Document:

kc_10q-1q08ex10c.htm

    

      Exhibit
(10)c

      

      

      

      

      

      SEVENTH
AMENDED AND RESTATED

      

      DEFERRED
COMPENSATION PLAN FOR DIRECTORS

      

      OF

      

      KIMBERLY-CLARK
CORPORATION

      

      

      ARTICLE
1

      

      Introduction

      

               1.1         Recitals.

      

      
        	
                 
      

              	
                (a)

              	
                Whereas,
      effective January 1, 1983 the Board of Directors (the "Board") of
      Kimberly-Clark Corporation, a Delaware corporation (the "Corporation"),
      approved and adopted the Deferred Compensation Plan for Directors for the
      purpose of allowing Directors (as defined in Section 1.3(k) below) to
      irrevocably elect to defer the receipt of fees owing to them for service
      on, and attending meetings of, the Board and committees thereof during any
      Plan Year (as defined in Section 1.3(n)), and to assist the Corporation in
      attracting and retaining qualified individuals to serve as
      directors;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Whereas,
      the Deferred Compensation Plan for Directors previously was amended and
      restated effective August 31, 1986 (the "Amended and Restated Deferred
      Compensation Plan for Directors");

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Whereas,
      the Amended and Restated Deferred Compensation Plan for Directors
      previously was amended and restated, effective May 1, 1991  (the
      “Second Amended and Restated Deferred Compensation Plan for
      Directors”);

              

      

      

      
        	
                 
      

              	
                (d)

              	
                Whereas,
      the Second Amended and Restated Deferred Compensation Plan for Directors
      previously was amended and restated, effective August 15, 1996 (the “Third
      Amended and Restated Deferred Compensation Plan for
      Directors”);

              

      

      

      
        	
                 
      

              	
                (e)

              	
                Whereas,
      the Third Amended and Restated Deferred Compensation Plan for Directors
      previously was amended and restated, effective February 20, 1997 (the
      “Fourth Amended and Restated Deferred Compensation Plan for
      Directors”);

              

      

      

      
        	
                 
      

              	
                (f)

              	
                Whereas,
      the Fourth Amended and Restated Deferred Compensation Plan for Directors
      previously was amended and restated, effective January 1, 2004 (the “Fifth
      Amended and Restated Deferred Compensation Plan for
      Directors”);

              

      

      

      
        	
                 
      

              	
                (g)

              	
                Whereas,
      the Fifth Amended and Restated Deferred Compensation Plan for Directors
      previously was amended and restated, effective November 16, 2005 (the
      “Sixth Amended and Restated Deferred Compensation Plan for Directors”);
      and

              

      

      

      
        	
                 
      

              	
                (h)

              	
                Whereas
      the Committee desires to amend and restate the Sixth Amended and Restated
      Deferred Compensation Plan for Directors in its
  entirety;

              

      

      

               NOW,
THEREFORE, the Sixth Amended and Restated Deferred Compensation Plan for
Directors hereby is amended and restated to read in its entirety as set forth
herein, effective as of January 1, 2008. 

      

      
        	
                 
      

              	 	
                1.2

              	
                Name and
      Purpose.  The name of this plan is the "Seventh Amended
      and Restated Deferred Compensation Plan for Directors of Kimberly-Clark
      Corporation" (the "Plan").  The purpose of the Plan is as stated
      in Section 1.1(a) above.

              

      

      

      
        	
                 
      

              	 	
                1.3

              	
                Definitions.  Whenever
      used in the Plan, the following terms shall have the meaning set forth or
      referenced below:

              

      

      

      
        	
                 
      

              	 	
                (a)

              	
                "Account"
      means a Cash Account, Stock Account or Restricted Share Units
      Account.

              

      

      

      
        	
                 
      

              	 	
                (b)

              	
                "Board"
      has the meaning set forth in Section 1.1(a)
  above.

              

      

      

      
        	
                 
      

              	 	
                (c)

              	
                "Business
      Day" means a day except for a Saturday, Sunday or a legal
      holiday.

              

      

      

      
        	
                 
      

              	 	
                (d)

              	
                "Cash
      Account" means an Account which reflects the Compensation deferred by a
      Participant as described in Section
2.4.

              

      

      

      
        	
                 
      

              	 	
                (e)

              	
                "Cash
      Credit" means a credit to a Cash Account, expressed in whole dollars and
      fractions thereof.

              

      

      

      
        	
                 
      

              	 	
                (f)

              	
                "Closing
      Price" means the closing price of the Common Stock as reported in the New
      York Stock Exchange Composite Transactions published in The Wall Street
      Journal.

              

      

      

      
        	
                 
      

              	 	
                (g)

              	
                "Committee"
      means the Nominating and Corporate Governance Committee of the
      Board.

              

      

      

      
        	
                 
      

              	 	
                (h)

              	
                "Common
      Stock" means (i) the common stock, $1.25 par value per share, of the
      Corpora­tion, adjusted as provided in Section 2.10, or (ii) if there
      is a merger or consolidation and the Corporation is not the surviving
      corporation thereof, the capital stock of the surviving corporation given
      in exchange for such common stock of the
  Corporation.

              

      

      

      
        	
                 
      

              	 	
                (i)

              	
                "Compensation"
      means all cash remuneration paid to a Director for services to the
      Corporation as a director, other than reimburse­ment for expenses, and
      shall include retainer fees for service on, and fees for attendance at
      meetings of, the Board and any committees thereof.  For purposes
      of this Plan, the term "Compensation" shall not include Restricted Share
      Units.

              

      

      

      
        	
                 
      

              	 	
                (j)

              	
                "Corporation"
      has the meaning set forth in Section 1.1(a)
  above.

              

      

      

      
        	
                 
      

              	 	
                (k)

              	
                "Director"
      means any individual serving on the Board who is not an employee of the
      Corporation or any of its subsidiaries, affiliates or equity
      companies.

              

      

      

      
        	
                 
      

              	 	
                (l)

              	
                "Participant"
      means a Director who has filed an election to partici­pate in the Plan
      under Section 2.2.

              

      

      

      
        	
                 
      

              	 	
                (m)

              	
                "Plan"
      has the meaning set forth in Section 1.2
above.

              

      

      

      
        	
                 
      

              	 	
                (n)

              	
                "Plan
      Year" means the calendar year.

              

      

      

      
        	
                 
      

              	 	
                (o)

              	
                "Restricted
      Share Units" means the right, under the Kimberly-Clark Corporation Outside
      Directors' Compensation Plan, to receive an amount equal to the value of a
      specified number of shares of Common
Stock.

              

      

      
 

      
        
          
            	
                     
      

                  	
                    (p)

                  	
                    “Restricted
      Share Units Account" means an Account which reflects the Restricted Share
      Units deferred by a Participant as described in Section
    2.6.

                  

          

      

      
        	
                 
      

              	 	
                (q)

              	
                "Retire"
      or "Retires" shall mean the ending of a Director's service as a member of
      the Board, but shall not include the ending of such service by reason of
      death.

              

      

      

      
        	
                 
      

              	 	
                (r)

              	
                "Section
      16" has the meaning set forth in Section 4.5
  below.

              

      

      

      
        	
                 
      

              	 	
                (s)

              	
                "Stock
      Account" means an Account which reflects the Compensation deferred by a
      Participant as described in Section
2.5.

              

      

      

      
        	
                 
      

              	 	
                (t)

              	
                "Stock
      Credit" means a credit to a Stock Account established pursuant to Section
      2.3, and calculated pursuant to Section
2.5.

              

      

      

      

      ARTICLE
2

      

      Participation in the
Plan

      

      
        	
                 
      

              	 	
                2.1

              	
                Eligibility.  Any
      Director may participate in the Plan.  Notwithstanding anything
      in the Plan to the contrary, no Director, may elect to defer payment of
      any portion of his Compensation that is payable during any Plan Year after
      2004.

              

      

      

      
        	
                 
      

              	 	
                2.2

              	
                Election to
      Participate.

              

      

      

      
        	
                 
      

              	
                (a)

              	
                Each
      Director, and each first time nominee for Director, may elect to defer
      payment of all or any portion of his Compensation that is payable during
      any Plan Year.  Such election must be made prior to the date
      that services are rendered in the Plan Year in which such Compensation
      otherwise would be paid and shall be irrevocable thereafter for such Plan
      Year; provided, however, that an election by a Director or nominee
      pursuant to this paragraph (a) for any Plan Year (or portion thereof)
      shall be valid and effective for all purposes for all succeeding Plan
      Years, unless and until such election is revoked or modified by such
      Director prior to the date that services are rendered in such succeeding
      Plan Year(s); and, provided further, that no such election, revocation or
      modification may be made within six months of another such election,
      revocation or modification if the exemption afforded by Rule 16b-3 under
      Section 16 would not be available as a result thereof. Each Director may
      also elect to defer his Restricted Share Units. Such election must be made
      prior to the Plan Year in which such Director
  Retires.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                An
      election to defer any Compensation or Restricted Share Units under the
      Plan shall:  (i) be in writing; (ii) be delivered to the
      Secretary of the Corporation; (iii) contain, or be deemed to contain, the
      matters set forth in Section 2.3 below, in accordance with the terms
      thereof; and (iv) be irrevocable in all respects with respect to the Plan
      Year or Plan Years to which the election relates.  If a Director
      does not elect to defer Compensation payable to him during a Plan Year,
      all such Compensation shall be paid directly to such Director in
      accordance with resolutions adopted by the Board from time to time. If a
      Director does not elect to defer his Restricted Share Units, payment of
      his Restricted Share Units will be made in accordance with the terms of
      the Kimberly-Clark Corporation Outside Directors' Compensation
      Plan.

              

      

      

      
        	
                 
      

              	 	
                2.3

              	
                Mode of
      Deferral.  A Participant may elect to defer all or a
      portion of his Compensation for a Plan Year to a Cash Account, a Stock
      Account, or a combination of both such Accounts.  A separate
      Cash Account and/or Stock Account, as appropriate, shall be established
      for a Participant for each Plan Year in which he participates in the Plan.
      A Participant may elect to defer all or portion of his Restricted Share
      Units to a Restricted Share Units Account. The Secretary of the
      Corporation shall maintain such Accounts in the name of the
      Participant.  Any such election with respect to the Account or
      Accounts to which a Director’s Compensation or Restricted Share Units for
      a Plan Year shall be deferred shall be specified in the election referred
      to in Section 2.2(b) above that is delivered by the Director to the
      Secretary, and shall be irrevocable. If a Participant fails to elect the
      Account to which deferral of his Compensation shall be made, he shall be
      deemed to have irrevocably elected deferral to the Cash
      Account.  Compensation deferred to a Cash Account or Stock
      Account shall result in Cash Credits or Stock Credits,
      respectively.

              

      

      

      
        	
                 
      

              	 	
                2.4

              	
                Cash
      Account.  The Cash Account of a Participant established
      with respect to a Plan Year shall be credited, as of the day of such Plan
      Year on which the deferred Compensation otherwise would have been payable
      to such Participant, with Cash Credits equal to the dollar amount of such
      deferred Compensation.  As of the last day of each calendar
      quarter, or as of the date the Account is distributed, if earlier, such
      Cash Account shall be credited with additional Cash Credits in an amount
      equal to the product of (a) the daily average balance in such Cash Account
      during such quarter and (b) one-fourth of a rate yielding interest equal
      to the per annum market discount rate for six-month U.S. Treasury Bills as
      published by the Federal Reserve Board for the seven calendar days
      immediately prior to January 1 (for additional Cash Credits to be credited
      for the subsequent fiscal quarters ending on March 31 and June 30) or
      prior to July 1 (for additional Cash Credits to be credited for the
      subsequent fiscal quarters ending September 30 and December
      31).  Unless reduced by the following sentence, however, such
      interest rate shall not be less than six percent per
      annum.  Notwithstanding anything in this Plan to the contrary,
      in no event shall the rate of interest exceed 120% of the applicable
      federal long-term rate, with compounding (as prescribed under section
      1274(d) of the Internal Revenue Code (26 U.S.C. 1274(d)) at that rate that
      corresponds most closely to the rate under the Plan at the time the
      interest rate or formula is set. 

              

      

      

      
        	
                 
      

              	 	
                2.5

              	
                Stock
      Account.  The Stock Account of a Participant established
      with respect to a Plan Year shall be credited, as of the day of such Plan
      Year on which the deferred Compensation otherwise would have been payable
      to such Participant, with Stock Credits equal to the number of shares of
      Common Stock (including fractions of a share) that could have been
      purchased with the amount of such deferred Compensation at the average of
      the Closing Prices of shares of Common Stock on each Business Day during
      the month immediately preceding the month in which such Stock Account is
      so credited.  As of the date any dividend is paid to holders of
      shares of Common Stock, such Stock Account shall be credited with
      additional Stock Credits equal to the number of shares of Common Stock
      (including fractions of a share) that could have been purchased, at the
      Closing Price of shares of Common Stock on such date, with the amount
      which would have been paid as dividends on that number of shares
      (including fractions of a share) of Common Stock which is equal to the
      number of Stock Credits then attributed to such Stock
      Account.  In the case of dividends paid in property other than
      cash, the amount of the dividend shall be deemed to be the fair market
      value of the property at the time of the payment of the dividend, as
      determined in good faith by the
Committee.

              

      

      

      
        	
                 
      

              	 	
                2.6

              	
                Restricted Share Units
      Account.  The Restricted Share Units Account of a
      Participant shall be credited as of the day of such Plan Year on which the
      Restricted Share Units otherwise would have been payable to the
      Participant. As of the date any dividend is paid to holders of shares of
      Common Stock, such Restricted Share Units Account shall be credited with
      additional Restricted Share Units equal to the number of shares of Common
      Stock (including fractions of a share) that could have been purchased, at
      the Closing Price of shares of Common Stock on such date, with the amount
      which would have been paid as dividends on that number of shares
      (including fractions of a share) of Common Stock which is equal to the
      number of Restricted Share Units then attributed to such Restricted Share
      Units Account.  In the case of dividends paid in property other
      than cash, the amount of the dividend shall be deemed to be the fair
      market value of the property at the time of the payment of the dividend,
      as determined in good faith by the
Committee.

              

      

      

      
        	
                 
      

              	 	
                2.7

              	
                Timing of Distribution
      and Installment Elections.

              

      

      

      
        	
                 
      

              	 	
                (a)

              	
                Distribution
      of the Cash Accounts, Stock Accounts and Restricted Share Units Account of
      a Participant shall commence as of January 15 (or such later date as of
      which such distribution is not required to be reported pursuant to Section
      16) of the Plan Year following the Plan Year in which such Participant
      Retires. If the date for commencement of such distribution is not a
      Business Day, such distribution shall commence on the next succeeding
      Business Day.

              

      

      

      
        	
                 
      

              	 	
                (b)

              	
                A
      Participant shall elect the number of annual installments (not to exceed
      20) in which all of the Participant’s Cash Accounts and Stock Accounts
      maintained on his behalf with respect to Plan Years after 1997 shall be
      distributed.  If no such election is made by such Director with
      respect to such Accounts, the number of installments with respect thereto
      shall be deemed to be elected consistent with the Participant’s most
      recent installment election with respect to any Plan Year prior to
      1998.  A Participant shall also elect the number of annual
      installments (not to exceed 20) in which the Participant's Restricted
      Share Units Account maintained on his behalf shall be distributed. Such
      payment or payments shall be in amounts determined pursuant to Section 2.9
      below, and shall be made on the date set forth in Section 2.7(a) above,
      and on January 15 of each succeeding Plan Year as
    applicable.

              

      

      

      
        	
                 
      

              	 	
                (c)

              	
                A
      Participant's initial installment election with regard to his Cash
      Accounts and Stock Accounts referred to in paragraph (b) above shall apply
      for all succeeding Plan Years unless modified thereafter.  Such
      election may be modified by a Participant, subject to the approval of the
      Committee, no later than December 31 of the calendar year preceding the
      date such Participant Retires.

              

      

      

      
        	
                 
      

              	 	
                (d)

              	
                Notwithstanding
      anything in the Plan to the contrary, each Participant who was a Director
      on or after February 20, 1997, may elect to modify such Director’s
      election with respect to all Plan Years prior to 1998, subject to the
      approval of the Committee, so that Cash Accounts and Stock Accounts
      maintained with respect to all Plan years prior to 1998 shall be paid
      consistent with the payment for the Cash Accounts and Stock Accounts
      maintained with respect to all Plan Years after 1997 and in accordance
      with this Section 2.7.

              

      

      

      
        	
                 
      

              	 	
                2.8

              	
                Distribution of
      Accounts.  Distribution of a Participant's Cash Accounts
      and Stock Accounts shall be made only in cash.  Distribution of
      a Participant's Restricted Share Units Account may be made entirely in
      cash or entirely in whole shares of Common Stock with fractional shares
      paid in cash.

              

      

      

      
        	
                 
      

              	 	
                2.9

              	
                Installment
      Amount.  The amount of each installment with respect to a
      Cash Account of a Participant shall be equal to the product of the current
      balance in such Cash Account and a fraction, the numerator of which is one
      and the denominator of which is the number of installments yet to be
      paid.  The amount of each installment with respect to a Stock
      Account or Restricted Share Units Account of a Participant shall be equal
      to the product of the number of Stock Credits or Restricted Share Units
      attributable to such installment and the average of the Closing Prices of
      shares of Common Stock on each Business Day in the month immediately prior
      to the month in which such installment is to be paid, except as otherwise
      specified in Section 2.10 of the Plan.  The number of Stock
      Credits or Restricted Share Units attributable to an installment with
      respect to such Stock Account or Restricted Share Units Account (unless
      otherwise specified in the Plan) shall be equal to the product of the
      current number of Stock Credits or Restricted Share Units attributed to
      such Stock Account or Restricted Share Units Account and a fraction, the
      numerator of which is one and the denominator of which is the number of
      installments yet to be paid.

              

      

      

      
        	
                 
      

              	 	
                2.10

              	
                Adjustment.  If
      at any time the number of outstanding shares of Common Stock shall be
      increased as the result of any stock dividend, stock split, subdivision or
      reclassification of shares, the number of Stock Credits and Restricted
      Share Units with which each Stock Account or Restricted Share Units
      Account of a Participant is credited shall be increased in the same
      proportion as the outstanding number of shares of Common Stock is
      increased.  If the number of outstanding shares of Common Stock
      shall at any time be decreased as the result of any combination, reverse
      stock split or reclassification of shares, the number of Stock Credits and
      Restricted Share Units with which each Stock Account or Restricted Share
      Units Account of a Participant is credited shall be decreased in the same
      proportion as the out­standing number of shares of Common Stock is
      decreased.  In the event the Corporation shall at any time be
      consolidated with or merged into any other corporation and holders of
      shares of Common Stock receive shares of the capital stock of the
      resulting or surviving corporation, there shall be credited to each Stock
      Account or Restricted Share Units Account of a Participant, in place of
      the Stock Credits or Restricted Share Units then credited there­to,
      new Stock Credits or Restricted Share Units in an amount equal to the
      product of the number of shares of capital stock exchanged for one share
      of Common Stock upon such consolidation or merger and the number of Stock
      Credits or Restricted Share Units with which such Account then is
      credited.  If in such a consolidation or merger holders of
      shares of Common Stock shall receive any consideration other than shares
      of the capital stock of the resulting or surviving corporation or its
      parent corporation, the Committee, in its sole discretion, shall determine
      the appropriate change in Participants'
  Accounts.

              

      

      

      
        	
                 
      

              	 	
                2.11

              	
                Distribution upon
      Death.  Notwithstanding any other provision of this Plan,
      upon the death of a Participant all of such Participant's Cash Accounts,
      Stock Accounts and Restricted Share Units Account shall be paid in a
      single installment to such person or persons or the survivors thereof,
      including corporations, unincorporated associations or trusts, as the
      Participant may have designated.  All such designations shall be
      made in writing and delivered to the Secretary of the
      Corporation.  A Participant may from time to time revoke or
      change any such designation by written notice to the
      Secretary.  If there is no designation on file with the
      Secretary at the time of the Participant's death, or if the person or
      persons designated therein shall have all predeceased the Participant or
      otherwise ceased to exist, such distributions shall be made to the
      executor or administrator of the Partici­pant's estate.  Any
      distribu­tion under this Section 2.11(a) shall be made as soon as
      practi­cable following the end of the fiscal quarter in which the
      Secretary is notified of the Participant's death or is satisfied as to the
      identity of the appropriate payee, whichever is later.  The
      amount of an installment payable under this Section 2.11(a) with respect
      to a Participant's Stock Accounts or Restricted Share Units shall be equal
      to the product of the number of Stock Credits or Restricted Share Units
      with which such Stock Accounts or Restricted Share Units Accounts then are
      credited and the average of the Closing Prices of shares of Common Stock
      on each Business Day during the month preceding the month of such
      Participant's death.

              

      

      

      
        	
                 
      

              	 	
                2.12

              	
                Withholding
      Taxes.  The Corporation shall deduct from all
      distribu­tions under the Plan any taxes required to be withheld by
      federal, state, or local
governments.

              

      

      

      

      ARTICLE
3

      

      The
Committee

      

      
        	
                 
      

              	 	
                3.1

              	
                Authority.  The
      Committee shall have full power and authority to administer the Plan,
      including the power to (a) promulgate forms to be used with respect to the
      Plan, (b) promulgate rules of Plan administra­tion, (c) settle any
      disputes as to rights or benefits arising from the Plan, (d) interpret the
      terms of the Plan, (e) amend, modify or terminate the Plan as provided in
      Section 4.5 below and (e) make such decisions or take such action as the
      Committee, in its sole discretion, deems necessary or advisable to aid in
      the proper administration of the Plan.  Any decision made by the
      Committee shall be final and binding on the Corporation, Participants and
      their heirs or successors.

              

      

      

      
        	
                 
      

              	 	
                3.2

              	
                Elections,
      Notices.  All elections, notices and designations
      required or permitted to be provided to the Committee under the Plan must
      be in such form or forms prescribed by, and contain such information as is
      required by, the Committee.

              

      

      

      

      ARTICLE
4

      

      Miscellaneous

      

      
        	
                 
      

              	 	
                4.1

              	
                Funding.  No
      promise hereunder shall or may be secured by any assets of the
      Corporation, and no assets of the Corpora­tion shall otherwise be
      designated as attributable or allocated to the satisfaction of such
      promises.

              

      

      

      
        	
                 
      

              	 	
                4.2

              	
                Non-alienation of
      Benefits.  No benefit under the Plan shall be subject in
      any manner to anticipation, alienation, sale, transfer, assignment,
      pledge, encumbrance, or charge, and any attempt to do so shall be
      void.  No such benefit, prior to receipt thereof pursuant to the
      provisions of the Plan, shall be in any manner liable for or subject to
      the debts, contracts, liabilities, engagements or torts of the
      Participant.

              

      

      

      
        	
                 
      

              	 	
                4.3

              	
                Delegation of
      Administrative Duties.  The Committee may delegate to
      officers and employees of the Corporation from time to time the power and
      authority to carry out and effect the decisions and rules of the
      Committee.  Any such delegation shall be in
    writing.

              

      

      

      
        	
                 
      

              	 	
                4.4

              	
                Governing
      Law.  This Plan shall be governed by and construed in
      accordance with the laws of the State of
  Delaware.

              

      

      

      
        	
                 
      

              	 	
                4.5

              	
                Amendment,
      Modification and Termination of the Plan.  The Board or
      the Committee at any time may terminate and in any respect amend or modify
      the Plan; provided, however, that (a) neither the Board nor the Committee
      may change or modify any of the irrevocable elections made by a
      Participant under Section 2.2(b) above, (b) no such termination, amendment
      or modification shall adversely affect the rights of any Participant or
      beneficiary, including his rights with respect to Cash Credits, Stock
      Credits or Restricted Share Units either credited prior to or in the Plan
      Year of such termination, amendment or modification, without his consent,
      (c) no provision of the Plan which relates to persons eligible to
      participate in the Plan or the formula pursuant to which the amount, price
      and timing of the crediting of Stock Credits or Restricted Share Units are
      determined, shall be amended more than once every six months other than to
      comport to changes in the Internal Revenue Code of 1986, as amended, the
      Employee Retirement Income Security Act of 1974 or the rules thereunder,
      and (d) no provision of the Plan shall be amended to the extent that the
      modification would result
      in treatment as a material modification under the requirements of Section
      409A of the Code and the guidance promulgated thereunder. Notwithstanding
      anything to the contrary contained herein, either the Board or the
      Committee may amend or modify the Plan to comply with Section 16 of the
      Securities Exchange Act of 1934 (or successor statute), as constituted
      from time to time, or the rules or regulations promulgated thereunder
      (collectively, "Section 16"); further, if any provision of Section 16
      would have the effect of requiring the Plan to be amended or modified in
      order to retain any exemption from the reporting requirements of and
      liability exposure under Section 16, the Plan shall be deemed to be
      automatically amended and modified to retain such exemption at the time
      that any such provision is effective, and any act or transaction under the
      Plan by or involving a Participant, the Board or the Committee in
      contravention of the Plan as so amended and modified shall be null and
      void ab
      initio
      and the Participant, the Board and the Committee shall return the matter
      to the status quo ante.

              

      

      

      
        	
                 
      

              	 	
                 4.6

              	
                Successors and
      Heirs.  The Plan and any properly executed elections
      hereunder shall be binding upon the Corporation and Participants, and upon
      any assignee or successor in interest to the Corporation and upon the
      heirs, legal representatives and beneficiaries of any
      Participant.

              

      

      

      
        	
                 
      

              	 	
                4.7

              	
                Status of
      Participants.  Stock Credits and Restricted Share Units
      are not, and do not constitute, shares of Common Stock, and no right as a
      holder of shares of Common Stock shall devolve upon a Participant by
      reason of his participation in the
Plan.

              

      

      

      
        	
                 
      

              	 	
                4.8

              	
                Use of
      Terms.  The masculine includes the feminine and the
      plural includes the singular, unless the context clearly indicates
      otherwise.

              

      

      

      
        	
                 
      

              	 	
                4.9

              	
                Statement of
      Accounts.  In February of each Plan Year, each
      Participant in the Plan during the immediately preceding Plan Year shall
      receive a statement of his Accounts under the Plan as of December 31 of
      such preceding Plan Year.  Such statement shall be in a form and
      contain such information as is deemed appropriate by the
      Committee.kc_10q-1q08ex10m.htm

    

      Exhibit
(10)m

      

      

      KIMBERLY-CLARK
CORPORATION

      2001
EQUITY PARTICIPATION PLAN

      (as
amended effective April 16, 2008)

      

      

      1.           PURPOSE

      

      This
2001 Equity Participation Plan (the "Plan") of Kimberly-Clark Corporation (the
"Corporation") is intended to aid in attracting and retaining highly qualified
personnel and to encourage those employees who materially contribute, by
managerial, scientific or other innovative means to the success of the
Corporation or of an Affiliate, to acquire an ownership interest in the
Corporation, thereby increasing their motivation for and interest in the
Corporation's or Affiliate's long-term success.

      

      2.           EFFECTIVE
DATE

      

      The
Plan was originally adopted effective as of April 26, 2001, upon approval by the
stockholders of the Corporation at the 2001 Annual Meeting.  The Plan
is amended and restated effective as of April 16, 2008.

      

      3.           DEFINITIONS

      

      "Affiliate" means any
domestic or foreign corporation at least fifty percent (50%) of whose shares
normally entitled to vote in electing directors is owned directly or indirectly
by the Corporation or other Affiliates (collectively, the "Affiliates"),
provided, however, that “at least twenty percent (20%)” shall replace “at least
fifty percent (50%)” where there is a legitimate business criteria for using
such lower percentage.

      

      "Award" has the
meaning set forth in Section 6 of this Plan.

      

      "Award Agreement"
means an agreement entered into between the Corporation and a Participant
setting forth the terms and conditions applicable to the Award granted to the
Participant.

      

      "Board" means the
Board of Directors of the Corporation.

      

      "Cause" means any of
the following:  (i) the commission by the Participant of a
felony;  (ii) the Participant's dishonesty, habitual neglect or
incompetence in the management of the affairs of the Corporation;
or  (iii) the refusal or failure by the Participant to act in
accordance with any lawful directive or order of the Corporation, or an act or
failure to act by the Participant which is in bad faith and which is detrimental
to the Corporation.

      

      "Change of Control"
means an event deemed to have taken place if:  (i) a third person,
including a "group" as defined for purposes of Code Section 409A, acquires
shares of the Corporation having 30% or more of the total number of votes that
may be cast for the election of directors of the Corporation; or (ii) as the
result of any cash tender or exchange offer, merger or other business
combination, sale of assets or contested election, or any combination of the
foregoing transactions (a "Transaction"), within a twelve month period, the
persons who were directors of the Corporation before the Transaction shall cease
to constitute a majority of the Board of the Corporation or any successor to the
Corporation.

      

      "Code" means the
Internal Revenue Code of 1986 and the regulations thereunder, as amended from
time to time.

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      "Committee" means the
Compensation Committee of the Board, provided that if the requisite number of
members of the Compensation Committee are not Disinterested Persons, the Plan
shall be administered by a committee, all of whom are Disinterested Persons,
appointed by the Board and consisting of two or more directors with full
authority to act in the matter.  The term "Committee" shall mean the
Compensation Committee or the committee appointed by the Board, as the case may
be. Furthermore, the term "Committee" shall include any delegate to the extent
authority is delegated pursuant to Section 4 hereunder.

      

      "Committee Rules"
means the interpretative guidelines approved by the Committee providing the
foundation for administration of this Plan.

      

      "Common Stock" means
the common stock, par value $1.25 per share, of the Corporation and shall
include both treasury shares and authorized but unissued shares and shall also
include any security of the Corporation issued in substitution, in exchange for,
or in lieu of the Common Stock.

      

      "Disinterested Person"
means a person who is a “Non-Employee Director” for purposes of rule 16b-3 under
the Exchange Act, or any successor provision, and who is also an "outside
director" for purposes of section 162(m) of the Code or any successor
section.

      

      "Exchange Act" means
the Securities Exchange Act of 1934 and the rules and regulations thereunder, as
amended from time to time.

      

      "Fair Market Value"
means the reported closing price of the Common Stock, on the relevant date as
reported on the composite list used by The Wall Street Journal for reporting
stock prices, or if no such sale shall have been made on that day, on the last
preceding day on which there was such a sale.

      

      "Incentive Stock
Option" means an Option which is so defined for purposes of section 422
of the Code or any successor section.

      

      "Nonqualified Stock
Option" means any Option which is not an Incentive Stock
Option.

      

      "Option" means a right
to purchase a specified number of shares of Common Stock at a fixed option price
equal to no less than 100% of the Fair Market Value of the Common Stock on the
date the Award is granted.

      

      "Option Price" has the
meaning set forth in subsection 7(b) of this Plan.

      

      "Participant" means an
employee who the Committee selects to participate in and receive Awards under
the Plan (collectively, the "Participants").

      

      "Performance Goal"
means the specific performance objectives as established by the Committee,
which, if achieved, will result in the amount of payment, or the early payment,
of the Award.  The Performance Goal may consist of one or more or any
combination of the following criteria:  return on invested capital,
stock price, market share, sales revenue, cash flow, earnings per share, return
on equity, total shareholder return, gross margin, and/or costs. The performance
goals may be described in terms that are related to the individual Participant,
to the Company as a whole, or to a subsidiary, division, department, region,
function or business unit of the Company in which the Participant is
employed.  The Committee, in its discretion, may change or modify
these criteria; however, at all times the criteria must meet the requirements of
Section 162(m) of the Code, or any successor section, to the extent
applicable.

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          2

          
            

          

        

        
           

        

      

      

      "Qualified Termination of
Employment" means the termination of a Participant's employment with the
Corporation and/or its Affiliates within the two (2) year period following a
Change of Control of the Corporation for any reason unless such termination is
by reason of death or disability or unless such termination is (i) by the
Corporation for Cause or (ii) by the Participant without Good
Reason.  Subject to the definition of "Termination by the Participant
for Good Reason," transfers of employment for administrative purposes among the
Corporation and its Affiliates shall not be deemed a Qualified Termination of
Employment.

      

      “Restricted Period”
shall mean the period of time during which the Transferability Restrictions
applicable to Awards will be in force.

      

      “Restricted Share”
shall mean a share of Common Stock which may not be traded or sold, until the
date the Transferability Restrictions expire.

      

      “Restricted Share
Unit” means the right, as described in Section 9, to receive an amount,
payable in either cash or shares of Common Stock, equal to the value of a
specified number of shares of Common Stock.  No certificates shall be
issued with respect to such Restricted Share Unit, except as provided in
subsection 9(d), and the Corporation shall maintain a bookkeeping account in the
name of the Participant to which the Restricted Share Unit shall
relate.

      

      "Retirement" and
"Retires" for
Awards granted after December 31, 2003 means the termination of employment on or
after the date the Participant has attained age 55.  For Awards
granted prior to January 1, 2004 "Retirement" and "Retires" means the
termination of employment on or after the date the Participant is entitled to
receive immediate payments under a qualified retirement plan of the Corporation
or an Affiliate; provided, however, if the Participant is not eligible to
participate under a qualified retirement plan of the Corporation or its
Affiliates then such Participant shall be deemed to have retired if his
termination of employment is on or after the date such Participant has attained
age 55.

      

      "Stock Appreciation Right
(SAR)" has the meaning
set forth in subsection 7(i)(i) of this Plan.

      

      "Termination by the
Participant for Good Reason" shall mean the separation from service
during the two year time period following the initial existence (without the
Participant's express written consent) of any one of the following
conditions:

      

      (a) A
material diminution in the Participant’s base compensation;

       

      (b) A
material diminution in the Participant’s authority, duties, or
responsibilities;

       

      (c) A
material diminution in the authority, duties, or responsibilities of the
supervisor to whom the Participant is required to report, including a
requirement that a Participant report to a corporate officer or employee instead
of reporting directly to the board of directors of the Corporation;

       

      (d) A
material diminution in the budget over which the Participant retains
authority;

       

      (e) A
material change in the geographic location at which the Participant must perform
the services; or

       

      (f) Any
other action or inaction that constitutes a material breach by the Corporation
of any agreement under which the Participant provides services.

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          3

          
            

          

        

        
           

        

      

      
        The Participant 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 existence of the condition, upon the notice
of which the Corporation must be provided a period of at least 30 days during
which it may remedy the condition and not be required to pay the
amount.

         

      

      The
Participant's right to terminate the Participant's employment for Good Reason
shall not be affected by the Participant's incapacity due to physical or mental
illness.  The Participant's continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
constituting Good Reason hereunder.

      

      "Total and Permanent
Disability" means Totally and Permanently Disabled as defined in the
Kimberly-Clark Corporation Pension Plan.

      

      “Transferability
Restrictions” means the restrictions on transferability imposed on Awards
of Restricted Shares or Restricted Share Units.

      

      
        	
                4.

              	
                ADMINISTRATION

              

      

      

      The
Plan and all Awards granted pursuant thereto shall be administered by the
Committee. The Committee, in its absolute discretion, shall have the power to
interpret and construe the Plan and any Award Agreements; provided, however,
that no such action or determination may increase the amount of compensation
payable that would otherwise be due in a manner that would result in the
disallowance of a deduction to the Corporation under section 162(m) of the Code
or any successor section.  Any interpretation or construction of any
provisions of this Plan or the Award Agreements by the Committee shall be final
and conclusive upon all persons.  No member of the Board or the
Committee shall be liable for any action or determination made in good
faith.

      

      Within
60 days following the close of each calendar year that the Plan is in operation,
the Committee shall make a report to the Board.  The report shall
specify the employees who received Awards under the Plan during the prior year,
the form and size of the Awards to the individual employees, and the status of
prior Awards.

      

      The
Committee shall have the power to promulgate Committee Rules and other
guidelines in connection with the performance of its obligations, powers and
duties under the Plan, including its duty to administer and construe the Plan
and the Award Agreements.

      

      The
Committee may authorize persons other than its members to carry out its policies
and directives subject to the limitations and guidelines set by the Committee,
and may delegate its authority under the Plan, provided, however, the delegation
of authority to grant Awards shall be limited to grants by the Chief Executive
Officer to newly hired employees, or to respond to special recognition or
retention needs, and any such grants shall be limited to eligible Participants
who are not subject to section 16 of the Exchange Act.  The delegation
of authority shall be limited as follows: (a) with respect to persons who are
subject to section 16 of the Exchange Act, the authority to grant Awards, the
selection for participation, decisions concerning the timing, pricing and amount
of a grant or Award and authority to administer Awards shall not be delegated by
the Committee; (b) the maximum number of shares of Common Stock covered by
Awards which may be granted by the Chief Executive Officer within any calendar
year period shall not exceed 200,000; (c) any delegation shall satisfy all
applicable requirements of rule 16b-3 of the Exchange Act, or any successor
provision; and (d) no such delegation shall result in the disallowance of a
deduction to the Corporation under section 162(m) of the Code or any successor
section.  Any person to whom such authority is granted shall continue
to be eligible to receive Awards

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          4

          
            

          

        

        
           

        

      

      under
the Plan.

      

      5.           ELIGIBILITY

      

      The
Committee shall from time to time select the Participants from those employees
whom the Committee determines either to be in a position to contribute
materially to the success of the Corporation or Affiliate or to have in the past
so contributed.  Only employees (including officers and directors who
are employees) of the Corporation and its Affiliates are eligible to participate
in the Plan.

      

      6.           FORM
OF GRANTS

      

      All
Awards under the Plan shall be made in the form of Options, Restricted Shares or
Restricted Share Units, or any combination thereof.  Notwithstanding
anything in this Plan to the contrary, any Awards shall contain the restriction
on assignability in subsection 16(g) of this Plan to the extent required under
rule 16b-3 of the Exchange Act.

      

      7.           STOCK
OPTIONS

      

      The
Committee or its delegate shall determine and designate from time to time those
Participants to whom Options are to be granted and the number of shares of
Common Stock to be optioned to each and the periods the Option shall be
exercisable.  Such Options may be in the form of Incentive Stock
Options or in the form of Nonqualified Stock Options.  The Committee
in its discretion at the time of grant may establish performance goals that may
affect the grant, exercise and/or settlement of an Option.  After
granting an Option to a Participant, the Committee shall cause to be delivered
to the Participant an Award Agreement evidencing the granting of the
Option.  The Award Agreement shall be in such form as the Committee
shall from time to time approve.  The terms and conditions of all
Options granted under the Plan need not be the same, but all Options must meet
the applicable terms and conditions specified in subsections 7(a) through
7(h).

      

      (a) Period
of Option.  The Period of each Option shall be no more than 10 years
from the date it is granted.

       

      (b) Option
Price.  The Option price shall be determined by the Committee, but
shall not in any instance be less than the Fair Market Value of the Common Stock
at the time that the Option is granted (the "Option Price").

       

      (c) Limitations
on Exercise.  The Option shall not be exercisable until at least one
year has expired after the granting of the Option, during which time the
Participant shall have been in the continuous employ of the Corporation or an
Affiliate; provided, however, that the Option shall become exercisable
immediately in the event of a Qualified Termination of Employment of a
Participant, without regard to the limitations set forth below in this
subsection 7(c).  Unless otherwise determined by the Committee or its
delegate at the time of grant, at any time during the period of the Option after
the end of the first year, the Participant may purchase up to 30 percent of the
shares covered by the Option; after the end of the second year, an additional 30
percent; and after the end of the third year, the remaining 40 percent of the
total number of shares covered by the Option; provided, however, that if the
Participant's employment is terminated for any reason other than death,
Retirement or Total and Permanent Disability, the Option shall be exercisable
only for three months following such termination and only for the number of
shares of Common Stock which were exercisable on the date of such
termination.  In no event, however, may an Option be exercised more
than 10 years after the date of its grant.

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          5

          
            

          

        

        
           

        

      

      (d) Exercise
after Death, Retirement, or Disability. Unless otherwise determined by the
Committee or its delegate at the time of grant, if a Participant dies, becomes
Totally and Permanently Disabled, or Retires without having exercised the Option
in full, the remaining portion of such Option may be exercised, without regard
to the limitations in subsection 7(c), as follows.  If a Participant
dies or becomes Totally and Permanently Disabled the remaining portion of such
Option may be exercised within (i) three years from the date of any such event
or (ii) the remaining period of the Option, whichever is
earlier.  Upon a Participant's death, the Option may be exercised by
the person or persons to whom such Participant's rights under the Option shall
pass by will or by applicable law or, if no such person has such rights, by his
executor or administrator.  If a Participant Retires the remaining
portion of such Option may be exercised within (i) five years from the date of
any such event or (ii) the remaining period of the Option, whichever is
earlier.

       

      (e) Non-transferability.  During
the Participant's lifetime, Options shall be exercisable only by such
Participant.  Options shall not be transferable other than by will or
the laws of descent and distribution upon the Participant's
death.  Notwithstanding anything in this subsection 7(e) to the
contrary, the Committee may grant to designated Participants the right to
transfer Nonqualified Stock Options, to the extent allowed under rule 16b-3 of
the Exchange Act, subject to the terms and conditions of the Committee
Rules.

       

      (f) Exercise;
Notice Thereof.  Options shall be exercised by delivering to the
Corporation, or an agent designated by the Corporation, written notice of the
number of shares with respect to which Option rights are being exercised and by
paying in full the Option Price of the shares at the time being
acquired.  As determined by the Committee, payment may be made in
cash, a check payable to the Corporation or in shares of Common Stock
transferable to the Corporation and having a fair market value on the transfer
date equal to the amount payable to the Corporation.  A Participant
shall have none of the rights of a stockholder with respect to shares covered by
such Option until the Participant becomes the record holder of such
shares.

       

      (g) Purchase
for Investment.  It is contemplated that the Corporation will register
shares sold to Participants pursuant to the Plan under the Securities Act of
1933.  In the absence of an effective registration, however, a
Participant exercising an Option hereunder may be required to give a
representation that he/she is acquiring such shares as an investment and not
with a view to distribution thereof.

       

      (h) Limitations
on Incentive Stock Option Grants.

       

      (i)           An
Incentive Stock Option shall be granted only to an individual who, at the time
the Option is granted, does not own stock possessing more than 10 percent of the
total combined voting power of all classes of stock of the Corporation or
Affiliates.

      

      (ii)           The
aggregate Fair Market Value of all shares with respect to which Incentive Stock
Options are exercisable by a Participant for the first time during any year
shall not exceed $100,000.  The aggregate Fair Market Value of such
shares shall be determined at the time the Option is granted.

      

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          6

          
            

          

        

        
           

        

      

      (i) Election
to Receive Cash Rather than Stock.

       

      (i)      At
the same time as Nonqualified Stock Options are granted the Committee may also
grant to designated Participants the right to convert a specified number of
shares of Common Stock covered by such Nonqualified Stock Options to cash,
subject to the terms and conditions of this subsection 7(i).  For each
such Option so converted, the Participant shall be entitled to receive cash
equal to the difference between the Participant's Option Price and the Fair
Market Value of the Common Stock on the date of conversion.  Such a
right shall be referred to herein as a Stock Appreciation Right
("SAR").  Participants to whom an SAR has been granted shall be
notified of such grant and of the Options to which such SAR
pertains.  An SAR may be revoked by the Committee, in its sole
discretion, at any time, provided, however, that no such revocation may be taken
hereunder if such action would result in the disallowance of a deduction to the
Corporation under section 162(m) of the Code or any successor
section.

      

      (ii)           A
person who has been granted an SAR may exercise such SAR during such periods as
provided for in the rules promulgated under section 16 of the Exchange
Act.  The SAR shall expire when the period of the subject Option
expires.

      

      (iii)           At
the time a Participant converts one or more shares of Common Stock covered by an
Option to cash pursuant to an SAR, such Participant must exercise one or more
Nonqualified Stock Options, which were granted at the same time as the Option
subject to such SAR, for an equal number of shares of Common
Stock.  In the event that the number of shares and the Option Price
per share of all shares of Common Stock subject to outstanding Options is
adjusted as provided in the Plan, the above SARs shall automatically be adjusted
in the same ratio which reflects the adjustment to the number of shares and the
Option Price per share of all shares of Common Stock subject to outstanding
Options.

      

      8.           RESTRICTED
SHARES

      

      The
Committee or its delegate may from time to time designate those Participants who
shall receive Restricted Share Awards. Each grant of Restricted Shares under the
Plan shall be evidenced by an agreement which shall be executed by the
Corporation and the Participant.  The agreement shall contain such
terms and conditions, not inconsistent with the Plan, as shall be determined by
the Committee and shall indicate the number of Restricted Shares awarded and the
following terms and conditions of the award.

      

      (a) Grant
of Restricted Shares.  The Committee shall determine the number of
Restricted Shares to be included in the grant and the period or periods during
which the Transferability Restrictions applicable to the Restricted Shares will
be in force (the “Restricted Period”).  Unless otherwise determined by
the Committee at the time of grant, the Restricted Period shall be for a minimum
of three years and shall not exceed ten years from the date of grant, as
determined by the Committee at the time of grant.  The Restricted
Period may be the same for all Restricted Shares granted at a particular time to
any one Participant or may be different with respect to different Participants
or with respect to various of the Restricted Shares granted to the same
Participant, all as determined by the Committee at the time of
grant.

       

      (b) Transferability
Restrictions.  During the Restricted Period, Restricted Shares may not
be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged
or

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          7

          
            

          

        

        
           

        

      

       

      
        otherwise
encumbered.  Furthermore, a Participant’s right, if any, to receive
Common Stock upon termination of the Restricted Period may not be assigned or
transferred except by will or by the laws of descent and
distribution.  In order to enforce the limitations imposed upon the
Restricted Shares the Committee may (i) cause a legend or legends to be placed
on any such certificates, and/or (ii) issue “stop transfer” instructions as it
deems necessary or appropriate.  Holders of Restricted Shares limited
as to sale under this subsection 8(b) shall have rights as a shareholder with
respect to such shares to receive dividends in cash or other property or other
distribution or rights in respect of such shares, and to vote such shares as the
record owner thereof.  With respect to each grant of Restricted
Shares, the Committee shall determine the Transferability Restrictions which
will apply to the Restricted Shares for all or part of the Restricted
Period.  By way of illustration but not by way of limitation, the
Committee may provide (i) that the Participant will not be entitled to receive
any shares of Common Stock unless he or she is still employed by the Corporation
or its Affiliates at the end of the Restricted Period,  (ii) that the
Participant will become vested in Restricted Shares according to a schedule
determined by the Committee, or under other terms and conditions determined by
the Committee, and (iii) how any Transferability Restrictions will be applied,
modified or accelerated in the case of the Participant’s death or Total and
Permanent Disability.

         

        (c) Manner
of Holding and Delivering Restricted Shares.  Each certificate issued
for Restricted Shares shall be registered in the name of the Participant and
deposited with the Corporation or its designee.  These certificates
shall remain in the possession of the Corporation or its designee until the end
of the applicable Restricted Period or, if the Committee has provided for
earlier termination of the Transferability Restrictions following a
Participant’s death, Total and Permanent Disability or earlier vesting of the
shares of Common Stock, such earlier termination of the Transferability
Restrictions.  At whichever time is applicable, certificates
representing the number of shares to which the Participant is then entitled
shall be delivered to the Participant free and clear of the Transferability
Restrictions; provided that in the case of a Participant who is not entitled to
receive the full number of Shares evidenced by the certificates then being
released from escrow because of the application of the Transferability
Restrictions, those certificates shall be returned to the Corporation and
canceled and a new certificate representing the shares of Common Stock, if any,
to which the Participant is entitled pursuant to the Transferability
Restrictions shall be issued and delivered to the Participant, free and clear of
the Transferability Restrictions.

         

      

      9.           RESTRICTED
SHARE UNITS

      

      The
Committee or its delegate shall from time to time designate those Participants
who shall receive Restricted Share Unit Awards.  The Committee shall
advise such Participants of their Awards by a letter indicating the number of
Restricted Share Units awarded and the following terms and conditions of the
award.

      

      (a) Restricted
Share Units may be granted to Participants as of the first day of a Restricted
Period.  The number of Restricted Share Units to be granted to each
Participant and the Restricted Period shall be determined by the Committee in
its sole discretion.

       

      (b) Transferability
Restrictions. During the Restricted Period, Restricted Share Units may not be
sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or
otherwise encumbered.  Furthermore, a Participant’s right, if any, to
receive cash or Common Stock upon termination of the Restricted Period may not
be assigned or transferred except by will or by the laws of descent and
distribution.  With respect to each grant of Restricted Share Units,
the Committee shall determine the Transferability Restrictions which will apply
to the Restricted

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          8

          
            

          

        

        
           

        

      

      
        Share
Units for all or part of the Restricted Period.  By way of
illustration but not by way of limitation, the Committee may provide (i) that
the Participant will forfeit any Restricted Share Units unless he or she is
still employed by the Corporation or its Subsidiaries at the end of the
Restricted Period, (ii) that the Participant will forfeit any or all Restricted
Share Units unless he or she has met the Performance Goals according to the
schedule determined by the Committee,  (iii) that the Participant will
become vested in Restricted Share Units according to a schedule determined by
the Committee, or under other terms and conditions determined by the Committee,
and (iv) how any Transferability Restrictions will be applied, modified or
accelerated in the case of the Participant’s death or Total and Permanent
Disability.

         

      

      (c) Unless
otherwise determined by the Committee, during the Restricted Period,
Participants will be credited with dividends, equivalent in value to those
declared and paid on shares of Common Stock, on all Restricted Share Units
granted to them, and these dividends will be regarded as having been reinvested
in Restricted Share Units on the date of the Common Stock dividend payments
based on the then Fair Market Value of the Common Stock thereby increasing the
number of Restricted Share Units held by a Participant.  Holders of
Restricted Share Units under this subsection 9(c) shall have none of the rights
of a shareholder with respect to such shares. Holders of Restricted Share Units
are not entitled to receive distribution of rights in respect of such shares,
nor to vote such shares as the record owner thereof.

       

      (d) Payment
of Restricted Share Units.  The payment of Restricted Share Units
shall be made in cash or shares of Common Stock, or a combination of both, as
determined by the Committee at the time of grant.  The payment of
Restricted Share Units shall be made within 90 days following the end of the
Restricted Period.

       

      

      10.           GOVERNMENT
SERVICE, LEAVES OF ABSENCE AND OTHER TERMINATIONS

      

      (a) In the
event the Participant's employment with the Corporation or an Affiliate is
terminated by reason of a shutdown or divestiture of all or a portion of the
Corporation's or its Affiliate's business, a proportion of the Restricted Shares
or Restricted Share Unit Award shall be considered to vest as of the
Participant's termination of employment. The number of shares that shall vest
shall be prorated for the number of full years of employment during the
Restricted Period prior to the Participant’s termination of
employment.  In the event the number of Restricted Shares or
Restricted Share Units was to be determined by the attainment of Performance
Goals according to a schedule determined by the Committee the number of shares
that  are considered to vest shall be determined at the end of the
Restricted Period, prorated for the number of full years of employment during
the Restricted Period prior to the Participant’s termination of employment, and
shall be paid within 90 days following the end of the Restricted
Period.

       

      (b) In the
event of a Qualified Termination of Employment of a Participant, all of the
Options, Restricted Shares or Restricted Share Unit Awards shall be considered
to vest immediately.  In the event the number of Restricted Shares or
Restricted Share Units was to be determined by the attainment of Performance
Goals according to a schedule determined by the Committee, the number of shares
that shall be considered to vest shall be the greater of the target level
established or the number of shares which would have vested based on the
attainment of the Performance Goal as of the end of the prior calendar
year.

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          9

          
            

          

        

        
           

        

      

      (c) If,
pending a Change of Control, the Committee determines the Common Stock will
cease to exist without an adequate replacement security that preserves
Participants’ economic rights and positions, then, by action of the Committee,
the following shall occur:

       

      (i) All
Stock Options and SARs, except for Incentive Stock Options, shall become
exercisable immediately prior to the consummation of the Change of Control in
such manner as is deemed fair and equitable by the Committee.

       

      (ii) The
restrictions on all Restricted Shares shall lapse and Restricted Share Units
shall vest immediately prior to consummation of the Change of Control and shall
be settled upon the Change of Control in cash equal to the Fair Market Value of
the Restricted Share Units at the time of the Change of
Control.  Provided, however, that any Restricted Share Units that are
required to meet the requirements of Section 409A of the Code and the
regulations thereunder shall be settled in a manner that complies with Section
409A of the Code and the regulations thereunder.

       

      (d) A
termination of employment shall not be deemed to have occurred while a
Participant is on military leave or other bona fide leave of absence if the
period of such leave does not exceed six months, or if longer, so long as the
Participant retains a right to reemployment with the Corporation or an Affiliate
under an applicable statute or by contract.  For purposes of this
subparagraph, a leave of absence constitutes a bona fide leave of absence only
if there is a reasonable expectation that the Participant will return to perform
services for the Corporation or an Affiliate.  If the period of leave
exceeds six months and the Participant does not retain a right to reemployment
under an applicable statute or by contract, the employment relationship is
deemed to terminate on the first date immediately following such six-month
period.  Notwithstanding the foregoing sentence, where a leave of
absence is due to any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous
period of not less than six months, where such impairment causes the Participant
to be unable to perform the duties of his or her position of employment or any
substantially similar position of employment, a 29-month period of absence is
substituted for such six-month period in determining whether a termination of
employment shall be deemed to have occurred.  A termination of
employment with the Corporation or an Affiliate to accept immediate reemployment
with the Corporation or an Affiliate likewise shall not be deemed to be a
termination of employment for purposes of the Plan.  A Participant who
is classified as an intermittent employee shall be deemed to have a termination
of employment for purposes of the Plan.  Notwithstanding anything in
this Plan to the contrary, a termination of employment with respect to any
Restricted Share Units that are required to meet the requirements of Section
409A of the Code and the regulations thereunder shall not be deemed to be a
termination of employment for purposes of the Plan if it is anticipated that the
level of bona fide services the Participant would perform after such date would
continue at a rate equal to more than 20 percent of the average level of bona
fide services performed over the immediately preceding 36-month period (or the
full period of services to the Corporation or an Affiliate if the Participant
has been providing such services less than 36 months).

       

      (e) If any
amounts payable under this Plan would constitute a parachute payment under
Section 280G(b)(2) then such amounts shall be reduced to the extent necessary to
provide the Participant with the greatest aggregate net after tax receipt as
determined by applying the procedures set forth in the Committee
Rules.

       

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
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      11.           SHARES
SUBJECT TO THE PLAN

      

      The
number of shares of Common Stock available with respect to all Awards granted
under this Plan shall not exceed 50,000,000 in the aggregate, of which not more
than 50,000,000 shall be available for option and sale, and of which not more
than 18,000,000 shall be available for grant as Restricted Shares and Restricted
Share Units, subject to the adjustment provision set forth in Section 13
hereof.  The shares of Common Stock subject to the Plan may consist in
whole or in part of authorized but unissued shares or of treasury shares, as the
Board may from time to time determine.  Shares subject to Options
which become ineligible for purchase, Restricted Share Units which are retired
through forfeiture or maturity, other than those Restricted Share Units which
are retired through the payment of Common Stock, and Restricted Shares which are
forfeited during the Restricted Period due to any applicable Transferability
Restrictions will be available for Awards under the Plan to the extent permitted
by section 16 of the Exchange Act (or the rules and regulations promulgated
thereunder) and to the extent determined to be appropriate by the
Committee.

      

      12.           INDIVIDUAL
LIMITS

      

      The
maximum number of shares of Common Stock covered by Awards which may be granted
to any Participant within any two consecutive calendar year period shall not
exceed 1,500,000 in the aggregate. If an Option which had been granted to a
Participant is canceled, the shares of Common Stock which had been subject to
such canceled Option shall continue to be counted against the maximum number of
shares for which Options may be granted to the Participant.  In the
event that the number of Options which may be granted is adjusted as provided in
the Plan, the above limits shall automatically be adjusted in the same ratio
which reflects the adjustment to the number of Options available under the
Plan.

      

      13.           CHANGES
IN CAPITALIZATION

      

      In the
event there are any changes in the Common Stock or the capitalization of the
Corporation through a corporate transaction, such as any merger, any acquisition
through the issuance of capital stock of the Corporation, any consolidation, any
separation of the Corporation (including a spin-off or other distribution of
stock of the Corporation), any reorganization of the Corporation (whether or not
such reorganization comes within the definition of such term in section 368 of
the Code), or any partial or complete liquidation by the Corporation,
recapitalization, stock dividend, stock split or other change in the corporate
structure, appropriate adjustments and changes shall be made by the Committee,
to the extent necessary to preserve the benefit to the Participant contemplated
hereby, to reflect such changes in (a) the aggregate number of shares
subject to the Plan, (b) the maximum number of shares subject to the Plan, (c)
the maximum number of shares for which Awards may be granted to any Participant,
(d) the number of shares and the Option Price per share of all shares of Common
Stock subject to outstanding Options, (e) the maximum number of shares of Common
Stock covered by Awards which may be granted by the Chief Executive Officer
within any calendar year period, (f) the maximum number of shares of Common
Stock available for option and sale and available for grant as Restricted Shares
and Restricted Share Units, (g) the number of Restricted Shares and Restricted
Share Units awarded to Participants, and (h) such other provisions of the
Plan as may be necessary and equitable to carry out the foregoing purposes,
provided, however that no such adjustment or change may be made to the extent
that such adjustment or change will result in the disallowance of a deduction to
the Corporation under section 162(m) of the Code or any successor
section.

      
        
          
            

             

            

            

            
              	
                       

                    

            

            

          

           

        

        
          11

          
            

          

        

        
           

        

      

      14.           EFFECT
ON OTHER PLANS

      

      All
payments and benefits under the Plan shall constitute special compensation and
shall not affect the level of benefits provided to or received by any
Participant (or the Participant's estate or beneficiaries) as part of any
employee benefit plan of the Corporation or an Affiliate.  The Plan
shall not be construed to affect in any way a Participant's rights and
obligations under any other plan maintained by the Corporation or an Affiliate
on behalf of employees.

      

      15.           TERM
OF THE PLAN

      

      The
term of the Plan shall be ten years, beginning April 26, 2001, and ending April
25, 2011, unless the Plan is terminated prior thereto by the
Committee.  No Award may be granted or awarded after the termination
date of the Plan, but Awards theretofore granted or awarded shall continue in
force beyond that date pursuant to their terms.

       

      
        16.           GENERAL
PROVISIONS

        

        (a) Designated
Beneficiary.  Each Participant who shall be granted Restricted Shares
and/or Restricted Share Units under the Plan may designate a beneficiary or
beneficiaries with the Committee; provided that no such designation shall be
effective unless so filed prior to the death of such Participant.

         

        (b) No
Right of Continued Employment.  Neither the establishment of the Plan
nor the payment of any benefits hereunder nor any action of the Corporation, its
Affiliates, the Board of Directors of the Corporation or its Affiliates, or the
Committee shall be held or construed to confer upon any person any legal right
to be continued in the employ of the Corporation or its Affiliates, and the
Corporation and its Affiliates expressly reserve the right to discharge any
Participant without liability to the Corporation, its Affiliates, the Board of
Directors of the Corporation or its Affiliates or the Committee, except as to
any rights which may be expressly conferred upon a Participant under the
Plan.

         

        (c) Binding
Effect.  Any decision made or action taken by the Corporation, the
Board or by the Committee arising out of or in connection with the construction,
administration, interpretation and effect of the Plan shall be conclusive and
binding upon all persons.  Notwithstanding anything in section 3 to
the contrary, the Committee may determine in its sole discretion whether a
termination of employment for purposes of this Plan is caused by disability,
retirement or for other reasons.

         

        (d) Modification
of Awards.  The Committee may in its sole and absolute discretion, by
written notice to a Participant, (i) limit the period in which an Incentive
Stock Option may be exercised to a period ending at least three months following
the date of such notice, (ii) limit or eliminate the number of shares subject to
an Incentive Stock Option after a period ending at least three months following
the date of such notice, and/or (iii) accelerate the Restricted Period with
respect to the Restricted Share and Restricted Share Unit Awards granted under
this Plan.  Notwithstanding anything in this subsection 16(d) to the
contrary, the Committee may not take any action to the extent that such action
would result in the disallowance of a deduction to the Corporation under section
162(m) of the Code or any successor section.  Provided however, that
any Restricted Share Units that are required to meet the requirements of Section
409A of the Code and the regulations thereunder shall be settled in a manner
that complies with Section 409A of the Code and the regulations
thereunder.  Except as provided in this subsection and in subsection
16(e) no amendment, suspension, or termination of the Plan or any Awards under
the

         

        
          
            
              

               

              

              

              
                	
                         

                      

              

              

            

             

          

          
            12

            
              

            

          

          
             

          

        

        Plan
shall, without the consent of the Participant, adversely alter or change any of
the rights or obligations under any Awards or other rights previously granted
the Participant.

         

        (e) Nonresident
Aliens.  In the case of any Award granted to a Participant who is not
a resident of the United States or who is employed by an Affiliate other than an
Affiliate that is incorporated, or whose place of business is, in a State of the
United States, the Committee may (i) waive or alter the terms and conditions of
any Awards to the extent that such action is necessary to conform such Award to
applicable foreign law, (ii) determine which Participants, countries and
Affiliates are eligible to participate in the Plan, (iii) modify the terms and
conditions of any Awards granted to Participants who are employed outside the
United States, (iv) establish subplans, each of which shall be attached as an
appendix hereto, modify Option exercise procedures and other terms and
procedures to the extent such actions may be necessary or advisable, and (v)
take any action, either before or after the Award is made, which is deemed
advisable to obtain approval of such Award by an appropriate governmental
entity; provided, however, that no action may be taken hereunder if such action
would (i) materially increase any benefits accruing to any Participants under
the Plan, (ii) increase the number of securities which may be issued under the
Plan, (iii) modify the requirements for eligibility to participate in the
Plan,  (iv) result in a failure to comply with applicable provisions
of the Securities Act of 1933, the Exchange Act or the Code or (v) result in the
disallowance of a deduction to the Corporation under section 162(m) of the Code
or any successor section.

         

        (f) No
Segregation of Cash or Stock. The Restricted Share Unit accounts established for
Participants are merely a bookkeeping convenience and neither the Corporation
nor its Affiliates shall be required to segregate any cash or stock which may at
any time be represented by Awards.  Nor shall anything provided herein
be construed as providing for such segregation.  Neither the
Corporation, its Affiliates, the Board nor the Committee shall, by any
provisions of the Plan, be deemed to be a trustee of any property, and the
liability of the Corporation or its Affiliates to any Participant pursuant to
the Plan shall be those of a debtor pursuant to such contract obligations as are
created by the Plan, and no such obligation of the Corporation or its Affiliates
shall be deemed to be secured by any pledge or other encumbrance on any property
of the Corporation or its Affiliates.

         

        (g) Inalienability
of Benefits and Interest.  Except as otherwise provided in this Plan,
no benefit payable under or interest in the Plan shall be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any such attempted action shall be void and no such benefit or
interest shall be in any manner liable for or subject to debts, contracts,
liabilities, engagements, or torts of any Participant or
beneficiary.

         

        (h) Delaware
Law to Govern.  All questions pertaining to the construction,
interpretation, regulation, validity and effect of the provisions of the Plan
shall be determined in accordance with the laws of the State of
Delaware.

         

        (i) Purchase
of Common Stock.  The Corporation and its Affiliates may purchase from
time to time shares of Common Stock in such amounts as they may determine for
purposes of the Plan.  The Corporation and its Affiliates shall have
no obligation to retain, and shall have the unlimited right to sell or otherwise
deal with for their own account, any shares of Common Stock purchased pursuant
to this paragraph.

         

        (j) Use of
Proceeds.  The proceeds received by the Corporation from the sale of
Common Stock pursuant to the exercise of Options shall be used for general
corporate purposes.

         

        
          
            
              

               

              

              

              
                	
                         

                      

              

              

            

             

          

          
            13

            
              

            

          

          
             

          

        

        (k) Deferral
of Award Payment.  The Committee may establish one or more programs
under the Plan to permit selected Participants the opportunity to elect to defer
receipt of consideration upon exercise of an Award or other event that absent
the election would entitle the Participant to payment or receipt of Common Stock
or other consideration under an Award.  The Committee may establish
the election procedures, the timing of such elections, the mechanisms for
payments of, and accrual of interest or other earnings, if any, on amounts so
deferred, and such other terms, conditions, rules and procedures that the
Committee deems advisable for the administration of any such deferral program.
Notwithstanding anything in the Plan to the contrary, no Participant may elect
after 2004 to defer receipt of consideration upon exercise of an Award or other
event that absent the election would entitle the Participant to payment or
receipt of Common Stock or other consideration under an Award.

         

        (l) Withholding.  The
Committee shall require the withholding of all taxes as required by
law.  In the case of exercise of an Option or payments of Awards
whether in cash or in shares of Common Stock or other securities, withholding
shall be as required by law and in the Committee Rules.

         

        (m) Amendments.  The
Committee may at any time amend, suspend, or discontinue the Plan or alter or
amend any or all Awards and Award Agreements under the Plan to the extent (1)
permitted by law, (2) permitted by the rules of any stock exchange on which the
Common Stock or any other security of the Corporation is listed, (3) permitted
under applicable provisions of the Securities Act of 1933, as amended, the
Exchange Act (including rule 16b-3 thereof) and (4) that such action would not
result in the disallowance of a deduction to the Corporation under section
162(m) of the Code or any successor section (including the rules and regulations
promulgated thereunder); and (5) that no Option may be re-priced, replaced,
re-granted though cancellation, or modified without shareholder approval (except
in connection with a change in the Common Stock or the capitalization of the
Corporation as provided in Section 13 hereof) if the effect would be to reduce
the exercise price for the shares underlying such Option; provided, however,
that if any of the foregoing requires the approval by stockholders of any such
amendment, suspension or discontinuance, then the Committee may take such action
subject to the approval of the stockholders.  Except as provided in
subsections 16(d) and 16(e) no such amendment, suspension, or termination of the
Plan shall, without the consent of the Participant, adversely alter or change
any of the rights or obligations under any Awards or other rights previously
granted the Participant.

         

        

        
          
            
              

               

              

              

              
                	
                         

                      

              

              

            

             

          

          
            14

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