Document:

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                                 EXHIBIT (10-7)

             The Procter & Gamble 1992 Stock Plan (Belgian Version)
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             THE PROCTER & GAMBLE 1992 STOCK PLAN (BELGIAN VERSION)
                         (as amended December 11, 2001)

        1,000,000 Shares of Common Stock of The Procter & Gamble Company

                                       and

   1,000,000 Options to Purchase Common Stock of The Procter & Gamble Company

ARTICLE A -- Purpose.

         The purpose of The Procter & Gamble 1992 Stock Plan (Belgian Version)
(hereinafter referred to as the "Plan") is to encourage those employees of The
Procter & Gamble Company (hereinafter referred to as the "Company") and its
subsidiaries who are largely responsible for the long-term success and
development of the business 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 those employees to remain
in the employ of the Company and its subsidiaries. This will be accomplished
through the granting or sale to employees of options to purchase shares of the
Common Stock of the Company, payment of a portion of the employees' remuneration
in shares of the Common Stock, and the granting to them by the Company and a
subsidiary, if appropriate, of deferred awards related to the increase in the
price of the Common Stock of the Company as provided by the terms and conditions
set forth in the Plan.

ARTICLE B -- Administration.

         1.       The Plan shall be administered by the Compensation Committee
(hereinafter referred to as the "Committee") of the Board of Directors of the
Company (hereinafter referred to as the "Board"), or such other committee as may
be designated by the Board. The Committee shall consist of not less than three
(3) members of the Board who are neither officers nor employees, or members of
the Board who are "Non-Employee Directors" as defined in Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (hereinafter referred to as the
"1934 Act"), or any successor rule or definition adopted by the Securities and
Exchange Commission, to be appointed by the Board from time to time and to serve
at the discretion of the Board.

         2.       It shall be the duty of the Committee to administer this Plan
in accordance with its provisions, to report thereon not less than once each
year to the Board and to make such recommendations of amendments or otherwise as
it deem necessary or appropriate. A decision by a majority of the Committee
shall govern all actions of the Committee.

         3.       Subject to the express provisions of this Plan, the Committee
shall have authority: to grant or offer for sale nonstatutory and incentive
stock options; to grant to recipients stock appreciation rights either
freestanding, in tandem with simultaneously granted or sold stock options, or in
parallel with simultaneously granted or sold stock options; to award a portion
of a recipient's remuneration in shares of Common Stock of the Company subject
to such conditions or restrictions, if any, as the Committee may determine; to
determine all the terms and provisions of the respective stock option, stock
appreciation right, and stock award agreements including setting the dates when
each stock option or stock appreciation right or part thereof may be exercised
and determining the conditions and restrictions, if any, of any shares of Common
Stock acquired through the exercise of any stock option; and to make all other
determinations it deems necessary or advisable for administering this Plan;
provided, however, the Committee shall have the further authority at time of
grant to:

         (a)      waive the provisions of Article F, paragraph 1(a);

         (b)      waive the provisions of Article F, paragraph 1(b);

         (c)      waive the provisions of Article G, paragraph 4(a) and (b); and

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         (d)      impose conditions in lieu of those set forth in Article G,
                  paragraphs 4 through 7, for nonstatutory stock options, stock
                  appreciation rights, and stock award grants which do not
                  increase or extend the rights of the recipient,

to take into consideration the differences, limitations, and requirements of
non-United States laws or conditions including tax regulations, exchange
controls or investment restrictions, possible unenforceability of any part of
this Plan, or other matters deemed appropriate by it.

         4.       The Committee may establish from time to time such
regulations, provisions, and procedures within the terms of this Plan as, in its
opinion, may be advisable in the administration of this Plan.

         5.       The Committee may designate the Secretary of the Company or
other employees of the Company to assist the Committee in the administration of
this Plan and may grant authority to such persons to execute documents on behalf
of the Committee.

ARTICLE C -- Participation.

         The Committee shall select those employees of the Company and its
subsidiaries who, in the opinion of the Committee, have demonstrated a capacity
for contributing in a substantial manner to the success of such companies and
shall determine the number of shares of the Common Stock of the Company to be
transferred under this Plan subject to such conditions or restrictions as the
Committee may determine and the number of shares with respect to which stock
options or stock appreciation rights will be granted or sold. The Committee may
consult with the Chief Executive, but nevertheless the Committee has the full
authority to act, and the Committee's actions shall be final.

ARTICLE D -- Limitation on number of shares for the plan.

         1.       Unless otherwise authorized by the shareholders, the maximum
aggregate number of shares available for award under this Plan for each calendar
year the Plan is in effect, when combined with the maximum aggregate number of
shares available for award under The Procter & Gamble 1992 Stock Plan in such
calendar year, shall be one percent (1%) of the total issued shares of Common
Stock of the Company as of June 30 of the immediately preceding fiscal year.

         2.       Any of the authorized shares may be used in respect of any of
the types of awards described in this Plan, except that no more than twenty-five
percent (25%) of the authorized shares in any calendar year may be issued as
restricted or unrestricted stock and no more than 1,000,000 of the authorized
shares during the term of the Plan may be issued as incentive stock options.

         3.       Any authorized shares not used in a calendar year shall be
available for awards under this Plan in succeeding calendar years.

ARTICLE E -- Shares subject to use under the plan.

         1.       The shares to be delivered by the Company upon exercise of
stock options or stock appreciation rights shall be either authorized but
unissued shares or treasury shares, as determined by the Board. In the case of
redemption of stock appreciation rights by one of the Company's subsidiaries,
such shares shall be shares acquired by that subsidiary.

         2.       For purposes of this Plan, restricted or unrestricted stock
awarded under the terms of this Plan shall be authorized but unissued shares,
treasury shares, or shares acquired for purposes of the Plan by the Company or a
subsidiary, as determined by the Board.

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ARTICLE F -- Stock options and stock appreciation rights.

         1.       In addition to such other conditions as may be established by
the Committee, in consideration of the granting or sale of stock options or
stock appreciation rights under the terms of this Plan, the recipient agrees as
follows:

         (a)      The right to exercise any stock option or stock appreciation
                  right shall be conditional upon certification by the recipient
                  at time of exercise that the recipient intends to remain in
                  the employ of the Company or one of its subsidiaries (except
                  in cases of retirement, disability or Special Separation as
                  defined in section 6 of Article G) for at least one (1) year
                  following the date of the exercise of the stock option or
                  stock appreciation right, and,

         (b)      In order to better protect the goodwill of the Company and its
                  subsidiaries and to prevent the disclosure of the Company's or
                  it subsidiaries' trade secrets and confidential information
                  and thereby help insure the long-term success of the business,
                  the recipient, without prior written consent of the Company,
                  will not engage in any activity or provide any services,
                  whether as a director, manager, supervisor, employee, adviser,
                  consultant or otherwise, for a period of three (3) years
                  following the date of the recipient's termination of
                  employment with the Company (except for terminations of
                  employment resulting from retirement or Special Separation),
                  in connection with the manufacture, development, advertising,
                  promotion, or sale of any product which is the same as or
                  similar to or competitive with any products of the Company or
                  its subsidiaries (including both existing products as well as
                  products known to the recipient, as a consequence of the
                  recipient's employment with the Company or one of its
                  subsidiaries, to be in development):

                  (1)      with respect to which the recipient's work has been
                           directly concerned at any time during the two (2)
                           years preceding termination of employment with the
                           Company or one of its subsidiaries or

                  (2)      with respect to which during that period of time the
                           recipient, as a consequence of the recipient's job
                           performance and duties, acquired knowledge of trade
                           secrets or other confidential information of the
                           Company or its subsidiaries.

                  For purposes of this section, it shall be conclusively
                  presumed that recipients have knowledge of information they
                  were directly exposed to through actual receipt or review of
                  memos or documents containing such information, or through
                  actual attendance at meetings at which such information was
                  discussed or disclosed.

         (c)      The provisions of this Article are not in lieu of, but are in
                  addition to the continuing obligation of the recipient (which
                  recipient hereby acknowledges) to not use or disclose the
                  Company's or its subsidiaries' trade secrets and confidential
                  information known to the recipient until any particular trade
                  secret or confidential information become generally known
                  (through no fault of the recipient), whereupon the restriction
                  on use and disclosure shall cease as to that item. Information
                  regarding products in development, in test marketing or being
                  marketed or promoted in a discrete geographic region, which
                  information the Company or one of its subsidiaries is
                  considering for broader use, shall not be deemed generally
                  known until such broader use is actually commercially
                  implemented. As used in this Article, "generally known" means
                  known throughout the domestic U. S. industry or, in the case
                  of recipients who have job responsibilities outside of the
                  United States, the appropriate foreign country or countries'
                  industry.

         (d)      By acceptance of any offered stock option or stock
                  appreciation rights granted or sold under the terms of this
                  Plan, the recipient acknowledges that if the recipient were,
                  without authority, to use or disclose the Company's or any of
                  its subsidiaries' trade secrets or confidential information or
                  threaten to do so, the Company or one of its subsidiaries
                  would be entitled to injunctive and other appropriate relief
                  to prevent the recipient from doing so.
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                  The recipient acknowledges that the harm caused to the Company
                  by the breach or anticipated breach of this Article is by its
                  nature irreparable because, among other things, it is not
                  readily susceptible of proof as to the monetary harm that
                  would ensue. The recipient consents that any interim or final
                  equitable relief entered by a court of competent jurisdiction
                  shall, at the request of the Company or one of its
                  subsidiaries, be entered on consent and enforced by any court
                  having jurisdiction over the recipient, without prejudice to
                  any rights either party may have to appeal from the
                  proceedings which resulted in any grant of such relief.

         (e)      If any of the provisions contained in this Article shall for
                  any reason, whether by application of existing law or law
                  which may develop after the recipient's acceptance of an offer
                  of the granting or sale of stock appreciation rights or stock
                  options, be determined by a court of competent jurisdiction to
                  be overly broad as to scope of activity, duration, or
                  territory, the recipient agrees to join the Company or any of
                  its subsidiaries in requesting such court to construe such
                  provision by limiting or reducing it so as to be enforceable
                  to the extent compatible with then applicable law. If any one
                  or more of the terms, provisions, covenants, or restrictions
                  of this Article shall be determined by a court of competent
                  jurisdiction to be invalid, void or unenforceable, then the
                  remainder of the terms, provisions, covenants, and
                  restrictions of this Article shall remain in full force and
                  effect and shall in no way be affected, impaired, or
                  invalidated.

         2.       The fact that an employee has been granted or sold a stock
option or a stock appreciation right under this Plan shall not limit the right
of the employer to terminate the recipient's employment at any time. The
Committee is authorized to suspend or terminate any outstanding stock option or
stock appreciation right for actions taken prior to termination of employment if
the Committee determines the recipient has acted significantly contrary to the
best interests of the Company.

         3.       More than one stock option or stock appreciation right may be
granted or sold to any employee under this Plan but the maximum number of shares
with respect to which stock options or stock appreciation rights may be granted
or sold to any employee in any calendar year shall not exceed five percent (5%)
of the number of shares which can be issued or transferred annually hereunder,
when combined with the maximum aggregate number of shares available for award
under The Procter & Gamble 1992 Stock Plan in such calendar year.

         4.       The aggregate fair market value (determined at the time when
the incentive stock option is exercisable for the first time by an employee
during any calendar year) of the shares for which any employee may be granted or
sold incentive stock options under this Plan and all other stock option plans of
the Company and its subsidiaries in any calendar year shall not exceed $100,000
(or such other amount as reflected in the limits imposed by Section 422(d) of
the Internal Revenue Code of 1986, as it may be amended from time to time).

         5.       If the Committee grants or sells incentive stock options, all
such stock options shall contain such provisions as permit them to qualify as
"incentive stock options" within the meaning of Section 422 of the Internal
Revenue Code of 1986, as may be amended from time to time.

         6.       With respect to stock options granted or sold in tandem with
or parallel to stock appreciation rights, the exercise of either such stock
options or such stock appreciation rights will result in the simultaneous
cancellation of the same number of tandem or parallel stock appreciation rights
or stock options, as the case may be.

         7.       The exercise price for all stock options and stock
appreciation rights shall be established by the Committee at the time of their
grant or, in the case of stock options to be sold, at the time of offer of such
stock options for sale, and shall be not less than one hundred percent (100%) of
the fair market value of the Common Stock of the Company on such date.

ARTICLE G -- Exercise of stock options and stock appreciation rights.

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         1.       All stock options and stock appreciation rights granted or
sold hereunder shall have a maximum life of no more than fifteen (15) years from
the date of grant or, in the case of stock options to be sold, from the date of
the offer of such options for sale.

         2.       No stock options or stock appreciation rights shall be
exercisable within one (1) year from their date of grant or, in the case of
stock options to be sold, from the date of the offer of such options for sale,
except in the case of the death of the recipient.

         3.       During the lifetime of the recipient, stock options and stock
appreciation rights may be exercised only by the recipient personally, or, in
the event of the legal incompetence of the recipient, by the recipient's duly
appointed legal guardian.

         4.       In case a recipient of stock options or stock appreciation
rights ceases to be an employee of the Company or any of its subsidiaries while
holding an unexercised stock option or stock appreciation right:

         (a)      Any unexercisable portions thereof are then void, except in
                  the case of: (1) death of the recipient; (2) any Special
                  Separation (as defined in section 6 of this Article G) that
                  occurs more than six months from the date the options were
                  granted or, in the case of stock options to be sold, from the
                  date of the offer of such options for sale; or (3) any option
                  as to which the Committee has waived, at the time of grant or,
                  in the case of stock options to be sold, at the time of the
                  offer of such options for sale, the provisions of this Article
                  G, paragraph 4(a) pursuant to the authority granted by Article
                  B, paragraph 3.

         (b)      Any exercisable portions thereof are then void, except in the
                  case of death, retirement in accordance with the provisions of
                  any appropriate profit sharing or retirement plan of the
                  Company or any of its subsidiaries, Special Separation (as
                  defined in section 6 of this Article G) of the recipient, or
                  any option as to which the Committee has waived, at the time
                  of grant or, in the case of stock options to be sold, at the
                  time of offer of such options for sale, the provisions of this
                  Article G, paragraph 4(b) pursuant to the authority granted by
                  Article B, paragraph 3.

         5.       In the case of the death of a recipient of stock options or
stock appreciation rights while an employee of the Company or any of its
subsidiaries, the persons to whom the stock options or stock appreciation rights
have been transferred by will or the laws of descent and distribution shall have
the privilege of exercising remaining stock options, stock appreciation rights
or parts thereof, whether or not exercisable on the date of death of such
employee, at any time prior to the expiration date of the stock options or stock
appreciation rights.

         6.       Termination of employment under the permanent disability
provision of any appropriate profit sharing or retirement plan of the Company or
any of its subsidiaries shall be deemed the same as retirement. 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. The death of a
recipient of stock options or stock appreciation rights subsequent to retirement
or Special Separation shall not render exercisable stock options or stock
appreciation rights which were unexercisable at the time of the retirement or
Special Separation. The persons to whom the exercisable stock options or stock
appreciation rights have been transferred by will or the laws of descent and
distribution shall have the privilege of exercising such remaining stock
options, stock appreciation rights or parts thereof, at any time prior to the
expiration date of the stock options or stock appreciation rights.

         7.       Stock options and stock appreciation rights are not
transferable other than by will or by the laws of descent and distribution and
they may not be assigned or hypothecated. For the purpose of exercising stock
options or stock appreciation rights after the death of the recipient, the duly
appointed executors and administrators of the estate of the deceased recipient
shall have the same rights with

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respect to the stock options and stock appreciation rights as legatees or
distributees would have after distribution to them from the recipient's estate.

         8.       Upon the exercise of stock appreciation rights, the recipient
shall be entitled to receive a redemption differential for each such stock
appreciation right which shall be the difference between the then fair market
value of one share of the Common Stock of the Company and the exercise price of
one stock appreciation right then being exercised. In the case of the redemption
of stock appreciation rights by a subsidiary of the Company not located in the
United States, the redemption differential shall be calculated in United States
dollars and converted to the appropriate local currency on the exercise date. As
determined by the Committee, the redemption differential may be paid in cash,
Common Stock of the Company to be valued at its fair market value on the date of
exercise, any other mode of payment deemed appropriate by the Committee or any
combination thereof. The number of shares with respect to which stock
appreciation rights are being exercised shall not be available for granting or
selling future stock options or stock appreciation rights under this Plan.

         9.       The Committee may, in its sole discretion, permit a stock
option which is being exercised either (a) by an optionee whose retirement is
imminent or who has retired or (b) after the death of the optionee, to be
surrendered, in lieu of exercise, for an amount equal to the difference between
the stock option exercise price and the fair market value of shares of the
Common Stock of the Company on the day the stock option is surrendered, payment
to be made in shares of the Company's Common Stock which are subject to this
Plan valued at their fair market value on such date, cash, or a combination
thereof, in such proportion and upon such terms and conditions as shall be
determined by the Committee. The difference between the number of shares subject
to stock options so surrendered and the number of shares, if any, issued upon
such surrender shall represent shares which shall not be available for granting
or selling future stock options under this Plan.

         10.      Time spent on leave of absence shall be considered as
employment for the purposes of this Plan. Leave of absence means any period of
time away from work granted to any employee by his or her employer because of
illness, injury, or other reasons satisfactory to the employer.

         11.      The Company reserves the right from time to time to suspend
the exercise of any stock option or stock appreciation right where such
suspension is deemed by it necessary or appropriate for corporate purposes. No
such suspension shall extend the life of the stock option or stock appreciation
right beyond its expiration date, and in no event will there be a suspension in
the five (5) calendar days immediately preceding the expiration date.

ARTICLE H -- Payment for stock options.

         Upon the exercise of a stock option, payment in full of the exercise
price shall be made by the optionee. As determined by the Committee, the stock
option exercise price may be paid for by the optionee either in cash, shares of
the Common Stock of the Company to be valued at their fair market value on the
date of exercise, a combination thereof, or such other method as determined by
the Committee.

ARTICLE I -- Transfer of shares.

         1.       The Committee may transfer Common Stock of the Company under
the Plan subject to such conditions or restrictions, if any, as the Committee
may determine. The conditions and restrictions may vary from time to time and
with respect to particular employees or group of employees and may be set forth
in agreements between the Company and the employee or in the awards of stock to
them, all as the Committee determines. It is contemplated that the conditions
and restrictions established by the Committee will be consistent with the
objectives of this Plan and may be of the following types. In giving these
examples, it is not intended to restrict the Committee's authority to impose
other restrictions or conditions, or to waive restrictions or conditions under
circumstances deemed by the Committee to be appropriate and not contrary to the
best interests of the Company.

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         (a)      Restrictions

                  The employee will not be able to sell, pledge, or dispose of
                  the shares during a specified period except in accordance with
                  the agreement or award. Such restrictions will lapse either
                  after a period of, for example, five years, or in fifteen or
                  fewer annual installments following retirement or termination
                  of employment, as the Committee from time to time may
                  determine. However, upon the transfer of shares subject to
                  restrictions, an employee will have all incidents of ownership
                  in the shares, including the right to dividends (unless
                  otherwise restricted by the Committee), to vote the shares,
                  and to make gifts of them to family members (still subject to
                  the restrictions).

         (b)      Lapse of Restrictions

                  In order to have the restrictions lapse, an employee may be
                  required to continue in the employ of the Company or a
                  subsidiary for a prescribed period of time. Exemption from
                  this requirement may be prescribed in the case of death,
                  disability, or retirement, or as otherwise prescribed by the
                  Committee.

ARTICLE J -- Adjustments.

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's shareholders, (i) the
amount of shares authorized to be issued under the Plan and (ii) the number of
shares and/or the exercise prices covered by outstanding stock options and stock
appreciation rights shall be adjusted appropriately and equitably to prevent
dilution or enlargement of rights under the Plan. Following any such change, the
term "Common Stock" shall be deemed to refer to such class of shares or other
securities as may be applicable.

ARTICLE K -- Additional provisions.

         1.       The Board may, at any time, repeal this Plan or may amend it
from time to time. The recipient of awards under this Plan and the Company shall
be bound by any such amendments as of their effective dates, but if any
outstanding stock options or stock appreciation rights are affected, notice
thereof shall be given to the holders of such stock options and stock
appreciation rights and such amendments shall not be applicable to such holder
without his or her written consent. If this Plan is repealed in its entirety,
all theretofore granted or sold unexercised stock options or stock appreciation
rights shall continue to be exercisable in accordance with their terms and
shares subject to conditions or restrictions transferred pursuant to this Plan
shall continue to be subject to such conditions or restrictions.

         2.       In the case of an employee of a subsidiary company,
performance under this Plan, including the transfer of shares of the Company,
may be by the subsidiary. Nothing in this Plan shall affect the right of the
Company or any subsidiary to terminate the employment of any employee with or
without cause. None of the participants, either individually or as a group, and
no beneficiary or other person claiming under or through any participant, shall
have any right, title, or interest in any shares of the Company purchased or
reserved for the purpose of this Plan except as to such shares, if any, as shall
have been granted, sold or transferred to him or her. Nothing in this Plan shall
preclude the issuance, sale or transfer of shares of the Company to employees
under any other plan or arrangement now or hereafter in effect.

         3.       "Subsidiary" means any company in which greater than fifty
percent (50%) of the total combined voting power of all classes of stock is
owned, directly or indirectly, by the Company. In addition, the Board may
designate for participation in this Plan as a "subsidiary," except for the
granting or selling of incentive stock options, those additional companies
affiliated with the Company in which the Company's direct or indirect stock
ownership is less than fifty percent (50%) of the total combined voting power of
all classes of such company's stock.

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ARTICLE L -- Consent.

         Every recipient of a stock option, stock appreciation right, or
transfer of shares pursuant to this Plan shall be bound by the terms and
provisions of this Plan and of the stock option, stock appreciation right, or
transfer of shares agreement referable thereto, and the acceptance of any stock
option, stock appreciation right, or transfer of shares pursuant to this Plan
shall constitute a binding agreement between the recipient and the Company and
its subsidiaries and any successors in interest to any of them. This Plan shall
be governed by and construed in accordance with the laws of the State of Ohio,
United States of America.

ARTICLE M -- Duration of plan.

         This Plan will terminate on July 14, 2002 unless a different
termination date is fixed by action of the Board of Directors, but no such
termination shall affect the prior rights under this Plan of the Company (or any
subsidiary) or of anyone to whom stock options or stock appreciation rights were
granted or sold prior thereto or to whom shares have been transferred prior to
such termination.

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                             ADDITIONAL INFORMATION

1.       Stock Options Offered for Purchase

         Stock options may be offered for purchase at a price of one dollar
($U.S. 1.00) per option (the "Purchased Stock Options"). Participants must pay
for any Purchased Stock Option within sixty (60) days after the date of
acceptance established by the Committee for such Purchased Stock Option by
delivering cash or a check to the Company or its applicable subsidiary. Each
Purchased Stock Option represents the right to acquire one share of Common Stock
upon the exercise of such Purchased Stock Option. The number of stock options,
whether Purchased Stock Options or otherwise, issued by the Company and
outstanding as of January 31, 1997 is 30,884,517. The Purchased Stock Options
are not listed on an exchange. For such Purchased Stock Options, the Committee,
pursuant to authority granted by Article B, paragraph 3 of the Plan, has waived
the conditions and restrictions of paragraphs 4(a) and (b) of Article G as
follows: the Purchased Stock Options will remain exercisable for up to one (1)
month following any termination of employment; provided that if termination of
employment occurs as a result of death, retirement or Special Separation, the
stock option will remain exercisable for its full term until its date of
expiration.

         There is no guarantee that the price of the common stock will exceed
the exercise price of any purchased stock option, in which case such purchased
stock option would have no value.

2.       Shares Awarded as a Portion of Remuneration

         Any shares of Common Stock of the Company awarded as a portion of a
participant's remuneration shall be valued at not less than one hundred percent
(100%) of the fair market value of the Company's Common Stock on the date of the
award. These shares may be subject to such conditions or restrictions as the
Committee may determine, including a requirement that the participant remain in
the employ of the Company or one of its subsidiaries for a set period of time,
or until retirement. Failure to abide by any applicable restriction will result
in forfeiture of the shares.

3.       U.S. Tax Treatment For U.S. Persons

         Incentive Stock Options

                  With regard to tax effects which may accrue to the optionee,
         counsel advises that if the optionee has continuously been an employee
         from the time an option has been granted until at least three months
         before it is exercised, under existing law no taxable income results to
         the optionee from the exercise of an incentive stock option at the time
         of exercise. However, the spread at exercise is an "adjustment" item
         for alternative minimum tax purposes.

                  Any gain realized on the sale or other disposition of stock
         acquired on exercise of an incentive stock option is considered as
         long-term capital gain for tax purposes if the stock has been held more
         than two years after the date the option was granted and more than one
         year after the date of exercise of the option. If the stock is disposed
         of within one year after exercise, the lesser of any gain on such
         disposition or the spread at exercise (i.e., the excess of the fair
         market value of the stock on the date of exercise over the option
         price) is treated as ordinary income, and any appreciation after the
         date of exercise is considered long-term or short-term capital gain to
         the optionee depending on the holding period prior to sale. However,
         the spread at exercise (even if greater than the gain on the
         disposition) is treated as ordinary income if the disposition is one on
         which a loss, if sustained, is not recognized--e.g., a gift, a "wash"
         sale or a sale to a related party. The amount of ordinary income
         recognized by the optionee is treated as a tax deductible expense to
         the Company. No other amount relative to an incentive stock option is a
         tax deductible expense to the Company.

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         Nonstatutory Stock Options

                  With regard to tax effects which may accrue to the optionee,
         counsel advises that under existing tax law gain taxable as ordinary
         income to the optionee is deemed to be realized at the date of exercise
         of the option, the gain on each share being the difference between the
         market price on the date of exercise and the option price. This amount
         is treated as a tax deductible expense to the Company at the time of
         the exercise of the option. Any appreciation in the value of the stock
         after the date of exercise is considered a long-term or short-term
         capital gain to the optionee depending on whether or not the stock was
         held for the appropriate holding period prior to sale.

         Stock Appreciation Rights

                  With regard to tax effects which may accrue to the recipient,
         counsel advises that "United States persons," as defined in the
         Internal Revenue Code of 1986 (the "I.R.C."), must recognize ordinary
         income as of the date of exercise equal to the amount paid to the
         recipient, i.e., the difference between the grant price and the value
         of the shares on the date of exercise.

         Shares Awarded as a Portion of Remuneration

                  With regard to tax effects which may accrue to the recipient,
         counsel advises that "United States persons" as defined in the Internal
         Revenue Code of 1986 (the "I.R.C."), must recognize ordinary income in
         the first taxable year in which the recipient's rights to the stock are
         transferable or are not subject to a substantial risk of forfeiture,
         whichever is applicable. Recipients who are "United States persons" may
         also elect to include the income in their tax returns for the taxable
         year in which they receive the shares by filing an election to do so
         with the appropriate office of the Internal Revenue Service within 30
         days of the date the shares are transferred to them.

                  The amount includable in income is the fair market value of
         the shares as of the day the shares are transferable or not subject to
         a substantial risk of forfeiture, whichever is applicable; if the
         recipient has elected to include the income in the year in which the
         shares are received, the amount of income includable is the fair market
         value of the shares at the time of transfer.

                  For non-United States persons, the time when income is
         realized, its measurement and its taxation, will depend on the laws of
         the particular countries in which the recipients are residents and/or
         citizens at the time of transfer or when the shares are first
         transferable and not subject to a substantial risk of forfeiture, as
         the case may be. "United States persons" who receive shares awarded as
         a portion of remuneration may also have tax consequences with respect
         to the receipt of shares or the expiration of restrictions or
         substantial risk of forfeiture on such shares under the laws of the
         particular country other than the United States of which such person is
         a resident or citizen.

         Notwithstanding the above advice received by the Company, it is each
individual recipient's responsibility to check with his or her personal tax
adviser as to the tax effects and proper handling of stock options, stock
appreciation rights and Common Stock acquired. The above advice relates
specifically to the U.S. consequences of stock options, stock appreciation
rights and Common Stock acquired, including the U.S. consequences to "United
States persons" whether or not resident in the U.S. In addition to U.S. tax
consequences, for all persons who are not U.S. residents, the time when income,
if any, is realized, the measurement of such income and its taxation will also
depend on the laws of the particular country other than the U.S. of which such
persons are resident and/or citizens at the time of grant or sale or the time of
exercise, as the case may be.

         The Plan is not subject to the qualification requirements of Section
401(a) of the I.R.C.

4.       Employee Retirement Income Security Act of 1974

<PAGE>

         The Plan is not subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA"), as amended.

5.       Incorporation of Certain Documents by Reference

         The following documents filed by the Company with the Securities and
Exchange Commission (File No. 1-434) pursuant to the 1934 Act are incorporated
into this document by reference:

         1.       The Company's Annual Report on Form 10-K for the fiscal year
                  ended June 30, 2001;

         2.       The Company's Quarterly Reports on Form 10-Q for the quarter
                  ended September 30, 2001;

         3.       All other documents filed by the Company pursuant to Sections
                  13(a), 13(c), 14 or 15(d) of the 1934 Act after the date of
                  this Prospectus and prior to the filing of a post-effective
                  amendment which indicates that all securities offered have
                  been sold or which deregisters all securities then remaining
                  unsold.

         The Company will provide without charge to each participant in the
Plan, upon oral or written request, a copy of any or all of these documents
other than exhibits to such documents, unless such exhibits are specifically
incorporated by reference into such documents. In addition, the Company will
provide without charge to such participants a copy of the Company's most recent
annual report to shareholders, proxy statement, and other communications
distributed generally to security holders of the Company. Requests for such
copies should be directed to Mr. James C. Ashely, Manager, Shareholder Services,
The Procter & Gamble Company, P.O. Box 5572, Cincinnati, Ohio 45201, (513)
983-3413.

6.       Additional Information

         Additional information about the Plan and its administrators may be
obtained from Mr. Terry L. Overbey, Secretary, The Procter & Gamble Company, One
Procter & Gamble Plaza, Cincinnati, Ohio 45202, (513) 983-4463.<PAGE>

                                 EXHIBIT (10-8)

                     The Procter & Gamble Future Shares Plan
<PAGE>

THE PROCTER & GAMBLE FUTURE SHARES PLAN

CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                                    <C>
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
</TABLE>

<PAGE>

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

<PAGE>

                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.

<PAGE>

         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 seventeen million (17,000,000) 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

<PAGE>

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(j)), 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

<PAGE>

        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

<PAGE>

                                (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

<PAGE>

        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.

<PAGE>

        (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.

<PAGE>

        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

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