PROCTER & GAMBLE CO
EX-10.10
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<DESCRIPTION>EX-10.10
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT
(10-10)</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Short Term Achievement Reward Program</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Short Term Achievement Reward (&#147;STAR&#148;) Program is The Procter &#038; Gamble Company&#146;s (the &#147;Company&#148;
or &#147;P&#038;G&#148;) annual incentive program designed to support outstanding business results of the Company
and its subsidiaries. Awards are made pursuant to the authority delegated by the Board of
Directors to the Compensation &#038; Leadership Development Committee (the &#147;Committee&#148;) for awarding
additional remuneration and the 2001 Stock and Incentive Compensation Plan and/or the 2004 Gillette
Long Term Incentive Plan.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>I. </B><U><B>ELIGIBILITY</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eligibility is based on job level and the requirement of working at least four weeks during the
fiscal year. STAR participants who do not work a full schedule (leaves of absence, disability, and
less-than-full time schedules) in the fiscal year in which the award is payable may have awards
pro-rated.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>II. </B><U><B>CALCULATION</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The individual STAR Award Calculation is: (STAR Target) x (Business Unit Performance Factor) x
(Corporate Adjustment Factor) x (Gillette Factor)
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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The <B>STAR Target </B>for each participant is calculated as: (Base Salary) x (STAR Target
percent)</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>Base Salary </I>as of the end of June is used to calculate the STAR award. If a participant&#146;s
level changes, the highest band level and salary during the fiscal year is used to
determine the STAR Target.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The <I>STAR Target Percent </I>is dependent on job level in the organization and will fall between
8% and 170%.
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    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Job Band</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>STAR Target as % of Base</B></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 4 - Associate Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 5 - Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 6 - Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">45</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 7 - President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">70</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 7 - Group Presidents and Function Heads</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 8 &#150; Vice Chair</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">90</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 9 &#150; President GBU&#146;s, COO, CFO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">115</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Band 10 - CEO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">170</TD>
    <TD nowrap>%</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An individual&#146;s STAR target may vary from the Job Band target identified above in certain
limited circumstances, including but not limited to, organizationally driven band reductions or
certain corporate actions that result in specific employment obligations.
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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The <B>Business Unit Performance Factor </B>is assigned to each STAR business unit as a measure of
success for the fiscal year. The factors range from 53% to 167% with the target at 100%. A
STAR Committee, comprised of a small number of senior executives (who do not determine their
own awards), conducts a retrospective assessment of the performance of each business unit
according to one or more of the following measures and makes a recommendation to the
Compensation &#038; Leadership Development</TD>
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    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Committee: Operating Total Shareholder Return, Key Competitor Comparison, After Tax Profit,
Operating Cash Flow, Value Share, Volume, Net Outside Sales, Value Contribution, Organization
Head Self Assessment, and Cross Organization Assessment. There may also be other factors
significantly affecting unit results positively or negatively.</TD>
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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The <B>Corporate Adjustment Factor </B>measures the total Company success and ranges from 80% to
130%, with a 100% target. The same Corporate Adjustment Factor is applied to all STAR award
calculations. It is determined by a matrix that measures P&#038;G&#146;s market total shareholder
return (&#147;TSR&#148;) ranking for the fiscal year relative to a competitive peer group and diluted
earnings per share (&#147;EPS&#148;) growth for the fiscal year.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Committee may add additional factors with clear performance metrics (such as the Gillette
factor described below) for supporting business needs.
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    <TD width="1%">&nbsp;</TD>
    <TD>The <B>Gillette Factor </B>is derived from a review and recommendation by the STAR Committee based
on the results of the success of the Gillette integration. The factor ranges from 80% to 130%
with 100% as the target. The same Gillette Factor will apply to all STAR award calculations.
It will be determined by assessing performance during the fiscal year on various metrics
including: sustaining the overall health of both the P&#038;G and Gillette businesses during this
period (based on market share and earnings progress); achieving sales, research and
administrative budget and synergy objectives; meeting enrollment targets; and staying within
integration cost and restructuring estimates. The Gillette Factor was applied starting with
the results of fiscal year 2005/06 and will remain a factor as long as applicable.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The STAR Committee makes recommendations to the Compensation &#038; Leadership Development Committee
regarding the performance factor percentages to be applied to all STAR awards (except those for the
STAR Committee). The final award amounts for the principal officers are approved by the
Compensation &#038; Leadership Development Committee. Pursuant to a delegation from that Committee,
awards for other employees are approved by the Chief Executive. STAR Awards for members of the Star
Committee are determined exclusively by the Committee without any recommendation from the STAR
Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>III. </B><U><B>TIMING AND FORM</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">STAR awards are determined after the close of the fiscal year and are paid on or about September
15. The award form choices and relevant considerations are explained in payment preference
materials generally in the form of <U>Appendix&nbsp;1</U>. Participants receive written notice of
their award detailing the calculation, generally in the form of <U>Appendix&nbsp;2</U>. The grant
letters are generally in the form of <U>Appendix&nbsp;3</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Generally, STAR awards are paid in cash. However, before the end of the calendar year preceding the
year of the award date, participants on record can choose their upcoming award in forms other than
cash, such as stock options, local deferral programs in some countries, or restricted stock units
or deferred compensation, (for participants also in the Business Growth Program), depending on
local regulations. To pay a STAR award in stock options, the Company compares current cash value
to stock option value with a conversion factor that is reviewed annually. Any STAR award paid in
stock options, restricted stock units or other equity shall be awarded pursuant to this program and
the terms and conditions of the 2001 Stock and Incentive Compensation Plan, the 2004 Gillette Long
Term Incentive Plan or any successor stock plan approved in accordance with applicable listing
standards, as they may be revised from time to time.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>IV. </B><U><B>SEPARATION FROM THE COMPANY</B></U>
</DIV>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Retirement, Death or Special Separation with a Separation Package</B>:
If participant worked at least 4&nbsp;weeks, award is pro-rated based
on the number of weeks worked in the fiscal year for which the
award is payable, divided by 52.</TD>
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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Voluntary Resignation or Termination for cause: </B>Separating
employees must be active as of June&nbsp;30 (the close of the fiscal
year for which the award is payable) to receive an award.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Eligible participants who have left the Company will receive a cash payment (equity such as stock
options and RSUs can be issued to active employees only) on the same timing as STAR awards or as
soon thereafter as possible.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>V. </B><U><B>CHANGE IN CONTROL</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the foregoing, if there is a Change in Control in any fiscal year, STAR awards will
be calculated in accordance with Section&nbsp;II above, but each factor will be calculated for the
period from the beginning of the fiscal year in which a Change in Control occurred up to and
including the date of such Change in Control (&#147;CIC Period&#148;). &#147;Change in Control&#148; shall have the
same meaning as defined in the 2001 Stock and Incentive Compensation Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VI. </B><U><B>GENERAL TERMS AND CONDITIONS</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While any STAR award amount received by one individual for any year shall be considered as earned
remuneration in addition to salary paid, it shall be understood that this plan does not give to any
officer or employee any contract rights, express or implied, against any Company for any STAR award
or for compensation in addition to the salary paid to him or her, or any right to question the
action of the Board of Directors or the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each award to the Chief Executive, Vice-Chairs, Group Presidents, Presidents, Global Function Heads
and Senior Vice Presidents and equivalents, made pursuant to this plan, is subject to the Senior
Executive Recoupment Policy adopted by the Committee in December&nbsp;2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This program document may be amended at any time by the Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>2/13/07</I>
</DIV>



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