What Can You Expect? The following will be effective Jan. 1, Please refer to the enclosed summary charts for more details.

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1 Merck 1 Merck Drive Whitehuse Statin, NJ merck.cm February Retiree Health Care Changes Dear Retiree, Since the merger f Merck and Schering-Plugh, we've been wrking t integrate every aspect f ur business, including the ffered t ur existing and future retirees. As the health care industry and business envirnments change, we cntinue t review all f Merck's fferings fr bth active emplyees and retirees. While we are making changes t ensure ur lng-term success, we remain cmmitted t ffering a cmpetitive package f retiree health care relative t ur peers and Frtune 100 cmpanies. This cmmunicatin summarizes imprtant infrmatin abut yur 2013 retiree health care. Mre details will fllw later this year with yur Annual Enrllment cmmunicatins. Please nte that n actin is required n yur part at this time this cmmunicatin is slely fr infrmatinal purpses. What Can Yu Expect? The fllwing will be effective Jan. 1, Please refer t the enclsed summary charts fr mre details. Retiree Medical Cverage Different medical plan ptins will be ffered fr pre- and pst- cverage. N change will ccur t the structure f Merck Medical cverage cntributins fr current retirees. If yu are pre- eligible, yur cntributins will cntinue t be based upn yur retiree chice "pints" (sum f age and service). If yu are eligible, yur cntributins will cntinue t be a flat mnthly fee. Changes fr Active Emplyees D Nt Apply t Retirees Yu may hear abut changes t the pensin and savings fr current legacy Merck salaried emplyees beginning in These changes d nt affect yur as an existing retiree. Nte that yur actual retiree medical cntributins will cntinue t change frm year t year. Prescriptin Drug Cverage Once Eligible fr If yu and/r a cvered dependent are r becme eligible fr, yur prescriptin drug benefit will be prvided under a new plan, which is a Stay cnnected thrugh MerckCnnectins.cm, the website fr retirees f legacy Merck and legacy Schering-Plugh.

2 cmbinatin f a grup Part D plan called an Emplyer-Grup Waiver (EGWP) and a supplemental plan spnsred by Merck. Medc will cntinue t administer the plan and will prvide yur prescriptin drug cverage starting in 2013 if yu are enrlled in the Merck Retiree Medical fr We anticipate that this change will have little impact n yur r hw yu fill yur prescriptins. Yu will cntinue t have cverage fr prescriptin drugs at a level cmparable t what is available t pre- retirees, including Merck brand drugs that are prvided fr $0 cpay. The mve t an EGWP and supplemental plan fr -eligible participants will allw Merck t take advantage f favrable funding frm the federal gvernment and pharmaceutical cmpanies as a result f health care refrm legislatin. Retiree Dental Cverage Merck will n lnger ffer cmpany-spnsred and subsidized retiree dental cverage. Yu will have a ne-time pprtunity t elect cverage thrugh a vluntary, retiree-pay-all grup dental plan thrugh MetLife. During the 2013 Annual Enrllment perid, MetLife will prvide details, including cst and cverage ptins. Questins and Assistance If yu have questins abut the infrmatin in this cmmunicatin, please cntact Merck's U.S. Supprt Center at 866-MRK-HR4U ( ) and press "0". Sincerely, Risa Erbes HR Leader, Merck Glbal Benefits Enc. This dcument is nt an fficial plan dcument r a summary plan descriptin. If any infrmatin included in this dcument r any website r any verbal representatin cnflicts in any way with the fficial plan dcument, the plan dcument shall cntrl. Merck (and its applicable subsidiaries) reserves the right t amend r terminate its plans, including plans prviding retiree health care, at any time, and nthing in this cmmunicatin in any way limits that right. Stay cnnected thrugh MerckCnnectins.cm, the website fr retirees f legacy Merck and legacy Schering-Plugh Feb LMRK Retiree

3 2013 Legacy Merck Retiree Medical Cverage Summary Chart Under the Current Prgram Under the New Prgram Ptential Impact Pre- Medical befre becming eligible fr Prescriptin drug befre yu becme eligible fr Varius ptins, including a PPO ptin with 90% in-netwrk, 70% ut-f-netwrk, an 80% indemnity ptin and a retiree medical catastrphic ptin* Administered by Aetna r Hrizn BCBS, based n plan ptin Cverage prvided thrugh Merck Managed Prescriptin Drug Prgram, administered by Medc Health Slutins Cverage is autmatic when yu enrll in Merck s retiree medical plan Chice f tw PPO ptins*: Cre plan with 80% in-netwrk, 70% ut-f-netwrk Buy-up plan with 90% in netwrk, 70% ut-f-netwrk Administered by Aetna r Hrizn BCBS (yur chice) N change Different chices fr cverage ptins 80% indemnity ptin and retiree medical catastrphic ptins will n lnger be available Nne Benefits vary depending n if the drug is generic, brand name r a Merck brand drug, and if purchased at a retail pharmacy r by mail thrugh the Medc Pharmacy *The fllwing ptins will remain available t current participants and clsed t new entrants: Merck PPO Hybrid - Hrizn BCBS; Merck PPO Hybrid Aetna Chice POS II; Kaiser Permanente HMO. 1

4 Under the Current Prgram Under the New Prgram Ptential Impact Medical after yu becme eligible fr Same ptins available as thse available pre- are crdinated with, with paying primary and the Merck medical plan paying secndary Administered by Aetna r Hrizn BCBS 80% indemnity ptin* are crdinated with, with paying primary and the Merck medical plan paying secndary Administered by Aetna r Hrizn BCBS (yur chice) One ptin available nce yu are -eligible If yu have split cverage (ne family member is eligible and anther is nt), yu can elect nly ne plan administratr fr yur family Pst- Prescriptin drug after yu becme eligible fr Cverage prvided thrugh Merck Managed Prescriptin Drug Prgram, administered by Medc Health Slutins Cverage is autmatic when yu enrll in Merck s retiree medical plan Benefits vary depending n if the drug is generic, brand name r a Merck brand drug, and if purchased at a retail pharmacy r by mail thrugh the Medc Pharmacy Prvided under a new plan, which is a cmbinatin f a grup Part D plan called an Emplyer Grup Waiver (EGWP) and a supplemental plan spnsred by Merck and administered by Medc Prescriptin cverage under the EGWP and the supplemental plan are designed t be generally cmparable t the prvided t pre- participants Generally cmparable t the level f prescriptin drug cverage prvided t pre- participants Yu may be required t pay a premium surcharge if yur annual incme in retirement is ver $85,000 (single) r $170,000 (married) Benefits are the same as thse prvided t pre- participants *The fllwing ptins will remain available t current participants and clsed t new entrants: Merck PPO Hybrid - Hrizn BCBS; Merck PPO Hybrid Aetna Chice POS II; Kaiser Permanente HMO. 2

5 2013 Legacy Merck Retiree Dental Cverage Summary Chart Under the Current Prgram Under the New Prgram Ptential Impact Dental Cverage Cverage Optin Eligibility t receive Merck's Subsidy Merck-spnsred and subsidized retiree dental plan Same plan prvisins as dental cverage ffered t active Merck emplyees Leave Merck at age 55 r later with at least 10 years f service earned after age 40 Access t vluntary, unsubsidized dental cverage thrugh MetLife if yu reside in the U.S. Tw plan ptins will be available The plan is nt spnsred by Merck Nt available Cverage and csts determined by MetLife Cverage level is different frm active emplyee dental plan, as determined by MetLife Yu pay the full cst Csts vary by state and zip cde 3