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                                                                    EXHIBIT 10.5

                                PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Agreement") is entered into as of June 2, 2000
by and between DANIEL O. JENSEN and BEVERLY A. JENSEN, as Trustees for the
Jensen Family Living Trust ("Pledgors"), a shareholder of JIA, Inc., a
Washington corporation ("Borrower"), and JENKON INTERNATIONAL, INC., a
Washington corporation (the "Lender").

     WHEREAS, reference is hereby made to that certain Stock Purchase Agreement
(the "Stock Purchase Agreement"), dated as of April 6, 2000 and entered into by
and among the Lender, JIA, Inc., a Washington corporation ("Borrower"), Jenkon
International, Inc., a Delaware corporation ("Parent") and Summit V, Inc., a
Washington corporation (the "Company");

     WHEREAS, Lender owns 5,000 shares of common stock of the Company (the
"Shares"), and intends to sell the Shares to Borrower and Borrower intends to
purchase such Shares from Lender;

     WHEREAS, pursuant to the Stock Purchase Agreement, the aggregate purchase
price for the Shares is $1,175,000, $326,738 of which shall be delivered to
Lender by the Borrower in the form of that certain Promissory Note of even date
herewith (the "Loan") (the "Note");

WHEREAS, Pledgors are the legal and beneficial owner of 100,000 shares of the
issued and outstanding shares of common stock of Parent evidenced by the
certificates set forth on Exhibit "A" attached hereto and made a part hereof
(the "Pledged Shares");

     WHEREAS, Pledgors are also a legal and beneficial owner of shares of
legally issued and outstanding shares of common stock of Borrower;

     WHEREAS, in order to induce Lender to enter into the Stock Purchase
Agreement and to accept the Note, and to make advances and otherwise extend
credit to Borrower thereunder, Pledgors have agreed to secure the payment and
performance of the Secured Obligations (as hereinafter defined); and

     NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and in order to induce the Lender to make the Loan, the parties
hereto agree as follows:

     SECTION 1. GRANTS OF SECURITY. Pledgors hereby assign, pledge and grant to
the Lender a first priority security interest in all of such Pledgors' right,
title and interest in

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and to the following (the "Collateral") to secure the Secured Obligations (as
defined in Section 2):

     (i) the Pledged Shares and the certificates representing the Pledged Shares
and any interest of such Pledgors in the entries on the books of any financial
intermediary pertaining to the Pledged Shares, and all dividends, cash,
warrants, rights, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the Pledged Shares; and

     (ii) all proceeds of the foregoing items described in the preceding clause
(i).

     SECTION 2. SECURED OBLIGATIONS. This Agreement secures, and the Collateral
is collateral security for, the prompt payment or performance in full when due,
whether upon demand, at stated maturity, by acceleration or otherwise, of: (a)
all obligations of Borrower in respect of the Note, whether for principal,
interest (including, without limitation, interest that, but for the filing of a
petition in bankruptcy with respect to Borrower, would accrue on such
obligations), fees, expenses or otherwise; and (b) all obligations of Borrower
or Pledgors, now or hereafter existing under this Agreement, the Stock Purchase
Agreement and the Note and any and all damages and claims (including any third
party claims) suffered by Lender which may result from any breach by Pledgors or
Borrower of, or any misrepresentation contained in this Agreement, the Stock
Purchase Agreement or the Note (all such combined obligations of both Pledgors
and Borrower are collectively referred to herein as the "Secured Obligations").

     SECTION 3. DELIVERY OF PLEDGED SHARES. All certificates or instruments
representing or evidencing the Pledged Shares shall be delivered to and held by
or on behalf of the Lender pursuant hereto and shall be in suitable form for
transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignment in blank, all in form and substance satisfactory to the
Lender. The Lender shall have the right, at any time in its discretion and
without notice to Pledgors, following the occurrence of an Event of Default (as
defined herein), to transfer to or to register in the name of the Lender or any
of its nominees any or all of the Pledged Shares.

     SECTION 4. REPRESENTATIONS AND WARRANTIES. Pledgors represent and warrant
to the Lender that the following statements are true, correct and complete:

     (a) Pledgors are the legal and beneficial owner of the Collateral, free and
clear of any lien or security interest except for the security interest created
by this Agreement. Pledgors shall defend the Collateral against all claims and
demands of all persons at any time claiming any interest therein adverse to the
Lender;

     (b) Pledgors are the legal and beneficial stockholder of Borrower and, as
such, will benefit from the completion of sale of the Shares to Borrower;

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     (c) Pledgors have full power, authority, and legal right to pledge the
Collateral pursuant to this Agreement;

     (d) The pledge and delivery of the Collateral to the Lender pursuant to
this Agreement creates a valid and perfected first priority security interest in
the Collateral, securing the payment and performance of the Secured Obligations;

     (e) Except as already has been made or obtained, no consent of any other
party (including, without limitation, creditors of Pledgors) and no consent,
authorization, approval, or other action by, and no notice to or filing with any
governmental authority or regulatory body is required either (i) for the pledge
by Pledgors of the Collateral pursuant to this Agreement or for the execution,
delivery or performance of this Agreement by Pledgors or (ii) for the perfection
of or exercise by the Lender of the rights provided for in this Agreement or the
remedies in respect of the Collateral pursuant to this Agreement;

     (f) The pledge of the Pledged Shares does not violate Regulations T, U or X
of the Board of Governors of the Federal Reserve System; and

     (g) Except as permitted under this Agreement, the Pledgors at all times
will be the sole beneficial owner of the Pledged Shares.

     SECTION 5. FURTHER ASSURANCES. Pledgors agree that at any time and from
time to time, at the expense of Pledgors, they will promptly execute and deliver
all further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Lender may request, in order to perfect and
protect any security interest granted hereby or to enable the Lender to exercise
and enforce its rights and remedies hereunder with respect to any Collateral.

     SECTION 6. VOTING RIGHTS, DIVIDENDS, ETC.

     (a) So long as no Event of Default shall have occurred and be continuing:

          (i) Pledgors shall be entitled to exercise any and all voting and
other consensual rights pertaining to the Collateral or any part thereof for any
purpose not inconsistent with the terms of this Agreement; PROVIDED, HOWEVER,
that Pledgors shall give the Lender at least five days' written notice of the
manner in which they intend to exercise, or the reasons for refraining from
exercising, any such right;

          (ii) Pledgors shall be entitled to receive and retain any and all
dividends and other distributions paid in respect of the Collateral; PROVIDED,
HOWEVER, that any and all

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               (A) dividends and other distributions paid or payable other than
in cash in respect of, and instruments and other property received, receivable
or otherwise distributed in respect of, or in exchange for, any Collateral,

               (B) dividends and other distributions paid or payable in cash in
respect of any Collateral in connection with a partial or total liquidation or
dissolution or in connection with a reduction of capital, capital surplus or
paid-in-surplus, and

               (C) cash paid, payable or otherwise distributed in redemption of,
or in exchange for, any Collateral,

shall be, and shall be forthwith delivered to the Lender to hold as, Collateral
and shall, if received by Pledgors, be received in trust for the benefit of the
Lender, be segregated from the other property or funds of Pledgors, and be
forthwith delivered to the Lender as Collateral in the same form as so received
(with any necessary endorsement); and

          (iii) the Lender shall execute and deliver (or cause to be
executed and delivered) to Pledgors all such proxies and other instruments as
Pledgors may reasonably request for the purpose of enabling Pledgors to exercise
the voting and other rights which they are entitled to exercise pursuant to
subsection 6(a)(i) and to receive the dividends and other distributions which
they are authorized to receive and retain pursuant to subsection 6(a)(ii).

     (b) Upon the occurrence and during the continuance of an Event of Default:

          (i) Upon written notice from the Lender to Pledgors, all rights of
Pledgors to exercise the voting and other consensual rights which they would
otherwise be entitled to exercise pursuant to subsection 6(a)(i) shall cease,
and all such rights shall thereupon become vested in the Lender which shall
thereupon have the sole right to exercise such voting and other consensual
rights.

          (ii) All rights of Pledgors to receive the dividends and other
distributions which they would otherwise be authorized to receive and retain
pursuant to subsection 6(a)(ii) shall cease and all such rights shall thereupon
become vested in the Lender which shall thereupon have the sole right to receive
such dividends and other distributions and the right to hold such dividends and
other distributions as Collateral during the continuance of such Event of
Default. All dividends and other distributions which are received by Pledgors
contrary to the provisions of this subsection 6(b)(ii) shall be received in
trust for the benefit of the Lender, shall be segregated from other funds of
Pledgors and shall be forthwith paid over to the Lender as Collateral in the
same form as so received (with any necessary endorsement).

          (iii) Pledgors shall execute and deliver (or cause to be executed and
delivered) to the Lender all such proxies and other instruments as the Lender
may reasonably request for the purpose of enabling the Lender to exercise the
voting and other rights which it

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is entitled to exercise pursuant to subsection 6(b)(i) and to receive the
dividends and other distributions which it is authorized to receive and retain
pursuant to subsection 6(b)(ii).

     SECTION 7. TRANSFERS AND OTHER LIENS; ADDITIONAL SHARES. Pledgors agree
that they will not (i) sell or otherwise dispose of, or grant any option with
respect to, any Collateral, or (ii) create or permit to exist any lien or
security interest upon or with respect to any Collateral, except for the
security interest under this Agreement.

     SECTION 8. LENDER APPOINTED ATTORNEY-IN-FACT. Pledgors hereby
appoint the Lender as Pledgors' attorney-in-fact, with full authority in the
place and stead of Pledgors and in the name of Pledgors or otherwise, from time
to time upon the occurrence and continuation of an Event of Default, in the
Lender's discretion to take any action and to execute any instrument which the
Lender may deem necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation:

          (i) to receive, endorse and collect all instruments made payable to
Pledgors representing any dividend or other distribution in respect of the
Collateral or any part thereof and to give full discharge for the same;

          (ii) to ask, demand, collect, sue for, recover, compound, receive and
give acquittance and receipts for money due and to become due under or in
respect of any of the Collateral;

          (iii) to file any claims or take any action or institute any
proceedings which the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Lender with
respect to any of the Collateral; and

          (iv) generally to sell, transfer, pledge, make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely
as though the Lender were the absolute owner thereof for all purposes, and to
do, at the Lender's option and Pledgors' expense, at any time, and from time to
time, all acts that the Lender deems necessary to protect, preserve or realize
upon the Collateral and the Lender's security interest therein, in order to
effect the intent of this Agreement, all as full and effectively as Pledgors
might do.

This appointment as attorney-in-fact is coupled with an interest and is
irrevocable. In performing its functions and duties under this Agreement, the
Lender has not assumed and shall not be deemed to have assumed any obligation
toward or relationship of agency or trust with or for Pledgors.

     SECTION 9. LENDER MAY PERFORM. If Pledgors fail to perform any agreement
contained herein, the Lender may itself perform, or cause performance of, such
agreement, and the expenses of the Lender incurred in connection therewith shall
be payable by Pledgors under Section 14(b).

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     SECTION 10. The Lender's Duties and Liabilities.

     (a) The powers conferred on the Lender hereunder are solely to protect its
interest in the Collateral and shall not impose any duty upon it to exercise any
such powers. The Lender shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which the Lender accords its
own property, it being understood that the Lender shall have no responsibility
for (i) ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not the Lender has or is deemed to have knowledge of such matters, or
(ii) taking any necessary steps to assert rights against any parties with
respect to any Collateral.

     (b) The Lender shall not be liable to Pledgors (i) for any loss or damage
sustained by Pledgors or (ii) for any loss, damage, depreciation or other
diminution in the value of any of the Collateral that may occur as a result of,
in connection with or that is in any way related to (x) any exercise by the
Lender of any right or remedy under this Agreement or (y) any other act or
failure to act of the Lender, except to the extent that the same shall be
determined by a judgment of a court of competent jurisdiction, that is final and
not subject to review on appeal, to be the result of acts or omissions on the
part of the Lender constituting gross negligence or willful misconduct.

     SECTION 11. EVENTS OF DEFAULT; REMEDIES UPON DEFAULT; DECISIONS RELATING TO
EXERCISE OF REMEDIES.

     11.1 Any one or more of the following events shall constitute an Event of
Default by Pledgors under this Agreement:

          (a) FAILURE TO PAY OBLIGATIONS. If Pledgors fail to pay when due and
payable or when declared due and payable, all or any portion of the Secured
Obligations owing to Lender (whether for principal, interest, taxes,
reimbursement of expenses, or otherwise);

          (b) FAILURE TO PERFORM. If Pledgors fail to perform, keep or observe
any other term, provision, condition, covenant, agreement, warranty or
representation contained in this Agreement, or any other present or future
agreement between Pledgors and Lender, and such failure continues for five (5)
days following written notice from the Lender to Pledgors;

          (c) VOLUNTARY INSOLVENCY PROCEEDING. If Pledgors commence any
Insolvency Proceeding (as defined below); and

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          (d) INVOLUNTARY INSOLVENCY PROCEEDING. If any Insolvency Proceeding is
commenced against Pledgors and which is not dismissed within sixty (60) days of
the date of filing.

     11.2 As used herein the term "Insolvency Proceeding" means and includes any
proceeding commenced by or against any person or entity under any provision of
the federal Bankruptcy Code, as amended, or under any other bankruptcy or
insolvency law, including, but not limited to, assignments for the benefit of
creditors, formal or informal moratoriums, compositions or extensions generally
with its creditors.

     11.3 If an Event of Default shall have occurred and be continuing:

          (a) the Lender may exercise in respect of the Collateral, in addition
to other rights and remedies provided for herein or otherwise available to it,
all the rights and remedies of a secured party on default under the Uniform
Commercial Code (the "UCC") in effect in the State of Washington at that time;

          (b) the Lender may transfer all or any part of the Collateral into the
Lender's name or the name of its nominee or nominees;

          (c) the Lender may give all consents, waivers and ratifications in
respect of the Collateral and otherwise act with respect thereto as though it
were a party thereto or outright owner thereof;

          (d) the Lender may settle, adjust, compromise and arrange all
accounts, controversies, questions, claims and demands whatsoever in relation to
all or any part of the Collateral;

          (e) the Lender may, in respect of the Collateral, execute all such
contracts, agreements, deeds, documents and instruments; bring, defend and
abandon all such actions, suits and proceedings; and take all actions in
relation to all or any part of the Collateral as the Lender in its absolute
discretion may determine;

          (f)       (i) The Lender may without notice (except as specified
below), sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange, broker's board or at any of the Lender's
offices or elsewhere, for cash, on credit or for future delivery, at such time
or times and at such price or prices and upon such other terms as the Lender may
deem commercially reasonable, irrespective of the impact of any such sales on
the market price of the Collateral. To the extent permitted by law, the Lender
may be the purchaser of any or all of the Collateral at any such public or
private sale. Pledgors agree that, to the extent notice of sale shall be
required by law, at least five (5) days' notice to Pledgors of the time and
place of any public sale or the time after which a private sale is to be made
shall constitute reasonable notification. The Lender shall not be

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obligated to make any sale of the Collateral regardless of notice of sale having
been given. The Lender may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned;

                    (ii) Pledgors recognize that, by reason of certain
prohibitions contained in the Securities Act of 1933, as from time to time
amended (the "Securities Act"), and applicable state securities laws, the Lender
may be compelled, with respect to any sale of all or any part of the Collateral
conducted without prior registration or qualification of such Collateral under
the Securities Act and/or such state securities laws, to limit purchasers to
those who will agree, among other things, to acquire the Collateral for their
own account, for investment and not with a view to the distribution or resale
thereof, and such purchasers may have to be limited in number to possibly one
purchaser and any purchaser must be a sophisticated investor able to fend for
himself. Pledgors acknowledge that any such private sales may be at prices and
on terms less favorable to the Lender than those obtainable through a public
sale without such restrictions (including, without limitation, a public offering
made pursuant to a registration statement under the Securities Act) and,
notwithstanding such circumstances, Pledgors agree that any such private sale
shall be deemed to have been made in a commercially reasonable manner and that
the Lender shall have no obligation to request the Parent to engage in public
sales and no obligation to delay the sale of any Collateral for the period of
time necessary to permit the Parent to register it for a form of public sale
requiring registration under the Securities Act or under applicable state
securities laws. The Pledged Shares constitute or upon foreclosure may
constitute "restricted securities" as defined in Rule 144 promulgated by the
Securities and Exchange Commission under the Securities Act and may be subject
to transfer restrictions under the Securities Act;

               (g) The Lender may appoint managers, sub-agents, officers and
servants for any of the purposes mentioned in the foregoing provisions of this
Section 11 and to dismiss the same, all as the Lender in its absolute discretion
may determine; and

     (h) The Lender may generally take all such other action as the Lender in
its absolute discretion may determine to be incidental or conducive to any of
the matters or powers mentioned in the foregoing provisions of this Section 11
and which the Lender may or can do lawfully.

     SECTION 12. REMEDIES CUMULATIVE. Each and every right, power and remedy
hereby specifically given to the Lender shall be in addition to every other
right, power and remedy specifically given under this Agreement, the Stock
Purchase Agreement or the Note or now or hereafter existing at law or in equity,
or by statute, and each and every right, power and remedy whether specifically
herein given or otherwise existing may be exercised from time to time or
simultaneously and as often and in such order as may be deemed expedient by the
Lender. All such rights, powers and remedies shall be cumulative, and the
exercise or the beginning of exercise of one shall not be deemed a waiver of the
right to exercise of any other or others. No delay or omission of the Lender in
the exercise of any such right, power or

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remedy and no renewal or extension of any of the Secured Obligations shall
impair any such right, power or remedy or shall be construed to be a waiver of
any default or Event of Default or an acquiescence therein.

     SECTION 13. APPLICATION OF PROCEEDs. After and during the continuance of an
Event of Default, any cash held by the Lender as Collateral and all cash
proceeds received by the Lender (all such cash being "Proceeds") in respect of
any sale of, collection from, or other realization upon all or any part of the
Collateral pursuant to the exercise by the Lender of its remedies as a secured
creditor as provided in Section 11 of this Agreement shall promptly be applied
by the Lender from time to time as follows:

          FIRST: To the payment of the costs and expenses of such sale,
     collection or other realization, and all expenses, liabilities and advances
     made or incurred by the Lender in connection therewith, in accordance with
     Section 14(b);

          SECOND: After payment in full of the amounts specified in the
     preceding subparagraph, to the payment of the Secured Obligations to the
     Lender; and

          THIRD: After payment in full of the amounts specified in the preceding
     subparagraphs, and any other amount required by any provision of law, to
     Pledgors, or their heirs, representatives, successors or assigns, or to
     whomever may be lawfully entitled to receive the same or as a court of
     competent jurisdiction may direct, of any surplus then remaining from such
     Proceeds.

All applications of Proceeds to the Secured Obligations shall be applied to the
payment of interest before application to the payment of principal.

     SECTION 14. INDEMNITY AND EXPENSES.

     (a) Pledgors agree to indemnify the Lender from and against any and all
claims, losses and liabilities growing out of or resulting from Pledgors' breach
of any term hereof or any misrepresentation made hereunder or in connection with
this Agreement (including, without limitation, enforcement of this Agreement),
except claims, losses or liabilities resulting from the Lender's gross
negligence or willful misconduct. This provision shall remain in effect
following payment of the Secured Obligations.

     (b) Pledgors will upon demand pay to the Lender the amount of any and all
of the Lender's reasonable out-of-pocket expenses, including fees and
disbursements of its counsel, that the Lender may incur in connection with (i)
the administration of this Agreement, (ii) the custody, preservation, use or
operation of, or the sale of, collection from, or other realization upon, any of
the Collateral, (iii) the exercise or enforcement of any of the rights of the
Lender hereunder or (iv) the failure by Pledgors to perform or observe any of
the provisions hereof.

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     SECTION 15. AMENDMENTS, ETC. No amendment, modification, termination or
waiver of any provision of this Agreement or consent to any departure by
Pledgors herefrom shall in any event be effective without the written
concurrence of the Lender. Any waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     SECTION 16. ADDRESSES FOR NOTICES. Any communications between the parties
hereto or notices or requests provided herein to be given may be given by
mailing the same, postage prepaid, or by facsimile transmission to each party at
its address set forth on the signature pages hereof or to such other addresses
as each party may in writing hereafter indicate. Any notice, request or demand
to or upon the Lender or Pledgors shall not be effective until received
(provided, in the case of facsimile transmission, that receipt is confirmed).

     SECTION 17. EFFECT OF DISPOSITION OF COLLATERAL. Any sale of, or the grant
of options to purchase, or any other realization upon, any Collateral by Lender
hereunder shall operate to divest all right, title, interest, claim and demand,
either at law or in equity, of Pledgors therein and thereto, and shall be a
perpetual bar both at law and in equity against Pledgors and against any and all
persons claiming or attempting to claim the Collateral so sold, optioned or
realized upon, or any part thereof, from, through and under Pledgors.

     SECTION 18. CONTINUING SECURITY INTEREST; TRANSFER OF SECURED OBLIGATIONS;
TERMINATION. This Agreement shall create a continuing security interest in the
Collateral and shall:

     (i) be binding upon Pledgors, their heirs, representatives, successors and
assigns;

     (ii) inure, together with the rights and remedies of the Lender, to the
benefit of the Lender and its successors, transferees and assigns; and

     (iii) without limiting the generality of the foregoing clause (ii), the
Lender may assign or otherwise transfer all or a portion of its interests and
rights under the Note to any other person or entity, and such other person or
entity shall thereupon become vested with all the benefits in respect thereof
granted to the Lender herein or otherwise.

     SECTION 19. HEADINGS. Section and subsection headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement or be given any substantive effect.

     SECTION 20. SEVERABILITY. In case any provision in or obligation under this
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality

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and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

     SECTION 21. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same agreement.

     SECTION 22. GOVERNING LAW; TERMS. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF PLEDGORS AND THE LENDER AND ALL OTHER ASPECTS HEREOF SHALL BE
DEEMED TO BE MADE UNDER, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF WASHINGTON, EXCEPT AS
REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN THE STATE OF WASHINGTON. Unless otherwise defined
herein, or in the Note, terms defined in Divisions 8 and 9 of the UCC are used
herein as therein defined.

     SECTION 23. INTERPRETATION. Wherever in this Agreement the context may
require, the masculine gender shall be deemed to include the feminine and/or
neuter, and the singular to include the plural.

     SECTION 24. CONSENT TO JURISDICTION AND SERVICE OF PROCESS;
WAIVER OF TRIAL BY JURY. Pledgors hereby irrevocably submit to the jurisdiction
of any Washington State or Federal court sitting in the Central District of
Washington in any action or proceeding arising out of or relating to this
Agreement, and Pledgors hereby irrevocably agree that all claims in respect of
such action or proceeding may be heard and determined in such Washington State
or Federal court. Pledgors hereby irrevocably waive, to the fullest extent they
may effectively do so, the defense of an inconvenient forum to the maintenance
of such action or proceeding. Pledgors agree that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Section 24 shall affect the right of the Lender to bring any
action or proceeding against Pledgors or their property in the courts of any
other jurisdiction. IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS, EACH
PARTY HERETO WAIVES TRIAL BY JURY.

     SECTION 25. SECURITY INTEREST ABSOLUTE. All rights of the Lender and
security interests hereunder, and all obligations of Pledgors hereunder, shall
be absolute and unconditional irrespective of:

     (i) any lack of validity or enforceability of the Note or any other
agreement or instrument relating thereto;

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     (ii) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Secured Obligations, or any other amendment or waiver
of or any consent to any departure from the Note or any other related document;

     (iii) any exchange, release or non-perfection of any other collateral, or
any release or amendment or waiver of or consent to any departure from any
guaranty for all or any of the Secured Obligations; or

     (iv) any other circumstance which might otherwise constitute a defense
available to, or a discharge of, Pledgors.

     SECTION 26. PLEDGORS REMAIN LIABLE. Anything herein to the contrary
notwithstanding, (i) Pledgors shall remain liable under the contracts and
agreements included in or relating to the Collateral to the extent set forth
therein to perform all of their duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (ii) the exercise by the
Lender of any of the rights hereunder shall not release Pledgors from any of
their duties or obligations under the contracts and agreements included in or
relating to the Collateral and (iii) the Lender shall not have any obligation or
liability under the contracts and agreements included in or relating to the
Collateral by reason of this Agreement, nor shall the Lender be obligated to
perform any of the obligations or duties of Pledgors thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

     SECTION 27. SURETY WAIVERS.

     (a) Except to the extent otherwise expressly restricted or prohibited
pursuant either the Stock Purchase Agreement or the Note, at any time and in any
manner, upon such terms and at such times as it considers best and with or
without notice to Pledgors, Lender may alter, compromise, accelerate, extend, or
change the time or manner for payment of the indebtedness, increase or reduce
the rate of interest thereon, release or add any one or more obligors,
guarantors, endorsers or borrower, accept additional or substituted security
therefor, or release or subordinate any security therefor, without in any way
affecting the security interest of this Agreement or any covenant of Pledgors.

     (b) Pledgors waive any right to require Lender to proceed
against the Borrower or any other person, firm or corporation at any time or to
pursue any other remedy in its power, and Pledgors agree that Lender shall not
be obligated to resort to any other security, with any priority, in any
particular order, or at all, even if such action, or lack thereof, destroys,
alters or otherwise impairs subrogation rights of Pledgors or the rights of
Pledgors to proceed against Borrower for reimbursement, or both.

     (c) Pledgors waive and agree not to assert or take advantage of: (i) any
defense that may arise by reason of the incapacity, lack of authority,
insolvency, suspension or dissolution of Borrower or any other person, or the
failure of Lender to file or enforce a claim against the estate (either in
administration, bankruptcy or other proceedings) of Borrower or

                                      -12-

<PAGE>

any other person; or (ii) any defense or right based upon election of remedies
by Lender, including, without limitation, an election to proceed by nonjudicial
rather than judicial foreclosure, even if such election destroys, alters or
otherwise impairs subrogation rights of Pledgors or the right of Pledgors to
proceed against Borrower or any other person for reimbursement, or both.

     (d) Pledgors, by execution hereof, represent to Lender that the
relationship between Pledgors and Borrower is such that Pledgors have access to
all relevant facts and information concerning the debt and Borrower and that
Lender can rely upon Pledgors having such access. Pledgors waive and agree not
to assert any duty on the part of Lender to disclose to Pledgors any facts that
Lender may now or hereafter know about the Borrower, regardless of whether
Lender has reason to believe that any such facts materially increase the risk
beyond that which Pledgors intend to assume or has reason to believe that such
facts are unknown to Pledgors or has a reasonable opportunity to communicate
such facts to Pledgors. Pledgors are fully responsible for being and keeping
informed of the financial condition and operations of Borrower and all
circumstances bearing on the risk of nonpayment of any indebtedness hereby
secured.

     (e) Pledgors waive demand, protest and notices of any kind, including,
without limiting the generality of the foregoing, notice of the existence,
creation or incurring of new or additional indebtedness or of any action or
non-action on the part of the Borrower, Lender, any endorser, any creditor of
Borrower or Pledgors under this or any other instrument, or any other person
whosoever, in connection with any obligation or evidence of indebtedness held by
Lender as collateral or in connection with any indebtedness secured hereby.

     (f) Until all Secured Obligations of Borrower to Lender under the Stock
Purchase Agreement and the Note have been paid in full, Pledgors waive the right
of subrogation and waive any right to enforce any remedy which Lender now has or
may hereafter have against Borrower and any benefit of, and any right to
participate in, any security now or hereafter held by Lender.

     (g) With or without notice to Pledgors, Lender, in its sole discretion, at
any time and from time to time, in such manner and upon such terms as it
considers reasonable, may apply any and all payments or recoveries from any
security, in such manner, order and priority as Lender elects, to any
indebtedness of Borrower to Lender, whether or not such indebtedness is secured
hereby or is otherwise secured or is due at the time of such application.

     (h) No exercise or nonexercise of Lender of any right hereby given it and
no dealing by Lender with Borrower or any other person shall in any way affect
any of the Secured Obligations of Pledgors hereunder or give Pledgors any
recourse against Lender.

     (i) Notwithstanding that Pledgors and Borrower may have entered into a
separate agreement relating to their rights and duties with each other, no
right, remedy or

                                      -13-

<PAGE>

provision thereof shall be binding upon or affect or delay Lender's rights or
remedies under this Agreement or by operation of law.

     (j) Pledgors understand that the exercise by Lender of certain rights and
remedies contained in the Stock Purchase Agreement and the Note may affect or
eliminate Lender's right to seek a money judgment against Borrower and,
therefore, Pledgors' right of subrogation to seek a money judgment against
Borrower, and that Pledgors, upon completion of a foreclosure of this Agreement
by Lender, may therefore succeed to a partially or totally non-reimbursable
liability on the part of Borrower. Nevertheless, Pledgors hereby authorize and
empower Lender, at its sole option, without notice or and without affecting the
validity or enforceability of this Agreement, as herein modified, to exercise,
in its sole discretion, any and all rights and remedies, or any combination
thereof, which may be available to it, including the right to foreclose this
Agreement by nonjudicial sale, subject to any restrictions contained in the
Stock Purchase Agreements or the Note.

     Pledgors acknowledge that Pledgors may have certain rights under applicable
law which, if not waived by Pledgors, might provide Pledgors with defenses
against Pledgors' liability under this Agreement. So long as any Obligation
remains outstanding under the Stock Purchase Agreement or the Note, Pledgors
further waive all rights and defenses that are or may become available to
Pledgors.

     SECTION 28. FACSIMILE EXECUTION. Execution of this Agreement shall be
deemed binding upon the party executing this Agreement notwithstanding that
delivery of the executed document may be by facsimile transmission. Any party
shall be entitled to rely on a faxed execution copy of this Agreement with the
same force and effect as if an originally inked execution copy were delivered.
Inked original documents shall be delivered to the other parties by Federal
Express mail within one business day of the facsimile transmission.

                                      -14-

<PAGE>

     IN WITNESS WHEREOF, Pledgors and the Lender have caused this Agreement to
be duly executed and delivered as of the date first above written.

PLEDGORS:                                 LENDER:

JENSEN FAMILY LIVING TRUST                JENKON INTERNATIONAL, INC.,
                                          a Washington corporation

----------------------------              By:  _________________________
Daniel O. Jensen, Trustee                 Name:  ______________________
                                          Title:  ________________________

----------------------------              Notice Address:
Beverly A. Jensen, Trustee

Notice Address for Pledgors:              7600 NE 41st Street
                                          Suite 300
----------------------------              Vancouver, WA 98662
----------------------------              Fax No.:  (360) 256-9623
----------------------------              Attention:  David Edwards
----------------------------
----------------------------

with a copy to:                           with a copy to:

Perkins Coie LLP                          Jeffer, Mangels, Butler & Marmaro LLP
1211 SW Fifth Ave.                        2121 Avenue of the Stars
Suite 1500                                Tenth Floor
Portland, OR 97204                        Los Angeles, California  90067
Fax No.:  (503) 727-2000                  Fax No.:  (310) 203-0567
Attention:  Patrick J. Simpson, Esq.      Attention:  Robert Steinberg, Esq.

                                      -15-

<PAGE>

                                   EXHIBIT "A"

                               TO PLEDGE AGREEMENT

       CERTIFICATE NOS.                                  # OF SHARE

                                      -16-<PAGE>

                                                                   EXHIBIT 4.1

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

                             HEWLETT-PACKARD COMPANY
                       7.15% Global Note due June 15, 2005

No. R-__                                                           $___________
CUSIP No. 428236 AD 5

     Hewlett-Packard Company, a corporation duly organized and existing under
the laws of Delaware (herein called the "Company," which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to _____________, or registered assigns, the
principal sum of ___________________ ($_____________) on June 15, 2005, and to
pay interest thereon from June 9, 2000, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually on June
15 and December 15 in each year, commencing December 15, 2000, at the rate of
7.15% per annum, until the principal hereof is paid or made available for
payment. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the June 1 or December 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture. Interest on the
Security shall be computed on the basis of a 360-day year of twelve 30-day
months, and for any period shorter than a full six-month interest period, on the
basis of the actual days elapsed in such period.

     So long as all of the Securities of this series are represented by Global
Securities, the principal of, premium, if any, and interest, if any on this
Global Security shall be paid in same day funds to the Depositary, or to such
name or entity as is requested by an authorized representative of

<PAGE>

the Depositary. If at any time the Securities of this series are no longer
represented by the Global Securities and are issued in definitive form
("Certificated Securities"), then the principal of, premium, if any, and
interest, if any, on each Certificated Security at Maturity shall be paid to
the Holder upon surrender of such Certificated Security at the office of
agency maintained by the Company in the Borough of Manhattan, The City of New
York (which shall initially be the principal corporate trust office of the
Chase Manhattan Bank and Trust) or at such other place or places as may be
designated in or pursuant to the Indenture, provided that such Certificated
Security is surrendered to the Trustee, acting as Paying Agent, in time for
the Paying Agent to make such payments in such funds in accordance with its
normal procedures. Payments of interest with respect to Certificated
Securities other than at Maturity may, at the option of the Company, be made
by check mailed to the address of the Person entitled thereto as it appears
on the Security Register on the relevant Regular or Special Record Date or by
wire transfer in same day funds to such account as may have been
appropriately designated to the Paying Agent by such Person in writing not
later than such relevant Regular or Special Record Date.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                               HEWLETT-PACKARD COMPANY

                                               By: __________________________

Attest: _________________________________

Trustee's Certificate of Authentication.

This is one of the Securities of the series
designated herein referred to in the
within-mentioned Indenture.

Dated:

CHASE MANHATTAN BANK AND TRUST COMPANY, NATIONAL ASSOCIATION
As Trustee

By: _________________________________
    Authorized Signatory

<PAGE>

                               REVERSE OF SECURITY

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June 1, 2000 (herein called the
"Indenture," which term shall have the meaning assigned to it in such
instrument), between the Company and Chase Manhattan Bank and Trust Company,
National Association, as Trustee (herein called the "Trustee," which term
includes any successor Trustee under the Indenture), and reference is hereby
made to the Indenture and all indentures supplemental thereto for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof limited in aggregate
principal amount to $1,500,000,000.

     The Company will have the right to redeem the Security, in whole or in part
at any time, on at least 30 days but no more than 60 days prior written notice
mailed to the registered Holders of the Securities to be redeemed. The
Redemption Price will be equal to the greater of (1) 100% of the principal
amount of the Securities to be redeemed and (2) the sum as determined by the
Quotation Agent (as defined below), of the present value of the principal amount
of the Securities to be redeemed and the remaining scheduled payments of
interest thereon from the Redemption Date to the maturity date (the "Remaining
Life") discounted from the scheduled payment dates to the Redemption Date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Treasury Rate (as defined below) plus 12.5 basis points, plus accrued and
unpaid interest on the principal amount being redeemed to the Redemption Date.

     If money sufficient to pay the Redemption Price of and accrued interest on
the Securities (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Trustee or Paying Agent on or before the Redemption Date and
the conditions set forth in Article 11 of the Indenture are satisfied, then on
and after the Redemption Date, interest will cease to accrue on such Securities
(or such portion thereof) called for redemption. If any Redemption Date is not a
Business Day, we will pay the Redemption Price on the next Business Day without
any interest or other payment due to the delay.

     If less than all of the Securities of a series are to be redeemed, the
Trustee will select the Securities for redemption on a pro rata basis, by lot or
by such other method as the Trustee deems appropriate and fair. No Securities of
$1,000 or less will be redeemed in part.

     "Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the Remaining
Life that would be utilized, at the time of selection, and in accordance with
customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity with the Remaining Life.

     "Comparable Treasury Price" means, with respect to any Redemption Date, the
average of two Reference Treasury Dealer Quotations for such Redemption Date.

<PAGE>

     "Quotation Agent" means the Reference Treasury Dealers.

     "Reference Treasury Dealer" means each of Credit Suisse First Boston
Corporation and Salomon Smith Barney Inc., and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a Primary Treasury Dealer), the
Company shall substitute therefor another Primary Treasury Dealer.

     "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding the Redemption Date.

     "Treasury Rate" means, with respect to any Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
the Redemption Date.

     The Company will, subject to certain exceptions and limitations set
forth below, pay to the Holder of any Security who is a United States Alien
(as defined below), as additional interest, such additional amounts
("Additional Amounts") as may be necessary in order that every net payment on
such Security (including payment of the principal of and interest on such
Security) by the Company or the Company's specified Paying Agent, after
deduction or withholding for or on account of any present or future tax,
assessment or other governmental charge imposed upon or as a result of such
payment by the United States (or any political subdivision or taxing
authority thereof or therein), will not be less than the amount provided in
such Security to be then due and payable. However, the Company's obligation
to pay Additional Amounts will not apply to:

     (1)  any tax, assessment or other governmental charge that would not have
          been so imposed but for the existence of any present or former
          connection between such Holder or beneficial owner of such Security
          (or between a fiduciary, settlor or beneficiary of, or a person
          holding a power over, such Holder, if such Holder is an estate or a
          trust, or a member or shareholder of such Holder, if such Holder is a
          partnership or corporation) and the United States or any political
          subdivision or taxing authority thereof or therein, including, without
          limitation, such Holder (or such fiduciary, settlor, beneficiary,
          person holding a power, member or shareholder) being or having been a
          citizen or resident of the United States or treated as a resident
          thereof or being or having been engaged in a trade or business or
          present therein or having or having had a permanent establishment
          therein; or such Holder's or beneficial owner's past or present status
          as a personal holding company, foreign personal holding company,
          foreign private foundation or other foreign tax-exempt organization
          with respect to the United States, controlled foreign corporation for
          United States tax purposes or corporation that accumulates earnings to
          avoid United States Federal income tax;

<PAGE>

     (2)  any estate, inheritance, gift, excise, sales, transfer, wealth or
          personal property tax or any similar tax, assessment or other
          governmental charge;

     (3)  any tax, assessment or other governmental charge that would not have
          been imposed but for the presentation by the Holder of a Security for
          payment more than 30 days after the date on which such payment became
          due and payable or the date on which payment thereof was duly provided
          for, whichever occurred later;

     (4)  any tax, assessment or other governmental charge that is payable
          otherwise than by withholding from a payment on a Security;

     (5)  any tax, assessment or other governmental charge required to be
          withheld by any Paying Agent from a payment on a Security, if such
          payment can be made without such withholding by any other Paying
          Agent;

     (6)  any tax, assessment or other governmental charge that would not have
          been imposed but for a failure to comply with applicable
          certification, information, documentation, identification or other
          reporting requirements concerning the nationality, residence, identity
          or connection with the United States of the Holder or beneficial owner
          of a Security if such compliance is required by statute or regulation
          of the United States or by an applicable tax treaty to which the
          United States is a party as a precondition to relief or exemption from
          such tax, assessment or other governmental charge;

     (7)  any tax, assessment or other governmental charge imposed on a Holder
          that actually or constructively owns 10% or more of the combined
          voting power of all classes of stock of the Company;

     (8)  any tax, assessment or governmental charge that would not have been
          imposed or withheld but for the treatment of the interest by the
          Company as contingent interest described in Section 871(h)(4) of The
          Internal Revenue Code of 1986, as amended;

     (9)  any tax, assessment or governmental charge that would not have been
          imposed or withheld but for an election by the Holder the effect of
          which is to make the payment of the principal of, or interest (or any
          other amount) on, a Security by the Company or a Paying Agent subject
          to United States Federal income tax; or

    (10)  any combination of items (1), (2), (3), (4), (5), (6), (7), (8) and
          (9).

     In addition, the Company shall not be required to pay Additional Amounts on
a Security to a Holder that is a fiduciary or partnership or other than the sole
beneficial owner of such payment to the extent a beneficiary or settlor with
respect to such fiduciary or a member of such partnership or a beneficial owner
would not have been entitled to Additional Amounts (or payment of Additional
Amounts would not have been necessary) had such beneficiary, settlor, member or
beneficial owner been the Holder of such Security.

<PAGE>

     For the purposes above, a "United States Alien" means any Person who, for
United States Federal income tax purposes, is a foreign corporation, a
non-resident alien individual, a non-resident alien fiduciary of a foreign
estate or trust, or a foreign partnership one or more of the members of which
is, for United States Federal income tax purposes, a foreign corporation, a
non-resident alien individual or a non-resident alien fiduciary, of a foreign
estate or trust. "United States" means the United States of America (including
the States and the District of Columbia) and its territories, its possessions
and other areas subject to its jurisdiction.

     The Company may, at its option, redeem, as a whole, but not in part, the
Securities on not less than 30 nor more than 60 days' prior notice to the Holder
of record at a Redemption Price equal to 100% of their principal amount,
together with interest accrued to the Redemption Date if either of the following
occurs:

     (1)  as a result of any change in, or amendment to, the laws (or any
          regulations or rulings promulgated thereunder) of the United States
          (or any political subdivision or taxing authority thereof or therein),
          or any change in the official application (including a ruling by a
          court of competent jurisdiction in the United States) or
          interpretation of such laws, regulations or rulings, which change or
          amendment is announced or becomes effective on or after the
          consummation of this offering, the Company becomes or will become
          obligated to pay Additional Amounts; or

     (2)  any act is taken by a taxing authority of the United States on or
          after the consummation of this offering, whether or not such act is
          taken with respect to the Company or any Affiliate, that results in a
          substantial likelihood that the Company will or may be required to pay
          such Additional Amounts.

     However, in order to redeem the Securities pursuant to this provision the
Company will be required to determine, in its business judgment, that the
obligation to pay such Additional Amounts cannot be avoided by the use of
commercially reasonable measures available to the Company, not including
substitution of the obligor under the Securities or any action that would entail
a material cost to the Company. The Company may not redeem unless the Company
shall have received an opinion of counsel to the effect that because of an act
taken by a taxing authority of the United States (as discussed above) such an
act results in a substantial likelihood that the Company will or may be required
to pay Additional Amounts described above and the Company shall have delivered
to the Trustee a certificate, signed by a duly authorized officer, stating that
based on such opinion the Company is entitled to redeem the Securities pursuant
to their terms.

     Unless the Company defaults in payment of the Redemption Price, no
interest will accrue on the Securities called for redemption for the period
from and after the Redemption Date.

     In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation
hereof.

<PAGE>

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with certain
conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of more than 50% in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or Trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and any premium

<PAGE>

and interest on this Security are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or its attorney duly
authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     This Security shall be deemed to be a contract made under the laws of the
State of New York, and for all purposes shall be construed in accordance with
and governed by the laws of said State, without regard to conflict of laws
principles thereof.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

<PAGE>

                                   ASSIGNMENT

                FOR VALUE RECEIVED the undersigned hereby sells,
                           assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
(Please print or typewrite name and address including postal zip code of
assignee)

-------------------------------------------------------------------------------
the within Global Note of HEWLETT-PACKARD COMPANY and all rights hereunder,
hereby irrevocably constituting and appointing

--------------------------------------------------------------------- attorney
to transfer said Global Note on the books of the within-named Company, with full
power of substitution in the premises.

Dated: _______________________________

                                       SIGN HERE ______________________________
                                                 NOTICE: THE SIGNATURE TO THIS
                                                 ASSIGNMENT MUST CORRESPOND
                                                 WITH THE NAME AS WRITTEN UPON
                                                 THE FACE OF THE WITHIN
                                                 INSTRUMENT IN EVERY PARTICULAR,
                                                 WITHOUT ALTERATION OR
                                                 ENLARGEMENT OR ANY CHANGE
                                                 WHATEVER.

                                                 SIGNATURE GUARANTEED

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