Document:

Exhibit
10(c)(c)

COMPAQ
COMPUTER CORPORATION

DEFERRED
COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I.

  	
  ESTABLISHMENT AND
  PURPOSE

  	
   

  
	
   

  	
  1.1

  	
  Establishment

  	
  1

  
	
   

  	
  1.2

  	
  Purpose

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  DEFINITIONS
  AND CONSTRUCTION

  	
   

  
	
   

  	
  2.1

  	
  Definitions

  	
  2

  
	
   

  	
  2.2

  	
  Gender and Number;
  Severability

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  PARTICIPATION

  	
   

  
	
   

  	
  3.1

  	
  Eligibility

  	
  5

  
	
   

  	
  3.2

  	
  Participation

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  SUPPLEMENTAL BENEFITS

  	
   

  
	
   

  	
  4.1

  	
  Supplemental Amount

  	
  6

  
	
   

  	
  4.2

  	
  Determination
  of Supplemental Amount

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V.

  	
  DEFFERAL
  AMOUNTS; DEFERRAL ELECTIONS

  	
   

  
	
   

  	
  5.1

  	
  Types of Deferral
  Amounts

  	
  6

  
	
   

  	
  5.2

  	
  Salary Deferral Election

  	
  7

  
	
   

  	
  5.3

  	
  Bonus Deferral Election

  	
  7

  
	
   

  	
  5.4

  	
  Deferral Elections

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  PAYMENT OF BENEFITS

  	
   

  
	
   

  	
  6.1

  	
  Time of
  Payment of Deferral Amounts

  	
  8

  
	
   

  	
  6.2

  	
  Forms of
  Payment of Deferral Amounts

  	
  9

  
	
   

  	
  6.3

  	
  Distribution of
  Accounts for Need

  	
  9

  
	
   

  	
  6.4

  	
  Death
  Benefits

  	
  9

  
	
   

  	
  6.5

  	
  Withholding of Taxes

  	
  9

  
	
   

  	
  6.6

  	
  Minimum Distribution

  	
  9

  
	
   

  	
  6.7

  	
  Method of Calculation

  	
  10

  

 

i

 

	
  ARTICLE VII.

  	
  ACCOUNTS;
  CREDITED INCOME

  	
   

  
	
   

  	
  7.1

  	
  Participation Accounts

  	
  10

  
	
   

  	
  7.2

  	
  Investment
  Options; Crediting of Income

  	
  10

  
	
   

  	
  7.3

  	
  Nature of Account
  Entries

  	
  10

  
	
   

  	
  7.4

  	
  Vesting

  	
  11

  
	
   

  	
  7.5

  	
  Account Statements

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  ADMINISTRATION
  OF THE PLAN

  	
   

  
	
   

  	
  8.1

  	
  Administration

  	
  11

  
	
   

  	
  8.2

  	
  Rules; Claims for Benefits

  	
  11

  
	
   

  	
  8.3

  	
  Finality of
  Determinations

  	
  11

  
	
   

  	
  8.4

  	
  Indemnification

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  FUNDING

  	
   

  
	
   

  	
  9.1

  	
  Funding

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  AMENDMENT;
  TERMINATION; MERGER

  	
   

  
	
   

  	
  10.1

  	
  Amendment and
  Termination

  	
  12

  
	
   

  	
  10.2

  	
  Change of Control

  	
  13

  
	
   

  	
  10.3

  	
  Automatic Payment

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
  11.1

  	
  Beneficiary Designation

  	
  13

  
	
   

  	
  11.2

  	
  Effect on Other Plans

  	
  14

  
	
   

  	
  11.3

  	
  Nontransferability

  	
  14

  
	
   

  	
  11.4

  	
  Plan Not an
  Employment Contract

  	
  14

  
	
   

  	
  11.5

  	
  Applicable
  Law

  	
  14

  
	
   

  	
  11.6

  	
  Qualified
  Domestic Relations Orders

  	
  14

  

 

ii

 

COMPAQ COMPUTER CORPORATION

DEFERRED
COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN

(As Amended
and Restated Effective January 1, 2003)

 

ARTICLE I.

ESTABLISHMENT AND PURPOSE

 

1.1.    Establishment.  Effective as
of January 1, 1985, and as revised in November 1989, COMPAQ COMPUTER
CORPORATION (the “Company”) established a deferred compensation plan for
eligible officers known as the “Compaq Computer Corporation Deferred
Compensation Plan.” Effective as of April 1, 1985, the Company also established
the “Compaq Computer Corporation Excess and Supplemental Savings Plan” in order
to provide additional benefits to certain of its officers.  As of July 23, 1992, the Company combined
the aforementioned plans, amending and restating them as the COMPAQ COMPUTER
CORPORATION DEFERRED COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN (the “Plan”),
which was again amended and restated effective January 1, 1995 to further
enhance the Plan and to improve its administration.  The Company thereafter enhanced and preserved the benefits
offered by providing that Plan assets be held and invested by the Trustee (to
be appointed by the Company), pursuant to the terms of the Compaq Computer
Corporation Deferred Compensation and Supplemental Savings Trust dated December
17, 1993, and as thereafter amended (the “Trust”).  The Trustee invests the Plan assets with the goal of achieving the
hypothetical investment returns credited to Plan Participants.  Payments to the Participants are made first
from the Trust and second by the Company to the extent that the Trust assets
are not sufficient.  Effective December
31, 1998, the Plan was amended by resolution to reflect the merger into the
Plan of the Digital Equipment Corporation Deferred Compensation Plan for
Executives and, effective December 31, 1999, the merger into the Plan of the
Digital Equipment Corporation SAVE Restoration Plan.  Effective January 1, 2003, the Plan is amended and restated to
provide for certain design changes.  The
rights of any Participants in the Plan and the rights of any individual who is
an “Eligible Employee” (as defined herein) on or after such effective date shall
be governed by the Plan as so amended and restated.

 

1.2.    Purpose.  The Plan shall be
applicable only with respect to the eligible key executives of the Company and
its designated Affiliates.  It is
intended to be an unfunded plan maintained by the Company primarily to provide
deferred compensation for a select group of management and highly compensated
employees.  As such the Plan shall be
exempt from the participation, vesting and funding requirements of Parts 2 and
3 of Title I of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and shall be subject to the limited reporting and disclosure
requirements (under Part 1 of Title I of ERISA) applicable to such plans.

 

1

 

ARTICLE II.

DEFINITIONS AND CONSTRUCTION

 

 

2.1.    Definitions.  Whenever used in the Plan,
the following terms shall have the meaning set forth below unless otherwise
expressly provided:

 

(a)          “Accounts” means the
recordkeeping accounts which are maintained under the name of a Participant to
account for any Salary Deferral Amounts, Bonus Deferral Amounts, Supplemental
Amounts, and Credited Income thereon, which may be credited from time to time.

 

(i)             Salary
Deferral Account—a separate subaccount maintained to account for a
Participant’s Salary Deferral amount plus Credited Income thereon.

 

(ii)          Bonus Deferral
Account—a separate subaccount maintained to account for a Participant’s Bonus
Deferral Amount plus Credited Income thereon.

 

(iii)       Supplemental
Account—a separate subaccount maintained to account for a Participant’s
Supplemental Amount plus Credited Income thereon.

 

(b)         “Affiliate” means an
entity which is a member of a controlled group of corporations (as defined in
Section 414(b) of the Code) which includes the Company.

 

(c)          “Base
Salary” means the annual base cash compensation for an employee on the U.S.
payroll of the Company, excluding commissions, overtime pay, bonuses or
Bonuses, shift differential, payments under any disability program sponsored by
the Company, or any other additional compensation.

 

(d)         “Beneficiary” means the
person, persons or trust designated by a Participant as provided  in Section 11.1, or designated as a
beneficiary under the terms of Section 11.1.

 

(e)          “Board of Directors” means the Board
of Directors of Hewlett-Packard Company.

 

(f)            “Bonus” means
any management incentive, profit-sharing or other bonus award that an Eligible
Employee may become eligible to receive and that the Committee may deem from
time to time eligible to be deferred under this Plan.

 

(g)         “Bonus
Deferral Amount” means that portion of an Eligible Employee’s Bonus
which he has elected to defer, as provide in Section 5.3.

 

(h)         “Change of Control” shall be
deemed to have occurred if: (I) any “person” as such term is used in Sections
13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or
other fiduciary holding securities under any employee benefit plan of the
Company, or any company owned, directly indirectly, by the stockholders of the
Company in substantially the same 

 

2

 

proportions as their ownership of stock of the Company), is or becomes
the beneficial owner (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 30% or more
of the combined voting power of the Company’s then-outstanding securities; (ii)
during any period of two consecutive years individuals who at the beginning of
such period constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to
effect a transaction describe in clause (I), (iii), or (iv) of this Section
2.1(h)) whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who either were directors at the beginning of the two-year
period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority of the Board of
Directors; (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 80% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation; provided, however, that a merger or
consolidation effected to implement a recapitalization of the Company (or
similar transaction) in which no person acquires more than 30% of  the combined voting power of the Company’s
then-outstanding securities shall not constitute a Change in Control of the
Company; or (iv) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets.

 

(i)             “Code” means the
Internal Revenue Code of 1986, as amended from time to time.

 

(j)             “Committee” means the
committee of persons appointed by the Board of Directors, as provided in
Section 8.1, and any delegate of such Committee. The Committee shall serve as
plan administrator within the meaning of ERISA.

 

(k)          “Common Stock’ means common
stock of Hewlett-Packard Company, par value $.01 per share.

 

(l)             “Company” means COMPAQ
COMPUTER CORPORATION and any corporate successor thereto.

 

(m)       “Credited Income” means the
assumed earnings credited to Participant’s Account, as provided in Section 7.2.

 

(n)         “Deferral Amounts” means Salary
Deferral Amounts and/or Bonus Deferral Amounts, as more fully described
in Article V.

 

(o)         “Deferral Payment Date” means the
payment date, as specified by a Participant on his Salary Deferral
Amount or Bonus Deferral Amount election 

 

3

 

form, on which he elects to have his applicable amount paid or commence
being paid.

 

(p)         “Eligible Employee” means a key
employee of the Employer whose Base Salary equals or exceeds the sum of (1) the
dollar limit established under Section 401(a)(17) of the Code plus (2) the
minimum Salary Deferral Amount established under the Plan from time to
time.  Notwithstanding the foregoing, an
“Eligible Employee” shall be limited to individuals who are United States
residents paid on a United State payroll of the Employer and in “active” status
and shall not include individuals who are classified by the Company as (i)
leased from or otherwise employed by a third party, (ii) independent
contractors, or (iii) intermittent or temporary, even if such classification is
changed retroactively as a result of an audit, litigation or otherwise.

 

(q)         “Employer” means the Company and those
Affiliates who have been designated to participate in the Plan by the Board of
Directors.

 

(r)            “Investment Options” means the
optional forms of determining Credited Income with respect to Participants’
Accounts, which the Committee, in its discretion, may elect to establish
pursuant to Section 7.2.

 

(s)          “Investment Plan” means the
Compaq Computer Corporation 401(k) Investment Plan, as it may be amended from
time to time.

 

(t)            “Participant”
means an Eligible Employee who has elected, under the terms and
conditions of the Plan, to defer payment of all or a portion of his bonus or
salary, and/or who is credited with a Supplemental Savings Amount.  A Participant who is not currently an
Eligible Employee but whose Account under this Plan is credited with a balance
shall be referred to as an “Inactive Participant.” The term “Participant” shall
include Eligible Employees, former Eligible Employees, and employees other than
Eligible Employees, so long as any such individual has a balance credited to
his Account.

 

(u)         “Plan” means the
COMPAQ COMPUTER CORPORATION DEFERRED COMPENSATION AND SUPPLEMENTAL SAVINGS PLAN
as set forth herein, and as it may be amended from time to time.

 

(v)         “Plan Year” means the
12-month period beginning each January 1 and ending December 31 of such year.

 

(w)       “Salary Deferral Amount” means that
portion of an Eligible Employee’s Base Salary that he has elected to defer, as
provided in Section 5.2.

 

(x)           “Supplemental Amount” means the
amount creditable to the Supplemental Account of a Participant pursuant to
Section 4.2.

 

2.2.    Gender and
Number; Severability. 
Except when otherwise indicated by the context, any masculine
terminology when used in the Plan shall also include the feminine gender, and
the definition of any term in the singular shall also include the plural.  In the event any provision of the Plan shall
be held invalid or 

 

4

 

illegal for any reason, any illegality or invalidity shall not affect
the remaining parts of the Plan, but the Plan shall be construed and enforced
as if the illegal or invalid provision had never been inserted, and the Company
shall have the privilege and opportunity to correct and remedy such questions
of illegality or invalidity by amendment as provided in the Plan.

 

ARTICLE III.

PARTICIPATION

 

3.1.    Eligibility.  The Committee shall provide
each Eligible Employee with notice of his status as an Eligible Employee, so as
to permit such Eligible Employee the opportunity to make the elections provided
for under Article V.  Such notice may be
given at such time and in such manner as the Committee may determine from time
to time, and the Committee shall advise the Eligible Employee of the time and
manner for filing his election for which he qualifies.  Each Eligible Employee shall be eligible to
participate in all features of the Plan for which he qualifies.

 

3.2.    Participation.

 

(a)          In General.  Except
as provided below, an Eligible Employee shall become a Participant in
this Plan as of the first day of the calendar year immediately following the
calendar year during which the Company receives his deferral election pursuant
to Article V.  Individuals becoming
Eligible Employees on or after the first day of any Plan Year may not become
Participants until the first day of the next calendar year, provided they are
still Eligible Employees at that time.

 

(b)         Cessation of Status as Eligible
Employee.  If an
Eligible Employee with a Salary Deferral Amount and/or Bonus Deferral Amount
election in effect for a particular Plan Year ceases to be an Eligible Employee
during such Plan Year, his election with respect to a Salary Deferral Amount
shall terminate effective as of the close of the Plan Year during which he
ceases to be an Eligible Employee.  Such
Employee’s election with respect to his Bonus Deferral Amount shall continue in
effect for any Bonus attributable to the Plan Year during which the Participant
ceases to be an Eligible Employee.  The
provisions in the preceding two sentences relate only to the discontinuance of
the Deferral Amount elections after the end of the Plan Year in which the
Employee terminates employment or otherwise ceases to be an Eligible
Employee.  Amounts credited to such
person’s Accounts under any such election prior to its discontinuance shall be
payable pursuant to the terms of such election, subject to the provisions of
Article III.

 

5

 

ARTICLE IV.

SUPPLEMENTAL BENEFITS

 

4.1.    Supplemental Amount.  Effective
January 1, 2003, no Participant shall be credited with a Supplemental Amount as
provided in Section 4.2, other than any Supplemental Amount attributable to
such Participant’s 2002 participation in the Plan.

 

4.2.    Determination
of Supplemental Amount.

 

(a)          Each
Participant shall be credited with a Supplemental Amount under the Plan for the
applicable Plan Year equal to the Participant’s Salary Deferral Amounts, but in
no event in an amount greater than six percent (6%) of such Participant’s
Compensation as defined in the Investment Plan (calculated without regard to
Code Section 401(a)(17)) less an amount equal to such Participant’s actual or
accrued Employer Matching Contribution as defined in the Investment Plan;
provided, however, that no Supplemental Amount shall be credited to any
employee of the Company or an Affiliate with respect to whom the Company or an
Affiliate funds or has promised to pay (whether by individual contract or
pursuant to or part of a plan or program that provides) deferred compensation
or pension benefits to such person other than pursuant to the Investment Plan
or this Plan.  The Supplemental Amount
will be credited shortly after the end of the applicable Plan Year.  A Participant must be an Employee of the
Company or an Affiliate on December 31 to receive a Supplemental Amount for
that Plan Year.  A Participant hired
before October 1, 1998 who elected to continue earning pay credits under the
Compaq Computer Corporation Cash Account Pension Plan is not eligible for
Supplemental Amounts as described in this Section 4.2(a).

 

(b)         A Participant
hired before October 1, 1998 who elected to continue earning pay credits under
the Compaq Computer Corporation Cash Account Pension Plan, will be eligible for
a Supplemental Amount equal to 2% of his Base Salary in excess of the limit
described in Section 401(a)(17) of the Code, assuming that such Participant
contributed the maximum amount allowable under Section 402(g) of the Code to
the Investment Plan during the year.

 

 

ARTICLE V.

DEFERRAL AMOUNTS; DEFERRAL
ELECTIONS

 

5.1.    Types of
Deferral Amounts. 
There are two types of Deferral Amounts that may be applicable to a
Participant under the Plan:  Salary
Deferral Amounts as described in Section 5.2, and Bonus Deferral Amounts as
described in Section 5.3.

 

6

 

5.2. Salary Deferral Election.

 

(a)          Salary Deferral Amount.  An Eligible Employee may elect each calendar
year to defer up to 100% of his Base Salary exceeding the amount defined in
Code section 401(a)(17), as adjusted by the Secretary of the Treasury under
Code section 415(d), in effect on January 1 of the calendar year to which the
deferral election pertains. The minimum amount of Base Salary that an Eligible
Employee may elect to defer is $6,000 per calendar year and will be deferred
from the Employee’s Base Salary equally over the number of pay periods falling
within the applicable calendar year.

 

(b)         Election of Salary Deferral
Amount.  To make an election of a
Salary Deferral Amount for any calendar year, the Eligible Employee must file a
deferral election form with the Committee in accordance with such rules as are
set by the Committee, but in no event later than the last business day of the
calendar year preceding the Plan Year for which the election is made.  Each such election shall be made with
respect to a specific calendar year and all payroll periods applicable to the
Eligible Employee which begin within such calendar year. An election filed for
a calendar year shall be applicable only for such calendar year.

 

(c)          Treatment of New Eligible
Employees.  If an
individual first becomes an Eligible Employee on or after the first day of a
calendar year, such Eligible Employee may not make a Salary Deferral Amount
election for the remaining payroll periods of such calendar year.

 

5.3. Bonus Deferral
Election.

 

(a)          Bonus Deferral Amount.  An Eligible Employee may elect to defer up to
95% of any Bonus he may be awarded by the Company.  The amount to be so deferred shall be specified in such manner as
shall be determined by the Committee. Once
an election is made by an Eligible Employee to defer a portion of a
Bonus, the appropriate amount will be withheld from the Bonus when the
amount of the Bonus has been certified by the Committee (with respect to a
Bonus under the Balanced Score Card Plan or Pay-for-Results Short-Term Bonus
Plan), but not before the Bonus would otherwise have been paid to the
Participant in cash under the plan from which the Bonus is payable.

 

(b)         Election of Bonus Deferral
Amount.  To make an election of a
Bonus Deferral Amount, the Eligible Employee must file a deferral election form
with the Committee.  Each such election
shall be made with respect to a calendar year and with respect to some or all
Bonus awards (which may be in varying percentages) made by the Company
attributable to such calendar year.  To
make an effective Bonus Deferral Amount election for a calendar year, the Eligible
Employee must file the appropriate deferral election form with the Committee in
accord with such rules as are set by the Committee, but in no event later than
the last business day preceding the beginning of the performance period to
which the Bonus award pertains.

 

7

 

(c)          Treatment of New Eligible
Employee.  If an
individual first becomes an Eligible Employee on or after the first day of a
calendar year, such Eligible Employee may not make a Bonus Deferral Amount
election for such calendar year.

 

5.4.    Deferral Elections.  All Salary
Deferral Amount and Bonus Deferral Amount elections, as provided under Sections
5.2 and 5.3 respectively, shall be made on such deferral election forms as are
prescribed by the Committee.  Each
election form shall specify the nature of the Deferral Amount, the form of
payment which is to be applicable with respect to such designated Deferral
Amount, as provided in Article VI, the Beneficiary or Beneficiaries to receive
any death benefit applicable to the subject amount, as provided in Sections 6.5
and 11.1, and the Deferral Payment Date on which payment is to commence with
respect to such Deferral Amount.  Such
Deferral Payment Date must be at least three (3) years after the date of the
filing of the election form.  Except as
otherwise provided in this Article V, all such Salary Deferral Amount and Bonus
Deferral Amount elections shall become irrevocable for the subject calendar
year once the calendar year has commenced. 
An Eligible Employee may change or revoke his Salary Deferral Election
under Section 5.2 and may change or revoke his Bonus Deferral election under
Section 5.3 pursuant to such rules as are set by the Committee but in no event
may any such election be amended or revoked after (i) the last business day of
the calendar year preceding the Plan Year for which the election is made, with
respect to Salary Deferral elections, and (ii) the last business day preceding
the beginning of the performance period to which the Bonus award pertain, with
respect to Bonus Deferral elections.

 

 

ARTICLE VI.

PAYMENT OF BENEFITS

 

6.1.    Time of Payment of Deferral Amounts. 
On each deferral election form filed by a Participant, such Participant
shall specify the Deferral Payment Date on which benefit payments under the
Plan are to be made or commence with respect to the Deferral Amount covered by
such deferral election.  In making such
designation, the Participant may designate any January of a specified year
after the Plan Year as a Deferral Payment Date.  Additionally, on such form the Participant may elect that in all
events payments shall commence as soon as practicable following the date on
which the Eligible Employee terminates employment with the Company and
Affiliates (which, in the case of installment payments, shall be as of the
January following the date of such Employee’s termination of employment).  If for any reason the Eligible Employee
fails to make an effective Deferral Payment Date designation, his Deferral
Payment Date for the amount that is the subject of the deferral election shall
be as soon as practicable following the date on which the Eligible Employee
terminates employment with the Company and related entities, with such amount
paid in a single lump sum.  Except as otherwise
provided in this Article VI, all benefit payments under the Plan with respect
to Deferral Amounts and Bonus Deferral Amounts shall be made to the Participant
on the Deferral Payment Dates as specified in his applicable deferral election
forms.  Payments with respect to
Supplemental Amounts shall be 

 

8

 

made on the same dates and in the same manner as the Salary Deferral
Amounts for the same subject calendar year.

 

6.2.    Forms of Payment
of Deferral Amounts.  On each
deferral election form filed by a Participant, such Participant shall specify
the form of payment for the amounts attributable to the Deferral Amount covered
by such deferral election.  In making
such designation, the Participant may designate payment in the form of a single
lump sum payment or payment in the form of annual installment payments payable
for not less than two (2) but no more than fifteen (15) years.  Annual installment payments will be paid
once a year beginning on the date specified on the applicable deferral election
form, as provided in Section 6.1. If for any reason the Participant fails to
make an effective designation under this Section 6.2, payment of the amount
that is the subject of the deferral election shall be made in the form of a
single lump sum payment on the date as specified in Section 6.1. Except as
otherwise provided in this Article VI, all benefit payments under the Plan with
respect to a Participant’s Deferral Amounts shall be made to the Participant in
the payment forms as specified on his applicable deferral election forms.

 

6.3.    Distribution of Accounts for Need. 
Notwithstanding the provisions of Sections 6.1 and 6.2, a Participant
shall receive a distribution of his Accounts under the Plan in the event of a
financial hardship that is due to an unanticipated emergency beyond the control
of the Participant or the Participant’s dependents or family.  The Committee shall determine such financial
hardship in its sole and complete discretion, and any such distribution shall
be limited to the amount necessary to meet the emergency.

 

6.4.    Death Benefits.  If a
Participant shall die with a balance credited to his Accounts, such balance
shall be paid to his applicable designated Beneficiary or Beneficiaries as
provided herein.  With respect to all
amounts that have not been paid as of the Participant’s death, the then-current
balance of each such amount payable to a designated Beneficiary shall be paid
to the designated Beneficiary in a single lump-sum payment as soon as
practicable following the Participant’s death.

 

6.5.    Withholding of Taxes.  The Company
shall have the right to deduct from all payments made under the Plan any
federal, state or local taxes required by law to be withheld with respect to
such payments.  If, with respect to the
pay period within which a deferral, payment or Bonus is made under this Plan or
other plans from which a Bonus is payable, the Participant receives
insufficient actual cash compensation to cover such taxes, then the Company may
withhold any remaining Taxes owing from any payments due the Participant or
otherwise make appropriate arrangements with the Participant for satisfaction
of such obligation.

 

6.6. Minimum
Distributions.  If a
Participant’s employment with the Company has terminated, and if such
Participant has elected (or is entitled) to receive distributions from the Plan
in an amount (or which is reasonably expected to be an amount) of less than
$10,000 annually, the Committee in its sole and exclusive discretion may pay to
such Participant, in lieu of such annual amount, the total vested balance in
such Participant’s Account immediately upon termination.  In the alternative, the Committee in its
discretion may increase such Participant’s annual 

 

9

 

payments to $10,000 and reduce the total number of payments to be paid
in proportion to such increased payment, but may not otherwise accelerate the
time of the payments.

 

6.7.    Method of
Calculation of Payments. 
For purposes of computing the amount of any distribution to a
Participant or a Beneficiary, the balance in such Participant’s or
Beneficiary’s Account (as of the date preceding the payment date) shall be
multiplied by a fraction, the numerator of which equals one and the denominator
of which equals the number of years that such Participant or Beneficiary has
elected to defer payments under this Article less the number of payments such
Participant or Beneficiary has previously received pursuant to this Section.

 

 

ARTICLE VII.

ACCOUNTS; CREDITED INCOME

 

7.1.    Participant Accounts.  The Committee
shall maintain, or cause to be maintained, bookkeeping Accounts for each
Participant for the purpose of accounting for the Participant’s beneficial
interest under the Plan.  The
establishment and maintenance of separate Accounts for each Participant shall
not be construed as giving any person an interest in assets of the Company or a
right to payment other than as provided hereunder.  Benefits hereunder shall constitute an unsecured general
obligation of the Company, but the Company has created reserves held in Trust
in accordance with the terms thereof.

 

7.2.    Investment Options; Crediting of Income. 
The Committee shall credit Accounts with Credited Income at the rate of
return generated by one (1) or more of the Investment Options established by
the Committee and selected by the Participants.  The Committee shall establish separate funds for bookkeeping
purposes to measure a hypothetical rate of return over a period designated by
the Committee.  The Committee may, but
need not, provide for such options as are substantially similar (if not
identical) to those provided under the Investment Plan.  Such Investment Options and the relevant
funds shall be established for bookkeeping purposes only and shall not require
the establishment of actual corresponding funds by the Committee or the
Company.  Any establishment, addition or
deletion of Investment Options shall be in the sole and absolute discretion of
the Committee.  The Committee shall
promulgate uniform procedures applicable to all Participants for allocating and
transferring amounts credited to individual Accounts based on the performances
of the various Investment Options, and may, in its sole discretion, establish
uniform procedures for Participant direction and election amongst such funds,
including the designation of an Investment Option for Participants in the
absence of a Participant election.  In
the absence of an election by a Participant of an Investment Option, the
Participant will be deemed to have elected an Investment Option that is or is
substantially equivalent to a short-term money market fund.

 

7.3.    Nature of
Account Entries.  The
establishment and maintenance of Participants’ Accounts shall be merely
bookkeeping entries and shall not be construed as giving any person an interest
in any specific assets of the Company 

 

10

 

or of any subsidiary of the Company or Trust or a right to payment or
other than as provided hereunder. 
Benefits hereunder shall constitute an unsecured general obligation of
the Company, but the Company has provided for amounts to be held in trust on
the Company’s behalf under the Trust.

 

7.4.    Vesting.  A Participant shall have a
fully vested and nonforfeitable beneficial interest in the balance standing to
the credit of his Salary Deferral, Bonus Deferral and Supplemental Accounts as
of any relevant date, subject to the conditions and limitations on the payment
of amounts credited to such Accounts as provided in the Plan.

 

7.5.    Account
Statements.  The Committee shall provide
each Participant with a statement of the status of his Accounts under the
Plan.  The Committee shall provide such
statement annually and at such other times as the Committee may determine from
time to time, and such statement shall be in the format as presented by the
Committee.

 

 

ARTICLE VIII.

ADMINISTRATION OF THE
PLAN

 

8.1.    Administration.  The Plan shall
be administered by a committee of persons appointed by the Board of Directors
of the Company; provided, however that such Committee may consist solely of one
person.  A majority of the members of
the Committee shall constitute a quorum and the acts of a majority of the
members present, or acts approved in writing by a majority of the members
without a meeting, shall be the acts of the Committee.  The Committee shall have that authority
which is expressly stated in the Plan as vested in the Committee and authority
to make rules to administer and interpret the Plan, to decide questions arising
under the Plan, and to take such other action as may be appropriate to carry
out the purposes of the Plan.  The Committee may
delegate its administrative responsibilities as it deems appropriate.

 

8.2.    Rules; Claims for Benefits. 
The Committee shall adopt and establish such rules and regulations with
respect to the administration of the Plan as it deems necessary and
appropriate, including procedures regarding a claim for benefits under the Plan
by a Participant or Beneficiary.  To the
extent required by law, completion of such claims procedures shall be a
mandatory precondition that must be complied with prior to the commencement of
a legal or equitable action by a person claiming rights under the Plan or the
Trust.  The Committee and the claimant
may by mutual agreement waive the procedures as a mandatory condition to such
action.  In no event shall the claims
procedure be applied to circumvent or have the effect of modifying either the
manner of payment or the time of commencement of payment under the terms of the
Plan.

 

8.3.    Finality of
Determinations.  Except as
provided by law, all determinations of the Committee (or any delegates of the
Committee) to any matter arising under the Plan, including questions of
construction and interpretation, shall be binding and conclusive upon all interested
parties.

 

11

 

8.4.    Indemnification. 
To the extent permitted by law and the Company’s bylaws, the members of
the Committee, the Trustee, its agents, and the officers, directors, and
employees of the Company shall be indemnified and held harmless by the Company
against and from any and all loss, cost, liability, or expense that may be
imposed upon or may be reasonably incurred by them in connection with or
resulting from any claim, action, suit, or proceeding to which they may be a
party or in which they may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid by them in
settlement (with the Company’s written approval) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding.

 

 

ARTICLE IX.

FUNDING

 

9.1.    Funding.  It is intended that the
Company be under a contractual obligation to make the payments when due under
the Plan or as the Committee may direct. 
All amounts paid under the Plan shall be paid in cash, first from Trust
assets and then from the general assets of the Company; provided, however, that
the Committee may determine, in its discretion, to pay in whole shares of
Common Stock the portion of an Account that is deemed to be invested in Common
Stock for purposes of Section 7.2. 
Benefits hereunder and Credited Income shall also be reflected on the
accounting records of the Company, as provided for under the Plan.  No Participant shall have any right, title
or interest whatsoever in or to any investment reserves, trusts, accounts, or
funds that the Company may purchase, establish or accumulate to aid in
providing the benefit payments described in the Plan except as provided for
under the Trust.  Participants and
Beneficiaries shall not acquire any interest under the Plan greater than that
of unsecured general creditors of the Company. 
Shortly after the end of each Plan Year the Committee will calculate the
total Account Balances of all Participants. 
If such aggregate balance exceeds the total net assets of the Trust, the
Company shall contribute such excess to the Trust.  If the Trust’s net assets exceed the aggregate balance of the
Participants’ Accounts, the Committee will credit such excess against any
liabilities or other obligations of the Company to the Trust.  In that event funds of the Trust are
returned to the Company or paid for the benefit of its general creditors, all
payment obligations under this Plan shall be due immediately and the Company
hereby acknowledges that the obligations hereunder accrued not by reason of the
events described in this sentence but by reason of payments that otherwise
would have been paid previously, but for this Plan.

 

 

ARTICLE X.

AMENDMENT; TERMINATION; MERGER

 

10.1.       Amendment and Termination.  The Committee may amend, modify, or terminate the Plan at any time
but in no event shall any such amendment, modification, or termination result
in a reduction in any Participant’s Account or postpone the time of payment
thereunder as of the time of such amendment, modification, or termination
unless the Committee and any Participant, Beneficiary 

 

12

 

or employee who suffers such a reduction or postponement by reason of
such proposed amendment, modification or termination, consents in writing to
such amendment, modification or termination, and such consent is filed with the
Committee in the calendar year preceding the effective date of the proposed
amendment, modification or termination. 
In the event of a termination of the Plan, no further deferral elections
may be made under the Plan and amounts which are then payable, or which become
payable under the terms of the Plan, shall be paid as scheduled in accordance
with the provisions of the Plan.

 

10.2.       Change of Control.  In the
event of a Change of Control of the Company, except as may otherwise be elected
in advance by a Participant, all benefits hereunder shall become immediately
due and payable if the Participant voluntarily or involuntarily terminates
employment on or before the second anniversary of such change in control and
each Participant shall have the right to receive his benefits hereunder in a
single lump sum payment.

 

10.3.       Automatic Payment. 
Notwithstanding anything contained herein to the contrary, if it has
been finally determined that funds held pursuant to this Plan and the relevant
Trust or Credited Income are includable in the taxable income of a Participant
or his Beneficiary, such funds shall be immediately distributed to such
Participant or Beneficiary.  For
purposes of this Section, a final determination shall occur when a decision is
determined by the highest court which could otherwise render a decision (or the
Participant and the Internal Revenue Service have reached a final agreement) in
this regard.

 

ARTICLE XI.

GENERAL PROVISIONS

 

11.1.       Beneficiary Designation.  A Participant shall designate a Beneficiary or Beneficiaries who,
upon his death, are to receive payments that otherwise would have been paid to
him under the Plan.  All Beneficiary
designations shall be in writing and on a form prescribed by the Committee for
such purpose, and any such designation shall only be effective if and when
delivered to the Committee during the lifetime of the Participant.  A Participant may from time to time during
his lifetime change a designated Beneficiary or Beneficiaries (or change a
designated form of payment to a Beneficiary) by filing a new Beneficiary
designation form with the Committee.  In
the event a designated Beneficiary of a Participant predeceases the
Participant, the designation of such Beneficiary shall be void.  If a designated Beneficiary dies after the
Participant, but before all death benefit payments relating to such Beneficiary
have been paid, such death benefit payments shall be paid to such Beneficiary’s
estate, unless the Participant had designated on the applicable Beneficiary
designation form a contingent Beneficiary. 
In the event a Participant shall fail to designate a Beneficiary or
Beneficiaries with respect to any death benefit payments, or if for any reason
such designation shall be ineffective, in whole or in part, any payment that
otherwise would have been paid to such Participant shall be paid to his spouse,
if he is married at the time of his death, or to his estate, if he is not
married at the time of his death.

 

13

 

11.2.       Effect on Other Plans.  Deferred
Amounts shall not be considered as part of a Participant’s compensation for the
purpose of any savings or pension plan maintained by the Company, but such
amounts shall be taken into account under all other employee benefit plans
maintained by the Company in the year in which such amounts would have been
payable in the absence of a deferral election, unless specifically excluded
under the terms of such other plan; provided, however, that such amounts shall
not be taken into account to the extent the inclusion thereof would jeopardize
the tax-qualified status of the plan to which they relate.

 

11.3.       Nontransferability. 
No right or interest of any Participant in the Plan shall be assignable
or transferable in whole or in part, either voluntarily or by operation of law
or otherwise, or be subject to payment of debts of any Participant by execution,
levy, garnishment, attachment, pledge, bankruptcy, or in any other manner.  Subject to Section 11.6 and notwithstanding
the foregoing, upon receipt of a copy of a decree from a court of competent
jurisdiction which finally declares a Participant’s spouse as having property
rights to a portion of the amounts credited to such Participant’s Accounts, the
Committee shall segregate such portion from the Participant’s Accounts and hold
that portion for the benefit of the spouse.

 

11.4.       Plan Not an Employment Contract. 
The Plan is not an employment contract. 
It does not give to any person the right to be continued in employment,
and all Eligible Employees and employees remain subject to change of salary,
transfer, change of job, discipline, layoff, discharge, or any other change of
employment status.

 

11.5.       Applicable Law.  The Plan shall be governed and construed in accordance with the
laws of the State of Delaware, except to the extent such laws are preempted by
any applicable Federal law.

 

11.6.       Qualified Domestic Relations Orders. 
Upon receipt of any court order relating to the benefit payable to a
Participant hereunder, the Committee shall (a) notify the Participant and the
“alternate payee(s)” of such order and the Plan’s procedures for determining
the qualified status of such order; and (b) segregate in a separate account in
the Plan the mount payable pursuant to such order.  Within 18 months of receipt of such order, the Committee shall
determine whether the order is a “qualified domestic relations order” (as
defined in Section 414(p)(7) of the Code determined as if the Plan were a
qualified plan), pursuant to written administrative procedures identical to
those adopted by the Investment Plan in accordance with Section 414(p)(6) and
(7) of the Code.  If such order is a
qualified domestic relations order determined as if the Plan were a qualified
plan, the Committee shall pay the segregated amount to that alternate payee(s)
entitled thereto in a single lump-sum payment as soon as practicable after such
determination.

 

14Exhibit
10(m)(m)

 

[Letter from Carly Fiorina to Peter Blackmore, Jeff Clarke, Bob Napier,
Shane Robison, Mike Winkler and others.]

 

	
   

  	
  

  	
  Hewlett-Packard Company

  3000 Hanover Street

  Palo Alto, CA 94304-1112

  www.hp.com

  

 

 

	
  Carly
  Fiorina

  	
   

  	
  6
  March 2003

  
	
  Chairman
  and CEO

  	
   

  	
   

  
	
   

  	
   

  	
  «first_name»
  «last_name»

  
	
   

  	
   

  	
  «title»

  

 

Dear «first_name»:

 

We are fast approaching the first anniversary of the merger, and I
believe we have forged the right strategy for success as we move the new
company forward.  We have accomplished
so much over these past months.  Our
management team has demonstrated great strength and ability despite incredible
pressures and, at times, not a small dose of adversity.  I am glad that you are on the team and I
value your leadership and look forward to your many contributions as we make HP
the best company in the world.

 

As you know, if you remain employed through the merger anniversary date,
you will receive the second retention payment under your executive
severance/retention agreement dated September 17, 2001 (the “Agreement”).  Once that payment is made, you will have
received essentially the same amount you would have been eligible for as
severance had you incurred a Qualifying Termination under the Agreement — three
times the sum of your base and target annual bonus.  That being the case, the Agreement will not be renewed; however,
subject to the approval of the Human Resources and Compensation Committee of
the HP Board of Directors, the severance provisions of the Agreement other than
those regarding the cash Separation Payment will be extended through September
4, 2003 and, for purposes of the special stock option treatment providing for
full vesting of any unvested options granted prior to May 3, 2002 and three
years (but in no event longer than the original life of the option) to exercise
those options (the “Special Stock Option Treatment”) only, through October 31,
2003.  The extension through September
4, 2003 will include the severance benefits other than the Separation Payment
that would have otherwise only been available to you in the event of a
Qualifying Termination occurring within one year of a Change in Control (both
as defined in the Agreement).  In other
words, should you incur a Qualifying Termination prior to September 4, 2003,
you will not be eligible for any additional cash separation payment under the
Agreement, but you will be eligible for the health benefit continuation, the
Prorated Annual Incentive payment, reimbursement of reasonable legal fees,
reimbursement for financial counseling services, outplacement assistance,
gross-up for certain excise taxes, and the Special Stock Option Treatment all
as provided for under the original terms of the Agreement for a Qualifying
Termination occurring within one year of a Change in Control.  Should you incur a Qualifying Termination
between September 4, 2003 and October 31, 2003, you will be eligible for the
Special Stock Option Treatment.

 

Thank you for your leadership for this critical period, and I look
forward to continue having you on the team as we face the many challenges still
ahead of us.  Please indicate your
understanding and acceptance of these terms by signing and dating this document
where indicated below and returning the original to James Otieno in Palo Alto,
building 20A, mail stop 1025.  In
addition, if you have any questions please give 

 

 

 

	
   

  	
  

  	
  Hewlett-Packard Company

  3000 Hanover Street

  Palo Alto, CA 94304-1112

  www.hp.com

  

 

 

6 March 2003

Page 2

 

 

James a call at 650-857-8961.  
We anticipate the review and approval of the HR & Compensation
Committee of the Board to take place on March 20th.

 

Sincerely,

 

 

Carly Fiorina

Chairman and Chief Executive Officer

 

 

 

I have read, understand, and agree to the above terms and
conditions.  Further, I agree that the
above terms and conditions coupled with my executive severance and retention
agreement dated September 17, 2003 (as modified by the above) constitute our
entire understanding and supersede any prior agreements or understandings whether
written or oral.

 

 

 

	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

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