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Exhibit 10(c)    
    

HEWLETT-PACKARD COMPANY  

 
  1997 DIRECTOR STOCK PLAN
  
  (AMENDED AND RESTATED, EFFECTIVE MARCH 17, 2005)    
    

 
 

PART 1. PLAN ADMINISTRATION AND ELIGIBILITY    

I.    Purpose  

        The purpose of this amended and restated 1997 Director Stock Plan (the "Plan") of Hewlett-Packard Company (the "Company") is to encourage ownership in the Company
by outside directors of the Company (each, a "Non-Employee Director," or collectively, the "Non-Employee Directors") whose continued services are considered essential to the
Company's continued progress and thus to provide them with a further incentive to remain as directors of the Company. 

II.    Administration  

        The Board of Directors (the "Board") of the Company or any committee (the "Committee") of the Board that will satisfy Rule 16b-3 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and any regulations promulgated thereunder, as from time to time in effect, including any successor rule
("Rule 16b-3"), shall supervise and administer the Plan. The Committee shall consist solely of two or more non-employee directors of the Company, who shall be appointed
by the Board. A member of the Board shall be deemed to be a "non-employee director" only if he satisfies such requirements as the Securities and Exchange Commission may establish for
non-employee directors under Rule 16b-3. Members of the Board receive no additional compensation for their services in connection with the administration of the Plan. 

        The
Board or the Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. All questions of interpretation of the Plan or of any shares issued under it
shall be determined by the Board or the Committee and such determination shall be final and binding upon all persons having an interest in the Plan. Any or all powers and discretion vested in the
Board or the Committee under this Plan may be exercised by any subcommittee so authorized by the Board or the Committee and satisfying the requirements of Rule 16b-3. 

III.    Participation in the Plan  

        Each member of the Board who is not an employee of the Company or any of its subsidiaries or affiliates and who is providing service to the Company as a member of
the Board at the beginning of the Plan Year shall be eligible to receive an Annual Retainer (as defined in Section XII below) under the Plan. 

        Any
member of the Board who enters service after the beginning of the Plan Year may be eligible to receive a prorated Annual Retainer under the Plan as the Board or the Committee
determines in its discretion. 

IV.    Stock Subject to the Plan  

        The maximum number of shares of the Company's $0.01 par value Common Stock ("Common Stock") which may be issued under the Plan shall be Two Million (2,000,000).
The limitation on the number of shares which may be issued under the Plan shall be subject to adjustment as provided in Section X of the Plan. 

        If
any outstanding option under the Plan for any reason expires or is terminated without having been exercised in full, the shares allocable to the unexercised portion of such option
shall again become available for grant pursuant to the Plan. 

 

 
 

PART 2. TERMS OF THE PLAN    

V.    Effective Date of the Plan  

        The Plan shall take effect on the date of adoption by the shareholders of the Company. The Plan shall terminate on February 24, 2007, unless earlier
terminated by the Board of Directors or the Committee. 

VI.    Time for Granting Options and Issuing Shares  

        No options shall be granted, and no Common Stock Payments (as defined in Section VII below) shall be made, after the date on which this Plan terminates.
The applicable terms of this Plan, and any terms and conditions applicable to the options granted or the shares issued prior to such date, shall survive the termination of the Plan and continue to
apply to such options and shares. 

VII.    Terms and Conditions  

        A.    Compensation Alternatives.

        1.     Within
25 days after the beginning of the Plan Year (as defined in Section XII below), each Non-Employee Director will be entitled to select one
of the following alternative means of payment for the value of his Annual Retainer: 

	(i)
	A
minimum of seventy-five percent of the value of his Annual Retainer in the form of a Common Stock payment (a "Common Stock Payment") and the balance in cash (a "Cash
Payment"); or

	(ii)
	A
minimum of seventy-five percent of the value of his Annual Retainer in the form of an option to purchase shares of Common Stock (an "Option Payment") and a Cash
Payment. 

        2.     If
any Non-Employee Director fails to notify the Secretary of the Company in writing by 25 days after the beginning of the Plan Year of his desired
means to receive payment of the Annual Retainer for the Plan Year, then he shall be deemed to have elected an Option Payment for fifty percent of the value of his Annual Retainer, with the remaining
fifty percent in cash. Any such election, or any modification or termination of such an election, shall be filed with the Company on a form prescribed by the Board or the Committee for this purpose. 

        B.    Common Stock Payment.

        1.     Date
of Payment.    The shares constituting any Common Stock Payment shall be issued automatically one month after the beginning of each Plan Year (or, if such
date is not a business day, on the next succeeding business day) (the "Grant Date"), with the first payment under this Plan commencing March 1, 1997. Each award of a Common Stock Payment shall
be evidenced by an agreement which shall reflect the terms and conditions of the Common Stock Payment and such additional terms and conditions as may be determined by the Board or the Committee. 

        2.     Number
of Shares Subject to Common Stock Payment.    The total number of shares of Common Stock included in each Common Stock Payment shall be determined by
dividing the amount of the Annual Retainer that is to be paid in stock by the Fair Market Value (as defined in Section XII below) of a share of Common Stock on the Grant Date. It shall be
rounded up to the largest number of whole shares determined as follows: 

	75% or more, if applicable, of Annual Retainer
 Fair Market Value on the Grant Date	 	  

= Number of Shares

        Any
payment for a fractional share automatically shall be paid in cash based upon the Fair Market Value on the Grant Date of such fractional share. 

2

 

        3.     Holding
Period for Common Stock Payment Shares.    The shares of Common Stock included in each Common Stock Payment shall be deposited in certificate or book
entry form in escrow with the Company's Secretary until such shares vest. The Non-Employee Director shall retain all rights in the shares while they are held in escrow, including, but not
limited to, voting rights and the right to receive dividends; provided, however, that the Non-Employee Director shall not have the right to pledge, sell or otherwise assign such shares
until all restrictions pertaining to such shares are terminated. Promptly after the shares vest, the Company's Secretary shall release the shares from escrow and deliver any applicable stock
certificates to the Non-Employee Director or release any applicable restrictions on the Non-Employee Director's book entry account. 

        C.    Option Payment.

        Subject
to Section VII.A. above, each Non-Employee Director may specify the amount of his Annual Retainer to be received in the form of a non-statutory
option not entitled to special tax treatment under Section 422 of the Internal Revenue Code of 1986, as amended. Each option granted under this Plan shall be evidenced by a written agreement in
such form as the Board or Committee shall from time to time approve, which Agreements shall comply with and be subject to the following terms and conditions and such additional terms and conditions as
may be determined by the Board or Committee: 

        1.     Date
of Payment.    The option constituting any Option Payment shall be granted automatically on the Grant Date. 

        2.     Number
of Shares Subject to Option.    The number of shares to be subject to any option granted pursuant to the Plan shall be an amount necessary to make such
option equal in value, using a modified Black-Scholes option valuation model, to that portion of the Annual Retainer that the Non-Employee Director elected to receive in the form of an
option. The value of the option will be calculated by assuming that the value of an option to purchase one share of Common Stock equals the product of (i) a fraction determined by
dividing 1 by the Multiplier, as defined below, and (ii) the Fair Market Value of a share of Common Stock on the Grant Date. 

        The
number of shares represented by an option granted pursuant to the Plan shall be determined by multiplying the number of shares determined in Section VII.B.2 above by a
multiplier determined using a modified Black-Scholes option valuation method (the "Multiplier"). The Board or the Committee shall determine the Multiplier prior to the beginning of the Plan Year by
considering the following factors: (i) the Fair Market Value of the Common Stock on the date the Multiplier is determined; (ii) the average length of time that Company stock options are
held by optionees prior to exercise; (iii) the risk-free rate of return based on the term determined in (ii) above and U.S. government securities rates; (iv) the
annual dividend yield for the Common Stock; and (v) the volatility of the Common Stock over the previous ten-year period. For the Plan Year commencing March 1, 1997, the
Board or the Committee shall calculate the Multiplier by March 1, 1997. The number of shares to be subject to the option shall be rounded up to the largest number of whole shares determined as
follows: 

	75% or more, if applicable, of Annual Retainer
 Fair Market Value on the Grant Date	 	  

× Multiplier = Number of Shares

        3.     Price
of Options.    The exercise price of the option will be the Fair Market Value of the Common Stock on the date of grant. 

        4.     Exercise
of Options.    Options may be exercised only by written notice to the Company at its head office accompanied by payment in cash of the full
consideration for the shares as to which they are exercised. 

3

 

        5.     Period
of Option.    The Committee shall have the discretion to determine the exercisability of Shares subject to the option; provided, however, that no option
shall be exercisable after the expiration of ten (10) years from the date upon which such option is granted. If the Committee does not expressly exercise its discretion to change the
exercisability of the options for a Plan Year, then the exercisability of such options shall be the same as the last Plan Year in which the Committee expressly exercised its discretion. 

        6.     Exercise
by Representative Following Death of Director.    A Non-Employee Director, by written notice to the Company, may designate one or more
persons (and from time to time change such designation) including his legal representative, who, by reason of his death, shall acquire the right to exercise all or a portion of the option. If the
person or persons so designated wish to exercise any portion of the option, they must do so within the term of the option as provided in Section VII.C.5. Any exercise by a representative shall
be subject to the provisions of this Plan. 

        7.     Options
Nontransferable.    Each option granted under the Plan by its terms shall not be transferable by the optionee otherwise than by will, or by the laws of
descent and distribution, and shall be exercised during the lifetime of the optionee only by him. No option or interest therein may be transferred, assigned, pledged or hypothecated by the optionee
during his lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 

        D.    Cash Payment

        Each
Cash Payment shall be made in four equal installments during the Plan Year. 

        E.    Form of Issuance of Shares

        Shares
issued under the Plan shall be in either book entry form or in certificate form pursuant to the instructions given by the Non-Employee Director to the Company's
transfer agent. 

        F.     Transferability

        In
the event of a Non-Employee Director's death, all of such person's rights to receive any accrued but unpaid Common Stock Payment or Option Payment will transfer to the
maximum extent permitted by law to such person's beneficiary. Each Non-Employee Director may name, from time to time, any beneficiary or beneficiaries (which may be named contingently or
successively) as his beneficiary for purposes of this Plan. Each designation shall be on a form
prescribed by the Committee, will be effective only when delivered to the Company and when effective will revoke all prior designations by the Non-Employee Director. If a
Non-Employee Director dies with no such beneficiary designation in effect, such person's beneficiary shall be his estate and such person's payments will be transferable by will or pursuant
to laws of descent and distribution applicable to such person. 

        G.    Termination

        Any
member of the Board who terminates service prior to the end of the Plan Year may have his Annual Retainer prorated, including a forfeiture of options, stock or cash payment, if any,
as the Board or the Committee determines in its discretion. 

 
 

PART 3. GENERAL PROVISIONS    

VIII.    Assignments  

        The rights and benefits under this Plan may not be assigned except for the designation of a beneficiary as provided in Section VII. 

4

 

IX.    Limitation of Rights  

        No Right to Continue as a Director.    Neither the Plan, nor the issuance of shares of Common Stock nor any other action taken pursuant to the Plan,
shall constitute or be evidence of any agreement or understanding, express or implied, that the Company will retain a director for any period of time, or at any particular rate of compensation. 

        No
Stockholders' Rights for Options.    An optionee shall have no rights as a stockholder with respect to the shares covered by his options until the date of the issuance to
him of a stock certificate therefor or
the making of a book entry with the Company's transfer agent, and no adjustment will be made for dividends or other rights for which the record date is prior to the date such certificate is issued. 

X.    Changes in Present Stock  

        In the event of any merger, consolidation, reorganization, recapitalization, stock dividend, stock split, or other change in the corporate structure or
capitalization affecting the Company's present Common Stock, at the time of such event the Board or the Committee shall make appropriate adjustments to the number (including the aggregate numbers
specified in Section IV) and kind of shares to be issued under the Plan and the price of any Stock Option or Common Stock Payment. 

XI.    Amendment of the Plan  

        The Board shall have the right to amend, modify, suspend or terminate the Plan at any time for any purpose; provided, that following the approval of the Plan by
the Company's shareholders, the Company will seek shareholder approval for any change to the extent required by applicable law, regulation or rule. 

XII.    Definitions  

        "Annual Retainer" shall mean the amount to which a Non-Employee Director will be entitled to receive for serving as a director in a relevant Plan
Year, but shall not include reimbursement for expenses, fees associated with service on any committee of the Board or fees with respect to any other services to be provided to the Company. 

        "Fair
Market Value" shall be the mean of the highest and lowest quoted selling prices for the Common Stock as reported on the New York Stock Exchange Composite Tape on the date in
question, or if no sales of such stock were made on that date, the mean of the highest and lowest prices of the Common Stock on the next preceding day on which sales were made. 

        "Plan
Year" shall mean the year beginning the day after the Company's annual meeting and ending on the day of the Company's next annual meeting, as the case may be, for any relevant
year. 

XIII.    Compliance with Section 16 of the Exchange Act  

        It is the Company's intent that the Plan comply in all respects with Rule 16b-3. If any provision of this Plan is found not to be in compliance
with such rule and regulations, the provision shall be deemed null and void, and the remaining provisions of the Plan shall continue in full force and effect. All transactions under this Plan shall be
executed in accordance with the requirements of Section 16 of the Exchange Act and regulations promulgated thereunder. The Board or the Committee may, in its sole discretion, modify the terms
and conditions of this Plan in response to and consistent with any changes in applicable law, rule or regulation. 

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XIV.    Notice  

        Any written notice to the Company required by any of the provisions of this Plan shall be addressed to the Secretary of the Company and shall become effective
when it is received. 

XV.    Governing Law  

        This Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly. 

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QuickLinks

Exhibit 10(c)

1997 DIRECTOR STOCK PLAN (AMENDED AND RESTATED, EFFECTIVE MARCH 17, 2005)

PART 1. PLAN ADMINISTRATION AND ELIGIBILITY

PART 2. TERMS OF THE PLAN

PART 3. GENERAL PROVISIONSQuickLinks
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Exhibit 10(b)(b)    
    

«    »
June 2005 

To: «FIRST_NAME» «LAST_NAME»                Employee Number: «EMPLID»  

Subject: Confirmation of participation in the H2'05 Pay-for-Results (PfR) program  

  
 

    The H2'05 PfR program runs May 1, 2005 through October 31, 2005    
    

        This statement confirms your participation in the H2'05 Pay-for-Results (PfR) program* based on your current eligibility status. It also
indicates the amount of your target PfR bonus opportunity and briefly describes the metrics used to determine PfR program funding. The H2'05 PfR program has not changed from
H1'05.

        *Applies to employees eligible to participate in the Hewlett-Packard Company Executive Pay-for-Results Plan and the Hewlett-Packard
Company Pay-for-Results Short-Term Bonus Plan.

Requirements for the PfR Program to Fund  

        Two conditions must be met for the PfR program to fund: first, HP must meet its company net profit threshold goal. Second, the Company Performance Bonus (CPB)
plan must pay out to our broad-based employee population before any payments are made to our executives. If we do not meet the net profit threshold, funding will be directed back to earnings. In
short, we must earn our way through our goals before a payout can be considered. The level of plan funding is at the discretion of executive
management to recommend with approval by the HR & Compensation Committee of HP's Board of Directors. 

How the Amount of a PfR Bonus Is Determined  

        The amount of the PfR bonus is based on performance against three metrics: revenue, net profit, and Total Customer Experience (TCE). Each metric must reach
threshold level before that portion of the bonus can fund. If the company exceeds ASPIRE performance, a fourth metric—gross margin improvement—is considered in determining any
additional funding. 

Your Target PfR Bonus Opportunity  

        Below is a summary of your plan metrics and target bonus opportunity for H2'05. Your actual bonus under the program will be a factor of the following: 

	1.
	The
performance of HP relative to the ASPIRE plans for H2'05.

	2.
	Your
Target Bonus Opportunity, which is stated as a percentage of your accumulated eligible earnings

	3.
	Your  accumulated eligible earnings during the performance period. This is typically your base pay, but may include adjustments based
on
employment status such as Part-Time or Leave of Absence. 

Target Bonus Opportunity: «BONUS»  

	Performance Level
 
	 	Metric
	 	Weight
	 	Bonus Opportunity

	from Threshold to ASPIRE	 	 	 	 	 	0%-50% of Bonus Target
	 	 	Revenue—HP Worldwide	 	40.00	%	 
	 	 	Net Profit—HP Worldwide	 	40.00	%	 
	 	 	Customer—HP Worldwide TCE	 	20.00	%	 
	

above ASPIRE	
 	

HP Gross Margin improvement	
 	

 	
 	

50%-300% of Bonus Target
	 	 	drives additional funding	 	 	 	 
	 	 	payout based on manager discretion	 	 	 	 

        The
PfR program is a variable pay program and ultimate payment is discretionary based upon achievement of business objectives with participation and payout subject to the terms and
conditions of the ePfR and PfR plans. Your current status and participation does not guarantee future status and participation in PfR. As HP's variable pay philosophy allows participation in only one
variable pay program, payments made from other programs may preclude your participation in PfR this period. Refer to Business Group-specific plan documents or websites for additional information. 

        As
a normal part of aligning its Total Rewards, HP continues to monitor the competitiveness of its variable pay programs and adjusts performance measurement goals, thresholds, bonus
opportunities and plan eligibility to reflect business requirements and market norms. 

        This
statement and the attached page provide summary information only. For additional details, please visit the PfR website  (http://hrcms01.atl.hp.com:6041/public/pages/Variable_Pay/en_US/text_page_20048.htm). 

        If
you have questions about the information specific to you, please contact your manager, your Human Resources Representative or your business's PfR Manager. You can also send your
questions to the PfR notification mailbox at notification.pfr@hp.com. 

Regards,

«SUPV_FIRST_NAME» «SUPV_LAST_NAME»  

 
 

Pay-for-Results (PfR) Program for H2'05    
    

Eligible Population  

	•
	No
change; same as H1'05

	•
	Employees
eligible to participate in the Hewlett-Packard Company Executive Pay-for-Results Plan and the Hewlett-Packard Company
Pay-for-Results Short-Term Bonus Plan

	•
	Director
level and above

	•
	Equivalent
employees in TCP job family (Strategist, Sr. Fellow, Fellow)

	•
	MG2
and Legal Counsel in top two non-executive salary grades in country

	•
	Select
HP Services employees in TSG below MG2 based on job content/customer interface 

Bonus Structure  

	•
	No
change, same bonus opportunity structure as in H1'05 

Metrics  

	•
	All
participants are on either HP Worldwide or HP Region level metrics (same as H1'05):

	•
	Revenue
(40%)

	•
	Net
Profit (40%)

	•
	TCE
(20%)

	•
	HP
Regions are Americas (AMS), Europe/Middle East & Africa (EMEA), and Asia Pacific (includes Japan) 

Requirements for Plan Funding  

	•
	Company
Performance Bonus (CPB) must pay out before any payments are made under the PfR program

	•
	Net
profit threshold must be met at the HPco level and at the HP Region level if you participate in a Regional plan

	•
	Threshold
level on each metric must be met before that individual metric funds 

Plan Funding  

	•
	The
HR and Compensation Committee of the HP Board of Directors has final approval of recommended funding

	•
	Plan
funding is at the discretion of executive management to recommend, is based on operational performance and takes into account our earnings commitments

	•
	If
targets are exceeded, any additional funding is at the discretion of executive management to recommend and is based primarily on gross margin improvement, in addition to
net profit, revenue, and TCE results

	•
	Funding
between threshold and target is distributed formulaically

	•
	Funding
above target is distributed 50% formulaically and 50% by management discretion, except for Section 16 Officers for whom distribution is determined
formulaically

	•
	Maximum
payout cannot exceed 300% of targeted bonus opportunity 

QuickLinks

Exhibit 10(b)(b)

The H2'05 PfR program runs May 1, 2005 through October 31, 2005

Pay-for-Results (PfR) Program for H2'05

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