Hewlett-Packard (HPQ)

Stock Ownership Guidelines

        HP's stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of stockholders. The guidelines provide that, within five years of joining HP, the CEO should attain an investment position in HP's stock equal to five times his base salary and all other Section 16 officers should attain an investment position equal to three times their base salary. Shares counted toward these guidelines include any shares held by the executive directly or through a broker; shares held through the HP 401(k) Plan; shares held as restricted stock; shares underlying restricted stock units; and shares underlying vested but unexercised stock options (50% of the in-the-money value of such options is used for this calculation). All NEOs are in compliance with these guidelines.

Stock Ownership Guidelines

        HP's stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of stockholders. The guidelines provide that, within five years, the CEO should attain an investment position in HP's stock equal to five times his base salary and all other executive officers should attain an investment position equal to three times their base salary. Shares counted toward these guidelines include any shares held by the executive directly or through a broker; shares held through the HP 401(k) Plan; restricted stock; and vested but unexercised stock options (50% of the in-the-money value of such options is used for this calculation). All NEOs are in compliance with these guidelines.

Stock Ownership Guidelines

        HP's stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of stockholders. The guidelines provide that, within five years, the CEO should attain an investment position in HP's stock equal to five times his base salary and all other executive officers should attain an investment position equal to three times their base salary. Shares counted toward these guidelines include any shares held by the executive directly or through a broker; shares held through the HP 401(k) Plan; restricted stock; and vested but unexercised stock options (50% of the in-the-money value of such options is used for the calculation). The NEOs are in compliance with these guidelines.

Stock Ownership Guidelines

        HP's stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of stockholders. The guidelines provide that within five years of appointment as CEO, the CEO should attain an investment position in HP's stock equal to five times his base salary and all other Executive Council members should attain an investment position equal to three times their base salary. Shares counted toward these guidelines include any shares held by the executive directly or through a broker; shares held through the HP 401(k) Plan; restricted stock; and vested but unexercised stock options (50% of the in-the-money value of such options is used for the calculation).

        The Committee has reviewed the stock ownership of each of HP's executive officers. All executive officers with five years of service have met the foregoing stock ownership guidelines.

Stock Ownership Guidelines

        Our stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of our stockholders. The guidelines provide that the CEO should attain an investment position in HP's stock equal to five times his base salary and all other executive

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officers should attain an investment position equal to three times their base salary. These guidelines should be achieved within five years. Shares counted toward these guidelines include:

•

any shares held by the executive directly or through a broker;



•

shares held through the HP 401(k) Plan;



•

restricted stock; and



•

vested but unexercised stock options (50% of the in-the-money value of such options is used for the calculation).

        Employee ownership of HP shares also is encouraged through the Share Ownership Plan, HP's employee stock purchase plan.

        HP has reviewed the stock ownership of each of HP's executive officers. Most executive officers who have served as such for more than one year have met the foregoing stock ownership guidelines.

        The undersigned members of the Committee have submitted this Report to the Board of Directors and approved its inclusion in HP's 2006 proxy statement.

Stock Ownership Guidelines

        Our stock ownership guidelines are designed to increase executives' equity stakes in HP and to align executives' interests more closely with those of our stockholders. The guidelines provide that the Chairman and CEO should attain an investment position in HP's stock equal to five times her base salary and all other executive officers should attain an investment position equal to three times their base salary. These guidelines should be achieved within five years. Shares counted toward these guidelines include:

•

Any shares owned outright



•

Shares held through the HP 401(k) Plan

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•

Shares received under restricted stock grants



•

Vested but unexercised stock options (partial value is used for calculation)

        Employee ownership of HP shares also is encouraged through the Share Ownership Plan, HP's employee stock purchase plan.