© 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Q4’06 Care Pack Incentive Program HP Packaged Services

2 Program Objective: Q4 FY06 Target : USD 2.5 M Targets on Commercial Care Pack/ Intel Server Care Pack ( PL R4/ PL06) Excludes : Consumer Products e.g. Scanners, DeskJet, Presario Excludes : R4 models LJ1020 and LJ 1022 Care Packs Excludes : Direct deals & Bundle Excludes : PSG Care Packs ( R7 and MG) Q4’06 Care Pack Incentive Program

3 Program 1: MOQ program for T1partner for IPG and ISS T1 Partner has to have the belowmentioned Part numbers in stock.Additional discounts are offered as per the below guideline.ny For these part numbers no further special price will be cleared to T2 partners (except for HP Direct billed deals).All T2 partners will be routed to T1 partners.Any direct deals SPC,if cleared,over and above the available discounts,will have to be billed Back to Back Part NosDescriptionQuantityDiscount on Distii landing IPG U3791E HP 3y Nbd LaserJet 22/23/24XX HW Support 100 H5473E HP 3y Nbd LaserJet 11/12/13xx HW Support 10010% H5479E HP 3y Nbd LaserJet 4100/42XX HW Support 100 U9811E HP 3y Nbd LaserJet 30xx HW Support 100 U3469E HP 3y Nbd LaserJet 43/50/51XX HW Support 100 ISS U4545EHP CP 4H 24x7 HW Proliant DL38050 U4433EHP CP 3Y Nxt Day HW ProLiant ML % U9508EHP CP NxtDay HW DL140/DL14550 U4608EHP CP 4H 24x7 HW Proliant DL58050 U4497EHP CP 4H 24x7 HW Proliant DL36050

4 1% additional back-end incentive to the distributor if the following information is provided on weekly basis as per the attached format and if the value matches the ELF pack site sell-out value Tier 2 partner’s name Part number Quantity Value of the Carepack Q4’06 Care Pack Incentive Program Program 2: Quarterly Incentive Program for Tier 1 Partners for sell-out data

5 Logistics Channel Development Program 3: Distributor Payout Rates The distributors are compensated for selling HP services with a payout rate depending on the type of product lines they carry and the channel development functions they provide. Functions Compensated High Logistics Product Lines Medium Development Product Lines High Development Product Lines Channel Development Achieve service sales Quota0.4 % 0% (For the orders received) Service Booster* (upon meeting quota) 1.1%3.6%0% * Service Booster % and product lines participation may differ country by country For Singapore only ; Under Services Booster - For all Distis (Upon achieving Registration Target for Fixed Care Packs). there will be a single BU Registration Rate target instead of PL wise target and new payout rate is 2.1% for medium development product lines. Q4 FY06 Care Pack Incentive Program

6 High Logistics Product Lines Medium Development Product Lines High Development Product Lines HPS Upfront value PL R8, 72, JN, 7G, 4J All services except bundle Upfront volume PL 06, R4, R7 All services except bundle Logistics Channel Development Distributor Participating Product Lines The type of services product lines that the distributors carry has been classified accordingly to the level of logistics and development activities that are involved as well as if the services are upfront or non-upfront services. Product lines with high logistics content are typically the high value upfront products. Product lines with medium development requirement are generally the medium volume products or upfront volume products. Product line MG has been moved to PSG Q4 FY06 Care Pack Incentive Program

7 Q4’06 Care Pack Incentive Program Program 1: Quarterly Incentive program for Tier 2 Top Partners : Special Care Pack Target Program Participation in this program is by partner’s choice and at HPS discretion. Incremental Targets will be provided by the services channel team in consultation with the partner. PL’s covered are PL R4 and PL 06. PFR target incentive would be as per PFR sheet. For the set-up of the target the partner needs to confirm back within 10 days of the launch of this program. Approval of Vivek Dwivedi and Pramod Pandey will be final.

8 Program 5: Quarterly Incentive Program for Tier 2 partners for Sell-out data 2% additional back-end incentive on the quarterly sell-out data, for the Carepack registration. The same will be calculated from ELF pack site and only the figures reflecting on the ELF Pack site will be considered. To qualify for this quarterly program, partners should meet quarterly services targets, as assigned in the PFR sheet. Claim for this program should be as per the attached format Q4’06 Care Pack Incentive Program

9 Program 6 : MOQ program for T2 partner for IPG and ISS Exciting MOQ Program for T2 Now Partner can purchase the options mentioned at the following discounts offered for this month Part noMin Order QtyDiscount on Distii Landing IPG Any Commercial Carepack Part Number 3010% 5012% ISS Any Part Number excluding513% U4609E & U4546E1015%

10 e-Points Set Up for Reseller Sales Executive Q4’06 Care Pack Incentive Program epoint will be calculated as per current process of SPO. Maximum accruals will be.75 at Fe1 (i.e. Disti price – 25%) Program 7:

11 Reseller Payout Rates - Premier Business Partner & Premier Enterprise Business Partner ONLY Partner Membership High Market Reach Product Lines Medium Solution Product Lines High Solution Product Lines Achieve service sales quota1%1.5% PBP & PeBP Service Accreditation* ( If a partner is ABSP, ASDP, ASMP or ASSP, upon meeting quota) 0.5%2%0% Achieve Cross Selling quota (Not For Sub-D) 1% 0% Market Reach Solution/Capability The PBPs and PeBP are compensated, if they achieve service sales quota, achieve service accreditation and cross selling quota with a payout rate depending on the type of service product lines they carry. * Service Accreditation % and product lines participation may differ country by country Program 8

12 Reseller Payout Rates - Business Partner and Enterprise Business Partner ONLY Partner Membership High Market Reach Product Lines Medium Solution Product Lines High Solution Product Lines Achieve services sales quota1%1.5%0% Service Accreditation* ( If a partner is ABSP, ASDP, ASMP or ASSP, upon meeting quota) 0.5%2%0% Achieve Cross Selling Quota Min. total quota of US$25K for all Bus Not for Sub-D 1% 0% Market Reach Solution/Capability The BPs and eBP are also compensated for achieving the service sales quota, service accreditation and cross selling based on a payout rate depending on the type of service product lines they carry. BP & eBP * Service Accreditation % and product lines participation may differ country by country Program 9