Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

HEWLETT-PACKARD COMPANY

2005 EXECUTIVE DEFERRED
COMPENSATION PLAN

(Effective January 1, 2005)

 

 

The
Hewlett-Packard Company 2005 Executive Deferred Compensation Plan is hereby adopted
effective January 1, 2005 by Hewlett-Packard Company to permit Eligible
Employees to defer receipt of certain compensation pursuant to the terms and
provisions set forth below.

 

The
Plan is intended (1) to comply with Code section 409A and official guidance
issued thereunder, and (2) to be “a plan which is unfunded and is maintained by
an employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees” within the meaning
of sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  Notwithstanding any other provision of this
Plan, this Plan shall be interpreted, operated and administered in a manner
consistent with these intentions.

 

 

ARTICLE I

 

DEFINITIONS

 

Wherever
used herein the following terms shall have the meanings hereinafter set forth:

 

“Account” means a bookkeeping
account established by the Company for each Participant electing to defer
Eligible Income under the Plan.

 

“Affiliate”
means any corporation or other entity that is treated as a single employer with
the Company under Code section 414.

 

“Base
Pay” means an Employee’s annual base
cash compensation and payments under any disability program sponsored by the
Company and paid through the Company payroll, excluding commissions, overtime
pay, Incentive Awards or other bonuses, shift differential, payments under any
disability program that is not paid through the Company payroll, or any other
additional compensation.

 

“Beneficiary”
means the person or persons or trust designated by a Participant to receive any
amounts payable under the Plan in the event of the Participant’s death.  The Company has established procedures
governing the form and manner in which a Participant may designate a
Beneficiary (the “2004 Procedures”). 
Only a Beneficiary designation submitted in accordance with the 2004
Procedures shall be a valid Beneficiary designation.  Notwithstanding
the foregoing, if any payment due a person remains unpaid at his death, the
payment will be made to (i) that person’s spouse; (ii) if no spouse is living
at the time of such payment, then his living 

 

children, in equal shares; (iii)
if neither a spouse nor children are living, then his living parents, in equal
shares; (iv) if neither spouse, nor children, nor parents are living, then his
living brothers and sisters, in equal shares; and (v) if none of the
individuals described in (i) through (iv) are living, to his estate.  A person’s domestic partner shall be
considered a person’s spouse for purposes of this paragraph.  The Company shall determine a person’s status
as a domestic partner in a uniform and nondiscriminatory manner.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Committee”
means the HR and Compensation Committee of the Company’s Board of Directors,
its delegate(s) or such other committee as may be appointed by the Board of
Directors from time to time.

 

“Company” means Hewlett-Packard
Company or any successor corporation or other entity.

 

“CPB Plan” means the Hewlett-Packard Company
Performance Bonus Plan, as amended from time to time.

 

“Deferral Form” means a written
or electronic form provided by the Company pursuant to which an Eligible
Employee may elect to defer amounts under the Plan.

 

“Director” means the title for
an employee who has a job grade of E4 or S4 and above.

 

“Eligible Employee” means an individual
who is an Employee on November 1 preceding
the calendar years within which deferrals are to be made and whose job
position has a title of Director (or whose job function is, in the sole and
absolute discretion of the Company, equivalent to a “Director” position) or
above.

 

“Eligible Income” means Base
Pay and Incentive Awards.

 

“Employee” means an individual
who is a regular employee on the U.S. payroll of the Company or its Affiliates,
other than a temporary or intermittent employee.  The term “Employee” shall not include a person
hired as an independent contractor, leased employee, consultant, or a person
otherwise designated by the Company or an Affiliate as not eligible to
participate in the Plan, even if such person is determined to be an “employee”
of the Company or an Affiliate by any governmental or judicial authority.

 

“EPfR Plan” means the Hewlett-Packard Company
Executive Pay-for-Results Plan, as amended from time-to-time.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

“H1 Bonus” means a bonus arising from the performance
period defined by the first half of the Company’s fiscal year (November 1
through April 30), as defined in the EPfR Plan, PfR 

 

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Plan and the CPB Plan. The term “H1 Bonus” also relates
to any other bonus payable to a Participant under a Company approved variable
pay plan, which is intended to be an alternative variable pay plan to the EPfR
Plan, PfR Plan and CPB Plan and that is on the same cycle as such plans, i.e.,
with a performance period defined by the first half of the Company’s fiscal
year (November 1 through April 30).

 

“H2 Bonus” means a bonus arising from the performance period defined by the second
half of the Company’s fiscal year (May 1 through October 31), as defined in the
EPfR Plan, PfR Plan and CPB Plan. The term “H2 Bonus” also relates to any other
bonus payable to a Participant under a Company approved variable pay plan,
which is intended to be an alternative variable pay plan to the EPfR Plan, PfR
Plan and CPB Plan and that is on the same cycle as such plans, i.e., with a performance
period defined by the second half of the Company’s fiscal year (May 1 through
October 31).

 

“Incentive
Award” means an amount payable to an Eligible Employee under a cash bonus
or incentive compensation plan of the Company or an Affiliate that the
Committee has deemed eligible for deferral, including H1 and H2 Bonuses.

 

“Investment Options” means the
investment options, as determined from time to time by the Company, used to
credit earnings, gains and losses on Account balances.

 

“Key Employee” means an
Employee treated as a “specified employee” under Code section 409A(a)(2)(B)(i),
i.e., a key employee (as defined in Code section 416(i) without regard to
paragraph (5) thereof) of a corporation any stock in which is publicly traded
on an established securities market or otherwise.  Notwithstanding the foregoing, the Committee
has the discretion to define “Key Employee” as a group larger than the
requirements of Code section 416(i), as long of such group includes the
employees defined in Code section 416(i).

 

“Participant” means an Eligible
Employee who elects or has elected to defer amounts under the Plan.

 

“PfR Plan” means the Hewlett-Packard Company
Pay-for-Results Short-Term Bonus Plan, as amended from time to time.

 

“Plan”
means this Hewlett-Packard Company 2005 Executive Deferred Compensation Plan,
as set forth herein and as amended from time to time.

 

“Plan
Year” means January 1 through December 31.

 

“Retirement Date” means the date on which a
Participant has completed at least 15 years of service and has attained age 55, or as the Company otherwise
determines in its discretion.

 

“Rollover Participant”
means an individual with an Account in the Plan transferred from a Rollover
Plan in accordance with the provisions of Article VIII.  The term Rollover Participant may also refer
to an individual who has previously been a Participant in the Plan, or an
existing Participant at the time of transfer.

 

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“Rollover Plan” means
either (1) a nonqualified deferred compensation
plan of a business entity acquired by the Company or an Affiliate through
acquisition of a majority of the voting interest in, or substantially all of
the assets of, such entity, or (2) any plan or program of the Company or an
Affiliate pursuant to the termination of which an Account is established for a
Participant or Rollover Participant.

 

“Termination of Employment” or “Terminates
Employment” means the cessation of an Employee’s employment with the Company and its
Affiliates.

 

 

ARTICLE II

 

PARTICIPATION

 

Participation in the Plan
shall be limited to Eligible Employees. 
The Company shall notify any Employee of his status as an Eligible
Employee at such time and in such manner as the Company shall determine.  An Eligible Employee shall become a
Participant by making a deferral election under Article III.

 

 

ARTICLE III

 

PARTICIPANT ACCOUNTS

 

3.1           Deferral Elections.  Deferrals may
be made by an Eligible Employee with respect to the following types of Eligible
Income, as permitted by the Company:

 

(a)           Base Pay.

 

(i)            An
Eligible Employee whose Base Pay, as of the first
day of November preceding the Plan Year within which the deferral is to be
made, equals or exceeds the sum of:

 

(1)           the
amount specified under Code section 401(a)(17) in effect on January 1 of the Plan
Year to which the deferral election pertains, and

 

(2)           $6,000,

 

may elect to defer a portion of his Base Pay.  In order to
elect to defer Base Pay earned during a Plan Year, an Eligible Employee shall submit
an irrevocable Deferral Form with the Company before the beginning of such Plan
Year.

 

(ii)           The
portion of his Base Pay that an Eligible Employee elects to defer for a Plan
Year shall be stated as a whole dollar amount.  The minimum amount of Base Pay 

 

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that an Eligible
Employee may elect to defer in a Plan Year is $6,000, and the maximum amount is
equal to the amount of Base Pay exceeding the amount specified under Code
section 401(a)(17) in effect on January 1 of the Plan Year to which the
deferral election pertains.  If the
Internal Revenue Service does not publish the Code section 401(a)(17) limit for
the Plan Year prior to enrollment, the Company has the discretion to determine
eligibility to defer Base Pay; provided, however, if a Participant is
determined to be ineligible to defer Base Pay under paragraph (i) above on
January 1 of the Plan Year, any Base Pay deferrals the Participant elected for
the Plan Year shall be void.

 

(iii)          The
deferral amount designated by an Eligible Employee will be deducted in equal
installments over the twenty-four (24) pay periods falling within the Plan Year to which the election pertains.

 

(b)           Incentive Awards.  An Eligible Employee may elect to defer any
portion of an Incentive Award up to 95%, expressed as whole percentage points.  In order to elect to defer an Incentive Award,
an Eligible Employee shall submit an irrevocable Deferral Form with the Company
before the beginning of the calendar year in which the performance period to
which Incentive Award pertains, in accordance with procedures that the Company
determines in its discretion.  Notwithstanding the foregoing, if the Committee
determines that an Incentive Award qualifies as “performance-based compensation”
under Code section 409A, an Eligible Employee may elect to defer a portion of
the Incentive Award by filing an irrevocable Deferral Form at such later time
as permitted by the Committee.

 

3.2           Crediting of Deferrals.  Eligible Income deferred by a Participant
under the Plan shall be credited to the Participant’s Account as soon as administratively
practicable after the amounts would have otherwise been paid to the Participant.

 

3.3           Vesting.  A Participant shall at all times be 100%
vested in any amounts credited to his Account.

 

3.4           Earnings.  The Company shall periodically credit gains,
losses and earnings to a Participant’s Account, until the full balance of the
Account has been distributed.  Amounts
shall be credited to a Participant’s Account under this Section based on the
results that would have been achieved had amounts credited to the Account been
invested as soon as practicable after crediting into the Investment Options
selected by the Participant.  The Company
shall specify procedures to allow Participants to make elections as to the
deemed investment of amounts newly credited to their Accounts, as well as the
deemed investment of amounts previously credited to their Accounts.  Nothing in this Section or otherwise in the
Plan, however, will require the Company to actually invest any amounts in such
Investment Options or otherwise.

 

Any portion
of an Incentive Award that qualifies as “performance-based compensation” under
Code section 162(m) and is deferred under the Plan by a Participant who
qualifies as a “covered employee” under Code section 162(m) shall be credited
with earnings and otherwise administered in a manner so that the ultimate
payment(s) of the deferred amount remains so qualified.

 

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ARTICLE IV

 

DISTRIBUTION OF ACCOUNT BALANCE

 

4.1.          Time
and Form of Payment Elections.

 

(a)           The
Deferral Form.  Each Deferral Form
shall specify the date on which payment of the deferred amount (and earnings
thereon) is to commence.  Such payment date
shall be at least four (4) years after the Plan Year in which the deferrals are
being made.  Each Deferral Form shall
also specify the form for payment of the deferred amount (and earnings
thereon).  A Participant may elect
payment in the form of a single lump sum payment or annual installment payments
for a period of 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 Form or as
otherwise provided herein.

 

(i)            Default Elections.  If a Participant fails to specify the date on
which payment of the deferred amount (and earnings thereon) is to commence,
then Participant will be deemed to have elected distribution at Participant’s
Termination Date, subject to Sections 4.2 or 4.3 below.  If a Participant fails to make an effective
payment form designation on a Deferral Form, the amount deferred under such
Deferral Form (and earnings thereon) will be distributed in a single lump sum
in the year elected, subject to Sections 4.1(c), 4.1(d), 4.2 or 4.3 below.

 

(b)           Payment
generally shall be made by the end of January in the year that Participant
elects a distribution, subject to Sections 4.1(c), 4.1(d) and 4.3 below.

 

(c)           A
Participant may also elect on a Deferral Form that payments for that Plan Year’s
deferrals shall commence as soon as practicable following the date on which the
Participant Terminates Employment (in the case of installment payments, the
first installment shall be paid as soon as administratively practicable after
the Termination Date subject to Section 4.2(a), and subsequent installments shall
be made in the January following the date of such Termination of Employment),
if Participant’s Termination Date is after his Retirement Date.

 

(d)           If
Participant’s Termination Date precedes his Retirement Date, a Participant shall
be deemed to have elected on each Deferral Form that such Plan Year’s deferrals
shall be paid in a single lump sum as soon as practicable following the date on
which the Participant Terminates Employment, subject to Section 4.2 below.

 

4.2.          Automatic
Distributions.  Notwithstanding any payment
elections made on Deferral Forms:

 

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(a)           Distribution
to Key Employees.  Distributions may not commence to a Key Employee upon a Termination of
Employment before the date which is six months after the date of the Key
Employee’s Termination of Employment.

 

(b)           Distributions
Upon Death.  Notwithstanding
paragraph (b) above, if a Participant dies before full distribution of his
Account balance, any remaining balance shall be distributed in a lump sum
payment as soon as practicable after the Participant’s death to the Participant’s
Beneficiary.

 

4.3.          Withdrawals for Unforeseeable
Emergency.  A Participant may
withdraw all or any portion of his Account balance for an Unforeseeable
Emergency.  The amounts distributed with
respect to an Unforeseeable Emergency may not exceed the amounts necessary to
satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which such hardship is or may be relieved through reimbursement
or compensation by insurance or otherwise or by liquidation of the Participant’s
assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship).  “Unforeseeable
Emergency” means for this purpose a severe financial hardship to a Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, or a dependent (as defined in Code section 152(a)) of the Participant,
loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.

 

Notwithstanding
Section 3.1, if the Committee approves a distribution under this Section, the Participant’s deferrals under the
Plan shall cease.  The Participant will
be allowed to enroll if eligible at the beginning of the next
enrollment period following six (6) months after the date of distribution.

 

4.4           Effect of Taxation.  If the Internal Revenue Service or a court of
competent jurisdiction determines that Plan benefits are includible for federal
income tax purposes in the gross income of a Participant prior to actual
receipt of the benefits, the Company may immediately distribute the benefits
found to be so includible to the Participant, to the extent permitted under
Code section 409A.

 

 

ARTICLE V

 

ADMINISTRATION

 

5.1.          General
Administration.  The Committee shall
be responsible for the operation and administration of the Plan and for
carrying out the provisions hereof.  The
Committee shall have the full authority and discretion to make, amend,
interpret, and enforce all appropriate rules and regulations for the
administration of this Plan and decide or resolve any and all questions,
including interpretations of this Plan, as may arise in connection with this
Plan.  Any such action taken by the
Committee shall be final and conclusive on any party.  To the extent the Committee has
been granted discretionary authority under the Plan, the Committee’s prior
exercise of such 

 

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authority shall not obligate it to
exercise its authority in a like fashion thereafter. 
The Committee shall be entitled to rely conclusively upon all tables,
valuations, certificates, opinions and reports furnished by any actuary,
accountant, controller, counsel or other person employed or engaged by the
Company with respect to the Plan.  The Committee may, from time to time, employ
agents and delegate(s) to such agents, including employees of the Company, such
administrative duties as it sees fit.

 

5.2.          Claims
for Benefits.

 

(a)           Filing a Claim.  A Participant or his authorized
representative may file a claim for benefits under the Plan.  Any claim must be in writing and submitted to
the Committee at such address as may be specified from time to time.  Claimants will be notified in writing of
approved claims, which will be processed as claimed. A claim is considered
approved only if its approval is communicated in writing to a claimant.

(b)           Denial of Claim. In the case
of the denial of a claim respecting benefits paid or payable with respect to a
Participant, a written notice will be furnished to the claimant within 90 days
of the date on which the claim is received by the Committee.  If special circumstances (such as for a hearing)
require a longer period, the claimant will be notified in writing, prior to the
expiration of the 90-day period, of the reasons for an extension of time;
provided, however, that no extensions will be permitted beyond 90 days after
the expiration of the initial 90-day period.

(c)           Reasons for Denial.  A denial or partial denial of a claim will be
dated and signed by the Committee and will clearly set forth:

(i)            the specific reason or reasons for
the denial;

(ii)           specific reference to pertinent Plan
provisions on which the denial is based;

(iii)          a description of any additional
material or information necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary; and

(iv)          an
explanation of the procedure for review of the denied or partially denied claim
set forth below, including the claimant’s right to bring a civil action under
ERISA section 502(a) following an adverse benefit determination on review.

 

(d)           Review of Denial.  Upon denial of a claim, in whole or in part,
a claimant or his duly authorized representative will have the right to submit
a written request to the Committee for a full and fair review of the denied
claim by filing a written notice of appeal with the Committee within 60 days of
the receipt by the claimant of written notice of the denial of the claim.  A claimant or the claimant’s authorized
representative will have, upon request and free of charge, reasonable access
to, and copies of, all documents, records, and other information relevant to
the claimant’s claim for benefits and may submit issues and comments in writing,
except for privileged or confidential documentation.  The review will take into account all 

8

comments,
documents, records, and other information submitted by the claimant relating to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

If the
claimant fails to file a request for review within 60 days of the denial
notification, the claim will be deemed abandoned and the claimant precluded
from reasserting it.  If the claimant
does file a request for review, his request must include a description of the
issues and evidence he deems relevant. 
Failure to raise issues or present evidence on review will preclude
those issues or evidence from being presented in any subsequent proceeding or
judicial review of the claim.

 

(e)           Decision Upon Review.  The Company will provide a prompt written
decision on review.  If the claim is
denied on review, the decision shall set forth:

(i)            the
specific reason or reasons for the adverse determination;

(ii)           specific
reference to pertinent Plan provisions on which the adverse determination is
based;

(iii)          a
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the claimant’s claim for benefits; and

(iv)          a
statement describing any voluntary appeal procedures offered by the Plan and
the claimant’s right to obtain the information about such procedures, as well
as a statement of the claimant’s right to bring a civil action under ERISA
section 502(a).

A
decision will be rendered no more than 60 days after the Committee’s receipt of
the request for review, except that such period may be extended for an
additional 60 days if the Committee determines that special circumstances (such
as for a hearing) require such extension. 
If an extension of time is required, written notice of the extension
will be furnished to the claimant before the end of the initial 60-day period.

 

(f)            Finality of Determinations;
Exhaustion of Remedies. To the extent permitted by law, decisions
reached under the claims procedures set forth in this Section shall be final
and binding on all parties. No legal action for benefits under the Plan shall
be brought unless and until the claimant has exhausted his remedies under this
Section. In any such legal action, the claimant may only present evidence and
theories which the claimant presented during the claims procedure. Any claims
which the claimant does not in good faith pursue through the review stage of
the procedure shall be treated as having been irrevocably waived. Judicial
review of a claimant’s denied claim shall be limited to a determination of
whether the denial was an abuse of discretion based on the evidence and
theories the claimant presented during the claims procedure. Any suit or legal action
initiated by a claimant under the Plan must be brought by the claimant no later
than one year following a final decision on the claim for benefits by the
Committee.  The one-year limitation on
suits for benefits will apply in any forum where a claimant initiates such suit
or legal action.

 

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ARTICLE VI

 

AMENDMENT AND
TERMINATION

 

6.1           Amendment or Termination.  The Company reserves the right to amend or
terminate the Plan when, in the sole discretion of the Company, such amendment
or termination is advisable, pursuant to a resolution or other action taken by the
Committee.

 

Any amendment or
termination of the Plan will not affect the entitlement of any Participant or
the Beneficiary of a Participant who Terminates Employment before the amendment
or termination.  All benefits to which
any Participant or Beneficiary may be entitled shall be determined under the
Plan as in effect at the time the Participant Terminates Employment and shall
not be affected by any subsequent change in the provisions of the Plan;
provided, that the Company reserves the right to change the Investment Options
with respect to any Participant or Beneficiary. 
Participants and Beneficiaries will be given notice prior to the
discontinuance of the Plan or reduction of any benefits provided by the Plan.

 

6.2           Effect of Amendment or Termination.  No amendment or termination of the Plan shall
adversely affect the rights of any Participant to amounts credited to his Account
as of the effective date of such amendment or termination.  Upon termination of the Plan, distribution of
balances in Accounts shall be made to Participants and Beneficiaries in the
manner and at the time described in Article IV, unless the Company determines
in its sole discretion that all such amounts shall be distributed immediately
upon termination and such distributions are permissible under Code section 409A.  Upon termination of the Plan, no further
deferrals of Eligible Income shall be permitted; however, earnings, gains and
losses shall continue to be credited to Account balances in accordance with
Article III until the Account balances are fully distributed.

 

 

ARTICLE VII

 

GENERAL
PROVISIONS

 

7.1           Rights Unsecured.  The right of a Participant or his Beneficiary
to receive a distribution hereunder shall be an unsecured claim against the
general assets of the Company, and neither the Participant nor his Beneficiary
shall have any rights in or against any amount credited to any Account or any other
assets of the Company.  The Plan at all
times shall be considered entirely unfunded for tax purposes.  Any funds set aside by the Company for the
purpose of meetings its obligations under the Plan, including any amounts held
by a trustee, shall continue for all purposes to be part
of the general assets of the Company and shall be available to its general
creditors in the event of the Company’s bankruptcy or insolvency.  The Company’s obligation under this Plan
shall be that of an unfunded and unsecured promise to pay money in the future.

 

10

7.2           No Guarantee of Benefits.  Nothing contained in the Plan shall
constitute a guarantee by the Company or any other person or entity that the
assets of the Company will be sufficient to pay any benefits hereunder.

 

7.3           No
Enlargement of Rights.  No Participant or Beneficiary shall have any
right to receive a distribution under the Plan except in accordance with the
terms of the Plan.  Establishment of the
Plan shall not be construed to give any Participant the right to continue to be
employed by or provide services to the Company.

 

7.4           Transferability.  No interest of any person in, or right to
receive a distribution under, the Plan shall be subject in any manner to sale,
transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind; nor may such interest or right to receive a
distribution be taken, either voluntarily or involuntarily for the satisfaction
of the debts of, or other obligations or claims against, such person.

 

7.5           Applicable
Law. To the extent not preempted by federal law, the Plan shall be governed
by the laws of the State of Delaware.

 

7.6           Incapacity
of Recipient.  If any person entitled
to a distribution under the Plan is deemed by the Company to be incapable of
personally receiving and giving a valid receipt for such payment, then, unless
and until a claim for such payment shall have been made by a duly appointed
guardian or other legal representative of such person, the Company may provide
for such payment or any part thereof to be made to any other person or
institution then contributing toward or providing for the care and maintenance
of such person.  Any such payment shall
be a payment for the account of such person and a complete discharge of any
liability of the Company and the Plan with respect to the payment.

 

7.7           Taxes.
The Company or other payor may withhold
from a benefit payment under the Plan or a Participant’s wages any federal,
state, or local taxes required by law to be withheld with respect to a payment
or accrual under the Plan, and shall report such payments and other
Plan-related information to the appropriate governmental agencies as required
under applicable laws.

 

7.8           Corporate
Successors.  The Plan and the
obligations of the Company under the Plan shall become the responsibility of
any successor to the Company by reason of a transfer or sale of substantially
all of the assets of the Company or by the merger or consolidation of the
Company into or with any other corporation or other entity.

 

7.9           Unclaimed
Benefits.  Each Participant shall
keep the Company informed of his current address and the current address of his
designated Beneficiary.  The Company shall
not be obligated to search for the whereabouts of any person if the location of
a person is not made known to the Company.

 

7.10         Severability.  In the event any provision of
the Plan shall be held invalid or 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.

 

11

7.11         Words and
Headings.  Words in the masculine
gender shall include the feminine and the singular shall include the plural,
and vice versa, unless qualified by the context.  Any headings used herein are included for
ease of reference only, and are not to be construed so as to alter the terms
hereof.

 

7.12         Domestic Relations Orders.  Notwithstanding Section 7.4, all or a portion
of a Participant’s Account balance may be paid to another person as specified
in a domestic relations order that the Company determines is qualified (a “Qualified
Domestic Relations Order”). For this purpose, a Qualified Domestic Relations
Order means a judgment, decree, or order (including the approval of a
settlement agreement) which is:

 

(a)           issued pursuant to a State’s domestic
relations law;

 

(b)           relates to the provision of child
support, alimony payments or marital property rights to a spouse, former
spouse, child or other dependent of the Participant;

 

(c)           creates or recognizes the right of a
spouse, former spouse, child or other dependent of the Participant to receive
all or a portion of the Participant’s benefits under the Plan;

 

(d)           provides for payment in an immediate
lump sum as soon as practicable after the Company determines that a Qualified
Domestic Relations Order exists; and

 

(e)           meets such other requirements
established by the Company.

 

The
Company shall determine whether any document received by it is a Qualified
Domestic Relations Order.  In making this
determination, the Company may consider the rules applicable to “domestic
relations orders” under Code section 414(p) and ERISA section 206(d), and such
other rules and procedures as it deems relevant.  If an order is determined to be a Qualified
Domestic Relations Order, the amount to which the other person is entitled
under the Order shall be paid in a single lump-sum payment as soon as
practicable after such determination.

 

 

ARTICLE VIII

 

ROLLOVERS FROM
OTHER PLANS

 

 

                8.1           Discretion to Accept.  The Committee shall have complete authority
and discretion, but no obligation, to establish an Account for a Rollover
Participant and credit the Account with the amount transferred from the
Rollover Participant’s account in a Rollover Plan.  Amounts credited to such Accounts are fully
subject to the provisions of this Plan. 
Reference in the Plan to such a crediting as a “rollover” or “transfer”
from a Rollover Plan is nominal in nature, and confers no additional rights
upon a Rollover Participant other than those specifically set forth in the
Plan.

 

12

                8.2           Status of Rollover Participants.  A Rollover Participant and his Beneficiary
are fully subject to the provisions of this Plan, except as otherwise expressly
set forth herein.  A Rollover Participant
who is not already a Participant in the Plan and is not otherwise eligible to
participate in the Plan at the time of rollover, shall not be entitled to make
any additional deferrals under the Plan unless and until he has become an
Eligible Employee under the terms of the Plan.

 

                8.3           Payments to Rollover Participants.  Payments from a Rollover Participant’s Account
shall me made in accordance with the form and timing of payment provisions of
the Rollover Plan.

 

 

 

IN WITNESS WHEREOF, HEWLETT-PACKARD COMPANY has caused this Hewlett-Packard
Company 2005 Executive Deferred Compensation Plan to be executed on this 17th
day of March, 2005.

 

	
   

  
	
  HEWLETT-PACKARD
  COMPANY

  
	
   

  
	
   

  
	
   

  
	
  Lawrence T. Babbio, Jr.

  
	
  Chair, HR and Compensation Committee

  

 

13Exhibit 10.2

  

 

 

Subject: 
Additional Information Regarding Your Restricted Stock Grant

 

Dear «FIRST_NAME»,

 

This letter supplements your restricted stock
agreement dated [GRANT DATE] with respect to your grant of [NUMBER] shares of
restricted stock.

 

This letter is to notify you that, should you
terminate employment with HP on or before October 31, 2007 and you are eligible
to participate in and receive a severance payment under a Company-approved
severance program, including, but not limited to, the Hewlett-Packard Company
Severance Plan for Executive  Officers,
the Hewlett-Packard Company Voluntary Severance Incentive Plan, the
Hewlett-Packard Company Workforce Restructuring Severance Plan or a mutual
separation agreement (collectively, the “Severance Plans”), then any severance
payment due to you under any of the Severance Plans will be offset by the grant
date fair market value of restricted stock granted on [GRANT DATE] that has
previously vested on or before the date of your termination of employment.  In addition, you will forfeit any such
restricted stock that has not previously vested on or before such date.  Finally, notwithstanding any prior or
subsequent approval of restricted stock treatment for participants in the
Severance Plans, vesting for your unvested restricted stock granted on [GRANT
DATE] shall not be prorated.

 

Additional information relating to your
restricted stock grant is available in your restricted stock agreement.

 

 

Sincerely,

 

 

 

 

Robert P. Wayman

Chief Executive Officer and Chief
Financial Officer

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