Hewlett-Packard (HPQ)

Long-Term Performance Cash Program

        Long-term incentive awards were made under the LTPC Program from 2003 to 2007, and the last of the awards made under the program paid out in fiscal 2010 with respect to the three-year period from fiscal 2007 through fiscal 2009. See "Compensation Discussion and Analysis—Analysis of Elements of Executive Compensation—Long-Term Incentive Pay" for details regarding this program.

Long-Term Performance Cash Program

        Long-term incentive awards were made under the LTPC Program from 2003 to 2007. Although no new awards were made under this program in fiscal 2008 (because the program has been replaced by the PRU Program), LTPC awards made in previous years paid out in fiscal 2008 with respect to grants made in fiscal 2005 and 2006. See "Compensation Discussion and Analysis—Long-Term Performance Cash Program" for details regarding the operation of this program.

Long-Term Performance Cash Program

        The LTPC Program is HP's long-term incentive compensation program that pays out if certain performance metrics are achieved over a three-year period. The performance metrics are cash flow from operations as a percentage of revenue, as modified by Total Shareholder Return relative to the S&P 500 over the three-year period. As noted above, no further grants will be made under this program after fiscal 2007, as this program has been replaced by the new Performance-based Restricted Unit Program beginning in fiscal 2008.

        For the three-year performance period ending April 2007, the cash flow metric was not achieved during the first six-month period, was achieved above target for the May 2005 through October 2005 and November 2005 through October 2006 performance periods, and was achieved slightly below target for the November 2006 through April 2007 performance period. HP's performance against the S&P 500 over the entire three-year performance period was at the 83^rd percentile. The combination of these factors resulted in the fiscal 2007 payouts noted above.