Document:

Exhibit 10.2 - BGP Plan and related correspondence

    

      

      Business
        Growth Program

      

      

      The
        Business Growth
        Program (“BGP”) is a part of The Procter & Gamble Company’s (the “Company”
or “P&G”) long-term incentive plan and is designed to provide additional
        focus on key Company measures for top executives with senior management
        responsibility for total Company results. Awards are made pursuant to the
        authority delegated by the Board of Directors to the Compensation &
Leadership Development Committee (the “Committee”) for awarding additional
        remuneration and the 2001 Stock and Incentive Compensation Plan.

      

      I. ELIGIBILITY

      

      The
        Chief Executive
        and those principal officers recommended by management and approved by the
        Committee may participate.

      

      

      II. CALCULATION

      

      A
        BGP Award may be
        payable for a three-year performance period starting on July 1 of the first
        year
        and ending on June 30 three years later (“Performance Period”). Interim awards
        may also be payable at the conclusion of the first and second years of the
        program. The Committee reviews and approves awards relative to the base period
        of the fiscal year preceding the first fiscal year of the Performance Period
        unless adjusted for the reasons set forth below. It assesses Company performance
        according to the pre-established financial measures of diluted earnings per
        share (“EPS”) growth and operating total shareholder return
        (“OTSR”).

      

      Adjustments
        may be
        made for significant acquisitions and divestitures, major equity investments,
        or
        other unusual items not reflected in the Company’s operating plan or base year
        results. In all cases, the Committee retains discretion to determine whether
        certain items should be included or excluded from award calculations and
        to
        verify that awards are appropriate and consistent with the long-term interests
        of shareholders. The Committee has the discretion to change the duration
        of the
        Performance Period. The Committee may reduce the Three Year Award if it
        determines that payouts do not correspond to actual business
        results.

      

      	·  	
              The
                Three-Year Award is
                calculated
                as: (Award Payout Factor) X (Participant's Target
                Award).

            

      

      The
Award
        Payout
        Factor
        ranging from 0% to
        200% is assessed relative to a performance level of EPS growth and
        OTSR.

      

      A
Participant’s
        Target Award
        is based on a
        multiple of the executive’s base salary at the beginning of any Performance
        Period. For the Chairman of the Board and Chief Executive the target is two
        times base salary, times the number of years participating in the Performance
        Period. For all others, the target is one times base salary times the number
        of
        years participating in the Performance Period.

      

      	·  	
              Interim
                Awards
                are payable
                only if EPS growth and OTSR meet or exceed targets relative to the
                base
                period at the end of the first year and the first two years combined,
                respectively. Interim awards are calculated using the same factors
                as the
                three-year award. However, each interim award is only a partial progress
                payment, paid at 30% of the full three-year calculation. Any interim
                payments are subtracted from the full three-year award when calculating
                the final BGP payment.

            

       

      III. TIMING
        AND FORM

      

      BGP
        awards are
        delivered on or about September 15th
        for
        the fiscal year
        just completed. Each year’s award, if payable, will be delivered half in
        three-year restricted stock units and half in cash. Participants may elect
        to
        receive restricted stock units, deferred compensation, or stock options (in
        special cases where RSUs are impractical due to local taxing) in place of
        the
        cash portion. Any award or portion of an award paid in restricted stock units,
        stock options, or other equity shall be awarded pursuant to this program
        and the
        terms and conditions of the 2001 Stock and Incentive Compensation Plan or
        any
        successor stock plan approved in accordance with applicable listing standards,
        as they may be revised from time to time. 

      

      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 are generally in the form of Appendix
        3.

       

      IV. SEPARATION
        FROM THE COMPANY

      

      	·  	
              Retirement,
                death or disability:

            

      	o  	
              If
                prior to
                completion of a fiscal year, the Chief Executive may allow an interim
                payment (typically if worked more than six months in the year) based
                on
                that year’s earned amount. Any such payment will be paid on the timing
                described above, and will be adjusted (if necessary) when the final
                payout
                is made at the end of the Performance
                Period.

            

      	o  	
              If
                after
                completion of fiscal year, an interim payment based on that year’s earned
                amount will be paid on the timing described above and adjusted (if
                necessary) when the final payout is made at the end of the Performance
                Period.

            

      

      	·  	
              Special
                Separation with a Separation
                Package:

            

      	o  	
              If
                prior to
                completion of the fiscal year, no interim or final payment will be
                paid.

            

      	o  	
              If
                after the
                completion of the fiscal year, the Chief Executive may exercise discretion
                in allowing the payment of the completed year’s payment. No final payment
                will be made at the end of the Performance
                Period.

            

      

      	·  	
              Voluntary
                resignation or termination for cause:

            

      	o  	
              Prior
                to the
                completion of Performance Period, forfeit any
                award.

            

      	o  	
              After
                completion of Performance Period but prior to payment date, final
                award
                will be paid.

            

       

      V. CHANGE
        IN CONTROL

      

      Notwithstanding
        the
        foregoing, if there is a Change in Control in any fiscal year, BGP 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”) and each target will be prorated at the time of Change in
        Control. “Change in Control” shall have the same meaning as defined in the 2001
        Stock and Incentive Compensation Plan.

       

      VI. GENERAL
        TERMS AND CONDITIONS

      

      While
        any interim
        or final payout received by an individual for any year under this program
        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 BGP award or future
        interim or final payout, 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
        Committee.

      

      Each
        award made to
        the Chief Executive, 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 Committee
        in
        December 2006.

      

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

      

      

      2/13/07

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Appendix
        1: Payment Preference Materials for BGP / STAR Awards

      

      [DATE]

      [NAME]

      

      Subject:
        Preferences
        for
        [YEAR] STAR and BGP 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)

            

      

      September
        [YEAR]
        BGP Award (if applicable)

      	·  	
              Three-Year
                Restricted Stock Units (50% of award required in this
                form)

            

      	·  	
              Cash,
                Restricted Stock Units - no forfeiture provision, or Deferred Compensation
                (50% of award subject to this election)

            

      

      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%

              	 

      

      

      [YEAR]
        Payment BGP Award Payable [YEAR] Preference Selection 

      (Complete
        for
        remaining 50%)

      
        	
                Three-Year
                  Restricted Stock Units (if you leave the Company within 3 years
                  of grant
                  for reasons other than retirement, you forfeit these
                  units)

              	
                ____50%
                  (required)

              	
                _______________
                  (Select year you want shares delivered, e.g., [three years after
                  grant
                  date, any year later than three years after grant date, or one
                  year after
                  retirement)

              
	
                Cash

              	
                ______%

              	 
	
                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

            

      	·  	
              All
                elections
                are irrevocable after [DATE].

            

      

      

      ____________________________________________ ________________________

      Signature      Date

      

      Return
        form to
        [NAME]

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Appendix
        2: BGP Award Letter (Three-Year Award example)

      

      [DATE]

      

      TO: [NAME]

      

      Your
        award is
        calculated by multiplying your three-year target times the payout factor
        and
        subtracting any interim payments made to you in Year 1 and Year 2.

      

      
        	Three-Year
                Target:	$[NUMBER] 
	 Payout
                Factor:	[NUMBER]%
	 Total
                Award:	$[NUMBER] 
	 Interim
                Payment Year 1:	$[NUMBER] 
	 Interim
                Payment Year 2:	$[NUMBER] 
	 Final
                BGP Payment:	$[NUMBER] 

      

      

      Your
        final BGP
        award is $[NUMBER]. You will receive 50% of your award in three-year restricted
        stock units consistent with the program design. The other 50% will be delivered
        in the form shown below which you designated in your previous election(s).
        Your
        award will be paid on September 15.

       

      
        	Payment
                Preference	 
	 3-Year
                RSUs:	[NUMBER]
	 Cash:	$[NUMBER] 
	 RSUs:	[NUMBER] 
	 Deferred
                Compensation:	$[NUMBER] 

      

       

      Thank
        you for your
        leadership in achieving outstanding business and organizational results during
        the past three years.

      

      [NAME]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Appendix
        3: Grant Letter for BGP Award in Restricted Stock
        Units

      

      

      [DATE]

      [NAME]

      

       

      Subject: Award
        of Restricted Stock Units
        - BGP
        [Three-Year / Elected]

       

      

      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 2001 Stock and Incentive Compensation Plan,
        and subject to the attached Statement of Terms and Conditions Form
        [CODE]

       

      
        
          	Grant
                  Date:	[DATE] 
	Forfeiture
                  Date [for Three-Year RSUs only]:	[DATE]
	Original
                  Settlement Date:	[DATE] 
	Number
                  of
                  Restricrted Stock Units:	[NUMBER] 

        

      Paragraph
        3(a) of
        Statement of Terms and Conditions Form [CODE] is not waived. 

      

      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]

      

      

      
        	
                
                  o

                

              	
                I
                  hereby
                  accept the Award of Restricted Stock Units set forth above in accordance
                  with and subject to the terms of The Procter & Gamble 2001 Stock and
                  Incentive Compensation Plan 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 2001
                  Stock and Incentive Compensation Plan, 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. 

              

      

      

      
        	
                o

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

              

      

      

      

      

      _________________________________________________________________________

      Date                                     SignatureExhibit 10.3 - Voluntary Separation Agreement and Release

    

      

      VOLUNTARY
        SEPARATION AGREEMENT AND RELEASE

      

      Purpose 

      This
        document
        contains my agreement with my employer, The
        Procter
& Gamble Company, ("P&G"),
        resulting from my decision to voluntarily end my employment on
        ____________(“Last
        Day of
        Employment”). This is a legally binding document in which P&G commits itself
        to pay me a cash separation allowance and provide other benefits described
        in
        Parts I and III, below. In exchange, I am agreeing to release P&G from legal
        liability. P&G and I agree that any disputes we may have now or in the
        future that are not released by this Voluntary Separation Agreement and Release
        ("Agreement") will be resolved through binding arbitration, as discussed
        in Part
        III, below.

       

      I
        understand that
        any reference to P&G in this Agreement also includes parents, subsidiaries
        or affiliated entities and the managers, agents, employees, successors and
        assigns of any of them.

       

      Part
        I.
        P&G agrees that: 

      P&G
        will
        provide me with a cash allowance (the "Separation Allowance") of [an
        amount
        equal to no greater than 1 times annual base salary, plus an amount equal
        to
        between 0% and 100% of any deferred compensation forfeited],
        to be paid as a
        lump sum (less legally required deductions) as soon as practical after my
        last
        day of employment. P&G will also provide me with the following benefits, in
        addition to any benefits to which I am otherwise already entitled: 

       

      
        	 	
                --

              	
                My
                  medical,
                  dental, prescription drug, Employee Assistance Program and Basic
                  Group
                  Life Insurance coverages will be extended on their current terms,
                  as such
                  terms may change from time to time, until the earlier of (i)
                  _______________, or (ii) the date on which I become eligible to
                  participate in another employer's plans;
                  and

              

      

       

      
        	 	
                --

              	
                Outplacement
                  services from ________ for
                  ___
                  months after
                  date of first significant services, which I must begin using within
                  forty-five (45) days after my separation
                  date.

              

      

       

      	-  	
              Reimbursement
                of up to $5,000 for approved retraining programs;
                and

            

       

      	-  	
              A
                lump sum
                payment approximately equivalent to the non-vested credits in my
                Profit
                Sharing account if I am not vested in the Profit Sharing Plan as
                of my
                separation date. (If I am vested, the distribution of my account
                will be
                handled according to the terms of the Profit Sharing
                Plan.)

            

       

      If
        prior to Last
        Day of Employment, I have been granted an Award(s) under The Procter &
Gamble Future Shares Plan of October 14, 1997, as amended May 12, 1998 (the
        “Plan”), and I satisfy my obligations under Part II (A) of this Agreement, then
        P&G’s execution and certification of this Agreement will certify my
        separation from employment as a Special Separation as defined in
        Article 2.19 of the Plan. If I am under age 55 on my last day of
        employment, this certification means that I will receive a cash payment equal
        to
        the Spread Value1 “Spread
        Value” is
        defined in Article 2.20 of the Plan as “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.” “Fair Market Value” is defined in Article
        2.10 of the Plan as “... 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..., and if
        there were no trades on such date, on the day on which a trade occurred next
        preceding such date....”
        (less legally
        required deductions) of my Future Shares, as provided in Article 6.1(e)(ii)
        of
        the Plan, on or shortly after my Last
        Date of
        Employment.
        If I am age 55 or
        over on my last day of employment, such certification means that I will retain
        the right to exercise such Award(s) as provided in Article 6.1(e) of the
        Plan.

      

      In
        addition, if I
        am a full-time employee and if on my last day of employment my age plus my
        Profit Sharing years of service are equal to or greater than 70, P&G will
        provide me with retiree medical, dental and life insurance coverages (according
        to the terms of the plans in effect after my extended employee coverages
        end as
        such terms may change from time to time) plus other benefits given to regular
        retirees including holiday gift boxes, P&G publications, invitations to
        Company events, a retiree I.D. pass, and eligibility for participation in
        P&G's matching gift and scholarship programs. If I am eligible for regular
        retirement, I will, in addition to the benefits set forth in this Agreement,
        receive all benefits provided to regular retirees.

      

      Part
        II.
        I agree that:

      (A) I
        will continue to
        perform my work and responsibilities as an employee in a satisfactory manner
        up
        to and including my Last Date of Employment. If I do not do so and engage
        in any
        misconduct during my employment, I understand and agree that P&G will not be
        obligated to provide me with the payments and benefits set forth in Part
        I
        above, and if I have received any such payments and/or benefits, I agree
        to
        repay them to P&G upon its demand.

      

      (B)  
        I agree not to use
        or share any confidential, proprietary or trade secret information about
        any
        aspect of P&G's business with any non-P&G employee or business entity at
        any time in the future. I also understand and agree that while I may work
        for a
        direct competitor of P&G, without the written consent of P&G I will not
        engage in any activity or provide any services for a period of three years
        following my Last Day of Employment in connection with the manufacture,
        development, advertising, promotion or sale of any product which is the same
        as,
        similar to, or competitive with any products of P&G (including existing
        products as well as products which I know to be in development); (1) with
        respect to which my work has been directly concerned at any time during the
        two
        years preceding my last day of employment; or (2) with respect to which,
        as a
        consequence of my job performance and duties, I have acquired knowledge of
        trade
        secrets or other confidential information of P&G; nor will I work in any
        position where the proprietary business or technical knowledge that I have
        gained in my job here at P&G would be directly applicable to that position
        in the competitor’s business, nor will I accept a position for the next year
        (one year) for any other company on the same dedicated customer team that
        I
        worked with for P&G during the past two (2) years. I will discuss any
        questions I may have about this obligation with the Chief Executive Officer
        of
        P&G before accepting a position.

      

      (C)  
        I release P&G
        from any claim of any kind I may have at any time arising out of my employment
        with P&G, my decision to end my employment at P&G or any employment
        references or lack thereof as discussed below in Part III, Paragraph (B).
        I also
        agree not to bring or be a party to any legal action, charge or claim of
        any
        kind against P&G regarding the same matters. Any re-employment consideration
        will be consistent with the Company’s Re-employment Policy. This does not
        preclude me from filing a charge with the U.S. Equal Employment Opportunity
        Commission (EEOC) or from participating in any investigation or proceeding
        conducted by it, although it does waive my rights to bring a lawsuit on my
        own
        behalf and to recover any damages or other remedy in a lawsuit brought on
        my
        behalf by the EEOC regarding such matters. This is a General Release that
        covers
        all claims under federal, state and local law, both statutory and common
        law,
        including but not limited to all federal, state, and local employment
        discrimination laws, claims, charges and legal actions under Title VII of
        the
        Civil Rights Act and the Americans with Disabilities Act, claims and legal
        actions under the Age Discrimination in Employment Act, and excludes only
        workers compensation or unemployment compensation claims. This Agreement
        and
        General Release does not waive any claims I may have which arise after the
        date
        I have signed this Agreement.

      

      Part
        III. P&G and I agree that:

      (A) Because
        we
        recognize that resolving any future differences we may have in the courts
        can
        take a long time and be expensive, P&G and I agree that our only remedy for
        all disputes one of us may have with the other that are not released by this
        Agreement and arise out of my employment, my decision to end my employment,
        or
        any aspect of this Agreement will be to submit any such disputes (except
        for the
        exception noted in the next paragraph) to final and binding arbitration in
        accordance with the National Rules for the Resolution of Employment Dispute
        of
        the American Arbitration Association then in effect. P&G and I agree that
        the aggrieved party must send written notice of any claim to the other party
        by
        certified mail, return receipt requested. Written notice to P&G will be sent
        to its Secretary at One Procter & Gamble Plaza, Cincinnati, OH 45202, and to
        me at the most current address shown for me in P&G's records. The arbitrator
        will apply the law of the state in which the claim arose, or federal law,
        or
        both, as applicable to the claim(s) asserted. Upon application to P&G,
        P&G will reimburse me for all fees and costs charged me by the American
        Arbitration Association and its arbitrator to the extent they exceed the
        applicable fees for filing and serving a lawsuit and summons upon P&G that
        would have been charged by a court of competent jurisdiction, and my claim
        been
        filed in court.

       

      There
        is one
        exception to this Paragraph (A). P&G may seek injunctive relief in any court
        of competent jurisdiction if it has reason to believe that I have violated
        or am
        about to violate the terms of Part II, Paragraph B above.

      

      (B)
        I understand
        that P&G's historical policy is to not provide employment references to
        prospective employers. However, P&G is willing to waive that policy in my
        case on the following basis: I authorize my managers, other P&G employees or
        agents to provide employment references upon request. In return, I release
        and
        will not bring, be a party to, or assist in any legal action, charge, or
        claim
        of any kind against P&G based upon the employment reference (or lack
        thereof). I understand that all disputes regarding employment references
        or the
        lack thereof must be resolved through arbitration as described in Part III,
        Paragraph A, above.

      

      Part
        IV:

      (A) If
        any court,
        arbitrator or other legal tribunal should later find that any aspect of this
        Agreement is invalid, that invalidity will not affect the legality of any
        other
        aspect of this Agreement.

       

      (B) In
        deciding to sign
        this Agreement, I have not relied upon any statements or promises by P&G
        other than those set forth in this document.

       

      (C) I
        have carefully
        read this entire Agreement and I understand its meaning. I also understand
        that
        this Agreement is a legal document, and by signing it I am giving up certain
        legal rights. I acknowledge that I have been given 45 days to consider this
        Agreement and that I have been advised to consult with an attorney about
        its
        terms. If I have executed this Agreement prior to the expiration of the given
        45
        day period specified above, I acknowledge and agree that I was afforded the
        opportunity to consider the Agreement for given 45 days before executing
        it and
        that my execution of this Agreement prior to the expiration of such given
        45 day
        period was my free and voluntary act. I further understand that I may revoke
        my
        acceptance of this Agreement within seven (7) days after I sign it and that
        if I
        do not revoke my acceptance within that time, this Agreement becomes effective
        and enforceable by both parties immediately after the expiration of seven
        (7)
        days after I sign (the "effective date"). I understand that any revocation
        must
        be in writing and must be received by my immediate manager or that manager's
        designee no later than the close of business on the seventh day after my
        execution of this Agreement. P&G has given me enough time to consult with my
        family and other advisers and to consider whether I should agree to the terms
        of
        this Agreement. Finally, I am voluntarily signing this Agreement.

      

      (D) I
        understand and
        agree this Agreement is governed by the laws of the State of Ohio.

      

      __________________________________    __________________

      (Date)

      

      The
        Procter
& Gamble Company

      

      Certified
        & Approved By:
        __________________________         __________________

      (Date)

      

        

        
          1

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