RELATIONSHIP TO THE NEW PERIOD OF TIME AS THE ABOVE
AMOUNT DOES TO THE CURRENT SIX-MONTH PERFORMANCE PERIOD AS SET BY THE COMMITTEE.
8.
PAYMENT OF BONUSES.
(A)
PAYMENT OF A BONUS TO A PARTICIPANT SHALL BE MADE AS SOON AS PRACTICABLE
AFTER DETERMINATION OF THE AMOUNT OF THE BONUS UNDER SECTION 7 ABOVE, AND AFTER
THE COMMITTEE HAS CERTIFIED IN WRITING THE AMOUNT TO BE PAID TO COVERED
OFFICERS, EXCEPT TO THE EXTENT A PARTICIPANT HAS MADE A TIMELY ELECTION TO DEFER
THE PAYMENT OF ALL OR ANY PORTION OF SUCH BONUS UNDER THE HEWLETT-PACKARD
COMPANY EXECUTIVE DEFERRED COMPENSATION PLAN OR ANY OTHER SIMILAR PLAN AS THE
COMMITTEE DETERMINES IN ITS DISCRETION.
(B)
A PARTICIPANT WILL FORFEIT ANY BONUS FOR A PERFORMANCE PERIOD DURING WHICH
HE OR SHE IS INVOLUNTARILY TERMINATED FOR CAUSE OR VOLUNTARILY TERMINATES HIS OR
HER EMPLOYMENT WITH THE COMPANY FOR ANY REASON EXCEPT AS OTHERWISE PROVIDED IN
SECTION 8(C), BELOW.
(C)
THE PAYMENT OF A BONUS WITH RESPECT TO A SPECIFIC PERFORMANCE PERIOD
REQUIRES THAT THE EMPLOYEE BE ON THE COMPANY'S PAYROLL AS OF THE END OF SUCH
PERFORMANCE PERIOD, SUBJECT TO THE FOLLOWING:
(I)
NON-PAY STATUS.
A PARTICIPANT WHO
CONTINUES TO BE ON APPROVED NON-PAY STATUS THROUGH THE END OF THE PERFORMANCE
PERIOD MAY RECEIVE A BONUS PAYMENT IF RETURN TO WORK IS WITHIN THE MAXIMUM
PERIOD APPROVED BY THE COMPANY FOR THE NON-PAY STATUS.
IF THE NON-PAY STATUS
RESULTS IN A LEAVE OF ABSENCE OR TERMINATION, GUIDELINES GOVERNING THOSE
SITUATIONS WILL APPLY.
(II)
LEAVE OF ABSENCE.
A PARTICIPANT MAY
RECEIVE A BONUS PAYMENT WHILE ON AN APPROVED LEAVE OF ABSENCE EVEN IF THE LEAVE
BEGAN PRIOR TO THE END OF THE PERFORMANCE PERIOD.
THE BONUS WILL BE BASED ON
THE PARTICIPANT'S ACTUAL BASE PAY FOR THE PERFORMANCE PERIOD.
WHILE ON AN
APPROVED MEDICAL LEAVE OF ABSENCE, ACCRUAL OF BASE PAY WILL CONTINUE FOR AS LONG
AS THE EMPLOYEE IS INTEGRATING DISABILITY BENEFITS WITH FLEXIBLE TIME OFF (FTO)
HOURS, OR SICK OR VACATION HOURS.
ONLY THE FTO OR SICK OR VACATION HOURS WILL
BE INCLUDED IN BASE PAY.
(III)
WORK-RELATED ILLNESS/INJURY.
A PARTICIPANT
WHO CANNOT WORK DUE TO A WORK-RELATED INJURY/ILLNESS AND WHO MAY BE DRAWING
WORKERS' COMPENSATION BENEFITS WILL BE PLACED ON MEDICAL LEAVE FROM THE LAST DAY
WORKED.
WHILE ON LEAVE, A
5
Participant may receive a bonus payment even if the leave began prior to the end
of the Performance Period.
(IV)
WORK FORCE REDUCTION.
IF THE REASON FOR A
PARTICIPANT'S TERMINATION OF EMPLOYMENT PRIOR TO THE END OF A PERFORMANCE PERIOD
IS WORK FORCE REDUCTION, ANY BONUS MAY BE PRORATED BASED UPON THE PARTICIPANT'S
ELIGIBLE EARNINGS FOR THE PERFORMANCE PERIOD, UNLESS OTHERWISE DETERMINED DUE TO
LOCAL LAW.
(V)
RETIREMENT.
IF THE REASON FOR A
PARTICIPANT'S TERMINATION OF EMPLOYMENT PRIOR TO THE END OF A PERFORMANCE PERIOD
IS HIS OR HER RETIREMENT AT THE AGE AND SERVICE-YEAR LEVEL SET BY THE COMPANY OR
THE LOCAL LAW REQUIREMENTS WHERE THE PARTICIPANT IS EMPLOYED, ANY BONUS MAY BE
PRO-RATED BASED UPON THE