Document:

EX-10.13

 

EXHIBIT
(10-13)

ADDITIONAL PROGRAMS AVAILABLE TO CERTAIN OFFICERS AND NON-EMPLOYEE DIRECTORS

I. Certain Officer Programs

The following is a summary of programs that are available to employees at the President level or
higher (“Eligible Employees”).

Financial Counseling

The Financial Counseling Program is a reimbursement program designed to address the special
financial planning needs of Eligible Employees. The Company provides a one-time initial
reimbursement of up to $12,500 for program set-up, to include initial consultations with tax and
financial experts and tax and financial counseling for the initial year in which the employee
participates in the program. Thereafter, the company reimburses Eligible Employees up to $8,500
annually for tax and financial counseling services.

The amounts described above are maximum reimbursement levels and may be used only for eligible
expenses. Reimbursements may not be used for broker, portfolio management or similar fees, and the
Company does not make cash payouts of any unused allowances. In addition, services provided by
the Company’s independent auditor are not reimbursable under this program.

Executive Physical

The Company will reimburse the cost of an annual physical examination for each Eligible Employee.

Club Membership

Cincinnati, Ohio-based Eligible Employees are authorized to join the Metropolitan Club or Banker’s
Club at the Company’s expense. The Metropolitan and Banker’s clubs are private social/dining
clubs, where the annual membership fees for each Eligible Employee are currently no more than
$2,000 per club. For Eligible Employees based outside of Cincinnati, Ohio, the Company will
reimburse the costs of joining a local social/dining club. The primary purpose of these
memberships is to facilitate business-related entertaining and networking. However, these are full
memberships and as such Eligible Employees are able to use these memberships for personal use as
well. Apart from the annual membership fee, the Company does not reimburse or otherwise cover any
personal use of these memberships. This program will be discontinued effective January 1, 2008.

Personal Security

The Company provides personal security services such as home security systems/monitoring and
secured workplace parking to the Chief Executive Officer, Chief Operating Officer, President-Global
Business Units, Chief Financial Officer and the Vice-Chairs of the Company, at Company expense. In
addition, The Global Human

 

 

Resources Officer may approve personal security services to other Company Employees where
appropriate, again at Company expense.

Spouse and Personal Travel

The purpose of the spouse travel program is to familiarize the spouse with the business issues and
demands facing Eligible Employees and to meet other P&G employees and spouses.

The Company allows spouses (or significant others) of Eligible Employees to accompany the relevant
Eligible Employee on up to two international business trips per year and up to one domestic
business trip per year, at Company expense. This element of the program is being discontinued
effective January 1, 2008.

In addition, the Company holds two or three senior management meetings each year when executives
are encouraged to bring a spouse (or significant other). In these situations, the Company pays
reasonable air and ground transportation, sight-seeing tour, other incidental costs. Other similar
Company-paid travel is subject to approval by the head of the relevant Global Business Unit, the
head of the Global MDO, or the Global Human Resources Officer, as appropriate.

While Company aircraft is generally used for Company business only, for security reasons the Chief
Executive Officer is required to us Company aircraft for all air travel, including personal travel
and travel to outside board meetings. While traveling on Company aircraft the Chief Executive may
bring a limited number of guests to accompany him. If a Company aircraft flight is already
scheduled for business purposes and can accommodate additional passengers, the Chief Operating
Officer, President-Global Business Units, Chief Financial Officer and the Vice-Chairs of the
Company may use the aircraft for personal travel and guest accompaniment. These individuals may
also use the Company aircraft for travel to outside board meetings. Outside boards typically
provide some level of reimbursement to the Company for these trips. To the extent travel to outside
board meetings or personal or guest travel results in imputed income to the executive, the Company
does not provide gross-up payments to cover the executive’s personal income tax due on such imputed
income.

Limited Local Transportation

To increase efficiency, Eligible Employees are provided limited local transportation within
Cincinnati.

 

 

II. Non-Employee Director Programs 

This paragraph summarizes a travel program available to spouses, significant others and family
members (collectively, “Guests”) who accompany non-employee directors (“Directors”). The purpose
of these policies is to familiarize the Guests with the business issues and demands facing the
Directors and to meet other Guests and employee spouses (or significant others).

Generally, Guests are permitted to accompany Directors to regular Board meetings and other Board
activities, so long as the Director is using Company aircraft and the Guests do not cause
incremental aircraft costs. No more than once per year, the Board holds a multi-day offsite
meeting, often in a location outside the United States. Guests are also permitted to accompany
Directors to these offsite meetings. In some of these cases, the Guests’ travel costs may be
considered incremental or may involve commercial flights. The Company arranges and pays for
sight-seeing tour, and other incidental costs for Directors and Guests while Directors attend both
regular and off-site Board meetings and other Board activities.EX-10.29

 

EXHIBIT
(10-29)

THE GILLETTE COMPANY

DEFERRED COMPENSATION PLAN

(for salary deferrals prior to January 1, 2005)

(as amended and restated effective January 1, 2005) 

(with amendments adopted through August 21, 2006)

	1.	 	Purpose. The Gillette Company Deferred Compensation Plan (the “Plan”) has been
adopted by The Gillette Company (the “Company”) to enable certain executive employees of the
Company and its Participating Subsidiaries to defer a portion of their compensation on a
tax-effective basis in addition to their eligible savings under The Gillette Company
Employees’ Savings Plan (the “Savings Plan”) and The Gillette Company Supplemental Savings
Plan.
	 
	 	 	The Plan is intended to constitute an unfunded plan of deferred compensation described in
Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and in Sections 3121(v)(2) and 3306(r)(2) of the Internal
Revenue Code of 1986, as amended (“Code”).
	 
	 	 	Under the terms of the Plan as approved by the Company’s Board of Directors, eligible
employees may elect to defer salary and incentive bonus. This document, which is effective
June 1, 2004, addresses the salary deferral feature of the Plan. Amounts deferred under
this Plan are intended to be grandfathered for purposes of Section 409A of the Code.
	 
	2.	 	Eligible Employees. Employees of the Company and Participating Subsidiaries who are
full-time or part-time regular employees, have a job grade or a personal grade of 21 or above,
and who are generally treated by The Gillette Company as a United States employee for
employment and benefit purposes, are eligible to participate in this Plan for any calendar
year.
	 
	3.	 	Plan Features. Eligible employees who elect to participate in the Plan
(“Participants”) may defer a portion of their salary (“Deferred Salary”).
	 
	4.	 	Recordkeeper. The day-to-day recordkeeping and administrative functions with respect
to the Plan shall be performed by a person or persons appointed by the Committee
(“Recordkeeper”). In accordance with procedures determined by the Committee, Participants’
elections under the Plan may be made by way of written, telephonic or electronic instruction
to the Recordkeeper.
	 
	5.	 	Administration. The Plan shall be administered by the Savings Plan Committee
appointed by the Board of Directors of the Company (the “Committee”), which shall have the
discretionary power and authority to construe and interpret the provisions of the Plan, to
determine the eligibility of employees to participate in the Plan and the amount and timing of
payment of any benefits due under the Plan, and to determine all other matters in carrying out
the intended purposes of the Plan. In
administering this Plan, including but not limited to considering

 

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	 	 	appeals from the denial
of claims for benefits and issuing decisions thereon, rules and procedures substantially
similar to those set forth in the Savings Plan shall govern.
	 
	 	 	Subsequent to a Change in Control of the Company, the Plan shall be administered by the
trustee of the trust established by the Company for the purposes of satisfying the
Company’s payment obligations under the Plan (the “Trustee”). The Trustee shall be
appointed by and serve at the pleasure of the Committee, but may not be removed following a
Change in Control of the Company until all the Company’s obligations under the Plan have
been satisfied.
	 
	6.	 	Construction of Terms. Except as expressly provided in this Plan to the contrary,
capitalized terms referenced herein shall have the same meanings as are applied to such terms
in the Savings Plan as in effect from time to time. Notwithstanding the foregoing, to the
extent necessary to comply with Section 409A of the Code, in the case of any payment hereunder
that in the determination of the Committee would be considered “nonqualified deferred
compensation” subject to Section 409A and as to which, in the determination of the Committee,
the requirements of Section 409A(a)(2)(A)(v) of the Code would apply, an event or occurrence
described as a Change of Control within the Savings Plan shall be considered a “Change of
Control” in this Plan only if it also constitutes a change in ownership or effective control
of the Company, or a change in ownership of the Company’s assets, described in Section
409A(a)(2)(A)(v) of the Code.
	 
	7.	 	Deferred Salary.

	 	(a)	 	An eligible employee may elect to defer, in whole percentages, up to 60% of
his or her gross salary.
	 
	 	(b)	 	A Participant may defer his or her salary on a pre-tax basis until
termination of employment or a later elected date as provided in this Plan if
termination is by reason of retirement or determination of Total and Permanent
Disability status.
	 
	 	(c)	 	The Deferred Salary will be recorded in an account maintained by the
Recordkeeper, entitled the “Deferred Salary Account”. A Participant shall always be
fully vested in amounts credited to the Deferred Salary Account maintained for such
Participant.
	 
	 	(d)	 	A salary deferral election will become effective as of the next practicable
payroll period following receipt by the Recordkeeper in such time and manner as
prescribed by the Committee.
	 
	 	(e)	 	A Participant may at any time change or discontinue his or her salary
deferral election, effective as of the next practicable payroll period following
receipt by the Recordkeeper in such time and manner as prescribed by the Committee.

 

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	 	(f)	 	Such change in salary deferral election shall operate prospectively and shall
have no effect on prior deferrals under this Plan. An individual who has previously
participated in the Plan shall be considered a Participant for the purposes of the
Plan until final distribution is made of amounts credited to his or her Deferred
Salary Account.

	8.	 	Additional Credits to Deferred Salary Accounts.

	 	(a)	 	The Committee shall, from time to time, select one or more of the Investment
Funds from the Savings Plan (“Investment Fund”) for Participants to elect to have
their Deferred Salary deemed invested.
	 
	 	(b)	 	Each Participant, upon electing to participate in the Plan, shall designate
the Investment Fund or Funds with respect to which such Participant’s Deferred Salary
shall be deemed invested, in such a time and manner prescribed by the Committee for
such purpose. The election shall be in whole percentage increments of each such
Investment Fund. A Participant’s election shall remain in effect with respect to all
future Deferred Salary unless and until changed by the Participant in accordance with
Section 8(c) below.
	 
	 	 	 	If a Participant fails to make an election hereunder, all of his or her Deferred
Salary shall be deemed invested in a Money Market Fund until the Participant makes an
election hereunder.
	 
	 	(c)	 	A Participant may change the Investment Fund or Funds in which his or her
future Deferred Salary is deemed to be invested. Such change in election shall be
effective as of the close of the Business Day on which the Recordkeeper receives such
instruction or, if such instruction is received after the close of a Business Day, as
of the close of the next following Business Day.
	 
	 	(d)	 	Amounts recorded in the Deferred Salary Account maintained for each
Participant shall be credited or debited with amounts equivalent to gains or losses
realized by the Investment Funds in which the Participant elects to have his or her
Deferred Salary deemed invested from time to time.
	 
	 	(e)	 	Subject to the limitations set forth in paragraphs (i) and (ii) below, a
Participant may elect at any time to have amounts credited to his or her Deferred
Salary Account transferred from any Investment Fund to any of the other Investment
Funds, by designating the percentage of the Deferred Salary Account invested in the
transferring Investment Fund to be transferred (in whole percentage increments) and
the percentage of such transferred amount to be invested in the receiving Investment
Fund or Funds (in whole
percentage increments). Such transfer election shall be effective, and the
applicable Investment Funds shall be valued for the purpose of implementing such
election, as of the close of the Business Day on which

 

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	 	 	 	the Recordkeeper receives such
instruction or, if such instruction is received after the close of a Business Day, as
of the close of the next following Business Day.
	 
	 	 	 	Elections by Participants under this Section 8(e) shall be limited in the following
respects:

	 	(i)	 	The minimum amount that may be deemed transferred from any
Investment Fund shall be $250 or, if less, the entire balance of the
Participant’s Deferred Salary Account deemed invested in such Investment Fund.
	 
	 	(ii)	 	The Committee may in its discretion limit the number of transfers
that may be made to or from any Investment Fund at any time. The Committee also
shall have the discretionary right to suspend the availability of transfers
among any or all of the Investment Funds at any time without prior notice to
Participants.

	 	(f)	 	Notwithstanding any other provision of the Plan to the contrary, in the event
of a Change of Control, the Trustee shall have the authority to prescribe alternative
investment funds in which Participants’ accounts under this Plan shall be deemed
invested; provided, however, that (i) if Participants retain the right to designate
the investment funds for deemed investment of their respective accounts, then the
investment funds selected by the Trustee shall include at least an Equity Index Fund
and a Money Market Fund, and (ii) if Participants are no longer entitled to designate
the investment funds for deemed investment of their respective accounts, then all
accounts under this Plan shall automatically be deemed invested in a Money Market Fund
pending distribution in accordance with Section 9 below.

	9.	 	Payments from Deferred Salary Account.

	 	(a)	 	Except as otherwise provided in this Section, no amounts shall be payable
under the Plan to any Participant while he or she is employed by the Company or any
Participating Subsidiary. Unless an election is made in accordance with Section 9(b)
or (c) below or unless Section 9(d) below applies, all amounts credited to a
Participant’s Deferred Salary Account shall be paid in a single lump sum as soon as
practicable following the termination of the Participant’s employment with the Company
and all Participating Subsidiaries, valued as of the first business day following such
termination date.
	 
	 	(b)	 	A Participant may elect to defer payment of his or her Deferred Salary
Account to the first business day of the month coincident with or next
following the 1st to 10th anniversary of the Participant’s termination of employment
with the Company and all Participating Subsidiaries, provided (i) the Participant’s
termination of employment is on account of Retirement

 

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	 	 	 	or Total and Permanent
Disability, and (ii) the Participant’s deferral election is made at least twelve
months prior to the Participant’s Release Date (although any deferral election made
prior to December 6, 2005, which is also made at least six months prior to the
Release Date, shall be deemed to have been made at least twelve months prior to the
Release Date). For purposes of this Section, Release Date is defined as the date the
Participant ceases to be regularly employed by the Company or a subsidiary on a
full-time or part-time basis. Such deferred payment shall be valued as of the first
business day following the 1st to 10th anniversary, as applicable, of the
Participant’s termination of employment, and shall be made in a single lump sum as
soon as practicable thereafter. Pending final distribution, the Participant’s
Deferred Salary Account shall continue to be credited or debited with amounts
equivalent to gains and losses realized by the Investment Funds in which such account
is invested from time to time.
	 
	 	(c)	 	A Participant may elect to receive payment of his Deferred Salary Account in
the form of two to ten annual installments commencing in the calendar year following
the year of the Participant’s termination of employment with the Company and all
Participating Subsidiaries, provided (i) the Participant’s termination of employment
is on account of Retirement or Total and Permanent Disability, and (ii) the
Participant’s installment payment election is made at least 12 months prior to the
Participant’s Release Date (although any deferral election made prior to December 6,
2005, which is also made at least six months prior to the Release Date, shall be
deemed to have been made twelve months prior to the Release Date). Each installment
payment shall be valued as of the close of the first business day of the month
following the applicable anniversary of the Participant’s termination of employment,
and shall be paid as soon as practicable thereafter. Pending final distribution, the
remaining balance in the Participant’s Deferred Salary Account shall continue to be
credited or debited with amounts equivalent to gains and losses realized by the
Investment Funds in which such account is invested from time to time.
	 
	 	(d)	 	Prior to the occurrence of a Change of Control, in accordance with rules
prescribed by the Committee, a Participant making a deferral election pursuant to
Section 9(b) above or an installment election pursuant to Section 9(c) above may
provide for the revocation of such deferral or installment election in the event of a
Change of Control and for the payment by the Company of the Participant’s Deferred
Salary Account in a single lump sum as soon as practicable following the Change of
Control valued as of the close of the Business Day on which the Change of Control
occurs, or another date if so directed by the Committee or the Trustee.
	 
	 	 	 	In the absence of a Participant’s affirmative direction to retain a deferral or
installment election, in the event of a Change of Control the Participant’s Deferred
Salary Account will be paid by the Company in a single lump sum as soon as practicable
following the Change of Control valued as of the

 

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	 	 	 	close of the Business Day on which
the Change of Control occurs, or another date if so directed by the Committee or the
Trustee.
	 
	 	(e)	 	In the event of the death of a Participant, whether or not then employed by
the Company or a Participating Subsidiary, all amounts credited to the Participant’s
Deferred Salary Account shall be paid to the Participant’s estate in a single lump sum
valued the first business day of the month following the date of death.
	 
	 	(f)	 	All determinations of value of Participants’ Deferred Salary Accounts shall
be made in accordance with the relevant provisions of the Savings Plan.
	 
	 	(g)	 	All payments under the Plan shall be subject to any required withholding of
Federal, state and local taxes.
	 
	 	(h)	 	The opportunity provided to a Participant to defer payment of his or her
compensation beyond termination of employment shall serve as partial consideration for
a settlement of all claims which the Participant may have against the Company, its
Subsidiaries, employees and agents and shall be subject to execution by the
Participant of a release and settlement agreement in a form prescribed by the
Committee.

	10.	 	Source of Payments. All amounts payable under the Plan shall be paid by the Company
and Participating Subsidiaries from their general assets. No Participant shall have any right
to or interest in any assets of the Company or any Participating Subsidiary other than as an
unsecured general creditor, and no separate fund shall be established in which any Participant
has any right or interest. The foregoing shall not prevent the Company or any Subsidiary from
establishing one or more funds from which payments under the Plan shall be made, including but
not limited to circumstances under which payments are to be made following a Change of
Control.

	11.	 	Plan Amendment and Termination. The Plan may be amended or terminated by the Company
at any time and in any manner prior to the happening of any event in connection with or in
anticipation of a Change of Control that actually occurs, provided that no amendment or
termination shall adversely affect the rights and benefits of Participants with respect to
Compensation deferred pursuant to the Plan prior to such action. After the happening of any
event in connection with or in anticipation of a Change of Control that actually occurs: (a)
no amendment shall be made which adversely affects the rights and benefits of Participants
with respect to compensation deferred or benefits accrued pursuant to the Plan prior to such
amendment; and (b) no amendment may be made with respect to any provision of
the Plan which becomes operative upon a Change of Control. Notwithstanding the foregoing,
the Company may amend the Plan (whether before or after a Change of Control) to the extent
it reasonably deems necessary to comply with the requirements of Section 409A of the Code.

 

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	12.	 	No Right of Employment. The adoption and operation of this Plan shall not create in
any Participant a right of continued employment with the Company or any Subsidiary.

	13.	 	No Assignment of Interest. The interest of any Participant under the Plan may not be
assigned, alienated, encumbered or otherwise transferred, and shall not be subject to
attachment, garnishment, execution or levy; and any attempted assignment, alienation,
encumbrance, transfer, attachment, garnishment, execution or levy shall be void and of no
force or effect.

	 	 	 	 	 	 	 
	 	 	THE GILLETTE COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Edward E. Guillet	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Senior Vice President – Human Resources	 	 
	 

	 	 	 	[reflects amendments adopted through August 21, 2006]

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