Document:

The P&G Future Shares Plan

 EXHIBIT (10-7) 

THE PROCTER & GAMBLE FUTURE SHARES PLAN 

 The Procter & Gamble Future Shares Plan 

 
 Contents 

 
  
  

 

			
	 Article 1. Establishment, Objectives, and Duration
	  	1
		
	 Article 2. Definitions
	  	1
		
	 Article 3. Administration
	  	3
		
	 Article 4. Shares Subject to the Plan
	  	3
		
	 Article 5. Eligibility and Participation
	  	4
		
	 Article 6. Awards
	  	4
		
	 Article 7. General Provisions
	  	6

 The Procter & Gamble Future Shares Plan 

Article 1. Establishment, Objectives, and Duration 

1.1      Establishment of the Plan. The Procter & Gamble Company, an Ohio corporation
(hereinafter referred to as the “Company”), hereby establishes a worldwide stock option plan to be known as “The Procter & Gamble Future Shares Plan” (hereinafter referred to as the “Plan”), as set forth
herein. 
 1.2      Purpose. The purpose of the Plan is to advance the interests of
the Company by giving substantially all employees a stake in the Company’s future growth and success, to increase employee focus on the Company’s stock price, to strengthen the alignment of interests between employees and the
Company’s shareholders through the increased ownership of shares of the Company’s common stock, and to encourage employees to remain in the employ of the Company and its Affiliates. 

1.3      Duration of the Plan. The Plan shall become effective as of October 14, 1997
(the “Effective Date”). The Plan shall terminate on October 13, 2007. No Award may be granted after the termination date of the Plan, but Awards theretofore granted shall continue in force beyond that date pursuant to their terms.

 Article 2. Definitions 

Whenever used in the Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the
initial letter of the word shall be capitalized: 
  

	 	2.1	 “Affiliate” means any entity in which the Company has an ownership interest of fifty percent (50%) or more.

  

	 	2.2	 “Award” means a grant of an Option, a Modified Option, an SAR, or a Modified SAR under the Plan. 

 

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

 

	 	2.4	 “Code” means the Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time. 

 

	 	2.5	 “Committee” means the Compensation Committee of the Board or such other committee appointed by the Board to administer the Plan.

  

	 	2.6	 “Common Stock” means the common stock, without par value, of the Company. 

 

	 	2.7	 “Company” means The Procter & Gamble Company, an Ohio corporation, and any successor thereto. 

 

	 	2.8	 “Disability” or “Disabled” shall mean qualifying for benefits under a long-term disability pay plan maintained by the
Company or any Affiliate, or as required by or available under applicable local law, or in the absence of any such plan or local law, as determined by the Committee. 

	 	2.9	 “Employee” means a full- or part-time employee on the regular payroll of the Company or any Affiliate as of the Grant Date of an Award. For
purposes of this definition, “on the regular payroll” shall mean paid through the payroll department of the Company or an Affiliate (or, if there is no such payroll department, classified as a regular employee on the Company’s or
Affiliate’s employment records), and shall exclude individuals classified by the Company or Affiliate as intermittent or temporary, or as independent contractors, regardless of how such person may be classified by any federal, state, or local,
domestic or foreign, government agency or instrumentality thereof, or court. An individual whose only relationship to the Company or an Affiliate is that of a temporary employee (except regular employees on temporary assignment from another unit) or
leased employee (as defined in Section 414(n)(2) of the Code) shall not be an Employee unless determined otherwise by the Committee at its sole discretion. The determination of whether an individual is an “employee on the regular
payroll” shall be made solely according to the method of paying the individual for services, and such determination shall be within the discretion of the Committee. 

 

	 	2.10	 “Fair Market Value” means, unless determined otherwise by the Committee, the average of the high and low prices of a share of Common Stock on
the New York Stock Exchange on the date of measurement as determined by the Committee, and if there were no trades on such date, on the day on which a trade occurred next preceding such date, or as otherwise determined by the Committee.

  

	 	2.11	 “Grant Date” means such date, as determined by the Committee, upon which Awards are granted to Participants pursuant to the terms of this
Plan. 

  

	 	2.12	 “Modified Option” means an Option that must be exercised on the fifth anniversary of the Grant Date or forfeited.

  

	 	2.13	 “Modified SAR” means an SAR that must be exercised on the fifth anniversary of the Grant Date or forfeited. 

 

	 	2.14	 “Option” means a right to purchase a specified number of shares of Common Stock at the Option Price, which is not intended to qualify under
Code Section 422 as an Incentive Stock Option, except as otherwise provided in Section 6.1(k). 

  

	 	2.15	 “Option Price” means the price at which a share of Common Stock may be purchased by a Participant pursuant to an Option or a Modified Option.

  

	 	2.16	 “Participant” means an Employee who has been selected by the Committee in its sole discretion to receive an Award or who has outstanding an
Award granted under the Plan. 

	 	2.17	 “Retirement” means, strictly for purposes of this Plan, the termination of employment on or after the date the Participant has attained age
fifty-five (55), except as otherwise determined by the Committee. 

  

	 	2.18	 “SAR” means an Award pursuant to which the Participant receives a right to a cash settlement payment upon exercise equal to the excess of the
Fair Market Value of one share of Common Stock on the date of exercise over the Fair Market Value of one share of Common Stock on the Grant Date of the SAR, multiplied by the number of SARs granted. 

 

	 	2.19	 “Special Separation” means any termination of employment, except a termination for cause or a voluntary resignation that is not initiated or
encouraged by the Company, that occurs prior to the time a recipient is eligible to retire. 

  

	 	2.20	 “Spread Value” means the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the Fair Market Value of
one share of Common Stock on the Grant Date, multiplied by the number of shares of Common Stock underlying the Award. 

 Article 3.
Administration 
 The Plan and all Awards granted pursuant thereto shall be administered by the Compensation Committee
of the Board. The Committee may, from time to time, adopt rules and regulations for carrying out the provisions and purposes of the Plan. The Committee, in its absolute discretion, shall have the power to interpret and construe the Plan; provided,
however, that the Committee may designate persons other than members of the Committee to carry out such responsibilities of the Committee under the Plan as it may deem appropriate. Any interpretation of construction of any provision of this Plan by
the Committee shall be final and conclusive upon all parties. No member of the Committee or the Board shall be liable for any action or determination made hereunder in good faith. 

Article 4. Shares Subject to the Plan 

4.1      Number of Shares Available for Options. The number of shares of Common Stock available
with respect to all Awards granted under the Plan shall not exceed thirty-four million (34,000,000) in the aggregate, subject to adjustment under Section 4.2 herein. The shares of Common Stock subject to the Plan shall consist of either
authorized but unissued shares or treasury shares, as determined by the Committee. Notwithstanding any terms or conditions contained herein, the shares to be delivered by the Company upon exercise of an Award by a Participant located in Italy shall
be authorized but unissued shares. 
 4.2      Changes in Capitalization. In the
event of any future reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off or other change affecting the corporate
structure, capitalization or Common Stock of the Company occuring after the date of approval of the Plan by the Company shareholders, appropriate 

 
adjustments and changes shall be made by the Committee to the extent necessary to prevent dilution or enlargement of rights under the Plan in (a) the aggregate number of shares of Common
Stock subject to the Plan; (b) the number of shares of Common Stock for which Awards may be granted or awarded to any Participant; (c) the number of shares and the Option Price per share of all shares of Common Stock subject to outstanding
Options or Modified Options, as applicable; (d) the number of SARs or Modified SARs subject to an Award and the Fair Market Value of a share of Common Stock for purposes of determining the cash settlement payment on exercise of an SAR or
Modified SAR, as applicable; and (e) such other provisions of the Plan as may be necessary and equitable to carry out the foregoing purposes. 

Article 5. Eligibility and Participation 

An Award may be granted by the Committee, in its discretion, to an Employee who is actively employed by the Company or any Affiliate
on the Grant Date. The granting of Awards under the terms of this Plan is made at the sole discretion of the Committee and does not entitle a Participant to receive future Awards. The adoption of this Plan shall not be deemed to give any Participant
any right to be granted an Award, except to the extent as may be determined by the Committee. 
 Article 6. Awards 

6.1      Awards. The Award to each Participant under the Plan shall consist of either Options,
Modified Options, SARs, or Modified SARs. The Committee shall determine (i) the number of shares of Common Stock to be covered by each Award; (ii) the terms and conditions of the Awards (including, but not limited to, restrictions upon the
Awards, when Awards are first exercisable and the period of exercise, conditions of their exercise, requirements regarding payment of the exercise price, withholding requirements and restrictions on the shares of Common Stock issuable upon the
exercise thereof); and (iii) the form of the instruments necessary or advisable in the administration of the Awards. 

(a)      Term of Award. The term of each Award shall be no more than ten (10) years from
the Grant Date, except as provided in Section 6.1(k). 
 (b)      Option Price.
With respect to an Option or Modified Option, the Option Price shall be not less than the Fair Market Value of the Common Stock on the Grant Date. 

(c)      Exercise and Limitations on Exercise. Except as otherwise provided for herein, if a
Participant has been in the continuous employ of the Company through the fifth anniversary of the Grant Date, at any time on or after the fifth anniversary of the Grant Date, but in no event later than the tenth anniversary of the Grant Date (except
as provided in Section 6.1(k)), the Participant may exercise the Award, and purchase the number of shares of Common Stock covered by the Option (or Modified Option if the Award is exercised on the fifth anniversary of the Grant Date), or
receive the cash settlement payment with respect to the SAR (or Modified SAR if the Award is exercised on the fifth anniversary of the Grant Date), as applicable. An Award must be exercised for the full number of shares of Common Stock covered by
the Option or Modified Option, or for the entire cash settlement payment with respect to the SAR or Modified SAR, as applicable. Notwithstanding the foregoing, stock options and stock 

 
appreciation rights granted hereunder shall vest immediately upon a “Change in Control.” A “Change in Control” shall mean the occurrence of any of the following: 

(i)        An acquisition (other than directly from the Company) of any voting securities
of the Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has “Beneficial Ownership”
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Company’s then outstanding Voting Securities; provided,
however, in determining whether a Change in Control has occurred pursuant to this Section 6.1(c), Shares or Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A “Non-Control Acquisition” shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a “Related Entity”), (ii) the
Company or any Related Entity, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined); 

(ii)        The individuals who, as of July 11, 2000 are members of the Board (the
“Incumbent Board”), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the
ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company’s common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new
director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board
(a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 

(iii)        The consummation of: 

        (A)        A merger, consolidation or
reorganization with or into the Company or in which securities of the Company are issued (a “Merger), unless such Merger is a “Non-Control Transaction.” A “Non-Control Transaction” shall mean a Merger where: 

                (1)     
   the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of
(x) the corporation resulting from such Merger (the “Surviving Corporation”) if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially
Owned, directly or indirectly by another Person (a “Parent Corporation”), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; 

                (2)     
   the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving
Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and 

                (3)     
   no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related
Entity, or (4) any Person who, immediately prior to such Merger had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of twenty percent (20%) or more of
the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation;

         (b)        A complete
liquidation or dissolution of the Company; or 

        (c)        The sale or other disposition
of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this
purpose or the distribution to the Company’s stockholders of the stock of a Related Entity or any other assets). 
 Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the then outstanding Shares or Voting Securities as a
result of the acquisition of Shares or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided
that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Shares or Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional Shares or Voting Securities which increases the percentage of the then outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur. 

(d)      Termination of Employment Generally.  

(i)        If a Participant’s employment is terminated on or after the
fifth anniversary of the Grant Date, for any reason other than death, Disability, Retirement, or Special Separation the Award shall be exercisable only for thirty (30) calendar days following such termination, and only to the extent such Award
was exercisable on the date of such termination, except as may be otherwise determined by the Committee. In no event, however, may an Award be exercised more than ten 

 
(10) years after the Grant Date, except as provided in Section 6.1(k). If a Participant’s employment is terminated prior to the fifth anniversary of the Grant Date, for any reason other
than death, Disability, Retirement, or Special Separation, each Award granted to such Participant shall be immediately canceled and the Participant shall forfeit the Award upon such termination of employment. 

(ii)        Neither the Company nor the Committee shall have any obligation
to notify a Participant of the expiration of an Award. 

(iii)        Unless the Committee shall determine otherwise, a Participant
employed by an Affiliate or business unit of the Company that is sold or otherwise divested from the Company shall be considered to have his or her employment terminated as of the effective date of the divestiture. 

(e)      Termination of Employment Due to Disability or Retirement. 

(i)        If prior to the fifth anniversary of the Grant Date a
Participant’s employment is terminated due to Disability or Retirement, the Award may be exercised on or after the fifth anniversary of the Grant Date, but in no event may such an Award be exercised more than ten (10) years after the Grant
Date, except as provided in Section 6.1(k). If a Participant’s employment is terminated due to Disability or Retirement on or after the fifth anniversary of the Grant Date, the Award may be exercised, to the extent such Award was
exercisable on the date of such termination, within the remaining period of the Award. 

(ii)        Notwithstanding the above and except for Participants located
in Italy, the Committee reserves the discretionary ability to substitute an immediate cash payment equal to the Spread Value of the Award in full satisfaction of the Award, in the event of a termination of employment due to Disability or Retirement
to the extent such payment is permitted by law. 
 (f)      Termination of Employment due
to Special Separation. 
 (i)        If a Participant’s
employment is terminated due to Special Separation (except for Participants located in Italy), the Participant will receive an immediate cash payment equal to the Spread Value of the Award in full satisfaction of the Award, to the extent permitted
by law. 
 (ii)        Notwithstanding the above, the Committee
reserves the discretionary ability to waive the above cash payment provision and: (1) for terminations of employment due to Special Separation prior to the fifth anniversary of the Grant Date, specify that the Award may be exercised on or after
the fifth anniversary of the Grant Date, but in no event may such an Award be exercised more than ten (10) years after the Grant Date, except as provided in Section 6.1(k); and (2) for terminations of employment due to Special
Separation on or after the fifth anniversary of the Grant Date, specify that the Award may be exercised, to the extent such Award was exercisable on the date of such termination, within the remaining period of the Award. 

 (g)      Death of a Participant. Upon the death
of a Participant, while an Award is still outstanding, regardless of whether the Award is or is not exercisable, a cash payment equal to the Spread Value of the Award, as of the date of the Participant’s death, shall be paid as soon as
administratively practicable to the Participant’s estate, in full satisfaction of the Award. Notwithstanding the above, upon the death of a Participant located in Italy, the outstanding Award granted to such Participant shall be
(i) immediately canceled if the death occurs prior to the fifth anniversary of the Grant Date, or (ii) exercisable by the executors, administrators or heirs of the deceased Participant only for six (6) months following such death if
the death occurs on or after the fifth anniversary of the Grant Date. 

(h)      Nontransferability. Awards are not transferable and may only be exercised by the
Participant. 
 (i)      Exercise; Notice Thereof. Awards shall be exercised by
delivering written notice of intention to exercise the Award, pursuant to such terms and conditions as may be determined by the Committee. The Committee shall have the authority to establish procedures under any or all methods of exercise, including
the designation of the brokerage firm or firms through which exercises may be effected, which need not be the same for each grant or for each Participant. The Committee shall have the authority to change without notice any method of exercise for any
reason whatsoever, notwithstanding the fact that the method of exercise had been available to Participants in the past. 

(j)      Rights as Shareholder. A Participant shall have none of the rights of a shareholder
with respect to shares of Common Stock covered by any Award until the Participant becomes the record holder of such shares as determined by the records of the Company’s transfer agent. 

(k)      Additional Terms. With respect to any Award, the Committee may, in its discretion:
(i) determine which Affiliates will be covered by the Plan; (ii) determine which Employees are eligible to participate in the Plan; (iii) modify or restrict any of the terms and conditions of any Awards including but not limited to
extending the term of an Award beyond ten (10) years; (iv) modify or restrict exercise procedures and any other Plan procedures; (v) establish local country plans as subplans to this Plan, each of which may be attached as an Appendix
hereto; and (vi) take any action, before or after an Award is made, which it deems advisable to obtain or comply with any necessary local government regulatory exemptions or approvals; provided that the Committee may not take any action
hereunder which would (1) increase the number of shares of Common Stock covered by the Plan; or (2) violate any securities law, the Code, or any governing statute. 

(l)      Stock Appreciation Rights. The Committee may grant SARs or Modified SARs, as
applicable, in lieu of Options or Modified Options under the Plan. 

 6.2      Refusal of Award. Any Participant may
refuse the grant of an Award by notifying the Committee of his or her refusal in writing in a form and pursuant to procedures to be determined by the Committee. 

Article 7. General Provisions 

7.1      No Additional Rights. Nothing in the Plan shall interfere with or limit in any way the
right of the Company to terminate any Participant’s employment at any time, or confer upon any Participant any right to continue in the employ of the Company. No Employee shall have the right to be selected to receive an Award under this Plan
or having been so selected, to be selected to receive a future Award. Neither the Award nor any benefits arising under this Plan shall constitute part of a Participant’s employment contract with the Company or any Affiliate, and accordingly,
this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to liability on the part of the Company or any Affiliate for severance payments. 

7.2      No Effect on Other Benefits. The receipt of Awards under the Plan shall have no
effect on any benefits and obligations to which a Participant may be entitled from the Company or any Affiliate, under another plan or otherwise, or preclude a Participant from receiving any such benefits. 

7.3      Binding Effect. Any decision made or action taken by the Company, the Board, or by
the Committee arising out of or in connection with the construction, administration, interpretation, and effect of the Plan shall be conclusive and binding upon all persons, including the Company, its shareholders, Employees, Participants, and their
estates and beneficiaries. 
 7.4      Inalienability of Benefits and Interest. No
benefit payable under, or interest in, the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any such attempted action shall be void and no such benefits or interest
shall be in any manner liable for or subject to debts, liabilities, engagements, or torts of any Participant or beneficiary. 

7.5      Requirements of Law. The granting of Awards and the issuance of shares of Common
Stock under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

7.6      Governing Law. To the extent not preempted by federal law, the Plan and all
agreements hereunder shall be construed in accordance with and governed by the laws of the state of Ohio. 

7.7      Withholding. The Company shall have the power and the right to deduct or withhold, to
require an Affiliate to deduct or withhold, or to require a Participant to remit to the Company or an Affiliate, an amount sufficient to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Plan. 

 7.8      Amendments. Subject to the terms of the
Plan, the Committee may at any time and from time to time alter, amend, suspend, or terminate the Plan in whole or in part. 
 Adopted
October 14, 1997 
 Article 2, Paragraph 2.19 added, Article 4, Paragraph 4.1 amended, Article 6, Paragraphs 6.1(d)(i),
(e) (i) and 
           (ii) and (f) amended – May 12,
1998 
 Article 4, Paragraph 4.1 amended – April 11, 2000 

Article 2, Paragraph 2.19 amended – June 13, 2000 

Article 6, Paragraph 6.1(c) amended and Paragraph 6.1(c)(i), (ii) and (iii) adopted – July 11, 2000 

Article 4.2 amended – December 11, 2001 

Article 6, Paragraph 6.1(e) changed; Article 6, Paragraph 6.1(f) adopted – March 11, 2003 

Article 6, paragraphs 6.1(f)(i) and (ii) amended June 10, 2003 

Adjusted for stock split effective May 21, 2004Summary of the Company's Short Term Achievement Reward Program

 EXHIBIT (10-10) 

Summary of the Company’s Short Term Achievement Reward Program and Related Correspondence and Terms and Conditions 

 SHORT TERM ACHIEVEMENT REWARD PROGRAM 

The Short Term Achievement Reward (“STAR”) Program is The Procter & Gamble Company’s (the “Company”) annual bonus
program designed to motivate and reward employees for achieving outstanding short term business results for the Company and its subsidiaries. STAR awards are made pursuant to authority delegated to the Compensation & Leadership Development
Committee (the “C&LD Committee”) by the Board of Directors for awarding compensation to the Company’s principal officers and for making awards under the Procter & Gamble 2009 Stock and Incentive Compensation Plan (the
“2009 Plan”) or any successor stock plan approved in accordance with applicable listing standards. 
  

	I.	ELIGIBILITY 

 Employees at Band 3
or above and who worked at least 28 days (four calendar weeks) during the applicable fiscal year are eligible to participate. Eligible employees who do not work a full schedule (e.g., leaves of absence, disability, and less-than-full time schedules)
in the fiscal year in which the award is payable may have awards pro-rated. 
  

	II.	CALCULATION 

 The individual STAR
Award is calculated as follows: 
 (STAR Target) x (Business Unit Performance Factor) x (Total Company Performance Factor) 

 

	•	 	 The STAR Target for each participant is calculated as: 

(Base Salary) x (STAR Target percent) 

Base Salary at the end of the applicable fiscal year is used to calculate the STAR award. 

Generally, the STAR Target Percent is dependent on the individual’s position and level (Band) in the organization. The STAR
Target percent for participants at Band 7 or above is set by the C&LD Committee. The STAR Target percent for all other participants is set by the Chief Executive Officer, with the concurrence of the Global Human Resources Officer, pursuant to
authority delegated to them by the C&LD Committee. If an individual’s position and/or level changes during a fiscal year, and that change results in a new STAR Target Percent, the STAR Target Percent is pro-rated according to the amount of
time in each position/level during the fiscal year.
 The Business Unit Performance Factor is based on the fiscal year success for the
appropriate STAR business unit. The STAR business units are defined by the Global Human Resources Officer and may consist of business categories, segments, geographies, functions, organizations or a combination of one or more of these items. The
STAR business units will be defined within ninety (90) days of the beginning of the fiscal year, but may be adjusted as necessary to reflect business and/or organizational changes (e.g., reorganization, acquisition, merger, divestiture, etc.).
The Business Unit Performance Factors can range from 53% to 167% with a target of 100%. In general, a committee consisting of at least two of the Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Global Human Resources Officer
and/or the Chief Operating Officer (the “STAR Committee”), conducts a comprehensive retrospective assessment of the fiscal year performance of each STAR business unit against previously established goals for one or more of the following
measures: Operating Total Shareholder Return, Key Competitor Comparison, After 

 
Tax Profit, Operating Cash Flow, Value Share, Volume, Net Outside Sales, Customer spending effectiveness, SRAP cost progress, Transportation and warehouse cost progress, Internal controls,
Accounts receivable payscore (collection effectiveness), Organization Head Self Assessment, and Cross Organization Assessment. The STAR Committee makes a recommendation of an appropriate Business Unit Performance Factor to the C&LD Committee.
There may also be other factors significantly affecting STAR business unit results positively or negatively which can be considered by the STAR Committee when making its recommendation. No member of the STAR Committee makes any recommendation or
determination as to their own STAR award. As a result, there are certain instances in which a Business Unit Performance Factor recommendation to the C&LD Committee must be made exclusively by the Chief Executive Officer. 

 

	•	 	 The Total Company Performance Factor is based on the total Company’s success during the fiscal year and ranges from 80% to 130%, with a
target of 100%. The same Total Company Performance Factor is applied to all STAR award calculations, regardless of STAR business unit. It is determined using a matrix which compares results against pre-established goals for fiscal year organic sales
growth and core earnings per share (“EPS”) growth for the fiscal year. 

 While the STAR Committee makes
recommendations to the C&LD Committee regarding the Business Unit and Total Company performance factors to be applied to all STAR awards (except those for the STAR Committee members), only the final award amounts for principal officers are
approved specifically by the C&LD Committee. The C&LD Committee has delegated the approval of STAR awards for other participants to the Chief Executive Officer. The C&LD Committee has discretion to use, increase or decrease the
performance factors recommended by the STAR Committee and/or to choose not to pay STAR awards during a given year. 
 Each year the C&LD
Committee approves a cash pool for STAR awards equal to a percentage of profit, and the C&LD Committee sets a limit on the portion of that pool which can be awarded to each of the Named Executives subject to Section 162(m) of the Internal
Revenue Service code. This ensures that any STAR awards paid to such executives are fully tax deductible by the Company. 
  

	III.	TIMING AND FORM 

 STAR awards are
determined after the close of the fiscal year and are paid on or about September 15. The award form choices and relevant considerations are explained in payment preference materials generally in the form of Appendix 1. Participants
receive written notice of their award detailing the calculation, generally in the form of Appendix 2. The grant letters used for those employees who elect to receive awards in stock options or restricted stock units are generally in the form
of Appendix 3. 
 Generally, STAR awards are paid in cash. However, before the end of the calendar year preceding the award date,
eligible participants can elect to receive their STAR award in forms other than cash. Alternatives to cash include stock options, local deferral programs (depending on local regulations in some countries), or restricted stock units and/or deferred
compensation (for participants also in the Business Growth Program). The Company converts cash to other forms of payment (e.g., stock options, restricted stock units, etc.) using a conversion factor that is reviewed and approved by the C&LD
Committee annually. Any STAR award paid in stock options, restricted stock units or other form of equity shall be awarded pursuant to this program and the terms and conditions of the 2009 Plan or any successor stock plan approved in accordance with
applicable listing standards, as they may be revised from time to time. 

	IV.	SEPARATION FROM THE COMPANY 

  

	•	 	 Retirement, Death or Special Separation with a Separation Package: If a participant worked at least 28 days (4 calendar weeks) during the
fiscal year, the STAR award is pro-rated by dividing the number of calendar days the participant was an “active employee” during the fiscal year by 365. 

 

	•	 	 Voluntary Resignation or Termination for cause: Separating employees must have been active employees as of June 30 (the close of the fiscal
year for which the award is payable) to receive an award. 

 Eligible participants who have left the Company will receive a
cash payment (equity such as stock options and RSUs can only be issued to active employees) on the same timing as STAR awards or as soon thereafter as possible. 
  

	V.	CHANGE IN CONTROL 

 Notwithstanding
the foregoing, if there is a Change in Control in any fiscal year, STAR awards will be calculated in accordance with Section II above, but each factor will be calculated for the period from the beginning of the fiscal year in which a Change in
Control occurred up to and including the date of such Change in Control (“CIC Period”). “Change in Control” shall have the same meaning as defined in the 2009 Plan or any successor stock plan. 

 

	VI.	GENERAL TERMS AND CONDITIONS 

While any STAR award amount received by one individual for any year shall be considered as earned remuneration in addition to salary paid, it shall be
understood that this plan does not give to any officer or employee any contract rights, express or implied, against any Company for any STAR award or for compensation in addition to the salary paid to him or her, or any right to question the action
of the Board of Directors or the C&LD or STAR Committees. 
 Each award to the Chairman of the Board, Chief Executive Officer, Vice-Chairs,
Group Presidents, Presidents, Global Function Heads and Senior Vice Presidents and equivalents, made pursuant to this plan, is subject to the Senior Executive Recoupment Policy adopted by the C&LD Committee in December 2006. 

This program document may be amended at any time by the C&LD Committee. 

 Appendix 1: Payment Preference Materials for STAR Awards 

[DATE] 
 [NAME] 

Subject: Preferences for [YEAR] STAR Payments and Deferred Compensation Choices 

Your choices for the awards are: 

September [YEAR] STAR Award 
  

	 	•	 	 Cash 

  

	 	•	 	 Stock Options 

  

	 	•	 	 Restricted Stock Units (for BGP participants only) – no forfeiture provision 

 

	 	•	 	 Deferred Compensation (for BGP participants only) 

Attached you will find an election form to be returned to [NAME]. 

Please keep the following in mind as you consider your choices: 
  

	 	•	 	 It is recommended that you consult legal/tax/financial advisors to determine the appropriate award form(s) for your personal situation.

  

	 	•	 	 While your selection will be given consideration, it is not binding on the Company until approved by the Compensation & Leadership Development
Committee of the Board of Directors. 

 IF YOU MISS THE [DATE] DEADLINE, YOU WILL RECEIVE THE DEFAULT (CASH). 

[NAME] 

 [YEAR] EXECUTIVE COMPENSATION AWARD FORM PREFERENCES 

[YEAR] STAR Award Payable [DATE] [YEAR] Preference Selection 
  

								
	 Cash
	  	        	% 	 		  	
	 Stock Options
	  	        	% 	 		  	
	 Restricted Stock Units
	  	        	% 	 		  	                            
(Select year you want shares delivered, e.g., [YEAR], or one year after retirement)
	 Deferred Compensation
	  	        	% 	 		  	
	 Total
	  	100	% 	 		  	

  

	 	•	 	 You must be an active employee as of the award date to receive any non-cash award 

 

	 	•	 	 Any election by you to delay the settlement date of your RSUs does not in any way alter or amend the terms of The Procter & Gamble 2009 Stock
and Incentive Compensation Plan, any successor plan(s) under which awards are granted, the Regulations of the Compensatoin and Leadership Development Committee of the Board of Directors and/or the Statement of Terms and Conditions for Restricted
Stock Units pursuant to which the subject RSUs were granted. 

  

	 	•	 	 Your signature below indicates your agreement that any awards granted or paid pursuant to the STAR and/or BGP programs will be subject to the terms of
the Senior Executive Officer Recoupment Policy. This Policy provides that in the event of a significant restatement of financial results, if compensation paid pursuant to STAR and/or BGP would have been lower based on restated results, the
Compensation and Leadership Development Committee may seek to recoup from the senior executive officers some or all of the compensation paid pursuant to STAR and/or BGP. A copy of the policy is available from [NAME]. 

 

	 	•	 	 All elections are irrevocable after [DATE]. 

  

					
	  	  	  	 	  
	  	  	  	 	  
	Signature	  		 	Date

 Return form to [NAME] 

 Appendix 2: STAR Award Letter 

[DATE] 
 Fellow P&G Leaders: 

I am pleased to announce the average STAR award for [YEAR] is [NUMBER] % of target. STAR awards are a determined based on your individual Business Unit
Performance Factor and a Total Company Factor. Business Unit Performance Factors are decided by the STAR Committee based on a retrospective assessment of each unit’s performance. The Total Company Factor is calculated based on P&G’s
organic sales growth and earnings per share. [EXPLANATION OF COMPANY RESULTS and COMPARISON TO PREVIOUS YEAR] 
 Actual STAR awards as a
percentage of target [HISTORICAL COMPARISON OF RESULTS TO PREVIOUS YEAR(S)] 
 By remaining choiceful, focused, and disciplined, we can look
forward to future success. Well done! Thanks. 
 [NAME] 

Personal & Confidential 

Individual Award Summary 
 [NAME]

 Your STAR Award is [NUMBER] payable in [FORM] 
  

													
	[Number]	 	    x    	 	[Number]%	 	    x    	 	[Number]%	 	    =    	 	Number
	STAR Target	 	x	 	 Business Unit Performance

Factor
	 	x	 	 Total

Company Performance Factor
	 	=	 	 STAR

Award

STAR Target 
  

							
	Based on	  	June 30 [YEAR] Base Salary:	  	[NUMBER]	  	
				
		  	Band Level(s) during [YEAR]:	  	[NUMBER]	  	
				
		  	STAR Target Percent:	  	[NUMBER]	  	
		  	(Adjusted and/or prorated, as appropriate)	  		  	
				
		  	Base x STAR Target Percent:	  	[NUMBER]	  	
				
		  	Your STAR Target:	  	[NUMBER]	  	

 Business Unit Performance Factor 

 

							
	 Business Unit
	 	 Weight
	 	 Performance Factor
	  	 
	[Business Unit]	 	[NUMBER]	 	[NUMBER] %	  	

 Total Company Performance Factor 

 

					
	Organic Sales Growth	  	[NUMBER]	  	
	Earnings Per Share	  	[NUMBER]	  	
	Total Company Performance Factor	  	[NUMBER] %	  	

 Your STAR Award is [NUMBER] % of STAR Target 

 Appendix 3: Cover letter for STAR Grant 

in Stock Options and Stock Appreciation Rights 

 

	TO:	    Short Term Achievement Reward (STAR) Recipients of P&G Stock Options and Stock Appreciation Rights* 

The attached stock option grant letter refers to your STAR award. The grant was determined by dividing the gross award amount to be paid in stock options
(shown on your award summary previously distributed) by the [DATE] closing stock price of $ [NUMBER]. The result was multiplied by [NUMBER] and then rounded up to the next full share. No further action to accept this grant is required. 

You may retain these STAR stock options until their expiration date in [NUMBER] years even if you leave the Company, as long as you are in good standing.
This is true for STAR stock options only as they represent payment for the award that you have already earned. These options will vest in [NUMBER] years. 

Stock options are granted under the terms and conditions of the 2009 Procter & Gamble Stock and Incentive Compensation Plan and the Regulations
of the Compensation and Leadership Development Committee of the Board of Directors. The updated plan prospectus is available via the [WEBSITE]. 

Please keep a copy of the grant letter for your records. If you have any questions about the award granted, please direct them to [NAME]. Questions
related to the exercise process should be directed to [NAME]. 
 [NAME] 

 

	*	Recipients of stock appreciation rights should see their subsidiary Chief Financial Officer regarding the procedure for redeeming such rights. 

 Grant Letter for STAR Award in Stock Options 

and Stock Appreciation Rights 

[DATE] 
 [NAME] 

Subject:            Non-Statutory Stock Option Series xx-STAR-xx 

In recognition of your contributions to the success of the business, the Procter & Gamble Company (“Company”) hereby grants to you an
option to purchase shares of the Procter & Gamble Common Stock as follows: 
  

			
	Grant Value:	  	[NUMBER]
	Option Price per Share:	  	[NUMBER]
	Number of Shares:	  	[NUMBER]
	Date of Grant:	  	[DATE]
	Expiration of Option:	  	[DATE]
	Option Exercisable:	  	[NUMBER]% after [DATE]

 This stock option is granted in
accordance with and subject to the terms of The Procter & Gamble 2009 Stock and Incentive Compensation Plan (including any applicable sub-plan) (the “Plan”), the Regulations of the Compensation & Leadership Development
Committee of the Board of Directors (the “Committee”), and the Exercise Instructions in place as may be revised from time to time, 

You may access, download and/or print the terms, or any portion thereof, of the Plan by activating this hyperlink [LINK]. Nonetheless, if you would
prefer to receive a paper copy of The Procter & Gamble 2009 Stock and Incentive Compensation Plan and/or the Regulations, please send a written request via email to [EMAIL ADDRESS]. Please understand that you will continue to receive future
Plan materials and information via electronic mail even though you may have requested a paper copy. 
 This option is not transferable other
than by will or the laws of descent and distribution and is exercisable during your life only by you. The Compensation & Leadership Development Committee has waived the provisions of Article G, paragraph 9 in the event of separation from
the Company. 
 Please note that when the issue or transfer of the Common Stock covered by this option may, in the opinion of the Company,
conflict or be inconsistent with any applicable law or regulation of any governmental agency, the Company reserves the right to refuse to issue or transfer said Common Stock and that any outstanding stock options may be suspended or terminated and
net proceeds may be recovered by the Company if you fail to comply with the terms and conditions governing this award. 
 Under IRS standards of
professional practice, certain tax advice must meet requirements as to form and substance. To assure compliance with these standards, we disclose to you that this communication is not intended or written to be used, and cannot be used, for the
purpose of avoiding penalties, or promoting, marketing or recommending to another party any transaction or matter addressed herein. 
 You do
not need to do anything further to accept this award under the terms of the 2009 Stock Plan. 
  

	
	The Procter & Gamble Company
	[NAME]

 Grant Letter for STAR Award in RSUs 

[DATE] 
 [NAME] 

Subject:            Award of Restricted Stock Units (STAR) 

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with Restricted Stock Units, on the dates and in
the amounts listed below, pursuant to The Procter & Gamble 2009 Stock and Incentive Compensation Plan, and subject to the Regulations of the Compensation and Leadership Development Committee of the Board of Directors
(“Regulations”) and to the attached Statement of Terms and Conditions Form [CODE] 
  

			
	Grant Date:	  	[DATE]
	Original Settlement Date:	  	[DATE]
	Number of Restricted Stock Units:	  	[NUMBER]

 As you will see from the Statement of Terms
and Conditions Form [CODE], under certain circumstances you may agree with The Procter & Gamble Company to delay the settlement of your Restricted Stock Units beyond the Original Settlement Date. You may want to consult your personal tax
advisor before making a decision about this matter. 
  

	
	THE PROCTER & GAMBLE COMPANY
	                [NAME]

 

	 ̈	 	 I hereby accept the Award of Restricted Stock Units set forth above in accordance with and subject to the terms of The Procter & Gamble 2009
Stock and Incentive Compensation Plan, the Regulations and the attached Statement of Terms and Conditions for Restricted Stock Units, with which I am familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2009
Stock and Incentive Compensation Plan, the Regulations and the attached Statement of Terms and Conditions for Restricted Stock Units together constitute an agreement between the Company and me in accordance with the terms thereof and hereof, and I
further agree that any legal action related to this Award of Restricted Stock Units may be brought in any federal or state court located in Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to service of
process from said courts solely for legal actions related to this Award of Restricted Stock Units. 

  

	 ̈	 	 I hereby reject the Award of Restricted Stock Units set forth above. 

 
  

			
	 	  	
	Date                            
                                Signature

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