Document:

exv10wxpy

Exhibit (10)p

KIMBERLY-CLARK CORPORATION

SEVERANCE PAY PLAN

Amended and restated as of January 1, 2009

 

TABLE OF CONTENTS

	 	 	 
	ARTICLE	 	TITLE
	I

	 	NAME, PURPOSE AND EFFECTIVE DATE OF PLAN
	 
	 	 
	II

	 	DEFINITIONS
	 
	 	 
	III

	 	ELIGIBILITY AND PARTICIPATION
	 
	 	 
	IV

	 	SEVERANCE BENEFITS
	 
	 	 
	V

	 	PLAN ADMINISTRATION
	 
	 	 
	VI

	 	LIMITATIONS AND LIABILITIES
	 
	 	 
	 

	 	APPENDIX A — COVERED EMPLOYERS

 

ARTICLE I

NAME, PURPOSE AND EFFECTIVE DATE OF PLAN

	1.1	 	Name of the Plan. Kimberly-Clark Corporation (the “Corporation”) hereby establishes
a severance pay plan for its Employees, to be known as the Kimberly-Clark Corporation
Severance Pay Plan (the “Plan”) as set forth in this document. The Plan is intended to
qualify as an employee welfare benefit plan within the meaning of Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).
	 
	1.2	 	Purpose of the Plan. The purpose of the Plan is to provide Eligible Employees a
severance benefit in the event of involuntary termination of employment. The Plan is not
intended as a replacement or substitution for any confidentiality or noncompete agreement
between an Employee and Employer executed prior or subsequent to the effective date of the
Plan.
	 
	1.3	 	Effective Date. The Plan is effective as of January 1, 1998 and is amended and
restated to apply to involuntary Separations of Service after January 1, 2009.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

	2.1	 	Definitions. When the following words and phrases appear in this Plan, they shall
have the respective meanings set forth below unless the context clearly indicates otherwise:

	 	(a)	 	Board: The Board of Directors of the Corporation.
	 
	 	(b)	 	Cause: Any termination of employment which is classified by the
Employer as for cause, including but not limited to: (i) unsatisfactory performance of
duties, or inability to meet the requirements of the position; (ii) any habitual
neglect of duty or misconduct of the Employee in discharging any of his duties and
responsibilities; (iii) excessive unexcused, or statutorily unprotected absenteeism or
inattention to duties; (iv) failure or refusal to comply with the provisions of the
Employer’s personnel manual or any other rule or policy of the Employer; (v)
misconduct, including but not limited to, engaging in conduct which the Committee
reasonably determines to be detrimental to the Employer; (vi) disloyal, dishonest or
illegal conduct by the Employee; (vii) theft, fraud, embezzlement or other criminal
activity involving the Employee’s relationship with the Employer; (viii) violation of
any applicable statute, regulation, or rule, or provision of any applicable code of
professional ethics; (ix) suspension, revocation, or other restriction of the
Participant’s professional license, if applicable; or (x) the Employer’s inability to
confirm, to its sole satisfaction, the references and/or credentials which the
Participant provided with respect to any professional license, educational background
and employment history.
	 
	 	(c)	 	COBRA: Medical continuation coverage elected under the provisions of
the Consolidated Omnibus Budget Reconciliation Act of 1985. Participants shall be

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	 	 	 	eligible to receive medical continuation coverage under COBRA for the number of months
provided under Article IV without payment of the applicable premium if the Participant
is otherwise eligible for, and timely elects, COBRA medical continuation coverage. The
Participant shall be responsible for any additional months of COBRA coverage elected
beyond the months of COBRA provided by the Corporation under this Plan. The Participant
may also enroll in other applicable COBRA coverage (e.g. dental and/or the health care
spending accounts); however, the Participant shall be responsible for and must pay the
COBRA premium for such coverage.
	 
	 	(d)	 	Code: The Internal Revenue Code of 1986, as amended from time to time,
and as construed and interpreted by valid regulations or rulings issued thereunder.
	 
	 	(e)	 	Committee: The Benefits Administration Committee appointed to
administer and regulate the Plan as provided in Article V.
	 
	 	(f)	 	Comparable Position: A position offered to an employee will be
considered a Comparable Position under this Plan unless the Committee determines in its
sole discretion that any of the following apply (i) there is a material diminution in
the Employee’s Earnings on the date of such offer, (ii) a material change in the
geographic location at which the Employee must perform the services, (iii) the position
offered to the Employee is a material diminution of the Employee’s authority, duties or
responsibilities. The Employee must provide notice to the Corporation of the existence
of any of the above conditions within a period not to exceed 90 days of the initial
offer of the non-Comparable Position to the employee, upon the notice of which the
Corporation must be provided a period of at least 30 days during which it may remedy
the offer and not be required to pay the severance amount. The determination whether a
position offered will be considered a Comparable Position under this Plan shall be in
the Committee’s sole discretion and the Committee shall have the power to promulgate
Committee Rules and other guidelines in connection with this determination. Any such
determination by the Committee whether a Participant is offered a Comparable Position
shall be final and conclusive as to all Eligible Employees and other persons claiming
rights under the Plan.
	 
	 	(g)	 	Earnings: The base salary of an Eligible Employee at his or her
current stated hourly, weekly, monthly or annual rate on his Termination Date. If
Eligible Employee is a full-time Employee, Earnings are the hourly pay rate (excluding
shift differential) times 40 (hours). If Eligible Employee is an Employee who works
less than 40 hours per week, Earnings are the hourly pay rate (excluding shift
differential) times the Employee’s regularly scheduled hours per week. Earnings do not
include overtime pay, MAAP, bonus or other remuneration for all Eligible Employees.
The calculation of a week of Earnings shall be made subject to any applicable Committee
rule.
	 
	 	(h)	 	Effective Date: January 1, 1998, or with respect to a particular
Subsidiary, such later date as of which the Committee deems such Subsidiary to be an
Employer,
or as set forth in Appendix A. The Plan is amended and restated to apply to
involuntary Separations of Service after January 1, 2009.

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	 	(i)	 	Eligible Employee: An hourly Employee not covered by a collective
bargaining unit, or salaried Employee, on the regular payroll of an Employer. For
purposes of this subsection, “on the regular payroll of an Employer” shall mean paid
through the payroll department of such Employer, and shall exclude employees classified
by an Employer as intermittent or temporary, and persons classified by an Employer as
independent contractors, regardless of how such employees may be classified by any
federal, state, or local, domestic or foreign, governmental agency or instrumentality
thereof, or court.
	 
	 	(j)	 	Employee: A person employed by an Employer.
	 
	 	(k)	 	Employer: The Corporation and each Subsidiary which the Committee
shall from time to time designate as an Employer for purposes of the Plan. A list of
Employers is set forth in Appendix A.
	 
	 	(l)	 	MAAP: The Management Achievement Award Program, the Executive Officer
Achievement Award Program or any successor plans.
	 
	 	(m)	 	MAAP Eligible: Eligible Employees who as of their date of termination
of employment meet the eligibility requirements to participate under MAAP.
	 
	 	(n)	 	Participant: An individual who has met the eligibility requirements to
receive Severance Pay pursuant to Article III.
	 
	 	(o)	 	Plan Year: A twelve calendar month period beginning January 1 through
December 31.
	 
	 	(p)	 	Separation from Service. Termination of employment with the
Corporation or a Subsidiary. A Separation from Service will be deemed to have occurred
if the Employee’s services with the Corporation or a Subsidiary is reduced to an annual
rate that is 20 percent or less of the services rendered, on average, during the
immediately preceding three years of employment (or if employed less than three years,
such lesser period). The Committee shall have the power to promulgate Committee Rules
and other guidelines in connection with the determination of a Separation from Service
and any such determination by the Committee shall be final and conclusive as to all
Eligible Employees and other persons claiming rights under the Plan.
	 
	 	(q)	 	Severance Pay: Payment made to a Participant pursuant to Article IV
hereof.
	 
	 	(r)	 	Subsidiary: Any corporation, 50% or more of the voting shares of which
are owned directly or indirectly by the Corporation, which is incorporated under the
laws of one of the States of the United States.
	 
	 	(s)	 	Target MAAP: The Target Award Level that has been established and has
not yet been paid under MAAP. The Target Award Level is established under
MAAP by either the Board, or the Management Development and Compensation Committee
of the Board, prior to the beginning of each calendar year, or as soon thereafter as
reasonably practicable.
	 
	 	(t)	 	Termination Date: The date of an Employee’s Separation from Service.

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	 	(u)	 	Years of Service: An Employee shall be credited with a Year of Service
for each year commencing with the Employee’s vacation eligibility date as maintained by
the payroll department of such Employer until the Employee’s Termination Date, rounded
to the nearest whole year of service. Notwithstanding any provision in the Plan to the
contrary, an Employee’s credited Years of Service shall be reduced to the extent such
Years of Service have previously been used to calculate a prior severance payment to
the Employee.

	2.2	 	Construction: Where appearing in the Plan the masculine shall include the feminine
and the plural shall include the singular, unless the context clearly indicates otherwise.
The words “hereof,” “herein,” “hereunder” and other similar compounds of the word “here” shall
mean and refer to the entire Plan and not to any particular Section or subsection.

ARTICLE III

ELIGIBILITY AND PARTICIPATION

	3.1	 	Participation. An Eligible Employee shall become a Participant on the later of the
Effective Date or the first day actively employed by an Employer.
	 
	3.2	 	Eligibility. Each Participant whose employment is involuntarily terminated shall
receive Severance Pay; provided, however, that Severance Pay shall not be paid to any
Participant who:

	 	(a)	 	is terminated for Cause;
	 
	 	(b)	 	is terminated during a period in which such Participant is not
actively at work (i.e. has been on leave) for more than 25 weeks, except to the
extent otherwise required by law;
	 
	 	(c)	 	voluntarily quits or retires;
	 
	 	(d)	 	dies;
	 
	 	(e)	 	is offered a Comparable Position as defined in Section 3.5 below.

	3.3	 	Duration. A Participant remains a Participant under the Plan until the earliest of:

	 	(a)	 	the date the Participant is no longer an Eligible Employee;
	 
	 	(b)	 	the Participant’s Termination Date; or
	 
	 	(c)	 	the date the Plan terminates.

	3.4	 	Severance Agreement and Release. No Participant shall be entitled to receive
Severance Pay hereunder unless such Participant executes a Separation Agreement and Full and
Final Release of Claims, in the form required by the Corporation, within the period specified
for such individual therein and such Participant does not revoke such Separation Agreement and
Full and Final Release of Claims in writing within the 7-day period following the date on
which it is executed.
	 
	3.5	 	Comparable Position. Severance Pay shall not be paid to any Employee whose
employment is involuntarily terminated related to

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	 	(a)	 	any separation or reorganization of the Corporation including, but not limited
to, a sale, spin-off or shutdown of a portion of the Corporation, including but not
limited to a portion of a mill or other location, if such Employee is offered a
Comparable Position with the successor entity,
	 
	 	(b)	 	the outsourcing of an Employee to a company other than an Employer, in which
such Employee is offered or continues in a Comparable Position, or
	 
	 	(c)	 	any elimination of a job function, or transfer of an Employee’s position to
another location, in which such Employee is offered a Comparable Position with the
Corporation.

ARTICLE IV

SEVERANCE BENEFITS

	 	4.1	 	Severance Pay. Whether any Severance Pay is payable under this Plan,
or any increase or decrease in the amount of Severance Pay, shall be in the sole
discretion and as authorized pursuant to subsection 5.7(b) below. Any such increase or
decrease in the amount of Severance Pay shall be final and conclusive as to all
Eligible Employees and other persons claiming rights under the Plan. Subject to the
exercise of such discretion, a Participant’s Severance Pay shall be determined as
follows:
	 
	 	(a)	 	Each individual who is eligible as provided in Article III above, shall
receive, the Severance Pay, COBRA, outplacement assistance services and Employee
Assistance Program services set forth below.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Other	 	 	 	 	 	 
	 	 	 	 	Grades	 	MAAP-	 	Salaried	 	Salaried	 	Production
	Provision	 	GSLT	 	1-4	 	Eligible	 	Exempt	 	Non-Exempt	 	Non-Union
	Severance - Termination
on or after 12 months employment
	 	2 x the sum of annual Earnings plus Target  MAAP	 	The sum of annual Earnings plus Target  MAAP	 	2 weeks of Earnings per Year of
Service (26 weeks Earnings minimum)	 	2 weeks of Earnings per Year of
Service (12 weeks Earnings minimum)	 	1 week of Earnings per Year of
Service (6 weeks Earnings minimum)	 	1 week of Earnings per Year of
Service (6 weeks Earnings minimum)
	 
	Severance –
Termination within
first 12 months
employment
	 	3 months Earnings	 	3 months Earnings	 	3 months Earnings	 	3 months Earnings	 	6 weeks Earnings	 	6 weeks Earnings

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	 	 	 	 	 	 	Other	 	 	 	 	 	 
	 	 	 	 	Grades	 	MAAP-	 	Salaried	 	Salaried	 	Production
	Provision	 	GSLT	 	1-4	 	Eligible	 	Exempt	 	Non-Exempt	 	Non-Union
	Current Year MAAP
	 	Pro-rated based on actual
performance if Separation from Service is after March 31 of the performance year	 	Pro-rated based on actual
performance if Separation from Service is after March 31 of the performance year	 	Pro-rated based on actual
performance if Separation from Service is after March 31 of the performance year	 	 	 	 	 	 
	 
	COBRA
	 	6 months	 	6 months	 	6 months	 	6 months	 	6 months	 	6 months
	 
	Outplacement
	 	6 months	 	6 months	 	6 months	 	3 months	 	2 weeks	 	2 weeks
	 
	EAP
	 	3 months	 	3 months	 	3 months	 	3 months	 	3 months	 	3 months

	 	(b)	 	Severance Pay shall be paid as a lump sum cash payment no later than 60 days
following the Participant’s Termination Date, provided, however, should any payments
under this Plan be delayed no interest will be owed to the Participant with respect to
such late payment. Notwithstanding the foregoing, any current year MAAP that is
payable shall be paid at the same time as it was payable under the provisions of MAAP
but no later than 60 days following the calendar year of the
Separation from Service.
	 
	 	(c)	 	The Severance Pay determined pursuant to subsection 4.1(a) above will be offset
by any amount paid to a Participant (but not less than zero) pursuant to the Worker
Adjustment and Retraining Notification Act (“WARN”), or any similar state law, in lieu
of notice thereunder. The benefits provided under this Plan are intended to satisfy
any and all statutory obligations that may arise out of an Eligible Employee’s
involuntary termination, and the Committee shall so construe and implement the terms of
the Plan.
	 
	 	(d)	 	If, at the time Severance Pay is to be made hereunder, a Participant is
indebted or obligated to an Employer or any affiliate, then such Severance Pay shall be
reduced by the amount of such indebtedness or obligation to the extent allowable under
applicable federal or state law; provided that the Corporation may in its sole
discretion elect not to reduce the Severance Pay by the amount of such indebtedness or
obligation and provided that any such election by the Corporation shall not constitute
a waiver of its claim of such indebtedness or obligation, in accordance with applicable
law.
	 
	 	(e)	 	Notwithstanding any provision in the Plan to the contrary, Severance Pay shall
be reduced by the amount of any other severance payments, whether under any severance
plan or offer letter or other individual agreement, made by an Employer.
	 
	 	(f)	 	Severance Pay hereunder shall not be considered “compensation” for purposes of
determining any benefits provided under any pension, savings, or other benefit plan
maintained by an Employer.

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	4.2	 	Withholding. A Participant shall be responsible for payment of any federal, Social
Security, state, local or other taxes on Severance Pay under the Plan. The Employer shall
deduct from Severance Pay any federal, Social Security, state, local or other taxes which are
subject to withholding, as determined by the Employer.
	 
	4.3	 	Recovery of Overpayments. If it is determined that any amount paid to an individual
under this Plan should not have been paid or should have been paid in a lesser amount, written
notice thereof shall be given and such individual shall promptly repay the amount of the
overpayment to the Plan.  Notwithstanding the foregoing, the Plan in all cases reserves the
right to pursue collection of any remaining overpayments if the above recovery efforts under
this paragraph have failed.

ARTICLE V

PLAN ADMINISTRATION

BENEFITS ADMINISTRATION COMMITTEE

	5.1	 	Membership. The Committee shall consist of at least three persons who shall be
officers or directors of the Corporation or Eligible Employees. Members of the Committee
shall be appointed from time to time by, and shall serve at the pleasure of, the Chief Human
Resources Officer of the Corporation (the “CHRO”). The CHRO shall appoint one of the members
of the Committee to serve as chairman. If the CHRO does not appoint a chairman, the
Committee, in its discretion, may elect one of its members as chairman. The Committee shall
appoint a Secretary who may be but need not be, a member of the Committee. The Committee
shall not receive compensation for its services. Committee expenses shall be paid by the
Corporation.
	 
	5.2	 	Powers. The Committee shall have all such powers as may be necessary to discharge
its duties hereunder, including, but not by way of limitation, the power to construe or
interpret the Plan, to determine all questions of eligibility hereunder, to adopt rules
relating to coverage, and to perform such other duties as may from time to time be delegated
to it by the Board. Any interpretations of this Plan by persons other than the Committee or
individuals or organizations to whom the Committee has delegated administrative duties shall
have no effect hereunder. The Committee may prescribe such forms and systems and adopt such
rules and methods and tables as it deems advisable. It may employ such agents, attorneys,
accountants, actuaries, medical advisors, or clerical assistants (none of whom need be members
of the Committee) as it deems necessary for the effective exercise of its duties, and may
delegate to such agents any power and duties, both ministerial and discretionary, as it may
deem necessary and appropriate. Notwithstanding the foregoing, any claim which arises under
any other plan shall not be subject to review under this Plan, and the Committee’s authority
under this Article V shall not extend to any matter as to which an Administrator under such
Program is empowered to make determinations under such
plan. In administering the Plan, the Committee will be entitled, to the extent permitted by
law, to rely conclusively on all tables, valuations, certificates, opinions and reports
which are furnished by, or in accordance with the instructions of, the Committee of each of
the Programs, or by accountants, counsel or other experts employed or engaged by the
Committee.

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	5.3	 	Procedures. The Committee may take any action upon a majority vote at any meeting at
which all members are present, and may take any action without a meeting upon the unanimous
written consent of all members. All action by the Committee shall be evidenced by a
certificate signed by the chairperson or by the secretary to the Committee. The Committee
shall appoint a secretary to the Committee who need not be a member of the Committee, and all
acts and determinations of the Committee shall be recorded by the secretary, or under his
supervision. All such records, together with such other documents as may be necessary for the
administration of the Plan, shall be preserved in the custody of the secretary.
	 
	5.4	 	Rules and Decisions. All rules and decisions of the Committee shall be uniformly and
consistently applied to all Eligible Employees and Participants under this Plan in similar
circumstances and shall be conclusive and binding upon all persons affected by them.
	 
	5.5	 	Books and Records. The records of the Employers shall be conclusive evidence as to
all information contained therein with respect to the basis for participation in the Plan and
for the calculation of Severance Pay.
	 
	5.6	 	Claim Procedure. The Committee procedure for handling all claims hereunder and
review of denied claims shall be consistent with the provisions of ERISA. If a claim for Plan
benefits is denied, the Committee shall provide a written notice within 90 days to the person
claiming the benefits that contains the specific reasons for the denial, specific references
to Plan provisions on which the Committee based its denial and a statement that the claimant
may (a) request a review upon written application to the Committee within 60 days, (b) may
review pertinent Plan documents and (c) may submit issues and comments in writing. If a claim
is denied because of incomplete information, the notice shall also indicate what additional
information is required. If additional time is required to make a decision on the claim, the
Committee shall notify the claimant of the delay within the original 90 day period. This
notice will also indicate the special circumstances requiring the extension and the date by
which a decision is expected. This extension period may not exceed 90 days beyond the end of
the first 90-day period.
	 
	 	 	The claimant may request a review of a denied claim by writing the Committee in care of the
Plan Administrator. The appeal must, however, be made within 60 days after the claimant’s
receipt of notice of the denial of the claim. Pertinent documents may be reviewed in
preparing an appeal, and issues and comments may be submitted in writing. An appeal shall
be given a complete review by the Committee, and a written decision, including reasons,
shall be provided within 60 days. If there are special circumstances requiring an extensive
review, the Committee shall notify the claimant in a written notice within the original 60
day period of its receipt of the appeal and indicating that the decision will be delayed. A
final decision on the appeal shall be made within 120 days of the Committee’s receipt of the
appeal.
	 
	 	 	The Committee shall have all of the authority with respect to all aspects of claims for
benefits under the Plan, and it shall administer this authority in its sole discretion.
	 
	5.7	 	Committee Discretion. 

	 	(a)	 	Any action on matters within the discretion of the Committee, including but not
limited to, the amount of Severance Pay conferred upon a Participant, shall be

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	 	 	 	final and conclusive as to all Eligible Employees and other persons claiming rights under the
Plan. The Committee shall exercise all of the powers, duties and responsibilities set
forth hereunder in its sole discretion. Notwithstanding anything in this Plan to the
contrary, the Committee shall have the sole discretion to interpret the terms of the
Plan included but not limited to, whether a termination is voluntarily or involuntary,
whether a Participant’s termination is for Cause, whether a Participant is offered a
Comparable Position, and whether Severance Pay shall be payable to any Participant
under this Plan.
	 
	 	(b)	 	Any increase or decrease in the amount of Severance Pay different than the
amount set forth in 4.1(a) above may be authorized in their sole discretion by (i) the
Committee, (ii) a Group President or Senior Vice President of the Corporation with the
endorsement of either the Senior Vice President Global Human Resources or the Vice
President Compensation and Benefits or (iii) the Chief Executive Officer. Any such
increase or decrease in the amount of Severance Pay shall be final and conclusive as to
all Eligible Employees and other persons claiming rights under the Plan.

	5.8	 	Plan Amendments. The Board may from time to time modify, alter, amend or terminate
the Plan. Any action permitted to be taken by the Board under the foregoing provision may be
taken by the CHRO if such action:

	 	(a)	 	is required by law, or
	 
	 	(b)	 	is estimated not to increase the annual cost of the Plan by more than
$5,000,000, or
	 
	 	(c)	 	is estimated not to increase the annual cost of the Plan by more than
$25,000,000 provided such action is approved and duly executed by the CEO.

	 	 	Any action taken by the Board or CHRO shall be made by or pursuant to a resolution duly
adopted by the Board or CHRO and shall be evidenced by such resolution or by a written
instrument executed by such persons as the Board or CHRO shall authorize for that purpose.
	 
	 	 	The Board or CHRO also shall have the right to make any amendment retroactively which is
necessary to bring the Plan into conformity with the Code or which is otherwise permitted by
applicable law. Any such amendment will be binding and effective for the Employer.
	 
	 	 	Any action which is required or permitted to be taken by the Board under the provisions of
this Plan may be taken by the Management and Development Compensation
Committee of the Board or any other duly authorized committee of the Board designated under
the By-Laws of the Corporation.
	 
	 	 	The Board, the Management and Development Compensation Committee or any duly authorized
committee of the Board, the CEO or the CHRO may authorize persons to carry out its policies
and directives subject to the limitations and guidelines set by it, and delegate its
authority under the Plan.

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	5.9	 	Annual Reporting to the CEO. The CHRO shall report to the CEO before January 31 of
each year all action taken by such position hereunder during the preceding calendar year.
	 
	5.10	 	Annual Reporting to the Board. The CEO shall report to the Board before January 31
of each year all action taken by such position hereunder during the preceding calendar year.
	 
	5.11	 	Delegation of Duties. This Plan is sponsored by Kimberly-Clark Corporation. The
Committee reserves the right to delegate any and all administrative duties to one or more
individuals or organizations. Any reference herein to any other entity or person, other than
the Committee or any of its members, which is performing administrative services shall also
include any other third party administrators. The responsibilities of any third party
administrator may be governed, in part, by a separate administrative services contract.
	 
	5.12	 	Funding. Benefits shall be paid from the general assets of the Corporation.

ARTICLE VI

LIMITATIONS AND LIABILITIES

	6.1	 	Non-Guarantee of Employment. Nothing contained in this Plan shall be construed as a
contract of employment between an Employer and a Participant, or as a right of any Participant
to be continued in the employment of his Employer, or as a limitation of the right of an
Employer to discharge any Participant with or without Cause. Nor shall anything contained in
this Plan affect the eligibility requirements under any other plans maintained by the
Employer, nor give any person a right to coverage under any other Plan.
	 
	6.2	 	Non-Alienation. Except as otherwise provided herein, no right or interest of any
Participant or Beneficiary in the Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge, attachment, garnishment,
execution, levy, bankruptcy, or any other disposition of any kind, either voluntary or
involuntary, prior to actual receipt of payment by the person entitled to such right or
interest under the provisions hereof, and any such disposition or attempted disposition shall
be void.
	 
	6.3	 	Applicable Law. This Plan is construed under, to the extent not preempted by Federal
law, enforced in accordance with and governed by, the laws of the
State of Wisconsin. If any provision of this Plan is found to be invalid, such provision shall be deemed
modified to comply with applicable law and the remaining terms and provisions of this Plan
will remain in full force and effect.
	 
	6.4	 	Notice. Any notice given hereunder is sufficient if given to the Employee by the
Employer, or if mailed to the Employee to the last known address of the Employee as such
address appears on the records of the Employer.

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	6.5	 	Service of Process. The Plan Administrator shall be the designated recipient of the
services of process with respect to legal actions regarding the Plan.
	 
	6.6	 	No Guarantee of Tax Consequences. The Employer makes no commitment or guarantee that
any amounts paid to or for the benefit of a Participant under this Plan will be excludable
from the Participant’s gross income for Federal, Social Security, or state income tax
purposes, or that any other Federal, Social Security, or state income tax treatment will apply
to or be available to any Participant. It shall be the obligation of each Participant to
determine whether each payment under this Plan is excludable from the Participant’s gross
income for Federal, Social Security, and state income tax purposes, and to notify the Plan
Administrator if the Participant has reason to believe that any such payment is not so
excludable. This Plan is intended to be compliant with Section 409A of the Code and the
guidance promulgated thereunder. Notwithstanding any other provision of this Plan, the
Corporation and the Committee shall administer and interpret the Plan, and exercise all
authority and discretion under the Plan, to satisfy the requirements of Code Section 409A and
the guidance promulgated thereunder and any noncompliant provisions of this Plan will either
be void or deemed amended to comply with Section 409A of the Code and the guidance promulgated
thereunder.
	 
	6.7	 	Limitation of Liability. Neither the Employer, the Plan Administrator, nor the
Committee shall be liable for any act or failure to act which is made in good faith pursuant
to the provisions of the Plan, except to the extent required by applicable law. It is
expressly understood and agreed by each Eligible Employee who becomes a Participant that,
except for its or their willful misconduct or gross neglect, neither the Employer, the Plan
Administrator nor the Committee shall be subject to any legal liability to any Participant,
for any cause or reason whatsoever, in connection with this Plan, and each such Participant
hereby releases the Employer, its officers and agents, and the Plan Administrator, and its
agents, and the Committee, from any and all liability or obligation except as provided in this
paragraph.
	 
	6.8	 	Indemnification of the Committee. The Employer shall indemnify the Committee and
each of its members and hold them harmless from the consequences of their acts or conduct in
their official capacity, including payment for all reasonable legal expenses and court costs,
except to the extent that such consequences are the result of their own willful misconduct or
breach of good faith.

11

 

APPENDIX A

EMPLOYERS COVERED BY THE KIMBERLY-CLARK CORPORATION

SEVERANCE PAY PLAN

	 	 	 
	Employers	 	Participating Units
	Avent, Inc.

	 	All salaried and hourly non-organized
employees, and hourly non-organized employees
at former Tecnol, Inc. facilities*
	 
	 	 
	Kimberly-Clark Corporation

	 	All salaried and hourly non-organized employees*
	 
	 	 
	Kimberly-Clark Financial Services, Inc.

	 	All salaried and hourly non-organized employees*
	 
	 	 
	Kimberly-Clark Global Sales, LLC

	 	All salaried employees*
	 
	 	 
	Kimberly-Clark International Services
Corporation

	 	All salaried and hourly non-organized employees
except those who transfer to a 50% or less
owned foreign subsidiary on a non-temporary
basis*
	 
	 	 
	Kimberly-Clark Michigan, Inc.

	 	All salaried employees*
	 
	 	 
	Kimberly-Clark Pennsylvania, LLC

	 	All salaried employees*
	 
	 	 
	Kimberly-Clark Worldwide, Inc.

	 	All salaried and hourly non-organized employees*

 

			
	*	 	including those on temporary assignment at other employers or in other classifications, but
excluding employees on temporary assignment from another Employer or classification.

12exv10w01

Exhibit 10.01

July 17, 2008

Tom Perrault

[Address Line 1]

[Address Line 2]

          Re:      Offer of Employment

Dear Tom:

          Glu Mobile Inc. (the “Company”) is pleased to offer you a full-time regular exempt position
with the Company as Vice President, Global Human Resources initially reporting to me, President and
CEO. We would like your employment to begin on July 28, 2008 (the “Start Date”) or such later
Start Date as may be mutually agreeable. We are pleased to find someone with your vision and
commitment to work as an integral part of our team. This offer is contingent on the Company’s
satisfactory acceptance of reference and background checks.

          You will be entitled to receive a biweekly salary of $$8,076.92 (the “Base Salary”) to be paid
in accordance with the Company’s normal payroll procedures. During your first year of employment,
you will also be eligible to receive quarterly bonus payments of up to 7.5% of your Base Salary
paid in each calendar quarter, such bonus payments paid in each calendar quarter, in accordance
with the Company’s Executive Bonus Plan, as long as you are employed by the Company on the payment
dates (the “Bonus”). After one year of employment, your manager will review and, in his
discretion, may adjust your Base Salary and Bonus.

          We will recommend that the Company’s Board of Directors (the “Board”) grant you an option to
purchase up to 70,000 shares of the common stock of the Company at the then current fair market
value, as determined by the Board. All stock options issued to you shall be governed by the terms
and conditions of the Company’s 2007 Equity Incentive Plan and Stock Option Agreement, which
agreement will be executed by you and the Company upon Board approval of the grant of the stock
options hereunder. Such stock option shall vest over four years, whereby 16,250 shares shall vest
12 months after the option vesting start date (which will be no earlier than the Start Date), and
the remaining 48,750 shares shall vest monthly thereafter at the rate of 1/36 over the course of 36
months.

          As a Company employee, you will also be eligible to receive certain employee benefits, as
modified by the Company from time to time, including medical, dental, and vision insurance
coverage; sixteen days personal time off per year, plus such additional holiday time as is provided
to the Company’s other regular employees; this currently includes the period between Christmas and
New Year’s Day. We will also recommend to  the Board that you be given the same change of control and severance agreement as has been
previously provided by the Board to other corporate vice presidents similar to your level.

 

 

          Your employment with the Company is for no specified period and constitutes an “AT-WILL”
employment arrangement. As a result, you are free to resign at any time, with or without notice,
for any reason or for no reason. Similarly, the Company is free to conclude its employment
relationship with you at any time, with or without notice and with or without cause.

          For purposes of federal immigration law, you will be required to provide to the Company
documentary evidence of your identity and eligibility for employment in the United States. Such
documentation must be provided to us within three business days of the Start Date, or our
employment relationship with you may be terminated.

          As a condition of your employment, you will be expected to sign and comply with the Employee
Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit
A. In addition, you agree that you will not engage in any other employment, occupation,
consulting or other business activity related to the business in which the Company is now involved
or becomes involved during the term of your employment, nor will you engage in any activities that
conflict with your obligations to the Company.

          This letter, along with the Employee Proprietary Information and Information Agreement, sets
forth the terms and conditions of your employment with the Company and supersede any prior
representations or agreements, whether written or oral. This letter may not be modified or amended
except by a written agreement, signed both by an officer of the Company and you.

          To accept the Company’s offer of employment, please sign and date this letter in the space
provided below and return it to Vicky Spachis, the Company’s Employee Services Manager, no later
than July 18, 2008. We’ve included a duplicate original for your records.

          We believe Glu Mobile is poised to achieve great success. We anticipate that you will be a
critical component of that success. We look forward to working with you.

	 	 	 	 	 
	 	Sincerely,

GLU MOBILE INC.

 	 
	 	/s/ L. Gregory Ballard
 	 
	 	L. Gregory Ballard, President and CEO 	 
	 	 	 
	 

ACCEPTED AND AGREED TO

this 18 day of July, 2008

	 	 	 	 	 
	 	 	 
	/s/ Tom Perrault
 	 	 
	Tom Perrault 	 	 
	 	 	 

2

 

	 	 	 	 	 

EXHIBIT A

GLU MOBILE INC.

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

          This Proprietary Information and Inventions Agreement (the “Agreement”) is made and entered
into this       day
of                     , 2008 by and between GLU MOBILE INC., a Delaware corporation (the
“Company”), and Tom Perrault (the “Employee”), and confirms the parties’ mutual understanding with
respect to the subject matter hereof, and constitutes a material part of the consideration for
Employee’s employment and/or continued employment with the Company.

	1.	 	Confidential Information.

          a. Definition. Employee acknowledges and agrees that Employee has obtained or may now
or hereafter obtain from the Company certain of the Company’s confidential information, in whatever
form, which includes, but is not limited to, all of the Company’s (i) past, present and future
research, (ii) business, development and marketing plans, (iii) customer lists and customer
relationships, (iv) prices (except where publicly disclosed by the Company) and pricing strategies,
(v) secret inventions, processes, methods and specifications, (vi) compilations of information
(including, without limitation, studies, records, reports, drawings, memoranda, drafts and any
other related information), (vii) trade secrets, (viii) product development proposals, and (ix)
other ideas, concepts, strategies, designs, suggestions and recommendations relating, without
limitation, to any of the foregoing or to any product developed or proposed to be developed by the
Company or by the Employee and/or others for the Company (collectively, the “Confidential
Information”). “Confidential Information” does not include any of the foregoing items which: i)
at the time of disclosure was known to Employee free of any confidentiality obligations; and ii)
has become publicly and widely known and made generally available through no wrongful act of
Employee or of others who were under confidentiality obligations as to the information involved.

          b. Non-Disclosure and Return of Confidential Information. Employee hereby
acknowledges and agrees that the Company is the owner of all of the Confidential Information, as
defined in Paragraph 1(a) of this Agreement, and all copyrights, trade secrets, patents, trademarks
and all other intellectual or industrial property rights contained in, or associated with, any or
all such Confidential Information. Employee shall not disclose to any other person, firm,
corporation or other entity any of the Company’s Confidential Information, or use any such
Confidential Information for any purpose whatsoever, except as authorized in writing by the
Company, and the Employee shall not, and shall not attempt to, reverse engineer, decompile or
disassemble any of the Company’s Products without the Company’s prior written consent. Employee
hereby acknowledges and agrees that the unauthorized use or disclosure of any of the Company’s
Confidential Information or any of the Company’s intellectual or industrial property rights,
constitute unfair competition under applicable law, and Employee shall not at any time during the
term of this Agreement or thereafter engage in any such unfair competition with respect to the
Company. Employee agrees that all Confidential Information are and shall remain the Company’s
property. Except in the course of providing services to the Company as an Employee, Employee
agrees that Confidential Information shall not be copied by Employee without the Company’s prior
written consent, and shall not be removed from the Company’s premises without the Company’s prior
written consent. Employee agrees that all Confidential Information shall be returned to the
Company, along with any and all copies, immediately upon request therefore, or upon the termination
of Employee’s employment with the Company, whichever is first to occur.

3

 

          c. Previous Employer’s Proprietary Information. During the course of employment with
the Company, or at any other time, Employee shall not wrongfully use or disclose to the Company any
proprietary information or trade secrets of Employee’s former employer(s). Employee shall not
bring onto the Company’s premises any such information without first obtaining the express written
consent of such former employer(s).

          d. Third Party’s Information. Employee acknowledges that the Company has received and
may hereafter receive certain proprietary information from one or more third parties to which the
Company is subject to a duty of non-disclosure and to restrictions on the use thereof. Employee
agrees that the Employee owes the Company and any such third party, during the term of employment
with the Company and thereafter, a duty to hold all such information in the strictest confidence,
and Employee shall not disclose any such third party proprietary information or any portion thereof
to any person, firm, corporation or other entity, or make use of such third party proprietary
information in any way without the Company’s and the third party’s prior written consent.

	2.	 	Inventions.

          a. Ownership. All designs, processes, methods, formulas, techniques, artwork,
brochures, manuals, products, procedures, programs, drawings, notes, documents, information,
materials, discoveries and inventions (the “Designs and Inventions”) made, conceived or developed
by Employee alone or with others which (i) result from or relate to any and all work performed by
Employee for the Company (the “Work”), (ii) may be disclosed to Employee by the Company while
Employee performs any such Work, (iii) use or have used equipment, supplies, facilities or trade
secret or confidential information of the Company’s, (iv) relate at the time of conception or
reduction to practice thereof to the business of the Company or to its actual or demonstrably
anticipated research and development, or (v) use or have used the hours for which Employee is
compensated by the Company, shall be the sole property of the Company, shall be considered “works
made for hire” (as that term is defined under the United States Copyright Act, as amended), and
shall be assigned to the Company immediately upon conception or development; provided, however,
that any Design and Invention that does not meet any of the foregoing conditions shall not be
deemed to be assigned by Employee to the Company hereunder. The Company shall have the sole right
to determine the method of protection for any Designs and Inventions, which are owned by, or
assigned to, the Company pursuant to this Paragraph 2(a), including the right to keep the same as
trade secrets, to file and execute patent applications thereon, to use and disclose the same
without prior patent applications, to file registrations for copyright or trademark thereon in the
Company’s own name or to follow any other procedure that the Company deems appropriate. Employee
shall (i) disclose promptly to the Company in writing all such Designs and Inventions that are
within the scope of this Paragraph 2(a); and (ii) provide the Company, at the Company’s expense,
with all assistance, and take all other actions, including the execution, delivery and filing of
all applications, deeds of assignment, instruments and other documents, as reasonably requested by
the Company, in order to permit the Company to obtain patents and/or register copyrights or
trademarks, as the case may be, or otherwise to perfect and/or protect the Company’s ownership of
all rights, title and interests in and to all such Designs and Inventions. Employee hereby grants
to the Company an irrevocable power of attorney to apply for and to execute such applications and
deeds of assignment of any patent, copyright, trademark or other intellectual property right, in
Employee’s name, as the Company, in its sole discretion, determines to be necessary or appropriate
to perfect and/or protect the Company’s ownership of all rights, title and interests in and to all
such Designs and Inventions. Employee’s obligations under this Paragraph 2(a) with respect to such
Designs and Inventions shall survive the termination of Employee’s employment by the Company.

4

 

          b. Exemptions. Notwithstanding the provisions of Paragraph 3(a) of this Agreement,
nothing herein shall obligate Employee to assign to the Company any inventions, or any rights
therein, which fully qualify under the provisions of Section 2870 of the California Labor Code
which provides as follows:

          Invention on Own Time—Exemption from Agreement

               a. Any provision in any employment agreement which provides that an employee shall assign, or
offer to assign, any of his or her rights in an invention to his or her employer shall not apply to
any invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions
that either:

	 	(1)	 	Relate at the time of conception or reduction
to practice of the invention to the employer’s business, or actual or
demonstrably anticipated research or development of the employer; or
	 
	 	(2)	 	Result from any work performed by the employee
for the employer.

               b. To the extent a provision in an employment agreement purports to require an employee to
assign an invention otherwise excluded from being required to be assigned under subdivision (a),
the provision is against the public policy of this state and is unenforceable.

          c. Previous Inventions. As a matter of record, Employee hereby certifies that
attached hereto as Exhibit A is a complete and accurate list of all inventions and/or
improvements relevant to the subject matter of this Agreement which have been made or conceived or
first reduced to practice by Employee, alone or jointly with others, prior to the date of
Employee’s employment by the Company or any affiliate of the Company, which such inventions and/or
improvements Employee desires not to be covered by this Agreement. IF EMPLOYEE FAILS TO ATTACH
SUCH A LIST TO THE AGREEMENT, THEN SUCH OMISSION SHALL CONSTITUTE A REPRESENTATION BY EMPLOYEE THAT
THERE ARE NO SUCH INVENTIONS AND/OR IMPROVEMENTS AT THE TIME OF SIGNING THIS AGREEMENT.

          d. Subsequent Inventions. Employee understands and agrees that all designs and
inventions reduced to practice following the termination of Employee’s employment shall be presumed
to have been conceived during Employee’s employment with the Company and with the use of the
Company’s confidential or trade secret information, but such presumption may be overcome by a
showing that such design or invention was conceived after such employment and without the use of
any such information.

	3.	 	Pre-existing Obligation.

          Employee represents and warrants that Employee is not under any pre-existing obligation(s)
inconsistent with the provisions of this Agreement, and has not and will not enter into any
contract which conflicts with, or would, if performed by Employee, cause a breach of, this
Agreement.

Non-Solicitation of Employees/Consultants. During Employee’s employment with the Company
and for a period of one (1) year thereafter, Employee will not
directly or indirectly solicit away employees or consultants of the Company for Employee’s own benefit or for
the benefit of any other person or entity.

5

 

Non-Solicitation of Suppliers/Customers. During and after the termination of Employee’s
employment with the Company, Employee will not directly or indirectly solicit or otherwise take
away customers or suppliers of the Company if, in so doing, Employee accesses, uses or discloses
any trade secrets or proprietary or confidential information of the Company. Employee acknowledges
and agrees that the names and addresses of the Company’s customers and suppliers, and all other
confidential information related to them, including their buying and selling habits and special
needs, whether created or obtained by, or disclosed to Employee during Employee’s employment,
constitute trade secrets or proprietary or confidential information of the Company.

	4.	 	Injunctive Relief.

          Employee acknowledges that a remedy at law for any breach of this Agreement would be
inadequate relief, and Employee therefore agrees that the Company shall be entitled to injunctive
relief, among other remedies, in case of any such breach or threatened breach by Employee.

	5.	 	Survival of Terms.

          The provisions of paragraphs 1, 2, 4, 5, and 7 and shall survive the termination of Employee’s
employment with the Company, and no such termination shall relieve Employee from liability for any
breach of this Agreement.

	6.	 	Indemnities.

          Each party shall indemnify, defend and hold harmless the other party against and in respect of
any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries
and deficiencies that the other party shall incur or suffer by reason of any breach of this
Agreement by the indemnifying party.

	7.	 	Attorneys’ Fees.

          If any legal action is brought for the enforcement of this Agreement, or because of an alleged
dispute, breach, default of misrepresentation in connection with any of the provisions of this
Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys’
fees and other costs incurred in that action, in addition to any other relief to which that party
may be entitled.

6

 

	8.	 	Governing Law.

          This Agreement shall be governed by the laws of California, without giving effect to the
principles of conflicts of law.

	9.	 	Severability.

          If any term or provision of this Agreement shall be held invalid or unenforceable to any
extent, the remainder of this Agreement shall not be affected and each other term and provision of
this Agreement shall be valid to the fullest extent permitted by law.

	10.	 	Headings.

          The paragraph headings contained in this Agreement are for reference only and shall not be
considered as substantive parts of the Agreement.

	11.	 	Entire Agreement; Modification; Waiver.

          This Agreement constitutes the entire agreement between the parties with respect to the
subject matter contained herein and supersedes all prior and contemporaneous agreements,
representations and understandings of the parties. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both parties. No waiver of any of
the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver
shall be binding unless executed in writing by the party making the waiver.

	12.	 	Binding Effect.

          This Agreement shall be binding on and shall inure to the benefit of the parties to it and
their respective heirs, legal successors, representatives and assigns.

	13.	 	Attorney Review.

          Employee agrees that he or she has read and understands the terms of this Agreement, and that
Employee is entering into the same voluntarily and without duress. Employee acknowledges that he
or she has consulted with an attorney of the Employee’s own choosing, or has had a reasonable
opportunity to do so, concerning Employee’s rights, duties and obligations under the terms of this
Agreement. The rule of construction that any uncertainties or ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement or any
amendment or modification hereto.

7

 

          IN WITNESS WHEREOF, the parties have duly executed this Proprietary Information and Inventions
Agreement as of the date and year first written above.

	 	 	 	 	 	 
	GLU MOBILE INC.
	 	EMPLOYEE	 
	 
	 	 	 	 
	By:
	 	 	 	 	 
	 

	 	 
	 	 	 
	 

	 	L. Gregory Ballard, President & CEO
	 	Tom Perrault	 

8

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