Hewlett-Packard (HPQ)

Optional Redemption:

The Company will have the right to redeem the 5.40% Global Notes, in whole or in part on at least 30 days’ but no more than 60 days’ prior written notice mailed to the registered holders of the 5.40% Global Notes to be redeemed. The redemption price will be equal to the greater of (1) 100% of the principal amount of the 5.40% Global Notes to be redeemed and (2) the sum of the present value of the principal amount of the 5.40% Global Notes to be redeemed and the remaining scheduled payments of interest thereon from the redemption date to the maturity date discounted from the scheduled payment dates to the redemption date on a semi-annual basis at the Treasury Rate plus 15 basis points, plus accrued and unpaid interest.

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If money sufficient to pay the redemption price of and accrued interest on the 5.40% Global Notes (or portions thereof) to be redeemed on the redemption date is deposited with the Trustee or Paying Agent on or before the redemption date and certain other conditions are satisfied, then on and after the redemption date, interest will cease to accrue on the 5.40% Global Notes (or such portion thereof) called for redemption and such 5.40% Global Notes will cease to be outstanding. If any redemption date is not a business day, the Company will pay the redemption price on the next business day without any interest or other payment due to the delay.

If fewer than all of the 5.40% Global Notes are to be redeemed, the Trustee will select the 5.40% Global Notes for redemption on a pro rata basis, by lot or by such other method as the Trustee deems appropriate and fair. No 5.40% Global Notes of $1,000 or less will be redeemed in part.

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