Document:

EX-10.2

	 	 	 	 	 

Exhibit 10.2

LANCASTER COLONY CORPORATION

STOCK APPRECIATION RIGHTS AWARD AGREEMENT

     This Stock Appreciation Rights Agreement (this “Agreement”) is dated as of February 27, 2008,
by and between Lancaster Colony Corporation, an Ohio corporation (the “Company”), and «name», a
Service Provider for the Company (the “Grantee”).

W I T N E S S E T H

     WHEREAS, the Company desired to award free-standing Stock Appreciation Rights (“SARs”) to the
Grantee in accordance with the provisions of the Plan; and

     WHEREAS, the Grantee wishes to accept such award; and

     WHEREAS, the execution of this Agreement has been authorized by a resolution of the
Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company
that was duly adopted on February 27, 2008, and

     WHEREAS, the Company hereby confirms to the Grantee the grant, effective on February 27, 2008,
(the “Grant Date”), pursuant to the 2005 Stock Plan (the “Plan”), of «shares» free-standing Stock
Appreciation Rights (“SARs”) subject to the terms and conditions of the Plan and the terms and
conditions described below, which SARs are a right to receive Shares with a Fair Market Value equal
to 100% of the Spread at the time of exercise; and

     WHEREAS, the parties hereto understand and agree that any terms used and not defined herein
have the same meanings as in the Plan.

     NOW, THEREFORE, the Company and the Grantee hereby agree as follows:

     1. Definitions. As used in this Agreement:

     (a) “Base Price” means $38.31, which is not less than the Fair Market Value of a Share
of the Company’s Common Stock on the Grant Date.

     (b) “Spread” means the excess of the Fair Market Value of a Share on the date on which
an SAR is exercised over the Base Price.

     2. Vesting of SARs. The SARs shall become exercisable as follows:

     (a) one-third of the SARs shall become exercisable on the first anniversary of the
Grant Date if the Grantee shall have retained Continuous Status as an Employee or Consultant
through such date;

     (b) an additional one-third of the SARs shall become exercisable on the second
anniversary of the Grant Date if the Grantee shall have retained Continuous Status as an
Employee or Consultant through such date; and

 

 

     (c) the remaining one-third of the SARs shall become exercisable on the third
anniversary of the Grant Date if the Grantee shall have retained Continuous Status as an
Employee or Consultant through such date.

In calculating the one-third amounts described above, fractional SARs shall be rounded down to the
nearest whole SAR for each of the first two anniversaries of the Grant Date, and the remaining SARs
shall be included with those SARs that become exercisable on the third anniversary of the Grant
Date. To the extent exercisable, the SARs may be exercised from time to time in accordance with
the Plan and this Agreement. To the extent the SARs or any portion thereof do not become
exercisable as provided in this Section 2, such unexercisable SARs or portion thereof shall
be forfeited to the Company for no consideration.

     3. Exercise of SARs.

     (a) To the extent exercisable as provided in Section 2 of this Agreement, the
SARs may be exercised in whole or in part by delivery to the Company of a written statement
in form and substance satisfactory to the Committee specifying the number of SARs to be
exercised.

     (b) Upon exercise, the Company will issue to the Grantee the number of Shares equal to
the quotient of (i) the product of (A) the Spread multiplied by (B) the number of SARs
exercised divided by (ii) the Fair Market Value of a Share on the date of exercise, with
such quotient rounded down to the nearest whole Share.

     4. Termination of SARs. The SARs shall terminate upon the earliest to occur of the
following:

     (a) 90 days after the Grantee ceases to retain Continuous Status as an Employee or
Consultant other than upon the Grantee’s death or Disability;

     (b) 90 days after the Grantee ceases to retain Continuous Status as an Employee or
Consultant as a result of the Grantee’s Disability;

     (c) 90 days after the Grantee ceases to retain Continuous Status as an Employee or
Consultant as a result of the Grantee’s death; and

     (d) Five years from the Grant Date.

     5. Effect of Change in Control. In the event of a Change in Control, the SARs will be
affected in accordance with Section 15 of the Plan.

     6. Transferability. No SAR may be transferred by the Grantee other than by will or the
laws of descent and distribution. The SARs may be exercised during a Grantee’s lifetime only by
the Grantee or, in the event of the Grantee legal incapacity, by the Grantee’s guardian or legal
representative acting in a fiduciary capacity on behalf of the Grantee under state law and court
supervision. The SARs may be exercised after the Grantee’s death by (a) the Grantee’s designated
beneficiary, provided such beneficiary has been designated prior to the Grantee’s death in a form
acceptable to the Committee, or (b) the personal representative of the Grantee’s

 

 

estate or by the person(s) to whom the SARs are transferred pursuant to the Grantee’s will or in
accordance with the laws of descent and distribution.

     7. Compliance with Law. The SARs shall not be exercisable if such exercise would
involve a violation of any applicable federal or state securities law, and the Company hereby
agrees to make reasonable efforts to comply with any applicable federal and state securities law.

     8. Adjustments. The SARs shall be subject to adjustment in accordance with Section 15
of the Plan.

     9. Withholding Taxes. To the extent that the Company is required to withhold federal,
state, local or foreign taxes in connection with the exercise of the SARs, and the amounts
available to the Company for such withholding are insufficient, it shall be a condition to such
exercise that the Grantee make arrangements satisfactory to the Company for payment of the balance
of such taxes required to be withheld. The Grantee may elect that all or any part of such
withholding requirement be satisfied by retention by the Company of a portion of the Shares to be
delivered to the Grantee. If such election is made, the Shares so retained shall be credited
against such withholding requirement at the Fair Market Value of a Share on the date of such
exercise, with any fractional Shares that would otherwise be delivered being rounded up to the next
nearest whole Share. In no event shall the Fair Market Value of Shares to be withheld and/or
delivered pursuant to this Section 9 to satisfy applicable withholding taxes in connection
with the benefit exceed the minimum amount of taxes required to be withheld.

     10. Notices. Any notices required or permitted by the terms of this Agreement or the
Plan must be in writing, shall be delivered to the Grantee at his or her address on file with the
Company or to the Company addressed as follows (or to such other address or addresses of which
notice in the same manner has previously been given), and will be deemed to have been duly given
(a) when delivered in person, (b) when dispatched by electronic facsimile transfer (if confirmed in
writing by mail simultaneously dispatched), (c) one business day after having been dispatched by a
nationally recognized overnight courier service or (d) three business days after being sent by
registered or certified mail, return receipt requested, postage prepaid:

Lancaster Colony Corporation

37 West Broad Street

Columbus, Ohio 43215

Attention: Corporate Secretary

     11. No Employment Contract; Right to Terminate Employment. The grant of SARs to the
Grantee is a voluntary, discretionary award being made on a one-time basis and it does not
constitute a commitment to make any future awards. The grant of the SARs and any payments made
hereunder will not be considered salary or other compensation for purposes of any severance pay or
similar allowance, except as otherwise required by law. Nothing in this Agreement will give the
Grantee any right to continue employment with the Company or any Subsidiary, as the case may be, or
interfere in any way with the right of the Company or a Subsidiary to terminate the employment of
the Grantee at any time.

     12. Relation to Other Benefits. Any economic or other benefit to the Grantee under
this Agreement or the Plan shall not be taken into account in determining any benefits to which

 

 

the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation
plan maintained by the Company or a Subsidiary and shall not affect the amount of any life
insurance coverage available to any beneficiary under any life insurance plan covering employees of
the Company or a Subsidiary.

     13. Information. Information about the Grantee and the Grantee’s participation in the
Plan may be collected, recorded and held, used and disclosed for any purpose related to the
administration of the Plan. The Grantee understands that such processing of this information may
need to be carried out by the Company and its Subsidiaries and by third party administrators
whether such persons are located within the Grantee’s country or elsewhere, including the United
States of America. The Grantee consents to the processing of information relating to the Grantee
and the Grantee’s participation in the Plan in any one or more of the ways referred to above.

     14. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however, that no
amendment shall adversely affect the rights of the Grantee with respect to the SARs without the
Grantee’s consent.

     15. Severability. In the event that one or more of the provisions of this Agreement
shall be invalidated for any reason by a court of competent jurisdiction, any provision so
invalidated shall be deemed to be separable from the other provisions hereof, and the remaining
provisions hereof shall continue to be valid and fully enforceable.

     16. Governing Law. This Agreement is made under, and shall be construed in accordance
with the internal substantive laws of the State of Ohio.

     17. Provisions of the Plan Controlling. The Grantee specifically understands and
agrees that the SARs are being granted under the Plan, copies of which Plan the Grantee
acknowledges the Grantee has read, understands and by which the Grantee agrees to be bound. The
provisions of the Plan are incorporated herein by reference. In the event of a conflict between
the terms and conditions of the Plan and this Agreement, the provisions of the Plan will control.
The Board shall have authority, subject to the express provisions of the Plan and this Agreement,
to establish, amend and rescind rules and regulations relating to the Plan, and to make all other
determinations that are, in the judgment of the Board, necessary or desirable for the
administration of the Plan. The Board may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in this Agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect and it shall be the sole and final judge of such
expediency. All actions by the Board under the provisions of this Section 17 shall be
conclusive for all purposes.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

     The undersigned hereby acknowledges receipt of an executed original of this Stock Appreciation
Rights Agreement and accepts the SARs on the terms and conditions set forth herein and in the Plan.

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

«name»
	 	 

     Executed in the name and on behalf of the Company in Columbus, Ohio as of the 29th day of
February, 2008.

	 	 	 	 	 
	 	LANCASTER COLONY CORPORATION	 
	 
	 	By:  	/Matthew R. Shurte/
 	 
	 	 	Name:  	Matthew R. Shurte 	 
	 	 	Title:  	Corporate CounselEX-10.1

EXHIBIT (10-1)

The
Procter & Gamble 2001 Stock and Incentive Compensation Plan
  related

correspondence and terms and conditions

 

 

Appendix 1

[GRANT_DATE]                [GLOBALID]

[FIRST_NAME] [MIDDLE_NAME] [LAST_NAME]]

Subject: NON-STATUTORY STOCK OPTION SERIES 08-AA

In recognition of your contributions to the future success of the business, The Procter &
Gamble Company (“Company”) hereby grants to you an option to purchase shares of Procter &
Gamble Common Stock as follows:

	 	 	 	 	 
	 

	 	Grant Value:
	 	$[DELIVERED_GRANT_VALUE]
	 

	 	Option Price per Share:
	 	$[STOCK_PRCE]
	 

	 	Number of Shares:
	 	[SHARES]
	 

	 	Date of Grant:
	 	[GRANT_DATE]
	 

	 	Expiration of Option:
	 	[EXPIRATION_DATE]
	 

	 	Option Vest Date:
	 	100% after [VEST_DATE]
	 

	 	Acceptance Deadline:
	 	[ACCEPTANCE_DATE]

This stock option is granted in accordance with and subject to the terms of The Procter &
Gamble 2001 Stock and Incentive Compensation Plan (including any applicable sub-plan) (the
“Plan”), the Regulations of the Compensation and Leadership Development Committee of the
Board of Directors (“Committee”), and the Exercise Instructions in place as may be revised
from time to time.

You may access, download and/or print the terms, or any portion thereof, of the Plan by
activating this hyperlink: The Procter & Gamble 2001 Stock and Incentive Compensation
Plan. Specific portions of the Plan are also hyperlinked below for your ease in
reviewing. Nonetheless, if you would prefer to receive a paper copy of The Procter & Gamble
2001 Stock and Incentive Compensation Plan, please send a written request via email to
Execcomp.IM@pg.com. Please understand that you will continue to receive future Plan
materials and information via electronic mail even though you may have requested a paper
copy.

The option is not transferable other than by will or the laws of descent and distribution
and is exercisable during your life only by you. This option will become void upon any
separation (including retirement) from the Company or any of its subsidiaries within 6
months of the grant date. This option may also become void upon separation from the Company
or any of its subsidiaries at any time later than 6 months after the grant date (see
Article G, paragraph 4 of the Plan). For the purposes of this option, separation
from the Company or any of its subsidiaries and termination of employment will be effective
as of the date that you are no longer actively employed and will not be extended by any
notice period required under local law.

 

 

Appendix 1

Please note that when the issue or transfer of the Common Stock covered by this option may,
in the opinion of the Company, conflict or be inconsistent with any applicable law or
regulation of any governmental agency, the Company reserves the right to refuse to issue or
transfer said Common Stock and that any outstanding options may be suspended or terminated
if you engage in actions that are significantly contrary to the best interests of the
Company or any of its subsidiaries.

This option to purchase shares of Common Stock of the Company is subject to the Employee
Acknowledgement and Consent Form below and to the terms of the Plan, with which you
acknowledge you are familiar by accepting this award, including the non-compete provision
and other terms of Article F. The option is also subject to and bound by the
actions of the Compensation and Leadership Development Committee and of the Company’s Board
of Directors. This option grant and the Plan together constitute an agreement between the
Company and you in accordance with the terms thereof and hereof, and no other understandings
and/or agreements have been entered by you with the Company regarding this specific stock
option grant. Any legal action related to this option, including Article F, may be brought
in any federal or state court located in Hamilton County, Ohio, USA, and you hereby agree to
accept the jurisdiction of these courts and consent to service of process from said courts
solely for legal actions related to this option grant.

Under IRS standards of professional practice, certain tax advice must meet requirements as
to form and substance. To assure compliance with these standards, we disclose to you that
this communication is not intended or written to be used, and cannot be used, for the
purpose of avoiding penalties or promoting, marketing, or recommending to another party any
transaction or matter addressed herein.

THE PROCTER & GAMBLE COMPANY

James J. Johnson

Secretary for the Compensation and Leadership

Development Committee

ATTACHMENTS

To
Accept Your Stock Option

Read and check each of the boxes below:

	 	 	 	 	 
	o

	 	I have read, understand and
agree to be bound by each of:
	 	the terms of this letter; The Procter & Gamble 2001
Stock and Incentive Compensation Plan; and the
Employee Acknowledgement and Consent Form
(below).
	 
	 	 	 	 
	o	 	I accept the stock option grant detailed above. (To accept this option, you must also
check the box above.)

To
Reject Your Stock Option

Read and check the box below:

 

 

Appendix 1

	o	 	I have read and understand the terms noted above. I do not agree to be
bound by these terms, and hereby reject the stock option grant detailed above.

SUBMIT

Employee Acknowledgement and Consent Form

I understand that I am eligible to receive a grant of stock options or restricted stock units
(“RSUs”) under The Procter & Gamble 2001 Stock and Incentive Compensation Plan or The Gillette
Company 2004 Long Term Incentive Plan (together, referred to as the “Plans”).

Data Privacy

I hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or
other form, of my personal data as described in this document by and among, as applicable, my
employer (“Employer”) and The Procter & Gamble Company and its subsidiaries and affiliates (“P&G”)
for the exclusive purpose of implementing, administering and managing my participation in the
Plans.

I understand that P&G and my Employer hold certain personal information about me, including, but
not limited to, my name, home address and telephone number, date of birth, social insurance number
or other identification number, salary, nationality, job title, any shares of stock or
directorships held in P&G, details of all options or RSUs or any other entitlement to shares of
stock awarded, canceled, exercised, vested, unvested or outstanding in my favor, for the purpose of
implementing, administering and managing the Plans (“Data”). I understand that Data may be
transferred to any third parties assisting in the implementation, administration and management of
the Plans, that these recipients may be located in my country or elsewhere, and that the
recipient’s country may have different data privacy laws and protections than my country. I
understand that I may request a list with the names and addresses of any potential recipients of
the Data by contacting my local human resources representative. I authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing my participation in the Plans, including any requisite
transfer of such Data as may be required to a broker or other third party with whom I may elect to
deposit any shares of stock acquired upon exercise of the option or settlement of the RSU. I
understand that Data will be held only as long as is necessary to implement, administer and manage
my participation in the Plans. I understand that I may, at any time, view Data, request additional
information about the storage and processing of Data, require any necessary amendments to Data or
refuse or withdraw the consents herein, in any case without cost, by contacting in writing my local
human resources representative. I understand, however, that refusing or withdrawing my consent may
affect my ability to participate in the Plans. For more information on the consequences of my
refusal to consent or withdrawal of consent, I understand that I may contact my local human
resources representative.

Nature of Grant

By completing this form and accepting the grant of the stock options or RSUs evidenced hereby, I
acknowledge that: i) the Plans are established voluntarily by The Procter & Gamble Company, it is
discretionary in nature and it may be amended, suspended or terminated at any time; ii) the grant
of options or RSUs under the Plans is voluntary and occasional and does not create any contractual
or other right to receive future grants of options or RSUs, or benefits in lieu of options or RSUs,
even if options or RSUs have been granted repeatedly in the past; iii) all decisions with respect
to future grants of options or RSUs, if any, will be at the sole discretion of P&G; iv) my
participation in the Plans is voluntary; v) the option or RSU is an extraordinary item and not part
of normal or expected compensation or salary for any purposes including, but not limited to,
calculating any termination, severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments; vi) in the event that my
employer is not P&G, the grant of options or RSUs will not be interpreted to form an employment
relationship with P&G; and furthermore, the grant of options or RSUs will not be interpreted to
form an employment contract with my Employer; vii) the future value of the shares purchased under
the Plans is unknown and cannot be predicted with certainty, may increase or decrease in value,
even below the exercise price and, if the underlying shares do not increase in value, the option
will have no value; iix) my participation in the Plans shall not create a right to further
employment with my

 

 

Appendix 1

Employer and shall not interfere with the ability of my Employer to terminate my
employment relationship at any time, with or without cause; ix) and no claim or entitlement to
compensation or damages arises from the termination of the option or RSU or the diminution in value
of the option or RSU or shares purchased and I irrevocably release P&G and my Employer from any
such claim that may arise.

Responsibility for Taxes

Regardless of any action P&G or my Employer takes with respect to any or all income tax, social
insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”),
I acknowledge that the ultimate liability for all Tax-Related Items is and remains my
responsibility and that P&G and/or my Employer (1) make no representations or undertakings
regarding the treatment of any Tax-Related Items in connection with any aspect of the option or RSU
grant, including the grant, vesting or exercise of the option, settlement of the shares from the
RSU, the subsequent sale of shares acquired and the receipt of any dividends or the potential
impact of current or future tax legislation in any jurisdiction; and (2) do not commit to structure
the terms of the grant or any aspect of the option or RSU to reduce or eliminate my liability for
Tax-Related Items.

Prior to exercise of the option or settlement of the shares from the RSU, I shall pay or make
adequate arrangements satisfactory to P&G and/or my Employer to satisfy all withholding and payment
on account obligations of P&G and/or my Employer. In this regard, I authorize P&G and/or my
Employer to withhold all applicable Tax-Related Items from my wages or other cash compensation paid
to me by P&G and/or my Employer or from proceeds of the sale of the shares. Alternatively, or in
addition, if permissible under local law, P&G may (1) sell or arrange for the sale of shares that I
acquire to meet the withholding obligation for Tax-Related Items, and/or (2) withhold in shares,
provided that P&G only withholds the amount of shares necessary to satisfy the minimum withholding
amount. Finally, I shall pay to P&G or my Employer any amount of Tax-Related Items that P&G or my
Employer may be required to withhold as a result of my participation in the Plan or my purchase of
shares that cannot be satisfied by the means previously described. P&G may refuse to honor the
exercise and refuse to deliver the shares if I fail to comply with my obligations in connection
with the Tax-Related Items as described in this section.

 

 

Appendix 2

Payment Preference Materials for Key Manager Awards

[DATE]

[NAME]

Subject : Payment Form Elections for STAR, BGP and Key Manager Awards

	 	 	 	Your choices for the awards are:
	 
	 	 	 	February [YEAR] Key Manager Long-Term Incentive Award

	 	•	 	Stock Options
	 
	 	•	 	Restricted Stock Units (RSUs) (0%, 25% or 50%)

	 	 	 	September [YEAR] STAR Award 

	 	•	 	Cash
	 
	 	•	 	Stock Options
	 
	 	•	 	Restricted Stock Units (for BGP participants only)– no forfeiture
provision
	 
	 	•	 	Deferred Compensation (for BGP participants only)

	 	 	 	September [YEAR] BGP Award

	 	•	 	Three-Year Restricted Stock Units (50% of award required in this form)
	 
	 	•	 	Cash, Restricted Stock Units – no forfeiture provision, or Deferred
Compensation (50% of award subject to this election)

Attached you will find an election form to be returned to [NAME]. Please note Form A now includes
the Senior Executive Officer Recoupment Policy.

It is strongly recommended that you consult legal/tax/financial advisors to determine the
appropriate award form(s) for your personal situation.

While your selection will be given consideration, it is not binding on the Company until approved
by the Compensation and Leadership Development Committee of the Board of Directors. IF YOU MISS THE
[DATE] DEADLINE, CURRENT LAWS REQUIRED US TO DEFAULT YOUR AWARDS. The Key Manager Stock Option
grant will default to 100% stock options; the STAR award will default to 100% cash; and the BGP
award will default to 50% 3-year RSUs and 50% cash.

GLOBAL EXECUTIVE COMPENSATION

 

 

Appendix 2

Payment Preference Materials for Key Manager Awards

[YEAR] EXECUTIVE COMPENSATION AWARD FORM PREFERENCES

	 	•	 	You must be an active employee as of [DATE] to receive any non-cash award
	 
	 	•	 	All elections are irrevocable after [DATE]

[YEAR] Key Manager Long-Term Incentive Award Payable [DATE] [YEAR]

	 	 	 	 	 	 	 
	Stock Options

	 	                         %
	 	 
	Restricted Stock Units (RSUs)

	 	                         %

(maximum of 50%)
	 	Shares will deliver
100% in [YEARS] years
([DATE], [YEAR]). Key
Manager RSUs have no
dividend equivalents
and no deferral past 5
years.
	Total

	 	 	 	100%
	 	 

[YEAR] STAR Award Payable [DATE] [YEAR]

	 	 	 	 	 	 	 
	Cash

	 	                    %
	 	 
	Stock Options

	 	                    %
	 	 
	Restricted Stock Units (RSUs)

	 	                    %
	 	                     (Select year you
want shares delivered, e.g.
[YEAR], or one year after
retirement.)
	Deferred Compensation

	 	                    %
	 	 
	Total

	 	 	 	100%
	 	 

[YEAR] BGP Award Payable [DATE] [YEAR] (Complete for remaining 50%)

	 	 	 	 	 	 	 
	3-Year Restricted Stock Units (RSUs)

(If you leave the Company within 3
years of grant for reasons other
than retirement, you forfeit these
units.)

	 	50% (required)
	 	                     (Select
year you want
shares delivered,
e.g. [three years
after grant date,
any year later than
three years after
grant date, or one
year after
retirement]
	Restricted Stock Units (RSUs)

	 	                    %
	 	                    
(Select
year you want
shares delivered,
e.g., [YEAR], or
one year after
retirement)
	Cash

	 	                    %
	 	 
	Deferred Compensation

	 	                    %
	 	 
	Total

	 	 	 	100%
	 	 

PLEASE NOTE: Any election by you to delay the settlement date of your RSUs does not in any way
alter or amend the terms of The Procter & Gamble Stock and Incentive Compensation Plan and/or the
Statement of Terms and Conditions for Restricted Stock Units pursuant to which the subject RSUs
were granted.

Your signature below indicates your agreement that any awards granted or paid pursuant to the STAR
and/or BGP programs will be subject to the terms of the Senior Executive Officer Recoupment Policy.
This Policy provides that in the event of a significant restatement of financial results, if
compensation paid pursuant to STAR and/or BGP would have been lower based on restated results, the
Compensation and Leadership Development Committee may seek to recoup from the senior executive
officers some or all of the compensation paid pursuant to STAR and/or BGP. A copy of the policy is
available from [NAME].

                                                                     
           Signature) 
                 
                 
                 
                 
           (Date)

Return form to [NAME].

 

 

			
	Appendix 3
	 	Form RTN

[INSERT DATE]

[INSERT NAME]

Subject:
Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form RTN.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]

Paragraph 3(a) of Statement of Terms and Conditions Form RTN [is/is not] waived.

THE PROCTER & GAMBLE COMPANY

James J. Johnson, Secretary

For the Compensation Committee

	 	 	 
	o

	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and subject to
the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the attached Statement
of Terms and Conditions for Restricted Stock Units, with which I am familiar. I agree that the Award of
Restricted Stock Units, The Procter & Gamble 2001 Stock and Incentive Compensation Plan, and the attached
Statement of Terms and Conditions for Restricted Stock Units together constitute an agreement between the
Company and me in accordance with the terms thereof and hereof, and I further agree that any legal action
related to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to service
of process from said courts solely for legal actions related to this Award of Restricted Stock Units.
	 
	 	 
	o

	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 	 	 
	 

Date

	 	 

Signature
	 	 

P&G E-mail Address
	 	 

 

 

			
	Appendix 3
	 	Form RTN

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Data” has the meaning described in Section 10;

(b) “Disability” means termination of employment under the permanent disability provision of
any retirement plan of Procter & Gamble;

(c) “Dividend Equivalents” has the meaning described in Section 4;

(d) “Forfeiture Date” is the date identified as such in your Award Letter;

(e) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(f) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(g) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(h) “Post-Forfeiture Period” means the period from the Forfeiture Date until the Original
Settlement Date;

(i) “Procter & Gamble” means the Company and/or its Subsidiaries;

(j) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the Original Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the
immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit
(including all rights to receive Dividend Equivalents).

 

 

			
	Appendix 3
	 	Form RTN

(b) During the Forfeiture Period, your Restricted Stock Units (including all rights to
receive Dividend Equivalents) will be forfeited and cancelled if you leave your employment
with Procter & Gamble for any reason, except due to: (i) your Disability; or (ii) in
certain circumstances, your Special Separation. In the event of your Disability during the
Forfeiture Period, unless otherwise agreed to in writing by the Company, your Original
Settlement Date will automatically and immediately become, without any further action by you
or the Company, the date of your Disability. In the event of your Special Separation during
the Forfeiture Period, your Restricted Stock Units will be forfeited and cancelled unless
otherwise agreed to in writing by the Company.

(c) During the Post-Forfeiture Period, if you leave your employment with Procter & Gamble
for any reason other than: (i) Disability; (ii) Special Separation; or (iii) retirement in
accordance with the provisions of any appropriate retirement plan of Procter & Gamble, your
Original Settlement Date will automatically and immediately become, without any further
action by you or the Company, the date of your termination of employment. In the event of
your Disability or Special Separation during the Post-Forfeiture Period, unless otherwise
agreed to in writing by the Company, your Original Settlement Date will automatically and
immediately become, without any further action by you or the Company, the date of your
Disability or Special Separation, as applicable. In the event of your retirement in
accordance with the provisions of any appropriate retirement plan of Procter & Gamble during
the Post-Forfeiture Period, you will retain your Restricted Stock Units subject to the Plan
and these Terms and Conditions.

(d) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units and/or Dividend Equivalents, your Original Settlement Date will
automatically and immediately become, without any further action by you or the Company, the
date of your death or of the Change in Control, as applicable.

(e) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, or to settle your
Restricted Stock Units, including requiring you to do so by means of electronic signature,
or charging you an administrative fee for doing so.

(f) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect and you will cease to receive Dividend Equivalents associated with the
Restricted Stock Units.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

 

 

			
	Appendix 3
	 	Form RTN

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable
relief entered by a court of competent jurisdiction will, at the request of Procter &
Gamble, be entered on consent and enforced by any court having jurisdiction over you,
without prejudice to any rights you or Procter & Gamble may have to appeal from the
proceedings which resulted in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in

 

 

			
	Appendix 3
	 	Form RTN

Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Dividend Equivalents.

     As a holder of Restricted Stock Units, during the period from the Grant Date until the
Original Settlement Date, each time a cash dividend or other cash distribution is paid with
respect to Common Stock, you will receive additional Restricted Stock Units (“Dividend
Equivalents”). The number of such additional Restricted Stock Units will be determined as
follows: multiply the number of Restricted Stock Units currently held by the per share
amount of the cash dividend or other cash distribution on the Common Stock, and then divide
the result by the price of the Common Stock on the date of the dividend or distribution.
These Dividend Equivalent Restricted Stock Units will be subject to the same terms and
conditions as the original Restricted Stock Units that gave rise to them, including
forfeiture and settlement terms, except that if there is a fractional number of Dividend
Equivalent Restricted Stock Units on the date they are to be settled, you will receive one
share of Common Stock for the fractional Dividend Equivalent Restricted Stock Units.

5. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

6. Adjustments in Case of Stock Dividends, Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, share exchange, reclassification,
distribution, spin-off, or other change affecting the corporate structure, capitalization or Common
Stock, the number of Restricted Stock Units you hold will be adjusted appropriately and equitably
to prevent dilution or enlargement of your rights.

7. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units or Dividend Equivalents, the Committee may require
you to make such arrangements as Procter & Gamble may deem appropriate for the payment of such
taxes required to be withheld, including without limitation, relinquishment of some of the shares
of Common Stock that would otherwise be given to you. However, regardless of any action taken by
Procter & Gamble with respect to any income tax, social insurance, payroll tax, or other tax, by
accepting a Restricted Stock Unit or Dividend Equivalent, you acknowledge that the ultimate
liability for any such tax owed by you is and remains your responsibility, and that Procter &
Gamble makes no representations about the tax treatment of your Restricted Stock Units or Dividend
Equivalents, and does not commit to structure any aspect of the Restricted Stock Units or Dividend
Equivalents to reduce or eliminate your tax liability.

8. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

 

 

			
	Appendix 3
	 	Form RTN

9. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right to receive future awards
of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been awarded repeatedly in the past; (iii) all decisions with respect to
future Restricted Stock Unit awards, if any, will be at the sole discretion of the Company;
(iv) your participation in the Plan is voluntary; (v) Restricted Stock Units are an
extraordinary item and not part of normal or expected compensation or salary for any
purpose, including without limitation calculating any termination,
severance, resignation, redundancy, or end-of-service payments, bonuses, long-service
awards, pension or retirement benefits or similar payments; (vi) in the event that your
employer is not the Company, the award of Restricted Stock Units will not be interpreted to
form an employment relationship with the Company; and, furthermore, the award of Restricted
Stock Units will not be interpreted to form an employment contract with any Procter & Gamble
entity; (vii) the future value of Common Stock is unknown and cannot be predicted with
certainty; and (viii) no claim or entitlement to compensation or damages arises from
termination or forfeiture of Restricted Stock Units, or diminution in value of Restricted
Stock Units or Common Stock received in settlement thereof, and you irrevocably release
Procter & Gamble from any such claim that may arise.

10. Data Privacy.

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be

 

 

			
	Appendix 3
	 	Form RTN

located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

11. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

12. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

13. Governing Law.

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

14. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions;

 

 

			
	Appendix 3
	 	Form RTN

however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

15. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 4
	 	Form KM

[INSERT DATE]

[INSERT NAME]

Subject: Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form KM.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]
	 
	 	 	 	 
	 

	 	 	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	 	 	 
	o

	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and subject to
the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the attached Statement
of Terms and Conditions for Restricted Stock Units, with which I am familiar. I agree that the Award of
Restricted Stock Units, The Procter & Gamble 2001 Stock and Incentive Compensation Plan, and the attached
Statement of Terms and Conditions for Restricted Stock Units together constitute an agreement between the
Company and me in accordance with the terms thereof and hereof, and I further agree that any legal action
related to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to service
of process from said courts solely for legal actions related to this Award of Restricted Stock Units.
	 
	 	 
	o

	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Date

	 	Signature
	 	P&G E-mail Address	 	 

 

 

			
	Appendix 4
	 	Form KM

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR KEY MANAGER RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Data” has the meaning described in Section 9;

(b) “Forfeiture Date” is the date identified as such in your Award Letter;

(c) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(d) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(e) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(f) “Procter & Gamble” means the Company and/or its Subsidiaries;

(g) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the Original Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the
immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit.

(b) During the Forfeiture Period, your Restricted Stock Units will be forfeited and
cancelled if you leave your employment with Procter & Gamble for any reason, except due to:
(i) Retirement in accordance with the provisions of any appropriate Retirement plan of
Procter & Gamble that occurs more than six months from the Grant Date; or (ii)
Special Separation that occurs more than six months from the Grant Date. In the event of
your Retirement or Special Separation that occurs more than six months from the Grant Date,
you will retain your Restricted Stock Units subject to the Plan and these terms and
conditions.

 

 

			
	Appendix 4
	 	Form KM

(c) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units, your Original Settlement Date will automatically and immediately
become, without any further action by you or the Company, the date of your death or of the
Change in Control, as applicable.

(d) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, or to settle your
Restricted Stock Units, including requiring you to do so by means of electronic signature,
or charging you an administrative fee for doing so.

(e) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other

 

 

			
	Appendix 4
	 	Form KM

confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable relief
entered by a court of competent jurisdiction will, at the request of Procter & Gamble, be
entered on consent and enforced by any court having jurisdiction over you, without prejudice
to any rights you or Procter & Gamble may have to appeal from the proceedings which resulted
in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

5. Adjustments in Case of Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, combination of shares,
merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off,
or other change affecting the corporate structure, capitalization or Common Stock, the number of
Restricted Stock Units you hold will be adjusted appropriately and equitably to prevent dilution or
enlargement of your rights.

6. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units, the Committee may require you to make such
arrangements as Procter & Gamble may deem appropriate for the payment of such taxes required to be
withheld, including without limitation, relinquishment of some of the shares of Common Stock that
would otherwise be given to you. However, regardless of any action taken

 

 

			
	Appendix 4
	 	Form KM

by Procter & Gamble with
respect to any income tax, social insurance, payroll tax, or other tax, by accepting a Restricted
Stock Unit, you acknowledge that the ultimate liability for any such tax owed by you is and remains
your responsibility, and that Procter & Gamble makes no representations about the tax treatment of
your Restricted Stock Units, and does not commit to structure any aspect of the Restricted Stock
Units to reduce or eliminate your tax liability.

7. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

8. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right
to receive future awards of Restricted Stock Units, or benefits in lieu of Restricted Stock
Units, even if Restricted Stock Units have been awarded repeatedly in the past; (iii) all
decisions with respect to future Restricted Stock Unit awards, if any, will be at the sole
discretion of the Company; (iv) your participation in the Plan is voluntary; (v) Restricted
Stock Units are an extraordinary item and not part of normal or expected compensation or
salary for any purpose, including without limitation calculating any termination, severance,
resignation, redundancy, or end-of-service payments, bonuses, long-service awards, pension
or retirement benefits or similar payments; (vi) in the event that your employer is not the
Company, the award of Restricted Stock Units will not be interpreted to form an employment
relationship with the Company; and, furthermore, the award of Restricted Stock Units will
not be interpreted to form an employment contract with any Procter & Gamble entity; (vii)
the future value of Common Stock is unknown and cannot be predicted with certainty; and
(viii) no claim or entitlement to compensation or damages arises from termination or
forfeiture of Restricted Stock Units, or diminution in value of Restricted Stock Units or
Common Stock received in settlement thereof, and you irrevocably release Procter & Gamble
from any such claim that may arise.

9. Data Privacy.

 

 

			
	Appendix 4
	 	Form KM

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

10. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

11. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

12. Governing Law.

 

 

			
	Appendix 4
	 	Form KM

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

13. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

14. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 5
	 	Form KMG

[INSERT DATE]

[INSERT NAME]

Subject: Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Gillette
Company 2004 Long-Term Incentive Plan, and subject to the attached Statement of Terms and
Conditions Form KMG.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]
	 
	 	 	 	 
	 

	 	 	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	 	 	 
	o

	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and subject to
the terms of The Gillette Company 2004 Long-Term Incentive Plan and the attached Statement of Terms and
Conditions for Restricted Stock Units, with which I am familiar. I agree that the Award of Restricted
Stock Units, The Gillette Company 2004 Long-Term Incentive Plan, and the attached Statement of Terms and
Conditions for Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related to this
Award of Restricted Stock Units may be brought in any federal or state court located in Hamilton County,
Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to service of process from
said courts solely for legal actions related to this Award of Restricted Stock Units.
	 
	 	 
	o

	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Date

	 	Signature
	 	P&G E-mail Address	 	 

 

 

			
	Appendix 5
	 	Form KMG

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR KEY MANAGER RESTRICTED STOCK UNITS

THE GILLETTE COMPANY 2004 LONG-TERM INCENTIVE PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Gillette Company 2004 Long-Term Incentive Plan (the “Plan”), and the
following terms will have the following meanings.

(a) “Data” has the meaning described in Section 9;

(b) “Forfeiture Date” is the date identified as such in your Award Letter;

(c) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(d) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(e) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(f) “Procter & Gamble” means the Company and/or its Subsidiaries;

(g) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the Original Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time, except
by will or by the laws of descent and distribution. Any attempted transfer of a Restricted
Stock Unit, whether voluntary or involuntary on your part, will result in the immediate
forfeiture to the Company, and cancellation, of the Restricted Stock Unit.

(b) During the Forfeiture Period, your Restricted Stock Units will be forfeited and cancelled
if you leave your employment with Procter & Gamble for any reason, except due to: (i)
Retirement in accordance with the provisions of any appropriate Retirement plan of Procter &
Gamble that occurs more than six months from the Grant Date; or (ii) Special Separation that
occurs more than six months from the Grant Date. In the event of your Retirement or Special
Separation that occurs more than six
months from the Grant Date, you will retain your Restricted Stock Units subject to the Plan
and these terms and conditions.

 

 

			
	Appendix 5
	 	Form KMG

(c) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units, your Original Settlement Date will automatically and immediately
become, without any further action by you or the Company, the date of your death or of the
Change in Control, as applicable.

(d) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, or to settle your
Restricted Stock Units, including requiring you to do so by means of electronic signature, or
charging you an administrative fee for doing so.

(e) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the disclosure
of Procter & Gamble’s trade secrets and confidential information, and thereby help ensure the
long-term success of Procter & Gamble’s business, in consideration of your being awarded
Restricted Stock Units, you (without prior written consent of Procter & Gamble), will not
engage in any activity or provide any services, whether as a director, manager, supervisor,
employee, advisor, consultant or otherwise, for a period of three (3) years following the
date your employment with Procter & Gamble is terminated in connection with the manufacture,
development, advertising, promotion, or sale of any product which is the same as or similar
to or competitive with any products of Procter & Gamble (including both existing products as
well as products known to you, as a consequence of your employment with Procter & Gamble, to
be in development):

(i) with respect to which your work has been directly concerned at any time during the
two (2) years preceding the termination of your employment with Procter & Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of your
employment with Procter & Gamble, you, as a consequence of your job performance and
duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your continuing
obligation (which you acknowledge by accepting an award of Restricted Stock Units) to not use
or disclose Procter & Gamble’s trade secrets or confidential information known to you until
any particular trade secret or confidential information becomes generally known (through no
fault of yours). As used in this Section 3(b), “generally known” means known throughout the
domestic United States industry or, if you have job responsibilities partially or entirely
outside of the United States, the appropriate domestic United States and/or appropriate
foreign country or countries’ industry(ies). Information regarding products in development,
in test marketing, or being marketed or promoted in a discrete geographic region, which
information Procter & Gamble is considering for broader use, will not be deemed to be
“generally known” until such broader use is actually commercially implemented. As used in
this Section, “trade secrets or other

 

 

			
	Appendix 5
	 	Form KMG

confidential information” also includes personnel
knowledge about a manager, or managers, of Procter & Gamble or its subsidiaries gained in the
course of your employment with Procter & Gamble or its subsidiaries (including personnel
ratings or rankings, manager or peer evaluations, performance records, special skills or
abilities, compensation, work and development plans, training, nature of specific project and
work assignments, or specialties developed as a result of such assignments) which directly or
indirectly affords you a confidential basis to solicit, encourage, or participate in
soliciting any manager, or managers, of Procter & Gamble or any subsidiary to terminate his
or her relationship with Procter & Gamble or that subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information or
threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable relief entered
by a court of competent jurisdiction will, at the request of Procter & Gamble, be entered on
consent and enforced by any court having jurisdiction over you, without prejudice to any
rights you or Procter & Gamble may have to appeal from the proceedings which resulted in any
grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be overly
broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

5. Adjustments in Case of Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, combination of shares,
merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off,
or other change affecting the corporate structure, capitalization or Common Stock, the number of
Restricted Stock Units you hold will be adjusted appropriately and equitably to prevent dilution or
enlargement of your rights.

6. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units, the Committee may require you to make such
arrangements as Procter & Gamble may deem appropriate for the payment of such taxes required to be
withheld, including without limitation, relinquishment of some of the shares of Common Stock that
would otherwise be given to you. However, regardless of any action taken

 

 

			
	Appendix 5
	 	Form KMG

by Procter & Gamble with
respect to any income tax, social insurance, payroll tax, or other tax, by accepting a Restricted
Stock Unit, you acknowledge that the ultimate liability for any such tax owed by you is and remains
your responsibility, and that Procter & Gamble makes no representations about the tax treatment of
your Restricted Stock Units, and does not commit to structure any aspect of the Restricted Stock
Units to reduce or eliminate your tax liability.

7. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

8. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by you
if the Committee determines that you have acted significantly contrary to the best interests
of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an action taken
“significantly contrary to the best interests of Procter & Gamble or its subsidiaries”
includes without limitation any action taken or threatened by you that the Committee
determines has, or is reasonably likely to have, a significant adverse impact on the
reputation, goodwill, stability, operation, personnel retention and management, or business
of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy Procter &
Gamble or a subsidiary may have at law or in equity, including without limitation injunctive
and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right to receive future awards of
Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been awarded repeatedly in the past; (iii) all decisions with respect to
future Restricted Stock Unit awards, if any, will be at the sole discretion of the Company;
(iv) your participation in the Plan is voluntary; (v) Restricted Stock Units are an
extraordinary item and not part of normal or expected compensation or salary for any purpose,
including without limitation calculating any termination, severance, resignation, redundancy,
or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or
similar payments; (vi) in the event that your employer is not the Company, the award of
Restricted Stock Units will not be interpreted to form an employment relationship with the
Company; and, furthermore, the award of Restricted Stock Units will not be interpreted to
form an employment contract with any Procter & Gamble entity; (vii) the future value of
Common Stock is unknown and cannot be predicted with certainty; and (viii) no claim or
entitlement to compensation or damages arises from termination or
forfeiture of Restricted Stock Units, or diminution in value of Restricted Stock Units or
Common Stock received in settlement thereof, and you irrevocably release Procter & Gamble
from any such claim that may arise.

9. Data Privacy.

 

 

			
	Appendix 5
	 	Form KMG

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

10. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to Restricted
Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

11. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

 

 

			
	Appendix 5
	 	Form KMG

12. Governing Law.

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

13. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

14. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 6
	 	Form KMW

[INSERT DATE]

[INSERT NAME]

			
	Subject:	 	Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form KMW.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]
	 
	 	 	 	 
	 

	 	 	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	o	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and
subject to the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the
attached Statement of Terms and Conditions for Restricted Stock Units, with which I am
familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2001 Stock
and Incentive Compensation Plan, and the attached Statement of Terms and Conditions for
Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related
to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to
service of process from said courts solely for legal actions related to this Award of
Restricted Stock Units.
	 
	o	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	P&G E-mail Address

 

 

			
	Appendix 6
	 	Form KMW

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR KEY MANAGER RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Data” has the meaning described in Section 9;

(b) “Forfeiture Date” is the date identified as such in your Award Letter;

(c) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(d) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(e)
“Original Settlement Date” is the date identified as
such in your Award Letter, as adjusted,  if applicable, by Section 2;

(f) “Procter & Gamble” means the Company and/or its Subsidiaries;

(g) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the Original Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the
immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit.

(b) During the Forfeiture Period, your Restricted Stock Units will be forfeited and
cancelled if you leave your employment with Procter & Gamble for any reason, except due to:
(i) Retirement in accordance with the provisions of any appropriate Retirement plan of
Procter & Gamble; or (ii) Special Separation. In the event of your Retirement or Special
Separation, you will retain your Restricted Stock Units subject to the Plan and these terms
and conditions.

 

 

			
	Appendix 6
	 	Form KMW

(c) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units, your Original Settlement Date will automatically and
immediately become, without any further action by you or the Company, the date of your death
or of the Change in Control, as applicable.

(d) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, or to settle your
Restricted Stock Units, including requiring you to do so by means of electronic signature,
or charging you an administrative fee for doing so.

(e) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or

 

 

			
	Appendix 6
	 	Form KMW

managers,
of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities,
compensation, work and development plans, training, nature of specific project and work
assignments, or specialties developed as a result of such assignments) which directly or
indirectly affords you a confidential basis to solicit, encourage, or participate in
soliciting any manager, or managers, of Procter & Gamble or any subsidiary to terminate his
or her relationship with Procter & Gamble or that subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable relief
entered by a court of competent jurisdiction will, at the request of Procter & Gamble, be
entered on consent and enforced by any court having jurisdiction over you, without prejudice
to any rights you or Procter & Gamble may have to appeal from the proceedings which resulted
in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

5. Adjustments in Case of Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, combination of shares,
merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off,
or other change affecting the corporate structure, capitalization or Common Stock, the number of
Restricted Stock Units you hold will be adjusted appropriately and equitably to prevent dilution or
enlargement of your rights.

6. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units, the Committee may require you to make such
arrangements as Procter & Gamble may deem appropriate for the payment of such taxes required to be
withheld, including without limitation, relinquishment of some of the shares of Common Stock that
would otherwise be given to you. However, regardless of any action taken by Procter & Gamble with
respect to any income tax, social insurance, payroll tax, or other tax,

 

 

			
	Appendix 6
	 	Form KMW

by accepting a Restricted
Stock Unit, you acknowledge that the ultimate liability for any such tax owed by you is and remains
your responsibility, and that Procter & Gamble makes no representations about the tax treatment of
your Restricted Stock Units, and does not commit to structure any aspect of the Restricted Stock
Units to reduce or eliminate your tax liability.

7. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

8. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right to receive future awards
of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been awarded repeatedly in the past; (iii) all decisions with respect to
future Restricted Stock Unit awards, if any, will be at the sole discretion of the Company;
(iv) your participation in the Plan is voluntary; (v) Restricted Stock Units are an
extraordinary item and not part of normal or expected compensation or salary for any
purpose, including without limitation calculating any termination, severance, resignation,
redundancy, or end-of-service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments; (vi) in the event that your employer is not the Company, the
award of Restricted Stock Units will not be interpreted to form an employment relationship
with the Company; and, furthermore, the award of Restricted Stock Units will not be
interpreted to form an employment contract with any Procter & Gamble entity; (vii) the
future value of Common Stock is unknown and cannot be predicted with certainty; and (viii)
no claim or entitlement to compensation or damages arises from termination or forfeiture of
Restricted Stock Units, or diminution in value of Restricted Stock Units or Common Stock
received in settlement thereof, and you irrevocably release Procter & Gamble from any such
claim that may arise.

9. Data Privacy.

 

 

			
	Appendix 6
	 	Form KMW

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social
insurance number or other identification number, salary, nationality, job title, any shares of
stock or directorships held in a Procter & Gamble entity, details of all options, Restricted Stock
Units, or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested
or outstanding in your favor, for the purpose of implementing, administering and managing the Plan
(“Data”). You understand that Data may be transferred to any third parties assisting in the
implementation, administration and management of the Plan, that these recipients may be located in
your country or elsewhere, and that the recipient’s country may have different data privacy laws
and protections than your country. You understand that you may request a list with the names and
addresses of any potential recipients of Data by contacting your local human resources
representative. You authorize the recipients to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the purposes of implementing, administering and managing
your participation in the Plan, including any requisite transfer of such Data to any broker or
other third party with whom you may elect to deposit any shares of Common Stock in connection with
the settlement of your Restricted Stock Units. You understand that Data will be held only as long
as is necessary to implement, administer and manage your participation in the plan. You understand
that you may, at any time, view Data, request additional information about the storage and
processing of Data, require any necessary amendments to Data, or refuse or withdraw the consents
contained in this paragraph, in any case without cost, by contacting in writing your local human
resources representative. You understand, however, that refusing or withdrawing your consent may
affect your ability to participate in the Plan. For more information on the consequences of your
refusal to consent or withdrawal of consent, you understand that you may contact your local human
resources representative.

10. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

11. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

12. Governing Law.

 

 

			
	Appendix 6
	 	Form KMW

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

13. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

14. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 7
	 	Form OPN

[INSERT DATE]

[INSERT NAME]

Subject: Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form OPN.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]

Paragraph 3(a) of Statement of Terms and Conditions Form OPN [is/is not] waived.

As you will see from the Statement of Terms and Conditions Form OPN, under certain circumstances
you may agree with The Procter & Gamble Company to delay the settlement of your Restricted Stock
Units beyond the Original Settlement Date. You may want to consult your personal tax advisor
before making a decision about this matter.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	o	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and
subject to the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the
attached Statement of Terms and Conditions for Restricted Stock Units, with which I am
familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2001 Stock
and Incentive Compensation Plan, and the attached Statement of Terms and Conditions for
Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related
to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to
service of process from said courts solely for legal actions related to this Award of
Restricted Stock Units.
	 
	o	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	P&G E-mail Address

 

 

			
	Appendix 7
	 	Form OPN

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Agreed Settlement Date” has the meaning described in Section 2(b);

(b) “Data” has the meaning described in Section 10;

(c) “Disability” means termination of employment under the permanent disability provision of
any retirement plan of Procter & Gamble;

(d) “Dividend Equivalents” has the meaning described in Section 4;

(e) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(f) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(g) “Procter & Gamble” means the Company and/or its Subsidiaries;

(h) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the later of the Original Settlement Date or the Agreed
Settlement Date.

(i) “Settlement Period” means the period from the Grant Date until the later of the Original
Settlement Date or the Agreed Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the
immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit
(including all rights to Dividend Equivalents).

(b) At any time at least one calendar year prior to the Original Settlement Date, you and
the Company may agree to postpone the date on which you are entitled to receive

 

 

			
	Appendix 7
	 	Form OPN

one share of
Common Stock for each Restricted Stock Unit you hold, according to the
deferral terms in place at the time, and provided the new date (the “Agreed Settlement
Date”) is at least five years from the Original Settlement Date. During the Settlement
Period, if you leave your employment with Procter & Gamble for any reason other than: (i)
Disability; (ii) Special Separation; or (iii) retirement in accordance with the provisions
of any appropriate retirement plan of Procter & Gamble, your Original Settlement Date or
Agreed Settlement Date, as applicable, will automatically and immediately become, without
any further action by you or the Company, the date of your termination of employment. In
the event of your Disability or Special Separation during the Settlement Period, unless
otherwise agreed to in writing by the Company, your Original Settlement Date or Agreed
Settlement Date, as applicable, will automatically and immediately become, without any
further action by you or the Company, the date of your Disability or Special Separation, as
applicable. In the event of your retirement in accordance with the provisions of any
appropriate retirement plan of Procter & Gamble during the Settlement Period, you will
retain your Restricted Stock Units subject to the Plan and these Terms and Conditions.

(c) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units and/or Dividend Equivalents, your Original Settlement Date or Agreed
Settlement Date, as applicable, will automatically and immediately become, without any
further action by you or the Company, the date of your death or of the Change in Control, as
applicable.

(d) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, to agree to an Agreed
Settlement Date, or to settle your Restricted Stock Units, including requiring you to do so
by means of electronic signature, or charging you an administrative fee for doing so.

(e) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect and you will cease to receive Dividend Equivalents associated with the
Restricted Stock Units.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job

 

 

			
	Appendix 7
	 	Form OPN

performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable relief
entered by a court of competent jurisdiction will, at the request of Procter & Gamble, be
entered on consent and enforced by any court having jurisdiction over you, without prejudice
to any rights you or Procter & Gamble may have to appeal from the proceedings which resulted
in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

 

 

			
	Appendix 7
	 	Form OPN

4. Dividend Equivalents.

     As a holder of Restricted Stock Units, during the Settlement period, each time a cash dividend
or other cash distribution is paid with respect to Common Stock, you will receive
additional Restricted Stock Units (“Dividend Equivalents”). The number of such additional
Restricted Stock Units will be determined as follows: multiply the number of Restricted Stock
Units currently held by the per share amount of the cash dividend or other cash distribution on the
Common Stock, and then divide the result by the price of the Common Stock on the date of the
dividend or distribution. These Dividend Equivalent Restricted Stock Units will be subject to the
same terms and conditions as the original Restricted Stock Units that gave rise to them, including
forfeiture and settlement terms, except that if there is a fractional number of Dividend Equivalent
Restricted Stock Units on the date they are to be settled, you will receive one share of Common
Stock for the fractional Dividend Equivalent Restricted Stock Units.

5. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

6. Adjustments in Case of Stock Dividends, Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, share exchange, reclassification,
distribution, spin-off, or other change affecting the corporate structure, capitalization or Common
Stock, the number of Restricted Stock Units you hold will be adjusted appropriately and equitably
to prevent dilution or enlargement of your rights.

7. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units or Dividend Equivalents, the Committee may require
you to make such arrangements as Procter & Gamble may deem appropriate for the payment of such
taxes required to be withheld, including without limitation, relinquishment of some of the shares
of Common Stock that would otherwise be given to you. However, regardless of any action taken by
Procter & Gamble with respect to any income tax, social insurance, payroll tax, or other tax, by
accepting a Restricted Stock Unit or Dividend Equivalent, you acknowledge that the ultimate
liability for any such tax owed by you is and remains your responsibility, and that Procter &
Gamble makes no representations about the tax treatment of your Restricted Stock Units or Dividend
Equivalents, and does not commit to structure any aspect of the Restricted Stock Units or Dividend
Equivalents to reduce or eliminate your tax liability.

8. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

9. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or

 

 

			
	Appendix 7
	 	Form OPN

precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its
subsidiaries. For purposes of this paragraph, an action taken “significantly contrary to
the best interests of Procter & Gamble or its subsidiaries” includes without limitation any
action taken or threatened by you that the Committee determines has, or is reasonably likely
to have, a significant adverse impact on the reputation, goodwill, stability, operation,
personnel retention and management, or business of Procter & Gamble or any subsidiary. This
paragraph is in addition to any remedy Procter & Gamble or a subsidiary may have at law or
in equity, including without limitation injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by the Company, is discretionary in nature, and may be amended, suspended or
terminated at any time; (ii) the award of Restricted Stock Units is voluntary and occasional
and does not create any contractual or other right to receive future awards of Restricted
Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units
have been awarded repeatedly in the past; (iii) all decisions with respect to future
Restricted Stock Unit awards, if any, will be at the sole discretion of the Company; (iv)
your participation in the Plan is voluntary; (v) Restricted Stock Units are an extraordinary
item and not part of normal or expected compensation or salary for any purpose, including
without limitation calculating any termination, severance, resignation, redundancy, or
end-of-service payments, bonuses, long-service awards, pension or retirement benefits or
similar payments; (vi) in the event that your employer is not the Company, the award of
Restricted Stock Units will not be interpreted to form an employment relationship with the
Company; and, furthermore, the award of Restricted Stock Units will not be interpreted to
form an employment contract with any Procter & Gamble entity; (vii) the future value of
Common Stock is unknown and cannot be predicted with certainty; and (viii) no claim or
entitlement to compensation or damages arises from termination or forfeiture of Restricted
Stock Units, or diminution in value of Restricted Stock Units or Common Stock received in
settlement thereof, and you irrevocably release Procter & Gamble from any such claim that
may arise.

10. Data Privacy.

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and

 

 

			
	Appendix 7
	 	Form OPN

transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information
about the storage and processing of Data, require any necessary amendments to Data, or refuse
or withdraw the consents contained in this paragraph, in any case without cost, by contacting in
writing your local human resources representative. You understand, however, that refusing or
withdrawing your consent may affect your ability to participate in the Plan. For more information
on the consequences of your refusal to consent or withdrawal of consent, you understand that you
may contact your local human resources representative.

11. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

12. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

13. Governing Law.

     The validity, interpretation, performance and enforcements of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

14. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

15. Effect of These Terms and Conditions.

 

 

			
	Appendix 7
	 	Form OPN

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 8
	 	Form RTD

[INSERT DATE]

[INSERT NAME]

Subject: Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form RTD.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]

Paragraph 3(a) of Statement of Terms and Conditions Form RTD [is/is not] waived.

As you will see from the Statement of Terms and Conditions Form RTD, under certain circumstances
you may agree with The Procter & Gamble Company to delay the settlement of your Restricted Stock
Units beyond the Original Settlement Date. You may want to consult your personal tax advisor
before making a decision about this matter.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	o	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and
subject to the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the
attached Statement of Terms and Conditions for Restricted Stock Units, with which I am
familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2001 Stock
and Incentive Compensation Plan, and the attached Statement of Terms and Conditions for
Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related
to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to
service of process from said courts solely for legal actions related to this Award of
Restricted Stock Units.
	 
	o	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	P&G E-mail Address

 

 

			
	Appendix 8
	 	Form RTD

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Agreed Settlement Date” has the meaning described in Section 2(c);

(b) “Data” has the meaning described in Section 10;

(c) “Disability” means termination of employment under the permanent disability provision of
any retirement plan of Procter & Gamble;

(d) “Dividend Equivalents” has the meaning described in Section 4;

(e) “Forfeiture Date” is the date identified as such in your Award Letter;

(f) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(g) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(h) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(i) “Post-Forfeiture Period” means the period from the Forfeiture Date until the later of
the Original Settlement Date or the Agreed Settlement Date;

(j) “Procter & Gamble” means the Company and/or its Subsidiaries;

(k) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the later of the Original Settlement Date or the Agreed
Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the

 

 

			
	Appendix 8
	 	Form RTD

immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit
(including all rights to Dividend Equivalents).

(b) During the Forfeiture Period, your Restricted Stock Units (including all rights to
receive Dividend Equivalents) will be forfeited and cancelled if you leave your employment
with Procter & Gamble for any reason, except due to: (i) your Disability; (ii) your
retirement in accordance with the provisions of any appropriate retirement plan of Procter &
Gamble; or (iii) in certain circumstances, your Special Separation. In the event of your
Disability during the Forfeiture Period, unless otherwise agreed to in writing by the
Company, your Original Settlement Date will automatically and immediately become, without
any further action by you or the Company, the date of your Disability. In the event of your
retirement in accordance with the provisions of any appropriate retirement plan of Procter &
Gamble during the Forfeiture Period, you will retain your Restricted Stock Units subject to
the Plan and these Terms and Conditions. In the event of your Special Separation during the
Forfeiture Period, your Restricted Stock Units will be forfeited and cancelled unless
otherwise agreed to in writing by the Company.

(c) At any time at least one calendar year prior to the Original Settlement Date, you and
the Company may agree to postpone the date on which you are entitled to receive one share of
Common Stock for each Restricted Stock Unit you hold, according to the deferral terms in
place at the time, and provided the new date (the “Agreed Settlement Date”) is at least five
years from the Original Settlement Date. During the Post-Forfeiture Period, if you leave
your employment with Procter & Gamble for any reason other than: (i) Disability; (ii)
Special Separation; or (iii) retirement in accordance with the provisions of any appropriate
retirement plan of Procter & Gamble, your Original Settlement Date or Agreed Settlement
Date, as applicable, will automatically and immediately become, without any further action
by you or the Company, the date of your termination of employment. In the event of your
Disability or Special Separation during the Post-Forfeiture period, unless otherwise agreed
to in writing by the Company, your Original Settlement Date or Agreed Settlement Date, as
applicable, will automatically and immediately become, without any further action by you or
the Company, the date of your Disability or Special Separation, as applicable. In the event
of your retirement in accordance with the provisions of any appropriate retirement plan of
Procter & Gamble during the Post-Forfeiture Period, you will retain your Restricted Stock
Units subject to the Plan and these Terms and Conditions.

(d) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units and/or Dividend Equivalents, your Original Settlement Date or Agreed
Settlement Date, as applicable, will automatically and immediately become, without any
further action by you or the Company, the date of your death or of the Change in Control, as
applicable.

(e) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, to agree to an Agreed
Settlement Date, or to settle your Restricted Stock Units, including requiring you to do so
by means of electronic signature, or charging you an administrative fee for doing so.

(f) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect and you will cease to receive Dividend Equivalents associated with the
Restricted Stock Units.

 

 

			
	Appendix 8
	 	Form RTD

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is,

 

 

			
	Appendix 8
	 	Form RTD

by its nature,
irreparable because, among other things, it is not readily susceptible of
proof as to the monetary harm that would ensue. You agree that any interim or final
equitable relief entered by a court of competent jurisdiction will, at the request of
Procter & Gamble, be entered on consent and enforced by any court having jurisdiction over
you, without prejudice to any rights you or Procter & Gamble may have to appeal from the
proceedings which resulted in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Dividend Equivalents.

     As a holder of Restricted Stock Units, during the period from the Grant Date until the
Original Settlement Date or the Agreed Settlement Date, whichever is later, each time a cash
dividend or other cash distribution is paid with respect to Common Stock, you will receive
additional Restricted Stock Units (“Dividend Equivalents”). The number of such additional
Restricted Stock Units will be determined as follows: multiply the number of Restricted Stock
Units currently held by the per share amount of the cash dividend or other cash distribution on the
Common Stock, and then divide the result by the price of the Common Stock on the date of the
dividend or distribution. These Dividend Equivalent Restricted Stock Units will be subject to the
same terms and conditions as the original Restricted Stock Units that gave rise to them, including
forfeiture and settlement terms, except that if there is a fractional number of Dividend Equivalent
Restricted Stock Units on the date they are to be settled, you will receive one share of Common
Stock for the fractional Dividend Equivalent Restricted Stock Units.

5. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

6. Adjustments in Case of Stock Dividends, Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, share exchange, reclassification,
distribution, spin-off, or other change affecting the corporate structure, capitalization or Common
Stock, the number of Restricted Stock Units you hold will be adjusted appropriately and equitably
to prevent dilution or enlargement of your rights.

7. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units or Dividend Equivalents, the Committee may require
you to make such arrangements as Procter & Gamble may deem appropriate for the payment of such
taxes required to be withheld, including without limitation, relinquishment of some of the shares
of Common Stock that would otherwise be given to you. However,

 

 

			
	Appendix 8
	 	Form RTD

regardless of any action taken by
Procter & Gamble with respect to any income tax, social insurance, payroll tax, or other tax, by
accepting a Restricted Stock Unit or Dividend Equivalent,
you acknowledge that the ultimate liability for any such tax owed by you is and remains your
responsibility, and that Procter & Gamble makes no representations about the tax treatment of your
Restricted Stock Units or Dividend Equivalents, and does not commit to structure any aspect of the
Restricted Stock Units or Dividend Equivalents to reduce or eliminate your tax liability.

8. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

9. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right to receive future awards
of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been awarded repeatedly in the past; (iii) all decisions with respect to
future Restricted Stock Unit awards, if any, will be at the sole discretion of the Company;
(iv) your participation in the Plan is voluntary; (v) Restricted Stock Units are an
extraordinary item and not part of normal or expected compensation or salary for any
purpose, including without limitation calculating any termination, severance, resignation,
redundancy, or end-of-service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments; (vi) in the event that your employer is not the Company, the
award of Restricted Stock Units will not be interpreted to form an employment relationship
with the Company; and, furthermore, the award of Restricted Stock Units will not be
interpreted to form an employment contract with any Procter & Gamble entity; (vii) the
future value of Common Stock is unknown and cannot be predicted with certainty; and (viii)
no claim or entitlement to compensation or damages arises from termination or forfeiture of
Restricted Stock Units, or diminution in value of Restricted Stock Units or Common Stock
received in settlement thereof, and you irrevocably release Procter & Gamble from any such
claim that may arise.

 

 

			
	Appendix 8
	 	Form RTD

10. Data Privacy.

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

11. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

12. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) The Procter &
Gamble Company and its successors and assigns; and (b) you and, if applicable, the representative
of your estate.

 

 

			
	Appendix 8
	 	Form RTD

13. Governing Law.

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

14. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

15. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 9
	 	Form RTD-A

[INSERT DATE]

[INSERT NAME]

Subject: Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form RTD-A.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]

Paragraph 3(a) of Statement of Terms and Conditions Form RTD-A [is/is not] waived.

As you will see from the Statement of Terms and Conditions Form RTD-A, under certain circumstances
you may agree with The Procter & Gamble Company to delay the settlement of your Restricted Stock
Units beyond the Original Settlement Date. You may want to consult your personal tax advisor
before making a decision about this matter.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	o	 	 I hereby accept the Award of Restricted Stock Units set forth above in accordance with and
subject to the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the
attached Statement of Terms and Conditions for Restricted Stock Units, with which I am
familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2001 Stock
and Incentive Compensation Plan, and the attached Statement of Terms and Conditions for
Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related
to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to
service of process from said courts solely for legal actions related to this Award of
Restricted Stock Units.
	 
	o	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	P&G E-mail Address

 

 

			
	Appendix 9
	 	Form RTD-A

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Agreed Settlement Date” has the meaning described in Section 2(c);

(b) “Data” has the meaning described in Section 10;

(c) “Disability” means termination of employment under the permanent disability provision of
any retirement plan of Procter & Gamble;

(d) “Dividend Equivalents” has the meaning described in Section 4;

(e) “Forfeiture Date” is the date identified as such in your Award Letter;

(f) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(g) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(h) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(i) “Post-Forfeiture Period” means the period from the Forfeiture Date until the later of
the Original Settlement Date or the Agreed Settlement Date;

(j) “Procter & Gamble” means the Company and/or its Subsidiaries;

(k) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the later of the Original Settlement Date or the Agreed
Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the

 

 

			
	Appendix 9
	 	Form RTD-A

immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit
(including all rights to Dividend Equivalents).

(b) During the Forfeiture Period, your Restricted Stock Units (including all rights to
receive Dividend Equivalents) will be forfeited and cancelled if you leave your employment
with Procter & Gamble for any reason, except due to: (i) your Disability, or (ii) in
certain circumstances, your Special Separation. In the event of your Disability during the
Forfeiture Period, unless otherwise agreed to in writing by the Company, your Original
Settlement Date will automatically and immediately become, without any further action by you
or the Company, the date of your Disability. In the event of your Special Separation during
the Forfeiture Period, your Restricted Stock Units will be forfeited and cancelled unless
otherwise agreed to in writing by the Company.

(c) At any time at least one calendar year prior to the Original Settlement Date, you and
the Company may agree to postpone the date on which you are entitled to receive one share of
Common Stock for each Restricted Stock Unit you hold, according to the deferral terms in
place at the time, and provided the new date (the “Agreed Settlement Date”) is at least five
years from the Original Settlement Date. During the Post-Forfeiture Period, if you leave
your employment with Procter & Gamble for any reason other than: (i) Disability; (ii)
Special Separation; or (iii) retirement in accordance with the provisions of any appropriate
retirement plan of Procter & Gamble, your Original Settlement Date or Agreed Settlement
Date, as applicable, will automatically and immediately become, without any further action
by you or the Company, the date of your termination of employment. In the event of your
Disability or Special Separation during the Post-Forfeiture period, unless otherwise agreed
to in writing by the Company, your Original Settlement Date or Agreed Settlement Date, as
applicable, will automatically and immediately become, without any further action by you or
the Company, the date of your Disability or Special Separation, as applicable. In the event
of your retirement in accordance with the provisions of any appropriate retirement plan of
Procter & Gamble during the Post-Forfeiture Period, you will retain your Restricted Stock
Units subject to the Plan and these Terms and Conditions.

(d) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units and/or Dividend Equivalents, your Original Settlement Date or Agreed
Settlement Date, as applicable, will automatically and immediately become, without any
further action by you or the Company, the date of your death or of the Change in Control, as
applicable.

(e) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, to agree to an Agreed
Settlement Date, or to settle your Restricted Stock Units, including requiring you to do so
by means of electronic signature, or charging you an administrative fee for doing so.

(f) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect and you will cease to receive Dividend Equivalents associated with the
Restricted Stock Units.

 

 

			
	Appendix 9
	 	Form RTD-A

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job performance
and duties, acquired knowledge of trade secrets or other confidential information of
Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is,

 

 

			
	Appendix 9
	 	Form RTD-A

by its nature,
irreparable because, among other things, it is not readily susceptible of
proof as to the monetary harm that would ensue. You agree that any interim or final
equitable relief entered by a court of competent jurisdiction will, at the request of
Procter & Gamble, be entered on consent and enforced by any court having jurisdiction over
you, without prejudice to any rights you or Procter & Gamble may have to appeal from the
proceedings which resulted in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

4. Dividend Equivalents.

     As a holder of Restricted Stock Units, during the period from the Grant Date until the
Original Settlement Date or the Agreed Settlement Date, whichever is later, each time a cash
dividend or other cash distribution is paid with respect to Common Stock, you will receive
additional Restricted Stock Units (“Dividend Equivalents”). The number of such additional
Restricted Stock Units will be determined as follows: multiply the number of Restricted Stock
Units currently held by the per share amount of the cash dividend or other cash distribution on the
Common Stock, and then divide the result by the price of the Common Stock on the date of the
dividend or distribution. These Dividend Equivalent Restricted Stock Units will be subject to the
same terms and conditions as the original Restricted Stock Units that gave rise to them, including
forfeiture and settlement terms, except that if there is a fractional number of Dividend Equivalent
Restricted Stock Units on the date they are to be settled, you will receive one share of Common
Stock for the fractional Dividend Equivalent Restricted Stock Units.

5. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

6. Adjustments in Case of Stock Dividends, Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, share exchange, reclassification,
distribution, spin-off, or other change affecting the corporate structure, capitalization or Common
Stock, the number of Restricted Stock Units you hold will be adjusted appropriately and equitably
to prevent dilution or enlargement of your rights.

7. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units or Dividend Equivalents, the Committee may require
you to make such arrangements as Procter & Gamble may deem appropriate for the payment of such
taxes required to be withheld, including without limitation, relinquishment of some of the shares
of Common Stock that would otherwise be given to you. However,

 

 

			
	Appendix 9
	 	Form RTD-A

regardless of any action taken by
Procter & Gamble with respect to any income tax, social insurance, payroll tax, or other tax, by
accepting a Restricted Stock Unit or Dividend Equivalent,
you acknowledge that the ultimate liability for any such tax owed by you is and remains your
responsibility, and that Procter & Gamble makes no representations about the tax treatment of your
Restricted Stock Units or Dividend Equivalents, and does not commit to structure any aspect of the
Restricted Stock Units or Dividend Equivalents to reduce or eliminate your tax liability.

8. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

9. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature, and may be amended,
suspended or terminated at any time; (ii) the award of Restricted Stock Units is voluntary
and occasional and does not create any contractual or other right to receive future awards
of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been awarded repeatedly in the past; (iii) all decisions with respect to
future Restricted Stock Unit awards, if any, will be at the sole discretion of the Company;
(iv) your participation in the Plan is voluntary; (v) Restricted Stock Units are an
extraordinary item and not part of normal or expected compensation or salary for any
purpose, including without limitation calculating any termination, severance, resignation,
redundancy, or end-of-service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments; (vi) in the event that your employer is not the Company, the
award of Restricted Stock Units will not be interpreted to form an employment relationship
with the Company; and, furthermore, the award of Restricted Stock Units will not be
interpreted to form an employment contract with any Procter & Gamble entity; (vii) the
future value of Common Stock is unknown and cannot be predicted with certainty; and (viii)
no claim or entitlement to compensation or damages arises from termination or forfeiture of
Restricted Stock Units, or diminution in value of Restricted Stock Units or Common Stock
received in settlement thereof, and you irrevocably release Procter & Gamble from any such
claim that may arise.

 

 

			
	Appendix 9
	 	Form RTD-A

10. Data Privacy.

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

11. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

12. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) The Procter &
Gamble Company and its successors and assigns; and (b) you and, if applicable, the representative
of your estate.

 

 

			
	Appendix 9
	 	Form RTD-A

13. Governing Law.

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

14. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

15. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

 

 

			
	Appendix 10
	 	Form RTN2

[INSERT DATE]

[INSERT NAME]

Subject:
Award of Restricted Stock Units

This is to advise you that The Procter & Gamble Company, an Ohio corporation, is awarding you with
Restricted Stock Units, on the dates and in the amounts listed below, pursuant to The Procter &
Gamble 2001 Stock and Incentive Compensation Plan, and subject to the attached Statement of Terms
and Conditions Form RTN2.

	 	 	 	 	 
	 

	 	Grant Date:
	 	[INSERT DATE OF GRANT]
	 

	 	Forfeiture Date:
	 	[INSERT DATE FORFEITURE ENDS]
	 

	 	Original Settlement Date:
	 	[INSERT DATE RSUs BECOME SHARES]
	 

	 	Number of Restricted Stock Units:
	 	[INSERT NUMBER GRANTED]

Paragraph 3(a) of Statement of Terms and Conditions Form RTN2 [is/is not] waived.

	 	 	 	 	 
	 

	 	 
	 	THE PROCTER & GAMBLE COMPANY
	 
	 	 	 	 
	 

	 	 	 	James J. Johnson, Secretary
	 

	 	 	 	For the Compensation Committee

	o	 	I hereby accept the Award of Restricted Stock Units set forth above in accordance with and
subject to the terms of The Procter & Gamble 2001 Stock and Incentive Compensation Plan and the
attached Statement of Terms and Conditions for Restricted Stock Units, with which I am
familiar. I agree that the Award of Restricted Stock Units, The Procter & Gamble 2001 Stock
and Incentive Compensation Plan, and the attached Statement of Terms and Conditions for
Restricted Stock Units together constitute an agreement between the Company and me in
accordance with the terms thereof and hereof, and I further agree that any legal action related
to this Award of Restricted Stock Units may be brought in any federal or state court located in
Hamilton County, Ohio, USA, and I hereby accept the jurisdiction of these courts and consent to
service of process from said courts solely for legal actions related to this Award of
Restricted Stock Units.
	 
	o	 	I hereby reject the Award of Restricted Stock Units set forth above.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Signature
	 	P&G E-mail Address

 

 

			
	Appendix 10
	 	Form RTN2

THE PROCTER & GAMBLE COMPANY

STATEMENT OF TERMS AND CONDITIONS FOR RESTRICTED STOCK UNITS

THE PROCTER & GAMBLE 2001 STOCK AND INCENTIVE COMPENSATION PLAN

     The Restricted Stock Units awarded to you as set forth in the letter you received from the
Company (your “Award Letter”), and your ownership thereof, are subject to the following terms and
conditions.

1. Definitions.

     For purposes of this Statement of Terms and Conditions for Restricted Stock Units (“Terms and
Conditions”), all capitalized terms not defined in these Terms and Conditions will have the
meanings described in The Procter & Gamble 2001 Stock and Incentive Compensation Plan (the “Plan”),
and the following terms will have the following meanings.

(a) “Data” has the meaning described in Section 9;

(b) “Disability” means termination of employment under the permanent disability provision of
any retirement plan of Procter & Gamble;

(c) “Forfeiture Date” is the date identified as such in your Award Letter;

(d) “Forfeiture Period” means the period from the Grant Date until the Forfeiture Date.

(e) “Grant Date” means the date a Restricted Stock Unit was awarded to you, as identified in
your Award Letter;

(f) “Original Settlement Date” is the date identified as such in your Award Letter, as
adjusted, if applicable, by Section 2;

(g) “Post-Forfeiture Period” means the period from the Forfeiture Date until the Original
Settlement Date;

(h) “Procter & Gamble” means the Company and/or its Subsidiaries;

(i) “Restricted Stock Unit” means an unfunded, unsecured promise by the Company, in
accordance with these Terms and Conditions and the provisions of the Plan, to issue to you
one share of Common Stock on the Original Settlement Date.

2. Transfer and Restrictions.

(a) Neither Restricted Stock Units nor your interest in them may be sold, exchanged,
transferred, pledged, hypothecated, given or otherwise disposed of by you at any time,
except by will or by the laws of descent and distribution. Any attempted transfer of a
Restricted Stock Unit, whether voluntary or involuntary on your part, will result in the
immediate forfeiture to the Company, and cancellation, of the Restricted Stock Unit.

(b) During the Forfeiture Period, your Restricted Stock Units will be forfeited and
cancelled if you leave your employment with Procter & Gamble for any reason, except due to:
(i) your Disability; or (ii) in certain circumstances, your Special Separation. In

 

 

			
	Appendix 10
	 	Form RTN2

the event of your Disability during the Forfeiture Period, unless otherwise agreed to in
writing by the Company, your Original Settlement Date will automatically and immediately
become, without any further action by you or the Company, the date of your Disability. In
the event of your Special Separation during the Forfeiture Period, your Restricted Stock
Units will be forfeited and cancelled unless otherwise agreed to in writing by the Company.

(c) During the Post-Forfeiture Period, if you leave your employment with Procter & Gamble
for any reason other than: (i) Disability; (ii) Special Separation; or (iii) retirement in
accordance with the provisions of any appropriate retirement plan of Procter & Gamble, your
Original Settlement Date will automatically and immediately become, without any further
action by you or the Company, the date of your termination of employment. In the event of
your Disability or Special Separation during the Post-Forfeiture Period, unless otherwise
agreed to in writing by the Company, your Original Settlement Date will automatically and
immediately become, without any further action by you or the Company, the date of your
Disability or Special Separation, as applicable. In the event of your retirement in
accordance with the provisions of any appropriate retirement plan of Procter & Gamble during
the Post-Forfeiture Period, you will retain your Restricted Stock Units subject to the Plan
and these Terms and Conditions.

(d) Upon your death or the occurrence of a Change in Control at any time while you hold
Restricted Stock Units, your Original Settlement Date will automatically and immediately
become, without any further action by you or the Company, the date of your death or of the
Change in Control, as applicable.

(e) From time to time, the Company and/or the Committee may establish procedures with which
you must comply in order to accept an award of Restricted Stock Units, or to settle your
Restricted Stock Units, including requiring you to do so by means of electronic signature,
or charging you an administrative fee for doing so.

(f) Once your Restricted Stock Units have been settled by delivery to you of an equivalent
number of shares of Common Stock, the Restricted Stock Units will have no further value,
force or effect.

3. Confidentiality and Non-Competition

(a) In order to better protect the goodwill of Procter & Gamble and to prevent the
disclosure of Procter & Gamble’s trade secrets and confidential information, and thereby
help ensure the long-term success of Procter & Gamble’s business, in consideration of your
being awarded Restricted Stock Units, you (without prior written consent of Procter &
Gamble), will not engage in any activity or provide any services, whether as a director,
manager, supervisor, employee, advisor, consultant or otherwise, for a period of three (3)
years following the date your employment with Procter & Gamble is terminated in connection
with the manufacture, development, advertising, promotion, or sale of any product which is
the same as or similar to or competitive with any products of Procter & Gamble (including
both existing products as well as products known to you, as a consequence of your employment
with Procter & Gamble, to be in development):

(i) with respect to which your work has been directly concerned at any time during
the two (2) years preceding the termination of your employment with Procter &
Gamble; or

(ii) with respect to which, during the two (2) years preceding the termination of
your employment with Procter & Gamble, you, as a consequence of your job

 

 

			
	Appendix 10
	 	Form RTN2

performance and duties, acquired knowledge of trade secrets or other confidential
information of Procter & Gamble.

For purposes of this Section 3(a), it will be conclusively presumed that you have knowledge
of information you were directly exposed to through actual receipt or review of memoranda or
documents containing such information, or through attendance at meetings at which such
information was discussed or disclosed.

(b) The provisions of Section 3(a) are not in lieu of, but are in addition to your
continuing obligation (which you acknowledge by accepting an award of Restricted Stock
Units) to not use or disclose Procter & Gamble’s trade secrets or confidential information
known to you until any particular trade secret or confidential information becomes generally
known (through no fault of yours). As used in this Section 3(b), “generally known” means
known throughout the domestic United States industry or, if you have job responsibilities
partially or entirely outside of the United States, the appropriate domestic United States
and/or appropriate foreign country or countries’ industry(ies). Information regarding
products in development, in test marketing, or being marketed or promoted in a discrete
geographic region, which information Procter & Gamble is considering for broader use, will
not be deemed to be “generally known” until such broader use is actually commercially
implemented. As used in this Section, “trade secrets or other confidential information”
also includes personnel knowledge about a manager, or managers, of Procter & Gamble or its
subsidiaries gained in the course of your employment with Procter & Gamble or its
subsidiaries (including personnel ratings or rankings, manager or peer evaluations,
performance records, special skills or abilities, compensation, work and development plans,
training, nature of specific project and work assignments, or specialties developed as a
result of such assignments) which directly or indirectly affords you a confidential basis to
solicit, encourage, or participate in soliciting any manager, or managers, of Procter &
Gamble or any subsidiary to terminate his or her relationship with Procter & Gamble or that
subsidiary.

(c) By accepting an award of Restricted Stock Units, you agree that, if you were, without
authority, to use or disclose Procter & Gamble’s trade secrets or confidential information
or threaten to do so, Procter & Gamble would be entitled to injunctive and other appropriate
relief to prevent you from doing so. You further agree that the harm caused to Procter &
Gamble by the breach or anticipated breach of this Section 3(c) is, by its nature,
irreparable because, among other things, it is not readily susceptible of proof as to the
monetary harm that would ensue. You agree that any interim or final equitable relief
entered by a court of competent jurisdiction will, at the request of Procter & Gamble, be
entered on consent and enforced by any court having jurisdiction over you, without prejudice
to any rights you or Procter & Gamble may have to appeal from the proceedings which resulted
in any grant of such relief.

(d) If any of the provisions contained in Sections 3(a) through (c) are for any reason,
whether by application of existing law or law which may develop after your acceptance of an
award of Restricted Stock Units, determined by a court of competent jurisdiction to be
overly broad as to scope of activity, duration, or territory, then by accepting an award of
Restricted Stock Units you agree to join Procter & Gamble in requesting such court to
construe such provision by limiting or reducing it so as to be enforceable to the extent
compatible with then-applicable law. If any one or more of the provisions contained in
Section 3(a) through (c) are determined by a court of competent jurisdiction to be invalid,
void or unenforceable, then the remainder of the provisions will remain in full force and
effect and will not be affected, impaired or invalidated in any way.

 

 

			
	Appendix 10
	 	Form RTN2

4. Voting and Other Shareholder Rights.

     A Restricted Stock Unit is not a share of Common Stock, and thus you are not entitled to any
voting, dividend or other rights as a shareholder of the Company with respect to the Restricted
Stock Units you hold.

5. Adjustments in Case of Stock Splits, Etc.

     In the event of a future reorganization, recapitalization, stock split, combination of shares,
merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off,
or other change affecting the corporate structure, capitalization or Common Stock, the number of
Restricted Stock Units you hold will be adjusted appropriately and equitably to prevent dilution or
enlargement of your rights.

6. Tax Withholding.

     To the extent Procter & Gamble is required to withhold federal, state, local or foreign taxes
in connection with your Restricted Stock Units, the Committee may require you to make such
arrangements as Procter & Gamble may deem appropriate for the payment of such taxes required to be
withheld, including without limitation, relinquishment of some of the shares of Common Stock that
would otherwise be given to you. However, regardless of any action taken by Procter & Gamble with
respect to any income tax, social insurance, payroll tax, or other tax, by accepting a Restricted
Stock Unit, you acknowledge that the ultimate liability for any such tax owed by you is and remains
your responsibility, and that Procter & Gamble makes no representations about the tax treatment of
your Restricted Stock Units, and does not commit to structure any aspect of the Restricted Stock
Units to reduce or eliminate your tax liability.

7. Suspension Periods and Termination.

     The Company reserves the right from time to time to temporarily suspend your right to settle
your Restricted Stock Units for shares of Common Stock where such suspension is deemed by the
Company as necessary or appropriate.

8. Procter & Gamble Right to Terminate Employment and Other Remedies.

(a) Nothing in these Terms and Conditions, or the fact that you have been awarded Restricted
Stock Units, affects in any way the right or power of Procter & Gamble to terminate your
employment at any time for any reason, with or without cause, or precludes Procter & Gamble
from taking any action or enforcing any remedy available to it with respect to any action or
conduct on your part. Without limiting the previous sentence, the Committee may, for
example, suspend or terminate any outstanding Restricted Stock Units for actions taken by
you if the Committee determines that you have acted significantly contrary to the best
interests of Procter & Gamble or its subsidiaries. For purposes of this paragraph, an
action taken “significantly contrary to the best interests of Procter & Gamble or its
subsidiaries” includes without limitation any action taken or threatened by you that the
Committee determines has, or is reasonably likely to have, a significant adverse impact on
the reputation, goodwill, stability, operation, personnel retention and management, or
business of Procter & Gamble or any subsidiary. This paragraph is in addition to any remedy
Procter & Gamble or a subsidiary may have at law or in equity, including without limitation
injunctive and other appropriate relief.

(b) By accepting a Restricted Stock Unit, you acknowledge that: (i) the Plan is established
voluntarily by The Procter & Gamble Company, is discretionary in nature,

 

 

			
	Appendix 10
	 	Form RTN2

and may be amended, suspended or terminated at any time; (ii) the award of Restricted Stock
Units is voluntary and occasional and does not create any contractual or other right to
receive future awards of Restricted Stock Units, or benefits in lieu of Restricted Stock
Units, even if Restricted Stock Units have been awarded repeatedly in the past; (iii) all
decisions with respect to future Restricted Stock Unit awards, if any, will be at the sole
discretion of the Company; (iv) your participation in the Plan is voluntary; (v) Restricted
Stock Units are an extraordinary item and not part of normal or expected compensation or
salary for any purpose, including without limitation calculating any termination, severance,
resignation, redundancy, or end-of-service payments, bonuses, long-service awards, pension
or retirement benefits or similar payments; (vi) in the event that your employer is not the
Company, the award of Restricted Stock Units will not be interpreted to form an employment
relationship with the Company; and, furthermore, the award of Restricted Stock Units will
not be interpreted to form an employment contract with any Procter & Gamble entity; (vii)
the future value of Common Stock is unknown and cannot be predicted with certainty; and
(viii) no claim or entitlement to compensation or damages arises from termination or
forfeiture of Restricted Stock Units, or diminution in value of Restricted Stock Units or
Common Stock received in settlement thereof, and you irrevocably release Procter & Gamble
from any such claim that may arise.

9. Data Privacy.

     By accepting a Restricted Stock Unit, you explicitly and unambiguously consent to the
collection, use and transfer, in electronic or other form, of your personal data as described in
this document by and among, as applicable, any Procter & Gamble entity or third party for the
purpose of implementing, administering and managing your participation in the Plan. You understand
that Procter & Gamble holds certain personal information about you, including without limitation
your name, home address and telephone number, date of birth, social insurance number or other
identification number, salary, nationality, job title, any shares of stock or directorships held in
a Procter & Gamble entity, details of all options, Restricted Stock Units, or any other entitlement
to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for
the purpose of implementing, administering and managing the Plan (“Data”). You understand that
Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than your country.
You understand that you may request a list with the names and addresses of any potential recipients
of Data by contacting your local human resources representative. You authorize the recipients to
receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes
of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data to any broker or other third party with whom you may elect to deposit any
shares of Common Stock in connection with the settlement of your Restricted Stock Units. You
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the plan. You understand that you may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data, or refuse or withdraw the consents contained in this paragraph, in any case without cost,
by contacting in writing your local human resources representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to participate in the Plan. For more
information on the consequences of your refusal to consent or withdrawal of consent, you understand
that you may contact your local human resources representative.

10. Notices.

(a) Any notice to Procter & Gamble that is required or appropriate with respect to
Restricted Stock Units held by you must be in writing and addressed to:

 

 

			
	Appendix 10
	 	Form RTN2

The Procter & Gamble Company

ATTN: Corporate Secretary’s Office

P.O. Box 599

Cincinnati, OH 45201

or such other address as Procter & Gamble may from time to time provide to you in writing.

(b) Any notice to you that is required or appropriate with respect to Restricted Stock Units
held or to be awarded to you will be provided to you in written or electronic form at any
physical or electronic mail address for you that is on file with Procter & Gamble.

11. Successors and Assigns.

     These Terms and Conditions are binding on, and inure to the benefit of, (a) the Company and
its successors and assigns; and (b) you and, if applicable, the representative of your estate.

12. Governing Law.

     The validity, interpretation, performance and enforcement of these Terms and Conditions, the
Plan and your Restricted Stock Units will be governed by the laws of the State of Ohio, U.S.A.
without giving effect to any other jurisdiction’s conflicts of law principles. With respect to any
dispute concerning these Terms and Conditions, the Plan and your Restricted Stock Units, you
consent to the exclusive jurisdiction of the federal or state courts located in Hamilton County,
Ohio, U.S.A.

13. The Plan.

     All Restricted Stock Units awarded to you have been awarded under the Plan. Certain
provisions of the Plan may have been repeated or emphasized in these Terms and Conditions; however,
all terms of the Plan apply to you and your Restricted Stock Units whether or not they have been
called out in these Terms and Conditions.

14. Effect of These Terms and Conditions.

     These Terms and Conditions and the terms of the Plan, which are incorporated herein by
reference, describe the contractual rights awarded to you in the form of Restricted Stock Units,
and the obligations imposed on you in connection with those rights. No right exists with respect
to Restricted Stock Units except as described in these Terms and Conditions and the Plan.

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