MARKETING POLICY, AS POSTED ON THE COMPANY'S INTERNAL WEB SITE AT THE START OF
THE PERFORMANCE PERIOD.
(L)
"NET PROFIT DOLLARS" SHALL BE AS DEFINED IN THE AFM AT THE START OF THE
PERFORMANCE PERIOD.
(M)
"NET PROFIT GROWTH" SHALL BE, WITH RESPECT TO ANY PERFORMANCE PERIOD, AS
DEFINED BY THE COMMITTEE, IN ITS SOLE DISCRETION.
(N)
"NET REVENUE DOLLARS" SHALL BE AS DEFINED IN THE AFM AT THE START OF THE
PERFORMANCE PERIOD.
(O)
"PARTICIPANT" SHALL MEAN EACH SALARIED EMPLOYEE OF THE COMPANY OR ITS
AFFILIATES IN ACTIVE SERVICE WHOSE POSITION IS DESIGNATED BY THE COMMITTEE AS
ELIGIBLE FOR PARTICIPATION IN THE PLAN; PROVIDED, HOWEVER, THAT PARTICIPANTS WHO
ARE COVERED OFFICERS MUST BE SELECTED PRIOR TO THE PREDETERMINATION DATE.
(P)
"PERFORMANCE MEASURE" SHALL MEAN ANY MEASURABLE CRITERIA USING AN APPROACH,
SUCH AS A BALANCED SCORE CARD, WHICH IS TIED TO THE COMPANY'S SUCCESS THAT THE
COMMITTEE MAY DETERMINE, INCLUDING, BUT NOT LIMITED TO, NET ORDER DOLLARS, NET
PROFIT DOLLARS, NET PROFIT GROWTH, NET REVENUE DOLLARS, REVENUE GROWTH, TOTAL
SHAREHOLDER RETURN RELATIVE TO PEER INDEX, CASH FLOW, EARNINGS OR EARNINGS PER
SHARE, GROWTH IN EARNINGS OR EARNINGS PER SHARE, RETURN ON EQUITY, STOCK PRICE,
RETURN ON EQUITY OR AVERAGE STOCKHOLDERS' EQUITY, TOTAL STOCKHOLDER RETURN,
RETURN ON CAPITAL, RETURN ON ASSETS OR NET ASSETS, RETURN ON INVESTMENT,
REVENUE, INCOME OR NET INCOME, OPERATING INCOME OR NET OPERATING INCOME,
OPERATING PROFIT OR NET OPERATING PROFIT, OPERATING MARGIN, RETURN ON OPERATING
REVENUE, MARKET SHARE, OVERHEAD OR OTHER EXPENSE REDUCTION, CREDIT RATING,
STRATEGIC PLAN DEVELOPMENT AND IMPLEMENTATION, SUCCESSION PLAN DEVELOPMENT AND
IMPLEMENTATION, CUSTOMER SATISFACTION INDICATORS, AND EMPLOYEE METRICS.
(Q)
"PERFORMANCE PERIOD" SHALL MEAN A SIX-MONTH PERIOD OF TIME BASED UPON THE
HALVES OF THE COMPANY'S FISCAL YEAR, OR SUCH OTHER TIME PERIOD AS SHALL BE
DETERMINED BY THE COMMITTEE.
(R)
"PLAN" SHALL MEAN THE HEWLETT-PACKARD COMPANY EXECUTIVE PAY-FOR-RESULTS
PLAN, AS AMENDED FROM TIME TO TIME.
(S)
"PREDETERMINATION DATE" SHALL MEAN (I) THE EARLIER OF: A DATE 45 DAYS AFTER
COMMENCEMENT OF THE PERFORMANCE PERIOD, OR A DATE NOT LATER THAN THE EXPIRATION
OF 25% OF THE PERFORMANCE PERIOD; PROVIDED THAT THE SATISFACTION OF SELECTED
PERFORMANCE MEASURES IS SUBSTANTIALLY UNCERTAIN AT SUCH TIME, OR (II) SUCH OTHER
DATE ON WHICH A PERFORMANCE GOAL IS CONSIDERED TO BE PRE-ESTABLISHED PURSUANT TO
CODE SECTION 162(M).
2
(T)
"REVENUE GROWTH" SHALL BE, WITH RESPECT TO ANY PERFORMANCE PERIOD, AS
DEFINED BY THE COMMITTEE, IN ITS SOLE DISCRETION.
(U)
"SECTION 16 OFFICER" SHALL MEAN A PARTICIPANT WHO IS AN OFFICER OF THE
COMPANY WITHIN THE MEANING OF SECTION 16 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.
(V)
"TARGET BONUS" SHALL MEAN A BONUS AMOUNT THAT MAY BE PAID IF 100% OF ALL
THE APPLICABLE PERFORMANCE MEASURES ARE ACHIEVED AT TARGET IN THE PERFORMANCE
PERIOD.
THE TARGET BONUS SHALL BE EQUAL TO A FIXED PERCENTAGE OF THE
PARTICIPANT'S BASE PAY FOR SUCH PERFORMANCE PERIOD.
SUCH PERCENTAGE SHALL BE
DETERMINED BY THE COMMITTEE PRIOR TO THE PREDETERMINATION DATE.
(W)
"TOTAL SHAREHOLDER