lump
sum, pay interest thereon from the 15th day of the month following the month in
which the Participant’s Separation from Service occurs to the date payment is issued at the
Deferral Rate, compounded quarterly.
	 
	4.9	 	Forfeitability. Except as otherwise provided herein, the Supplemental Benefit of
each Participant and Former Participant under the Plan shall at all times be 100 percent
vested and nonforfeitable.
	 
	4.10	 	Offset. If any Retirement Plan Benefit or Other Retirement Income is payable to a
Participant, Former Participant or Beneficiary, and the form of such Retirement Plan Benefit
or Other Retirement Income is other than a lump sum or such Retirement Income or Other
Retirement Benefit is paid at a time other than when the Supplemental Benefit is paid under
this Plan, such Retirement Plan Benefit or Other Retirement Income shall be converted to a
lump sum of Equivalent Actuarial Value for purposes of determining the offset applied under
this Plan. The Committee shall be empowered to make such additional equitable adjustments to
accomplish the purposes of the foregoing as the Committee in its sole discretion shall
determine.
	 
	4.11	 	Enhanced or Reduced Benefits. Notwithstanding the forgoing and subject to the
approval of the Corporation’s Chief Executive Officer, an employment or similar agreement
between a Participant and the Corporation may enhance or reduce the benefit provided to or on
behalf of such Participant under this Plan. In no event will an enhanced benefit be
separately paid under both an employment or similar agreement and this Plan in a manner that
results in a duplicative benefit.

ARTICLE 5

SURVIVING SPOUSE BENEFIT

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

 

 

	 	 	 	 	 
	 	 	Age and Service at Time of Death	 	Survivor Benefit
	a.

	 	Age 55 or more with 5 or more years of
Eligibility Service.
	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit.
	 
	 	 	 	 
	b.

	 	Ages 50 through 54 with 5 or more
years of Eligibility Service, and age plus
years of Eligibility Service equal 65.
	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit
multiplied by 80.0%.
	 
	 	 	 	 
	c.

	 	Below age 50 with 5 or more years of
Eligibility Service, and age plus years of
Eligibility Service equal 65.
	 	50% of the Participant’s or
Former Participant’s
Supplemental Benefit
multiplied by 53.1%.

	 	 	less any Retirement Plan Benefit or Other Retirement Income payable to the Surviving Spouse
whether or not the Participant or Former Participant has elected or has been deemed to have
elected to have such benefit or retirement income paid to his or her Surviving Spouse.
	 
	5.2	 	Upon the death of any Participant or Former Participant who does not have at least 5 years of
Eligibility Service, his or her Surviving Spouse shall be entitled to a survivor benefit under
this Plan based upon his or her Supplemental Benefit immediately prior to his or her death and
computed as if he or she had retired on the day before his or her death and had elected a 50%
Qualified Joint and Survivor Annuity (as defined in the Retirement Plan) for the benefit of
his or her Surviving Spouse. Such survivor benefit under this Plan shall be reduced by any
Retirement Plan Benefit and Other Retirement Income payable to the Surviving Spouse whether or
not the Participant or Former Participant has elected or has been deemed to have elected to
have such benefit or retirement income paid to his or her Surviving Spouse.
	 
	5.3	 	A Surviving Spouse’s benefits provided under Section 5.1 or 5.2 shall be paid in a lump sum
as of the first day of the month following the month in which the Participant or Former
Participant dies. Such lump sum shall be of Equivalent Actuarial Value to the benefit
calculated under Section 5.1 or 5.2 that would have been provided commencing as of the
Participant’s Normal Retirement Date, or the first day of the month following the
Participant’s date or death, if later. Notwithstanding the preceding sentence:

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

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

ARTICLE 6

COMMITTEE

	6.1	 	Committee. The Plan shall be administrated by the Global Benefits and Compensation
Oversight Committee or its delegate. The Committee shall have (a) complete discretion

 

 

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

ARTICLE 7

AMENDMENT AND TERMINATION OF PLAN

	7.1	 	Amendment. The Committee may at any time amend, suspend, or reinstate any or all of
the provisions of the Plan, except that no such amendment, suspension, or reinstatement may
adversely affect any Participant’s or Former Participant’s vested Supplemental Benefit, as it
existed immediately before the effective date of such amendment, suspension, or reinstatement,
without such Participant’s or Former Participant’s prior written consent. Written notice of
any amendment or other action with respect to the Plan shall be given to each Participant.
	 
	7.2	 	Termination. The Committee, in its sole discretion, may terminate this Plan at any
time and for any reason whatsoever. On and after Plan termination, the Committee shall take
those actions necessary to administer any Supplemental Benefits existing prior to the
effective date of such termination; provided, however, that a termination of the Plan shall
not adversely affect the value of a Participant’s or Former Participant’s Supplemental
Benefit, or the timing or method of distribution of a Participant’s or Former Participant’s
Supplemental Benefit, without the Participant’s or Former Participant’s prior written consent.

ARTICLE 8

MISCELLANEOUS

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

 

 

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

	 	(i)	 	The specific reason or reasons for such denial;
	 
	 	(ii)	 	The specific reference to pertinent provisions of this Plan on
which such denial is based;
	 
	 	(iii)	 	A description of any additional material or information
necessary for the Claimant to perfect his claim and an explanation why such
material or such information is necessary;
	 
	 	(iv)	 	Appropriate information as to the steps to be taken if the
Claimant wishes to submit the claim for review;
	 
	 	(v)	 	The time limits for requesting a review under subsection (c)
and for review under subsection (d) hereof; and
	 
	 	(vi)	 	A statement of the Claimant’s right to bring an action under
Section 502 of ERISA upon a claim denial on review.

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

 

 

	8.5	 	Limitation of Rights of Participants and Former Participants. Nothing in this Plan
shall be construed as conferring upon any Participant or Former Participant any right to
continue in the employment of the Corporation or an Affiliate, nor shall it interfere with the
rights of the Corporation or an Affiliate to terminate the employment of any Participant or
Former Participant and/or to take any personnel action affecting any Participant or Former
Participant without regard to the effect which such action may have upon such Participant or
Former Participant as a recipient or prospective recipient of Supplemental Benefits under the
Plan. Any amounts payable hereunder shall not be deemed salary or other compensation to a
Participant or Former Participant for the purposes of computing benefits to which the
Participant or Former Participant may be entitled under any other arrangement established by
the Corporation or Affiliate for the benefit of its employees.
	 
	8.6	 	No Limitation on Actions of Corporation or Affiliates. Nothing contained in the Plan
shall be construed to prevent the Corporation or an Affiliate from taking any action that is
deemed by it to be appropriate or in its best interest. No Participant or other person shall
have any claim against the Corporation or an Affiliate as a result of such action.
	 
	8.7	 	Obligations to Corporation. If a Participant or Former Participant becomes entitled
to a distribution of a Supplemental Benefit under the Plan, and if at such time the
Participant or Former Participant has outstanding any debt, obligation, or other liability
representing an amount owing to the Corporation or an Affiliate, the Corporation or Affiliate
may offset such amount owed to it against the amount of benefits otherwise distributable.
Such determination shall be made by the Committee.
	 
	8.8	 	Captions. The captions contained herein are for convenience only and shall not
control or affect the meaning or construction hereof.
	 
	8.9	 	Governing Law. The Plan is intended to constitute an unfunded plan providing
retirement or deferred compensation benefits for officers and highly compensated employees
exempt from the requirements of parts 2, 3, and 4 of Subtitle B of Title I of ERISA. Except
to the extent otherwise provided in ERISA and the Code, this Plan shall be construed,
regulated, and administered under the laws of the State of New Jersey.
	 
	8.10	 	Successors. The provisions of the Plan shall bind and inure to the benefit of
Schering Corporation, Merck & Co., Inc., and the Affiliates, and their respective successors
and assigns. The term successors as used herein shall include any corporate or other business
entity that, whether by merger, consolidation, purchase, or otherwise, acquires all or
substantially all of the business and assets of the Corporation, Merck & Co., Inc, or an
Affiliate and successors thereto.
	 
	8.11	 	Illegal or Invalid Provision. In case any provision of the Plan shall be held
illegal or invalid for any reason, such illegal or invalid provision shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced without regard to
such illegal or invalid provision.
	 
	8.12	 	Protective Provisions. Each Participant shall cooperate with the Corporation or an
Affiliate by furnishing any and all information requested by the Corporation or Affiliate to
facilitate the payment of benefits hereunder.
	 
	8.13	 	Withholding Taxes. The Corporation may make such provisions and take such action as
it may deem necessary or appropriate for the withholding of any taxes which the Corporation is
required by any law or regulation of any governmental authority, whether Federal, state, or
local, to withhold in connection with any benefits under the Plan,

 

 

	 	 	including, but not limited to, the withholding of appropriate sums from any amount otherwise
payable to, or on behalf of, the Participant. Each Participant, Former Participant and
Beneficiary, however, shall be responsible for the payment of all individual tax liabilities
relating to any such benefits.
	 
	8.14	 	Inability to Locate Participant, Former Participant, or Beneficiary. In the event
that the Committee is unable to locate a Participant, Former Participant or Beneficiary within
two years following the date he or she was to commence receiving payment, the entire
Supplemental Benefit payable shall be forfeited. If, after such forfeiture, the Participant,
Former Participant or Beneficiary later claims such Supplemental Benefit, such Supplemental
Benefit shall be reinstated without interest or earnings thereon and paid pursuant to the
terms of the Plan.
	 
	8.15	 	Facility of Payment. If, in the opinion of the Committee, a person to whom a benefit
is payable under the Plan is unable to care for his or her affairs because of illness,
accident, or any other reason, any payment due the person, unless prior claim therefore shall
have been made by a duly qualified guardian or other duly appointed and qualified
representative of such person, may be paid to some member of the person’s family, or to some
other party who, in the opinion of the Committee, has incurred expenses for such person. Any
such payment shall be a payment for the account of such person and shall be a complete
discharge of liability under the Plan.
	 
	8.16	 	Notice. Any notice or filing required or permitted to be given to the Committee
under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail, to the Corporation’s Senior Vice President of Human Resources, or to such
other entity as the Committee may designate from time to time. Such notice shall be deemed
given as to the date of delivery, or, if delivery is made by mail, as of the date shown on the
postmark on the receipt for registration or certification.

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