Document:

exv10w1

 

Exhibit 10.1

THE CLOROX COMPANY

2005 NONQUALIFIED DEFERRED COMPENSATION PLAN

(Effective January 1, 2005)

ARTICLE I.

PURPOSE

     This Plan is designed to restore to selected employees of The Clorox Company and its
Affiliates certain benefits that cannot be provided under The Clorox Company’s tax-qualified
retirement plans. In addition, this Plan permits selected employees to defer bonuses and regular
pay.

     This Plan is the successor plan to The Clorox Company Nonqualified Deferred Compensation Plan,
as amended through March 3, 1997 (the “Prior Plan”). Effective December 31, 2004, the Prior Plan
shall be frozen and no new contributions or deferrals shall be made to it; provided, however, that
any vested contributions, vested accruals and deferrals made under the Prior Plan before January 1,
2005 shall continue to be governed by the terms and conditions of the Prior Plan as in effect on
December 31, 2004.

     Any contributions, accruals and deferrals made under the Prior Plan after December 31, 2004
and any contributions or accruals that were unvested on December 31, 2004 shall be deemed to have
been made under this Plan and all such contributions, accruals and deferrals shall be governed by
the terms and conditions of this Plan as it may be amended from time to time.

     This Plan is intended to be a plan that is unfunded and that is maintained by The Clorox
Company primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees within the meaning of the Employee Retirement Income
Security Act. This Plan also is intended to comply with the requirements of Section 409A of the
Code.

ARTICLE II.

DEFINITIONS

     In this Plan, the following terms have the meanings indicated below.

     2.01 “Account” means a bookkeeping entry used to record deferrals and contributions
made on a Participant’s behalf under Article III of the Plan and gains and losses credited to these
deferrals and contributions under Article IV of the Plan.

     2.02 “Affiliate” means an entity other than the Company whose employees participate in
The Clorox Company 401(k) Plan and/or The Clorox Company Pension Plan.

     2.03 “Beneficiary” means the person or persons, natural or otherwise, designated in
writing, to receive a Participant’s vested Account if the Participant dies before distribution of
his or her entire vested Account. A Participant may designate one or more primary Beneficiaries
and one or more secondary Beneficiaries. A Participant’s Beneficiary designation will be made
pursuant to such procedures as the Committee may establish, and delivered to the Committee
before the Participant’s death. The Participant may revoke or change this designation at any time

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before his or her death by following such procedures as the Committee may establish. If the
Committee has not received a Participant’s Beneficiary designation before the Participant’s death
or if the Participant does not otherwise have an effective Beneficiary designation on file when he
or she dies, the Participant’s vested Account will be distributed to the Participant’s spouse if
surviving at the Participant’s death, or if there is no such spouse, the Participant’s children in
equal shares, or if none, the Participant’s estate.

     2.04 “Board” means the Board of Directors of the Company.

     2.05 “Bonus” means one or more cash bonuses designated from time to time by the
Committee as eligible for deferral under this Plan, including Cash-or-Deferred Value Sharing Bonus,
and/or an award under The Clorox Annual Incentive Plan and/or The Clorox Executive Incentive
Compensation Plan and/or a Sales Added Compensation Bonus.

     2.06 “Change in Control” means the effective date of any one of the following events
but only to the extent that such change in control transaction is a change in the ownership or
effective control the Company or a change in the ownership of a substantial portion of the assets
of the Company as defined in the regulations promulgated under Section 409A of the Code:

          (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act ) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 30% of either (i) the then outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that for
purposes of this subsection (a), the following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company,
including any acquisition which, by reducing the number of shares outstanding, is the sole cause
for increasing the percentage of shares beneficially owned by any such Person to more than the
applicable percentage set forth above, (iii) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled by the Company
or (iv) any acquisition by any corporation pursuant to a transaction which complies with clauses
(i), (ii) and (iii) of subsection (c) of this definition; or

          (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason within any period of 24 months to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company’s stockholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board, shall be considered as
though such individual were a member of the Incumbent Board, but excluding, for this purpose, any
such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board; or

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          (c) Consummation by the Company of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition of assets
of another corporation (a “Business Combination”), in each case, unless, following such Business
Combination, (i) more than 50% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the corporation resulting from such Business
Combination (including without limitation, a corporation which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) is represented by Outstanding Company Common Stock and Outstanding Company
Voting Securities, respectively, that were outstanding immediately prior to such Business
Combination (or, if applicable, is represented by shares into which such Outstanding Company Common
Stock and Outstanding Company Voting Securities were converted pursuant to such Business
Combination) and such ownership of common stock and voting power among the holders thereof is in
substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (ii) no Person (excluding any employee benefit plan (or related trust) of the
Company or such corporation resulting from such Business Combination) beneficially owns, directly
or indirectly, 20% or more of, respectively, the then outstanding shares of the corporation
resulting from such Business Combination or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership existed prior to the
Business Combination and (iii) at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination were members of the Incumbent Board at the
time of the execution of the initial agreement, or of the action of the Board, providing for such
Business Combination.

     2.07 “The Clorox Company 401(k) Plan” means The Clorox Company 401(k) Plan, as amended
from time to time. “Value Sharing Plan Year” means the plan year defined in The Clorox
Company 401(k) Plan and “Value Sharing Contribution” means a Value Sharing Contribution
(including forfeitures) as described in The Clorox Company 401(k) Plan.

     2.08 “Code” means the Internal Revenue Code of 1986, as amended.

     2.09 “Committee” means the Company’s Employee Benefits Committee or another group
appointed by the Management Development and Compensation Committee of the Company’s Board of
Directors. The Committee has full, discretionary authority to administer and interpret the Plan,
to determine eligibility for Plan benefits, to select employees for Plan participation, and to
correct errors. The Committee may delegate its duties and responsibilities and, unless the
Committee expressly provides to the contrary, any such delegation will carry with it the
Committee’s full discretionary authority to accomplish the delegation. Decisions of the Committee
and its delegate will be final and binding on all persons.

     2.10 “Company” means The Clorox Company.

     2.11 “Compensation Limit” means the $210,000 (indexed) limit of Section 401(a)(17) of
the Code, which limits the compensation that can be taken into account when determining benefits
under a tax-qualified retirement plan.

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     2.12 “Disability” means that an individual is eligible for disability benefits under
the Federal Social Security Act as determined by the Social Security Administration.

     2.13 “Eligible Employee” means an employee of the Company or of an Affiliate who has
been selected by the Committee for Plan participation and who, except as provided in Section
3.01(c), has confirmed his or her participation in writing with the Committee before the calendar
year in which deferrals and/or restoration contributions under this Plan are made on that
employee’s behalf. An individual will cease to be an Eligible Employee on the earliest of (i) the
date the individual ceases to be employed by the Company and all Affiliates, (ii) the date the Plan
is terminated, or (iii) the date the individual is notified by the Committee that he or she is no
longer an Eligible Employee. In addition to the foregoing, the Committee may, in its discretion,
deny eligibility to any employee or group of employees who may previously have been Eligible
Employees.

     2.14 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     2.15 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     2.16 “Identification Date” means each December 31.

     2.17 “Key Employee” means a Participant who, on an Identification Date, is:

          (a) An officer of the Company having annual compensation greater than the compensation limit
in Section 416(i)(1)(A)(i) of the Code, provided that no more than fifty officers of the Company
shall be determined to be Key Employees as of any Identification Date;

          (b) A five percent owner of the Company; or

          (c) A one percent owner of the Company having annual compensation from the Company of more
than $150,000.

If a Participant is identified as a Key Employee on an Identification Date, then such Participant
shall be considered a Key Employee for purposes of the Plan during the period beginning on the
first April 1 following the Identification Date and ending on the next March 31.

     2.18 “Mid-Year Entrant” means an individual (i) who has never been a Participant and
(ii) who is first notified that he or she has been selected for Plan participation during the
calendar year in which his or her Plan participation will begin.

     2.19 “Participant” means a current or former Eligible Employee who retains an Account.

     2.20 “Pension Plan” means The Clorox Company Pension Plan, as amended from time to
time. “Pension Plan Year” means the plan year defined in the Pension Plan and “Cash
Balance Contribution” means a cash balance contribution as defined in the Pension Plan.

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     2.21 “Plan” means The Clorox Company 2005 Nonqualified Deferred Compensation Plan, as
amended from time to time.

     2.22 “Prior Plan” means The Clorox Company Nonqualified Deferred Compensation Plan as
in effect on December 31, 2004.

     2.23 “Regular Pay” means the pre-tax amount of an Eligible Employee’s base salary.
Regular Pay is determined on a “paycheck by paycheck” basis.

     2.24 “Separation from Service” means termination of employment with the Company and
all Affiliates, other than by reason of death. A Participant shall not be deemed to have Separated
from Service if the Participant continues to provide services to the Company or any of its
Affiliates in a capacity other than as an employee and if the former employee is providing services
at an annual rate that is fifty percent or more of the services rendered, on average, during the
immediately preceding three full calendar years of employment with the Company or any of its
Affiliates (or if employed by the Company or any of its Affiliates less than three years, such
lesser period) and the annual remuneration for such services is fifty percent or more of the annual
remuneration earned during the final three full calendar years of employment (of if less, such
lesser period); provided, however, that a Separation from Service will be deemed to have occurred
if a Participant’s service with the Company or any of its Affiliates is reduced to an annual rate
that is less than twenty percent of the services rendered, on average, during the immediately
preceding three full calendar years of employment with the Company or any of its Affiliates (or if
employed by the Company or any of its Affiliates less than three years, such lesser period) or the
annual remuneration for such services is less than twenty percent of the annual remuneration earned
during the three full calendar years of employment with the Company or any of its Affiliates (or if
less, such lesser period).

     2.25 “Unforeseeable Emergency” means a severe financial hardship to the Participant or
Beneficiary resulting from:

          (a) An illness or accident of the Participant or Beneficiary, the Participant’s or
Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as defined in Section 152(a)
of the Code); or

          (b) Loss of the Participant’s or Beneficiary’s property due to casualty (including the need to
rebuild a home following damage to a home not otherwise covered by insurance); or

          (c) Other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant or Beneficiary.

Hardship shall not constitute an Unforeseeable Emergency under the Plan to the extent that it is,
or may be, relieved by:

          (d) Reimbursement or compensation, by insurance or otherwise;

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          (e) Liquidation of the Participant’s or Beneficiary’s assets to the extent that the
liquidation of such assets would not itself cause severe financial hardship. Such assets shall
include but not be limited to stock options, Company stock, and 401(k) plan balances;

          (f) Cessation of deferrals under the Plan.

An Unforeseeable Emergency under the Plan does not include (among other events):

          (a) Sending a child to college; or

          (b) Purchasing a home.

ARTICLE III.

DEFERRALS AND CONTRIBUTIONS

     3.01 Deferrals. An Eligible Employee may elect to defer up to 50% of his or her
Regular Pay and up to 100% of each Bonus for which he or she is eligible by submitting a written
election to the Committee that satisfies such requirements, including such minimum deferral
amounts, as the Committee may determine. Participants will be 100% vested in these deferrals.

          (a) Elections. For each calendar year, an Eligible Employee may make three separate
deferral elections: an election to defer Regular Pay, an election to defer his or her
Cash-or-Deferred Value Sharing Bonus (if any), and an election to defer all other types of Bonus
(if any). Each such election must be made before the calendar year in which the Regular Pay and/or
applicable Bonus is earned or, if later, with respect to a Bonus that qualifies as
performance-based compensation under Section 409A of the Code, no less than 6 months before the end
of the applicable bonus performance period. An election is irrevocable after it is made and shall
remain in effect for one calendar year; provided, however, that a Participant’s election shall be
suspended for the remainder of any calendar year in which such Participant receives a distribution
on account of an Unforeseeable Emergency and thereafter the Participant must submit a new election
to resume participation in the Plan.

          (b) Late Election. If an Eligible Employee does not make a timely election for an
upcoming calendar year, no deferral will be made on behalf of that Eligible Employee with regard to
that election for that upcoming calendar year.

          (c) Initial Election. Notwithstanding the timing provisions in paragraph (a) above, a
Mid-Year Entrant who is first notified that he is eligible to participate in the Plan on or before
September 30 of any calendar year may elect within 30 days after the date the Mid-Year Entrant is
notified of his or her eligibility to defer (i) Regular Pay for services to be performed subsequent
to the date the election is made and (ii) Bonus earned after the effective date of the initial
election. An initial election made pursuant to this paragraph (c) shall remain in effect until the
end of the calendar year in which it is made.

     3.02 Restoration Contributions. Subject to paragraphs (c), (d), and (e) below,
Accounts will be credited with restoration contributions as described below.

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          (a) Value Sharing. The amount of an Eligible Employee’s value sharing restoration
contribution for a Value Sharing or Profit Sharing Plan Year shall be equal to the amount by which
such Eligible Employee’s Value Sharing or Profit Sharing Contribution (including any
Cash-or-Deferred Value Sharing) for that Value Sharing or Profit Sharing Plan Year was reduced due
to (i) the Compensation Limit and (ii) amounts (excluding any Cash-or-Deferred Value Sharing)
voluntarily deferred under this Plan.

          (b) Pension. The amount of an Eligible Employee’s pension restoration contribution
for a Pension Plan Year shall be equal to the amount by which the Eligible Employee’s Cash Balance
Contribution for that Pension Plan Year was reduced due to (i) the Compensation Limit and (ii)
amounts voluntarily deferred under this Plan.

          (c) Crediting. Restoration contributions will be credited to Eligible Employees’
Accounts as of the date that the Value Sharing Contributions or the Cash Balance Contributions to
which the restoration contributions relate are credited to The Clorox Company 401(k) Plan or the
Pension Plan, as the case may be.

          (d) Vesting. Participants will vest in their restoration contributions at the same
percentage rate that they vest in the Value Sharing Contributions or the Pension Plan allocations
to which the restoration contributions relate.

          (e) Restrictions.

               (i) Participation. If an Eligible Employee is not credited with an actual Pension
Plan accrual for a given calendar quarter during a Pension Plan Year, that Eligible Employee will
not receive a pension restoration contribution under this Plan for that calendar quarter.
Similarly, if an Eligible Employee does not receive an actual Value Sharing Contribution for a
given Value Sharing Plan Year, that Eligible Employee will not receive a value sharing restoration
contribution under this Plan for that year.

               (ii) Eligible Employee. In order to receive a restoration contribution under this
Plan with respect to a given Value Sharing Plan Year or calendar quarter of a Pension Plan Year, an
individual must have been an Eligible Employee during that Value Sharing Plan Year or during the
calendar quarter of the Pension Plan Year, as the case may be, but the individual need not be an
Eligible Employee on the date the restoration contribution is actually made.

ARTICLE IV.

EARNINGS

     4.01 Elections. The Committee may permit Participants to request that earnings on
their Accounts be credited as though the Accounts were invested in one or more investments approved
by the Committee.

     4.02 Interest. To the extent that earnings are not credited as described in Section
4.01 above, the Committee will credit interest to each Account. Interest will be credited
quarterly in accordance with procedures approved by the Committee. The interest rate used will be
the annual rate of interest on 30-year Treasury securities, as determined in accordance with
Section

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417(e)(3)(A)(ii)(II) of the Code, for the second month preceding the Company’s fiscal year for
which the interest is credited, unless and until the Committee elects a new interest crediting rate
with respect to this Plan.

ARTICLE V.

DISTRIBUTIONS

     5.01 Distribution Elections.

          (a) Initial Election. Each calendar year, a Participant will elect, in writing, which
of the distribution options described in Section 5.02 of the Plan will govern payment of the
Participant’s vested Account attributable to contributions and deferrals made to the Plan in the
subsequent calendar year. For purposes of this Plan, installment payments shall be treated as a
single distribution under Section 409A of the Code.

          (b) Subsequent Elections. A Participant may change the time and form of an in-service
distribution election (as described in Section 5.02(b)) with respect to all or a portion of his or
her Account by submitting the change to the Committee, in writing, at least one calendar year
before the originally scheduled in-service distribution date, provided that the new in-service
distribution date is at least five years after the originally scheduled in-service distribution
date. If such a subsequent election is not valid because, for example, it is not made in a timely
manner, the Participant’s most recent effective in-service distribution election made under
paragraph (a) above will govern the payment of the Participant’s vested Account. A Participant may
not change the time and form of a Separation from Service distribution (as described in Section
5.02(a)); thus, the Participant’s Separation from Service distribution election made under
paragraph (a) above is irrevocable for the Plan Year for which it is made.

          (c) Special Distribution Election on or before December 31, 2005. Certain
Participants identified by the Committee in its sole discretion may make a special distribution
election on or before December 31, 2005. The only distribution option permitted with respect to
this special distribution election is payment upon Separation from Service. An election made
pursuant to this paragraph (c) shall (i) not be subject to requirements of paragraph (b) above,
(ii) be treated as an initial deferral election, and (iii) be subject to any special administrative
rules imposed by the Committee including rules intended to comply with Section 409A of the Code and
Notice 2005-1, A-19.

          (d) Special Distribution Election on or before December 31, 2006. Certain
Participants, including Participants who are no longer eligible to participate in this Plan, who
are identified by the Committee in its sole discretion may make a special distribution election to
receive a distribution of their vested Accounts in calendar year 2007 or later, provided that the
distribution election is made at least twelve months in advance of the newly elected distribution
date (and the previously scheduled distribution date, if any) and the election is made no later
than December 31, 2006. An election made pursuant to this paragraph (d) shall be subject to any
special administrative rules imposed by the Committee including rules intended to comply with
Section 409A of the Code and Notice 2005-1, A-19 and rules limiting the portion of the
Participants’ Accounts to be distributed to that portion attributable to deferrals made in 2005.
No election under this paragraph (d) shall (i) change the payment date of any distribution
otherwise

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scheduled to be paid in 2006 or cause a payment to be paid in 2006, or (ii) be permitted after
December 31, 2006.

     5.02 Distribution Options.

          (a) Separation from Service. All or a portion of a Participant’s vested Account may
be distributed to the Participant on the date of the Participant’s Separation from Service or on
January 1 of the calendar year immediately following the Participant’s Separation from Service. A
Participant may elect a distribution upon his or her Separation from Service in one of the
following forms, subject to the timing requirements outlined in paragraph (c) below:

               (i) Lump Sum. Payment in one lump sum.

               (ii) Installments. Payment in up to ten annual installments.

          (b) In-Service Distributions. All or a portion of a Participant’s vested Account may
be distributed to the Participant on a specified date elected by the Participant in one of the
following forms, subject to the timing requirements outlined in paragraph (c) below:

               (i) Lump Sum. Payment in one lump sum.

               (ii) Installments. Payment in up to four annual installments.

Notwithstanding an election pursuant to this paragraph (b), if a Participant Separates from Service
prior to the specified in-service distribution date, the Participants vested Account shall be
distributed pursuant to his or her election under paragraph (a) above.

          (c) Timing. Subject to the provisions of paragraph (e) below, payments made pursuant
to paragraphs (a) and (b) above, will not be made earlier than 60 days or later than 90 days
(“60/90 Day Rule”) after the dates properly elected by the Participant.

          (d) Default Distribution. If, upon a Participant’s Separation from Service, the
Committee does not have a proper distribution election on file for that Participant, the vested
portion of that Participant’s Account will be distributed to the Participant, following the
Participant’s Separation from Service, in one lump sum in no event earlier than 60 days or later
than 90 days after the Participant’s Separation from Service.

          (e) Delayed Distribution to Key Employees. Notwithstanding any other provision of
this Section 5.02 to the contrary, a distribution scheduled to be made to a Participant upon his or
her Separation from Service who is identified as a Key Employee as of the date he Separates from
Service shall be delayed for a minimum of six months following the Participant’s Separation from
Service. Any payment that otherwise would have been made pursuant to this Section 5.02 during such
six-month period shall be made not earlier than 60 days or later than 90 days after the six-month
anniversary of the Participant’s Separation from Service. The identification of a Participant as a
Key Employee shall be made by the Committee in its sole discretion in accordance with Section 2.17
of the Plan and Sections 416(i) and 409A of the Code and the regulations promulgated thereunder.

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     5.03 Rehire. If a Participant’s entire Account has not been distributed and/or the
Participant was not 100% vested in his or her Account upon Separation from Service and the
Participant again becomes an Eligible Employee, distributions to the Participant will cease,
amounts forfeited (if any) from the Participant’s Account will be restored to the extent required
to satisfy Section 3.02(e) of the Plan, and the Participant’s distribution election(s) under
Section 5.01 will remain in effect as though the Participant had not had a Separation from Service.
If a former Participant’s entire Account has been distributed and the former Participant was l00%
vested in his or her Account upon Separation from Service, the former Participant will make a new
distribution election under Section 5.01(a), and may make subsequent distribution elections under
Section 5.01(b), if the former Participant again becomes an Eligible Employee.

     5.04 Subsequent Credits. Amounts, if any, that become payable to a Participant’s
Account after distributions have begun from that Account, and before the Participant is rehired or
dies, will, be paid out pursuant to the distribution election in effect for that Participant upon
his or her Separation from Service.

     5.05 Death or Disability. If a Participant dies or becomes Disabled with a vested
amount in his or her Account, whether or not the Participant was receiving distributions from that
Account at the time of his or her death or Disability, the Participant or his or her Beneficiary
will receive the entire vested amount in the Participant’s Account in accordance with the
distribution election made by the Participant. Such election must be made no later than the time
of the Participant’s initial deferral election made in accordance with Article V or December 31,
2006 in one of the following forms, subject to the timing requirements outlined in Section 5.02(c)
above:

          (a) Lump Sum. Payment in one lump sum.

          (b) Installments. Payment in up to ten annual installments.

A Participant may change the form of a death or Disability distribution election (as described
above) with respect to his or her Account by submitting the change to the Committee, in writing, at
least one calendar year before the Participant’s death or Disability. If such a subsequent
election is not valid because, for example, it is not made in a timely manner, the Participant’s
most recent effective distribution election made under this Section 5.05 will govern the payment of
the Participant’s vested Account.

     5.06 Unforeseeable Emergency. In the event of a Participant’s Unforeseeable
Emergency, and upon application by such Participant, the Committee may determine at its sole
discretion that payment of all, or part, of such Participant’s Account shall be made in one lump
sum payment with the last payroll of the month following the month in which the distribution is
approved by the Committee. Payments due to a Participant’s Unforeseeable Emergency shall be
permitted only to the extent reasonably required to satisfy the Participant’s need.

     5.07 Prohibition on Acceleration.¶ Notwithstanding any other provision of the Plan to
the contrary, no distribution will be made from the Plan that would constitute an impermissible
acceleration of payment as defined in Section 409A(a)(3) of the Code and the regulations
promulgated thereunder.

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     5.08 Withholding. The Company will deduct from Plan distributions, or from other
compensation payable to a Participant or Beneficiary, amounts required by law to be withheld for
taxes with respect to benefits under this Plan. The Company reserves the right to reduce any
deferral or contribution that would otherwise be made to this Plan on behalf of a Participant by a
reasonable amount, and to use all or a portion of this reduction to satisfy the Participant’s tax
liabilities under this Section 5.08.

ARTICLE VI.

MISCELLANEOUS

     6.01 Limitation of Rights. Participation in this Plan does not give any individual
the right to be retained in the service of the Company or of any related entity.

     6.02 Satisfaction of Claims. Payments to a Participant, the Participant’s legal
representative, or Beneficiary in accordance with the terms of this Plan will, to the extent
thereof, be in full satisfaction of all claims that person may have hereunder against the
Committee, the Company, and all Affiliates, any of which may require, as a condition to payment,
that the recipient execute a receipt and release in a form determined by the Committee, the
Company, or an Affiliate.

     6.03 Claims and Review Procedure.

          (a) Informal Resolution of Questions. Any Participant or Beneficiary who has
questions or concerns about its benefits under the Plan is encouraged to communicate with The
Clorox Company Benefits Manager. If this discussion does not give the Participant or Beneficiary
satisfactory results, a formal claim for benefits may be made within one year of the event giving
rise to the claim in accordance with the procedures of this Section 6.03.

          (b) Formal Benefits Claim — Review by Benefits Manager. A Participant or Beneficiary
may make a written request for review of any matter concerning its benefits under this Plan. The
claim must be addressed to The Clorox Company 2005 U.S. Non-qualified Deferred Compensation Plan,
Attn: Benefits Manager 1221 Broadway, Oakland, California 94612-1888. The Benefits Manager shall
decide the action to be taken with respect to any such request and may require additional
information if necessary to process the request. The Benefits Manager shall review the request and
shall issue its decision, in writing, no later than 90 days after the date the request is received,
unless the circumstances require an extension of time. If such an extension is required, written
notice of the extension shall be furnished to the person making the request within the initial
90-day period, and the notice shall state the circumstances requiring the extension and the date by
which the Benefits Manager expects to reach a decision on the request. In no event shall the
extension exceed a period of 90 days from the end of the initial period.

          (c) Notice of Denied Request. If the Benefits Manager denies a request in whole or in
part, he or she shall provide the person making the request with written notice of the denial
within the period specified in paragraph (b) above. The notice shall set forth the specific reason
for the denial, reference to the specific Plan provisions upon which the denial is based, a
description of any additional material or information necessary to perfect the request, an

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explanation of why such information is required, and an explanation of the Plan’s appeal
procedures and the time limits applicable to such procedures, including a statement of the
claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit
determination on review.

          (d) Appeal to Committee.

               (i) A person whose request has been denied in whole or in part (or such person’s authorized
representative) may file an appeal of the decision in writing with the Committee within 60 days of
receipt of the notification of denial. The appeal must be addressed to: The Clorox Company 2005
U.S. Non-qualified Deferred Compensation Plan, 1221 Broadway, Oakland, California 94612-1888. The
Committee, for good cause shown, may extend the period during which the appeal may be filed for
another 60 days. The appellant and/or his or her authorized representative shall be permitted to
submit written comments, documents, records and other information relating to the claim for
benefits. Upon request and free of charge, the applicant should be provided reasonable access to
and copies of, all documents, records or other information relevant to the appellant’s claim.

               (ii) The Committee’s review shall take into account all comments, documents, records and other
information submitted by the appellant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination. The Committee shall
not be restricted in its review to those provisions of the Plan cited in the original denial of the
claim.

               (iii) The Committee shall issue a written decision within a reasonable period of time but not
later than 60 days after receipt of the appeal, unless special circumstances require an extension
of time for processing, in which case the written decision shall be issued as soon as possible, but
not later than 120 days after receipt of an appeal. If such an extension is required, written
notice shall be furnished to the appellant within the initial 60-day period. This notice shall
state the circumstances requiring the extension and the date by which the Committee expects to
reach a decision on the appeal.

               (iv) If the decision on the appeal denies the claim in whole or in part written notice shall
be furnished to the appellant. Such notice shall state the reason(s) for the denial, including
references to specific Plan provisions upon which the denial was based. The notice shall state
that the appellant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the claim for benefits.
The notice shall describe any voluntary appeal procedures offered by the Plan and the appellant’s
right to obtain the information about such procedures. The notice shall also include a statement
of the appellant’s right to bring an action under Section 502(a) of ERISA.

               (v) The decision of the Committee on the appeal shall be final, conclusive and binding upon
all persons and shall be given the maximum possible deference allowed by law.

          (e) Exhaustion of Remedies. No legal or equitable action for benefits under the Plan
shall be brought unless and until the claimant has submitted a written claim for benefits

12

 

in accordance with paragraph (b) above, has been notified that the claim is denied in
accordance with paragraph (c) above, has filed a written request for a review of the claim in
accordance with paragraph (d) above, and has been notified in writing that the Committee has
affirmed the denial of the claim in accordance with paragraph (d) above; provided, however, that an
action for benefits may be brought after the Benefits Manager or Committee has failed to act on the
claim within the time prescribed in paragraph (b) and paragraph (d), respectively.

     6.04 Indemnification. The Company and its Affiliates will indemnify the Committee,
the Board, and employees of the Company and its Affiliates to whom responsibilities have been
delegated under the Plan for all liabilities and expenses arising from an act or omission in the
management of the Plan if the person to be indemnified did not act dishonestly or otherwise in
willful violation of the law under which the liability or expense arises.

     6.05 Assignment.

          (a) General. To the fullest extent permitted by law, rights to benefits under the
Plan are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors of a Participant or a Beneficiary.

          (b) Domestic Relations Orders. The procedures established by the Company for the
determination of the qualified status of domestic relations orders and for making distributions
under qualified domestic relations orders, as provided in Section 206(d) of ERISA, shall apply to
the Plan, to the extent pertinent. Amounts awarded to an alternate payee under a qualified
domestic relations order shall be distributed in the form of a lump sum distribution as soon as
administratively feasible following the determination of the qualified status of the domestic
relations order; provided, however, that no portion of the Participant’s unvested Account may be
awarded to an alternate payee.

     6.06 Lost Recipients. If the Committee cannot locate a person entitled to payment of
a Plan benefit after a reasonable search, the Committee may at any time thereafter treat that
person’s Account as forfeited and amounts credited to that Account will revert to the Company. If
the lost person subsequently presents the Committee with a valid claim for the forfeited benefit
amount, the Company will pay that person the amount forfeited.

     6.07 Amendment. The Board may, at any time, amend the Plan in writing. In addition,
the Committee may amend the Plan (other than this Section 6.07) in writing, provided that the
amendment will not cause any substantial increase in cost to the Company or to any Affiliate. No
amendment may, without the consent of an affected Participant (or, if the Participant is deceased,
the Participant’s Beneficiary), adversely affect the Participant’s or the Beneficiary’s rights and
obligations under the Plan with respect to amounts already credited to a Participant’s Account,
unless such amendment is required to comply with any provision of the Code, ERISA or other
applicable law.

     6.08 Suspension. The Board may, at any time, suspend the Plan. Upon such suspension,
Participants’ vested Accounts shall be paid in accordance with Article V of the Plan.

     6.09 Termination.

13

 

          (a) General. The Board may terminate the Plan at any time and in the Board’s
discretion the Accounts of Participants may be distributed within the period beginning twelve
months after the date the Plan was terminated and ending twenty-four months after the date the Plan
was terminated, or pursuant to Sections 5.02(a) or 5.02(b) of the Plan, if earlier. If the Plan is
terminated and Accounts are distributed, the Company shall terminate all account balance
non-qualified deferred compensation plans with respect to all participants and shall not adopt a
new account balance non-qualified deferred compensation plan for at least five years after the date
the Plan was terminated.

          (b) Change in Control. The Board, in its discretion, may terminate the Plan thirty
days prior to or twelve months following a Change in Control and distribute the Accounts of the
Participants within the twelve-month period following the termination of the Plan. If the Plan is
terminated and Accounts are distributed, the Company shall terminate all substantially similar
non-qualified deferred compensation plans sponsored by the Company and all of the benefits of the
terminated plans shall be distributed within twelve months following the termination of the plans.

          (c) Dissolution or Bankruptcy. The Board, in its discretion, may terminate the Plan
upon a corporate dissolution of the Company that is taxed under Section 331 of the Code or with the
approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1(A), provided that the
Participants’ Accounts are distributed and included in the gross income of the Participants by the
latest of (i) the calendar year in which the Plan terminates or (ii) the first calendar year in
which payment of the Accounts is administratively practicable.

     6.10 Applicable Law. To the extent not governed by Federal law, the Plan is governed
by the laws of the State of California without choice of law rules. If any provision of the Plan
is held to be invalid or unenforceable, the remaining provisions of the Plan will continue to be
fully effective.

     6.11 No Funding. The Plan constitutes a promise by the Company and its Affiliates to
make payments in the future in accordance with the terms of the Plan. Participants and
Beneficiaries have the status of general unsecured creditors of the Company and its Affiliates.
Plan benefits will be paid from the general assets of the Company and its Affiliates and nothing in
the Plan will be construed to give any Participant or any other person rights to any specific
assets of the Company or its Affiliates. In all events, it is the intention of the Company, all
Affiliates and all Participants that the Plan be treated as unfunded for tax purposes and for
purposes of Title I of ERISA.

     6.12 Authority to Establish a Grantor Trust. The Committee is authorized in its sole
discretion to establish a grantor trust for the purpose of providing security for the payment of
Accounts under the Plan; provided, however, that no Participant or Beneficiary shall be considered
to have a beneficial ownership interest (or any other sort of interest) in any specific asset of
the Corporation or of its Affiliates as a result of the creation of such trust or the transfer of
funds or other property to such trust. The Committee may establish such a trust at any time,
including without limitation the time of a Change in Control.

14

 

     IN WITNESS WHEREOF, The Clorox Company has caused this Plan to be executed by its duly
authorized representative on the date indicated below.

	 	 	 
	/s/ Jaqueline P. Kane

	 	March 14, 2006
	 

	 	 
	Jacqueline P. Kane, SR VP — Human Resources

	 	DATE

15exv10w2

 

Exhibit 10.2

THE
CLOROX COMPANY

SUPPLEMENTAL

EXECUTIVE

RETIREMENT
PLAN

RESTATED

EFFECTIVE

JANUARY
1, 2005

 

 

PURPOSE OF THE PLAN

The purpose of The Clorox Company Supplemental Executive Retirement Plan (the “Plan”) is to provide
retirement benefits for certain executives of The Clorox Company (the “Company”) in addition to the
retirement benefits provided generally to all Company salaried employees. These supplemental
benefits are intended to provide greater retirement security for those executives and to aid in
attracting and retaining future executives.

 

 

ARTICLE I.

DEFINITIONS

The following words and phrases as used herein shall have the following meanings, unless a
different meaning is plainly required by the context.

	1.1	 	“Accrued Benefit” means the benefit of a Participant calculated under Article II at the time
of the Participant’s Separation from Service, or for Participants who have not Separated from
Service, at the time of their assumed Separation from Service. In the latter case, the
benefit will be based upon the following as of their assumed Separation from Service: (a)
Compensation, (b) total years and completed months of service, (c) any vested accrued benefit
from a Company sponsored Defined Benefits Plan, (d) the monthly benefit which could be
provided based on the actuarially determined annuity value of the Participant’s vested Company
contributions account under any Company sponsored Defined Contribution Plan, and (e) any
monthly primary insurance benefit to which the Participant may be entitled under the Social
Security Act

	1.2	 	“Board of Directors” means the board of directors of the Company as from time to time
constituted.
	 
	1.3	 	“Change in Control” means the effective date of any one of the following events:

	 	(a)	 	The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act ) (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% of either
(i) the then outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not constitute a Change in Control:
(i) any acquisition directly from the Company, (ii) any acquisition by the Company,
including any acquisition which, by reducing the number of shares outstanding, is the
sole cause

1

 

	 	 	 	for increasing the percentage of shares beneficially owned by any such Person to
more than the applicable percentage set forth above, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a transaction which complies with clauses (i), (ii) and (iii) of
subsection (c) of this definition; or

	 	(b)	 	Individuals who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason within any period of 24 months to constitute at
least a majority of the Board of Directors; provided, however, that any individual
becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board, shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board of Directors; or

	 	(c)	 	Consummation by the Company of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the Company or
the acquisition of assets of another corporation (a “Business Combination”), in each
case, unless, following such Business Combination, (i) more than 50% of, respectively,
the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors,
as the case may be, of the corporation resulting from such Business Combination
(including without limitation, a corporation which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) is represented by Outstanding Company Common Stock
and Outstanding Company Voting Securities, respectively, that were outstanding
immediately prior to such

2

 

	 	 	 	Business Combination (or, if applicable, is represented by shares into which such
Outstanding Company Common Stock and Outstanding Company Voting Securities were
converted pursuant to such Business Combination) and such ownership of common stock
and voting power among the holders thereof is in substantially the same proportions
as their ownership, immediately prior to such Business Combination of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as the
case may be, (ii) no Person (excluding any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the then
outstanding shares of the corporation resulting from such Business Combination or
the combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the Business
Combination and (iii) at least a majority of the members of the board of directors
of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board of Directors, providing for such Business Combination.

	1.4	 	“Code” means the Internal Revenue Service of 1986, as amended.
	 
	1.5	 	“Committee” means the Management Development and Compensation Committee of the Board of
Directors.
	 
	1.6	 	“Company” means The Clorox Company.
	 
	1.7	 	“Compensation” means the total of annual base salary plus the Annual Incentive Plan
Compensation and/or Executive Incentive Compensation awarded to a Participant and in each case
includes amounts the receipt of which the Participant has elected to defer or to take in the
form of restricted stock or a stock option. For purposes of the calculation of benefits in
Sections 2.3 and 2.5, the total of the Participant’s three highest Annual Incentive Plan
Compensation and/or Executive Incentive Compensation (referred to collectively as “Incentive
Compensation”) awards will be apportioned evenly over the 36 consecutive months of highest
base salary. If a Participant receives a pro-rated Incentive

3

 

	 	 	Compensation award because of Separation from Service other than at the end of the Company’s
fiscal year, (a) that pro-rated amount shall be divided by the number of months the
Participant was employed during the fiscal year and (b) the Participant’s third highest
Incentive Compensation award shall be divided by 12. If the result of (a) above is greater
than the result of (b) above, one of the Participant’s three highest Incentive Compensation
awards for purposes of this paragraph shall be deemed to be the Participant’s final year
pro-rated Incentive Compensation award plus the amount determined in (b) above multiplied by
the result of subtracting from 12 the number of months Participant was employed by the
Company during his or her final year of employment.

	1.8	 	“Defined Benefit Plan” means a plan, fund or program under which an employer undertakes
systematically for the payment of definitely determinable benefits to its employees over a
period of years after retirement. The benefit an employee will receive upon retirement can be
determined from a formula defined in the plan instrument.

	1.9	 	“Defined Contribution Plan” means a plan which provides for an individual account for each
participant and for benefits based solely on the amount contributed to the participant’s
account, and any income, expenses, gains and losses and any forfeitures of accounts of other
participants which may be allocated to such participant’s account. Beginning July 1, 1994
“Defined Contribution Plan” shall include NonQualified Deferred Compensation Plans which a)
restore amounts for a Participant’s benefit which cannot be contributed to a defined benefit
or contribution plan deemed qualified under the Internal Revenue Code, or b) account for
annual distributions, whether deferred or received in cash, made from a Defined Contribution
Plan rather than credited to the Participant’s account in such plan.

	1.10	 	“Disability” means that an individual is eligible for disability benefits under the Federal
Social Security Act as determined by the Social Security Administration.

	1.11	 	“Effective Date” means July 1, 1981.
	 
	1.12	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

4

 

	1.13	 	“Executive” means a member of the Clorox Leadership Committee.
	 
	1.14	 	“Identification Date” means each December 31.
	 
	1.15	 	“Key Employee” means a Participant who, on an Identification Date, is:

	 	(a)	 	An officer of the Company having annual compensation greater than the
compensation limit in Section 416(i)(1)(A)(i) of the Code, provided that no more than
fifty officers of the Company shall be determined to be Key Employees as of any
Identification Date;
	 
	 	(b)	 	A five percent owner of the Company; or
	 
	 	(c)	 	A one percent owner of the Company having annual compensation from the Company
of more than $150,000.

If a Participant is identified as a Key Employee on an Identification Date, then such Participant
shall be considered a Key Employee for purposes of the Plan during the period beginning on the
first April 1 following the Identification Date and ending on the next March 31.

	1.16	 	“Married Participant” means a Participant who is lawfully married on the date Retirement
Benefits become payable pursuant to Article II (Retirement Benefits).

	1.17	 	“Participant” means any employee who becomes a Participant pursuant to Section 2.1
(Participation), or a former employee who has become entitled to a Normal or Early Retirement
Benefit pursuant to the Plan.

	1.18	 	“Retirement Benefit” means the retirement income provided to Participants and their joint
annuitants in accordance with the applicable provisions of Article II (Retirement Benefits).

	1.19	 	“Separation from Service” means termination of employment with the Company, other than by
reason of death. A Participant shall not be deemed to have Separated from Service if the
Participant continues to provide services to the Company in a capacity other than as an
employee and if the former employee is providing services at an annual

5

 

	 	 	rate that is fifty percent or more of the services rendered, on average, during the
immediately preceding three full calendar years of employment with the Company (or if
employed by the Company less than three years, such lesser period) and the annual
remuneration for such services is fifty percent or more of the annual remuneration earned
during the final three full calendar years of employment (of if less, such lesser period);
provided, however, that a Separation from Service will be deemed to have occurred if a
Participant’s service with the Company is reduced to an annual rate that is less than twenty
percent of the services rendered, on average, during the immediately preceding three full
calendar years of employment with the Company (or if employed by the Company less than three
years, such lesser period) or the annual remuneration for such services is less than twenty
percent of the annual remuneration earned during the three full calendar years of employment
with the Company (or if less, such lesser period).

Words importing males shall be construed to include females wherever appropriate.

ARTICLE II.

RETIREMENT BENEFITS

	2.1	 	Participation
	 
	 	 	The employees of the Company named in Exhibit A are the Participants currently accruing
benefits or who have vested deferred benefits and have not begun to receive such benefits.
From time to time, the Committee may designate additional employees as Plan Participants. A
Participant who is an Executive of the Company and who is removed from office or is not
reappointed as an Executive, or who is not an Executive and who voluntarily or involuntarily
Separates from Service, will thereupon cease to be a Participant and will have no vested
interest in the Plan unless he is entitled to a Normal or Early Retirement Benefit pursuant
to this Article II.
	 
	2.2	 	Normal Retirement Date
	 
	 	 	A Participant who Separates from Service on or after age sixty-five with ten or more years
of employment with the Company will receive a Normal Retirement Benefit beginning on the
first day of the month following his Separation from Service. Such date will be the
Participant’s Normal Retirement Date.

6

 

	2.3	 	Normal Retirement Benefit
	 
	 	 	The Normal Retirement Benefit payable to a Participant will be equal to 3-2/3% of the
monthly average of the Participant’s Compensation during the thirty-six (36) consecutive
months of employment producing the highest such average, times the Participant’s total years
and completed months of employment with the Company as of his Separation from Service, to a
maximum of 15 years, offset by:

	 	(a)	 	the monthly benefit payable under a 50% joint and survivor annuity form for a
Married Participant or an annuity payable for the life of a single Participant, which
would be provided to the Participant on his Normal Retirement Date (i) by Company
contributions under any Company sponsored Defined Benefit Plan plus (ii) the monthly
benefit which could be provided based on the actuarially determined annuity value of
his vested Company contributions account under any Company sponsored Defined
Contribution Plan, plus
	 
	 	(b)	 	the monthly primary insurance benefit to which the Participant may be entitled
under the Social Security Act as of his Normal Retirement Date.

	 	 	For purposes of this Section 2.3, Company contributions shall not include voluntary
reductions of compensation under the provisions of a Company sponsored Defined Contribution
Plan. Company matching contributions under such a plan shall be considered Company
contributions.
	 
	2.4	 	Early Retirement Date
	 
	 	 	A Participant who Separates from Service on or after age fifty-five with ten or more years
of employment with the Company will receive an Early Retirement Benefit beginning on the
first day of the month following his Separation from Service. The date of the commencement
of the Early Retirement Benefit will be the Participant’s Early Retirement Date.

7

 

	2.5	 	Early Retirement Benefit
	 
	 	 	The Early Retirement Benefit payable to a Participant on his Early Retirement Date will be
calculated in the same manner as the Normal Retirement Benefit in Section 2.3 except that:

	 	(a)	 	Before deducting the offsets provided in Section 2.3(a) and (b), the benefit
derived by the calculation in the first paragraph of Section 2.3 shall be reduced to
reflect the Participant’s retirement before his Normal Retirement Date. This reduction
will be one quarter of one percent (0.25%) for each month that the Participant’s Early
Retirement Date precedes his Normal Retirement Date.
	 
	 	(b)	 	In calculating the offset described in Section 2.3(a) and (b), the reference to
“Normal Retirement Date” shall be changed to “Early Retirement Date.” If the Early
Retirement Date is prior to the Participant’s attainment of age 62, then the monthly
primary insurance benefit payable at age 62 shall be multiplied by the appropriate
factor from the table below:

	 	 	 	 	 
	   Age at Early	 	 
	Retirement Date	 	Factor
	62

	 	 	1.00	 
	61

	 	 	.90	 
	60

	 	 	.81	 
	59

	 	 	.73	 
	58

	 	 	.66	 
	57

	 	 	.60	 
	56

	 	 	.54	 
	55

	 	 	.49	 

	 	 	If the Participant’s Age on the Early Retirement Date is not an integral age, the
factors above shall be interpolated to reflect the age in years and months. If the
Participant is 62 or older on his/her Early Retirement Date, the offset shall be the
actual monthly primary insurance benefit to which the Participant is entitled under
the Social Security Act as of that date.

8

 

	2.6	 	Form of Payment
	 
	 	 	A Participant’s Normal or Early Retirement Benefit will be paid to him monthly beginning on
his Normal or Early Retirement Date and ending with the payment due for the month in which
his death occurs. If the spouse of a Participant who is receiving a Retirement Benefit
survives the Participant, monthly payments equal to 50% of the monthly amount payable to the
Participant will continue to such spouse ending with the payment due for the month in which
such spouse’s death occurs.
	 
	2.7	 	Delayed Distribution to Key Employees
	 
	 	 	Notwithstanding any other provision of this Article II to the contrary, any payment of a
Normal or Early Retirement Benefit scheduled to be made on or after January 1, 2005 to a
Participant who is identified as a Key Employee on the date of his Separation from Service
shall be delayed for a minimum of six months following the Participant’s Separation from
Service. Any payment that otherwise would have been made pursuant to this Article II during
such six-month period shall be made on the first day of the month following the date that is
the six-month anniversary of the Participant’s Separation from Service. The identification
of a Participant as a Key Employee shall be made by the Committee in its sole discretion in
accordance with Section 1.15 of the Plan and Sections 416(i) and 409A of the Code and the
regulations promulgated thereunder.
	 
	2.8	 	Termination other than Early or Normal Retirement
	 
	 	 	A Participant who voluntarily or involuntarily Separates from Service and who does not meet
the requirements for an Early or Normal Retirement Benefit will not be entitled to a benefit
under the Plan.
	 
	2.9	 	Pre-Retirement Death Benefit
	 
	 	 	The surviving spouse of a Participant with ten or more years of employment with the Company
who dies before he has begun receiving a Normal or Early Retirement Benefit shall be
entitled to receive a Pre-Retirement Death Benefit. The Pre-Retirement Death Benefit shall
be one-half of a 50% joint and survivor annuity form of the Early or Normal Retirement
Benefit the Participant would have received had he elected to begin receiving a Retirement
Benefit on the first day of the month following his death. If the

9

 

	 	 	Participant’s death occurs before he has attained the age at which he could elect to receive
an Early Retirement Benefit, the Pre-Retirement Death Benefit will commence on the first day
of the month following the date upon which the Participant would have attained that age had
he survived; provided, however, that if the surviving spouse dies before that date, there
shall be no Pre-Retirement Death Benefit available to any survivors of the Participant or
his spouse.

	2.10	 	Disability
	 
	 	 	A Participant who becomes Disabled prior to his Normal Retirement Date and who prior to
becoming Disabled has ten or more years of employment with the Company shall be eligible for
a Disability Benefit under the Plan. During the period the Participant is Disabled and
prior to attaining age 65, the Participant shall continue to be credited with years and
months of employment with the Company even if the Participant Separates from Service prior
to his Normal Retirement Date. Upon attaining age 65, the Disabled Participant shall
receive his Disability Benefit which is an amount equal to his Normal Retirement Benefit
calculated and paid in accordance with Sections 2.2 and 2.3 as if the Participant Separated
from Service on his 65th birthday.
	 
	2.11	 	Prohibition on Acceleration. 
	 
	 	 	Notwithstanding any other provision of the Plan to the contrary, no distribution will be
made from the Plan that would constitute an impermissible acceleration of payment as defined
in Section 409A(a)(3) of the Code and the regulations promulgated thereunder.

ARTICLE III.

MISCELLANEOUS PROVISIONS

	3.1	 	Plan Administration
	 
	 	 	The Committee shall have the power and the duty to take all action and to make all decisions
necessary and proper to carry out the Plan. Without limiting the generality of the
foregoing, the Committee hereby designates the Employee Benefits Committee of the Company to
control and manage the operation and administration of the Plan. The Committee shall have
the authority to allocate among themselves or to the Employee

10

 

	 	 	Benefits Committee or to delegate to any other person, any administrative responsibility
with respect to the Plan.

	3.2	 	Amendment, Suspension and Plan Termination

	 	(a)	 	Except by the written consent of 75% of Plan Participants actually or
potentially affected thereby and the approval of the Board of Directors, the Plan may
not be amended in any way which would reduce the benefits payable hereunder or reduce
or eliminate the funding provided for in Article IV until the first regularly scheduled
meeting of the Board of Directors held after June 30, 2011.
	 
	 	(b)	 	The Board of Directors, without the consent of the Plan Participants, may amend
the Plan to improve or increase the benefits payable hereunder at any time.
	 
	 	(c)	 	With the written consent of 75% of Plan Participants actually or potentially
affected thereby, or at any time on or after the first regularly scheduled meeting of
the Board of Directors held after June 30, 2011, the Board of Directors may suspend the
Plan. Upon such suspension, no new benefits will accrue under the Plan and
distributions from the Plan shall be made pursuant to Article II of the Plan.
	 
	 	(d)	 	On or after the first regularly scheduled meeting of the Board of Directors
held after June 30, 2011, the Board of Directors may terminate the Plan at any time and
in the Board of Directors’ discretion the Participants’ Accrued Benefits may be
distributed within the period beginning twelve months after the date the Plan was
terminated and ending twenty-four months after the date the Plan was terminated, or
pursuant to Article II of the Plan, if earlier. In addition to the foregoing, the
Board of Directors may distribute a Participant’s Accrued Benefit in the form of a
single lump sum payment if the present value of the Participant’s Accrued Benefit is
less than $30,000 adjusted annually beginning July 1, 2004 for changes in the Consumer
Price Index. If the Plan is terminated and Accrued Benefits are distributed, the
Company shall terminate all non-account balance non-qualified deferred compensation
plans with respect to all participants and

11

 

	 	 	 	shall not adopt a new non-account balance non-qualified deferred compensation plan
for at least five years after the date the Plan was terminated.
	 
	 	(e)	 	On or after the first regularly scheduled meeting of the Board of Directors
held after June 30, 2011, the Board of Directors may terminate the Plan upon a
corporate dissolution of the Company that is taxed under Section 331 of the Code or
with the approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1(A),
provided that the Participants’ Accrued Benefits are distributed and included in the
gross income of the Participants by the latest of (i) the calendar year in which the
Plan terminates or (ii) the first calendar year in which payment of the Accrued
Benefits is administratively practicable.

	3.3	 	Assignment of Benefits
	 
	 	 	A Participant may not, either voluntarily or involuntarily, assign, anticipate, alienate,
commute, pledge or encumber any benefits to which he is or may become entitled to under the
Plan nor may the same be subject to attachment or garnishment by any creditor of a
Participant. Notwithstanding the foregoing, the procedures established by the Company for
the determination of the qualified status of domestic relations orders and for making
distributions under qualified domestic relations orders, as provided in Section 206(d) of
ERISA, shall apply to the Plan, to the extent pertinent. Amounts awarded to an alternate
payee under a qualified domestic relations order shall be distributed in the form of a lump
sum distribution as soon as administratively feasible following the determination of the
qualified status of the domestic relations order; provided, however, that no portion of the
Participant’s benefit under the Plan may be awarded to an alternate payee until the
Participant’s benefit is an Accrued Benefit.
	 
	3.4	 	Not An Employment Agreement
	 
	 	 	Nothing in the establishment of the Plan is to be construed as giving any Participant the
right to be retained in the employ of the Company.
	 
	3.5	 	Change in Control
	 
	 	 	In the event that the Company shall, pursuant to action by its Board of Directors, at any
time propose a Change in Control and provision is not made pursuant to the terms of such

12

 

	 	 	transaction for the continuation of the Plan by the surviving, resulting or acquiring
corporation or for the substitution of a comparable plan hereto, the provisions of this Plan
shall remain in effect.

	3.6	 	Claims and Review Procedure

	 	(a)	 	Any Participant or his beneficiary who has questions or concerns about his
benefits under the Plan is encouraged to communicate with the Committee. If this
discussion does not give the Participant or his beneficiary satisfactory results, a
formal claim for benefits may be made within one year of the event giving rise to the
claim in accordance with the procedures of this Section 3.6.
	 
	 	(b)	 	A Participant or his beneficiary may make a written request for review of any
matter concerning his benefits under this Plan. The claim must be addressed to The
Clorox Company Supplemental Executive Retirement Plan, 1221 Broadway, Oakland,
California 94612-1888. The Committee shall decide the action to be taken with respect
to any such request and may require additional information if necessary to process the
request. The Committee shall review the request and shall issue its decision, in
writing, no later than 90 days after the date the request is received, unless the
circumstances require an extension of time. If such an extension is required, written
notice of the extension shall be furnished to the person making the request within the
initial 90-day period, and the notice shall state the circumstances requiring the
extension and the date by which the Committee expects to reach a decision on the
request. In no event shall the extension exceed a period of 90 days from the end of
the initial period.
	 
	 	(c)	 	If the Committee denies a request in whole or in part, it shall provide the
person making the request with written notice of the denial within the period specified
in paragraph (b) above. The notice shall set forth the specific reason for the denial,
reference to the specific Plan provisions upon which the denial is based, a description
of any additional material or information necessary to perfect the request, an
explanation of why such information is required, and an explanation of the Plan’s
appeal procedures and the time limits applicable to such procedures,

13

 

	 	 	 	including a statement of the claimant’s right to bring a civil action under Section
502(a) of ERISA following an adverse benefit determination on review.
	 
	 	(d)	 	Decision on Appeal.

	 	(i)	 	A person whose request has been denied in whole or in part (or
such person’s authorized representative) may file an appeal of the decision in
writing with the Committee within 60 days of receipt of the notification of
denial. The appeal must be addressed to: The Clorox Company Supplemental
Executive Retirement Plan, 1221 Broadway, Oakland, California 94612-1888. The
Committee, for good cause shown, may extend the period during which the appeal
may be filed for another 60 days. The appellant and/or his or her authorized
representative shall be permitted to submit written comments, documents,
records and other information relating to the claim for benefits. Upon request
and free of charge, the applicant should be provided reasonable access to and
copies of, all documents, records or other information relevant to the
appellant’s claim.
	 
	 	(ii)	 	The Committee’s review shall take into account all comments,
documents, records and other information submitted by the appellant relating to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination. The Committee shall not be
restricted in its review to those provisions of the Plan cited in the original
denial of the claim.
	 
	 	(iii)	 	The Committee shall issue a written decision within a
reasonable period of time but not later than 60 days after receipt of the
appeal, unless special circumstances require an extension of time for
processing, in which case the written decision shall be issued as soon as
possible, but not later than 120 days after receipt of an appeal. If such an
extension is required, written notice shall be furnished to the appellant
within the initial 60-day period. This notice shall state the circumstances
requiring the extension

14

 

	 	 	 	and the date by which the Committee expects to reach a decision on the
appeal.

	 	(iv)	 	If the decision on the appeal denies the claim in whole or in
part written notice shall be furnished to the appellant. Such notice shall
state the reason(s) for the denial, including references to specific Plan
provisions upon which the denial was based. The notice shall state that the
appellant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information
relevant to the claim for benefits. The notice shall describe any voluntary
appeal procedures offered by the Plan and the appellant’s right to obtain the
information about such procedures. The notice shall also include a statement
of the appellant’s right to bring an action under Section 502(a) of ERISA.
	 
	 	(v)	 	The decision of the Committee on the appeal shall be final,
conclusive and binding upon all persons and shall be given the maximum possible
deference allowed by law.

	 	(e)	 	No legal or equitable action for benefits under the Plan shall be brought
unless and until the claimant has submitted a written claim for benefits in accordance
with paragraph (b) above, has been notified that the claim is denied in accordance
with paragraph (c) above, has filed a written request for a review of the claim in
accordance with paragraph (d) above, and has been notified in writing that the
Committee has affirmed the denial of the claim in accordance with paragraph (d) above;
provided, however, that an action for benefits may be brought after the Committee has
failed to act on the claim within the time prescribed in paragraph (b) and paragraph
(d), respectively.

	3.7	 	Unfunded Status
	 
	 	 	The Plan is intended to be a plan that is unfunded and that is maintained by the Company
primarily for the purpose of providing deferred compensation for a select group of

15

 

	 	 	management or highly compensated employees within the meaning of ERISA. The Plan also is
intended to comply with the requirements of Section 409A of the Code.

ARTICLE IV.

FUNDING

	4.1	 	Establishment of Irrevocable Trust
	 
	 	 	The Company shall establish an irrevocable trust of which the Company is the owner for
federal income tax purposes (within the meaning of Sections 671 through 677 of the Internal
Revenue Code of 1986) (the “Trust”) and fund the Trust as hereinafter provided in order to
provide a source from which to satisfy the Company’s obligations to Participants under this
Plan.
	 
	4.2	 	Amount of Funding
	 
	 	 	The Company shall make such contributions to the Trust as the Board of Directors from time
to time determines appropriate.
	 
	4.3	 	Actuarial Assumptions and Method
	 
	 	 	The Plan’s actuary shall use the following assumptions and methods when advising the Board
of Directors with regard to contributions to the Trust:

	 	(a)	 	Mortality:
	 
	 	 	 	1983 Group Annuity Mortality Table for periods after benefits have commenced, or are
assumed to have commenced. No mortality will be assumed prior to the assumed
retirement age for benefits not yet in payment status.
	 
	 	(b)	 	Return on Investment:
	 
	 	 	 	Assets are assumed to earn, the liabilities are discounted at, eight percent (8%)
per year.
	 
	 	(c)	 	Assumed Retirement Age:
	 
	 	 	 	For Participants whose benefits are not in payment status as of July 1 of each year,
the Assumed Retirement Age will be age 60, or their current age if older. For
beneficiaries, the Assumed Retirement Age is the beneficiary’s age on the

16

 

	 	 	 	date their deceased spouse would have reached 60, or their current age if their
spouse would have already been older than age 60.
	 
	 	(d)	 	Annual Pay Increases:
	 
	 	 	 	Eight percent (8%) per year.
	 
	 	(e)	 	Employee Turnover:
	 
	 	 	 	None.
	 
	 	(f)	 	Social Security Increases:
	 
	 	 	 	Social security benefits are assumed to increase 5% per year.
	 
	 	(g)	 	IRC Limits:
	 
	 	 	 	The Code Section 415 and Section 401(a)(17) limits are assumed to increase 5% per
year.
	 
	 	(h)	 	Defined Contribution Plan Offset:
	 
	 	 	 	Annuity equivalent of projected account balance assuming an annual earnings rate of
8.0%; Profit Sharing Plan contributions of 8.0% of pay; annual 401(k) contributions
of $1000 (no inflation); and assuming no further PAYSOP contributions are made.
	 
	 	(i)	 	Actuarial Cost Method:
	 
	 	 	 	The Entry Age Normal Cost Method will be used. The unfunded actuarial liability as
of each July 1 will be amortized over ten years.

17

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