EXHIBIT 10.14
AGILENT TECHNOLOGIES, INC.
DEFERRED COMPENSATION PLAN
(AMENDED AND RESTATED AS OF NOVEMBER 1, 2001)
SECTION 1. ESTABLISHMENT AND PURPOSE OF PLAN.
The Agilent Technologies, Inc. Deferred Compensation Plan was adopted
and established effective November 1, 1999 and has been amended from time to
time. The Plan provides deferred compensation for a select group of management
or highly compensated employees as established in Title I of ERISA. Effective
November 1, 2001, the Plan is hereby amended and restated.
The Plan is intended to be an unfunded and unsecured deferred
compensation arrangement between the Participant and Agilent, in which the
Participant agrees to give up a portion of the Participant's current
compensation in exchange for Agilent's unfunded and unsecured promise to make a
payment at a future date, as specified in Section 6. Agilent retains the right,
as provided in Section 14, to amend or terminate the Plan at any time. Certain
capitalized words used in the text of the Plan are defined in Section 22 in
alphabetical order.
SECTION 2. PARTICIPATION IN THE PLAN.
Participation in General. All Eligible Employees on the U.S.
payroll of Agilent are eligible to defer Base Pay or Bonus under the Plan if
they have Base Pay, at the time of election as specified in Section 3.1.1, in
excess of the Base Pay Threshold.
SECTION 3. TIMING AND AMOUNTS OF DEFERRED COMPENSATION.
Eligible Employees shall make elections to participate in the Plan, as
follows:
3.1 Base Pay Deferrals
3.1.1 Timing of Base Pay Deferral. With respect to a deferral of Base
Pay, an election to participate must be made on or before December 15,
or such earlier date established by the Committee, of the calendar year
preceding the calendar year with respect to which an election to defer
Base Pay is made, in accordance with procedures established by the
Committee. Notwithstanding the foregoing, a newly hired Eligible
Employee may make an initial deferral election by the date the Committee
specifies after the individual receives enrollment materials. Currently,
the Committee has specified that for a newly hired Eligible Employee an
initial deferral election must be made within 30 days of becoming an
Eligible Employee.
3.1.2 Amount of Base Pay Deferral. The amount that will be deferred from
Base Pay
for an Eligible Employee is determined as follows:
3.1.2.1 The Eligible Employee will elect an annual whole dollar
amount to be deferred from Base Pay. The minimum annual
whole dollar amount of Base Pay that may be deferred is
$6,000 per calendar year. The maximum annual whole dollar
amount of Base Pay that may be deferred each calendar year
is equal to the amount that Base Pay exceeds the Base Pay
Threshold.
3.1.2.2 The annual whole dollar amount of Base Pay will be divided
equally into the number of pay periods falling within the
calendar year to which the election pertains (the "Pay
Period Deferral Amount").
3.1.2.3 The Pay Period Deferral Amount or parts thereof will be
deferred to the extent that a Participant has cash
compensation sufficient to cover the Pay Period Deferral
Amount or parts thereof.
3.1.3 Suspension and Reinstatement of Deferral. In situations where a
Participant's participation in the plan is suspended as described
in Section 3.4, all deferrals cease. If the Participant is
reinstated into the Plan during the same calendar year as the
suspension, the per pay period Deferred Amount will be reinstated
and deferred for the pay periods remaining in the calendar year.
3.2 Bonus Deferrals.
3.2.1 Timing of Bonus Deferral. Participants must make an election to
defer a Bonus on or before December 15, or such earlier date
established by the Committee, of the calendar year ending within
the fiscal year to which the Bonus pertains, in accordance with
any procedures established by the Committee. Notwithstanding the
foregoing, an election to defer a Bonus payable for a period
after the fiscal year begins may be amended or revoked at any
time prior to the commencement of the period to which the Bonus
relates, in accordance with any procedures established by the
Committee. Notwithstanding the foregoing, a newly hired Eligible
Employee may make an initial bonus deferral election by the date
the Committee specifies after the individual receives enrollment
materials. Currently, the Committee has specified that for a
newly hired Eligible Employee an initial deferral election must
be made within 30 days of becoming an Eligible Employee.
3.2.2 Amount of Bonus Deferral. An Eligible Employee may defer any
portion, up to 100%, of any Bonus to which he or she may become
entitled, so long as the deferral amount is expressed in terms of
a whole percentage point. Once an election is made by an Eligible
Employee to defer any portion or all of a Bonus, the appropriate
dollar amount will be withheld from the Bonus when this amount
would have otherwise been paid.
3.3 Effect of Taxes on Maximum Deferrals. Notwithstanding any provision
herein to the contrary, Agilent may withhold Taxes from any cash payment made
under the Plan or Bonus
plan or arrangement, owing as a result of any deferral or payment hereunder, as
Agilent deems appropriate in its sole discretion. If, with respect to the pay
period within which a deferral, payment or Bonus is made under the Plan or Bonus
plan or arrangement, the Participant receives insufficient actual cash
compensation to cover such Taxes, then Agilent may withhold any remaining Taxes
owing from the Participant's subsequent cash compensation received, until such
Tax obligation is satisfied, or otherwise make appropriate arrangements with the
Participant for satisfaction of such obligation.
3.4 Suspension. A Participant's participation in the Plan shall be
suspended for any period during which he or she:
(i) Is on a formal leave of absence without pay authorized by
Agilent;
(ii) Is on military leave, in accordance with Agilent's policy
with respect to such leaves; or
(iii) Ceases to qualify as an Eligible Employee but remains an
Employee. However, during any such suspension period, the Participant's Accounts
shall continue to share in the Plan, and such Participant may continue to make
investment directions pursuant to Section 5 hereof.
3.5 End of Suspension. When a Participant returns from a suspension
period during a calendar year in which an election for that Participant exists,
the Pay Period Deferral Amount for any remaining pay periods will be deferred.
Any amounts that would have been deferred during the suspension period if such
suspension had not occurred will no longer be considered part of the election
for Deferral Amounts.
3.6 Committee Discretion. Notwithstanding anything in this Section 3 to
the contrary, the Committee shall have the discretion to modify the availability
and timing of a valid deferral election under this Section 3, in any manner it
deems appropriate; provided, however, that any alteration with respect to a
Covered Officer must be consistent with the requirements for deductibility of
compensation under section 162(m) of the Code.
SECTION 4. DEFERRAL ACCOUNTS.
4.1 Crediting in General. Amounts deferred pursuant to Section 3 shall
be credited to a Deferral Account in the name of the Participant. Deferred
Amounts arising from deferrals of Base Pay shall be credited to a Deferral
Account at least quarterly. Deferrals resulting from amounts credited to a
Participant's Deferral Account from the deferral of Bonuses shall be credited to
a Deferral Account as soon as practicable after the amount of the Bonus that
would otherwise have been paid. The Participant's rights in the Deferral Account
shall be no greater than the rights of any other unsecured general creditor of
Agilent. Deferred Amounts and Earnings thereon invested hereunder shall for all
purposes be part of the general funds of Agilent. Any payout to a Participant of
amounts credited to a Participant's Deferral Account is not due, nor are such
amounts ascertainable, until the Payout Commencement Date.
4.2 Hewlett-Packard Company Officers Early Retirement Plan Deferrals. A
separate Deferral Account may be created or credited pursuant to the termination
of the Hewlett-Packard
Company Officers Early Retirement (OER) Plan, as restated effective October 31,
1999. Except as otherwise provided in this Section 4.2, an OER Deferral shall be
forfeited in full, if the Termination Date of a Rollover Participant for whom
the OER Deferral was created or credited occurs prior to April 1, 2001. There
will be no new deferrals into the OER Deferral Account. Notwithstanding the
foregoing, the OER Deferral of a Rollover Participant shall not be forfeited due
to his or her Termination Date occurring prior to April 1, 2001, if the Rollover
Participant has attained the age of 58 on or before March 31, 1999. This section
is subject to the rules set forth in Section 6, Payout to the Participants, and
Section 14, Amendment and Termination of the Plan.
SECTION 5. EARNINGS ON THE DEFERRAL ACCOUNT.
5.1 Crediting in General. Amounts in a Participant's Deferral Account
will be credited at least quarterly with Earnings until such amounts are paid
out to the Participant under this Plan as set forth in Section 6. All Earnings
attributable to the Deferral Account shall be added to the liability of and
retained therein by Agilent. Any such addition to the liability shall be
appropriately reflected on the books and records of Agilent and identified as an
addition to the total sum owing the Participant. The Deferral Account of a
Rollover Participant shall be credited with Earnings at the same time and
accounted for in the same manner as the Deferral Account of a Participant
(regardless of the Rollover Participant's eligibility to participate in the
Plan), pro-rated to reflect the date on which the deferral account from a
Rollover Plan is transferred into the Plan.
5.2 Hypothetical Investment Options. Except as otherwise provided in
this Section 5.2, and subject to provisions of Section 4.1, the Committee may,
in its discretion, offer Participants a choice among various Hypothetical
Investment Options on which their Deferral Accounts may be credited. Such a
choice is nominal in nature, and grants Participants no real or beneficial
interest in any specific fund or property. Provision of a choice among
Hypothetical Investment Options grants the Participant no ability to affect the
actual aggregate investments Agilent may or may not make to cover its
obligations under the Plan. Any adjustments Agilent may make in its actual
investments for the Plan may only be instigated by Agilent, and may or may not
bear a resemblance to the Participants' hypothetical investment choices on an
account-by-account basis. The timing, allowance and frequency of hypothetical
investment choices, and a Participant's ability to change how his or her
Deferral Account is credited, is within the sole discretion of the Committee.
5.3 Investment Directions. A Participant may direct the deemed
investment of the Participant's Deferred Amounts among the Hypothetical
Investment Options, in the manner prescribed by Agilent at the time of
enrollment or re-enrollment. Investment elections shall be in such minimum
percentage amounts with respect to each Fund as permitted by Agilent.
5.4 Reinvestment Directions. On a daily basis, by instructing Agilent in
the manner prescribed, a Participant may direct the reinvestment of the
Participant's Deferral Accounts among the various Hypothetical Investment
Options. A Participant shall specify the reinvestment amounts of the
Participant's Deferred Account to be invested in such Hypothetical
Investment Options. Reinvestment directions shall be in such minimum dollar or
percentage amounts as permitted by Agilent.
5.5 No Investment Directions. In the event that the Participant fails to
direct their investment, a Participant's Deferral Account shall be credited with
the deemed return on investment in Vanguard Institutional Index 500 Fund.
Covered Officers may not direct the investment of their Bonus Deferral Account.
A Covered Officer's Bonus Deferral Account shall only be credited with the
deemed return on investment in the Vanguard Institutional Index 500 Fund.
5.6 OER Deferral Fund. The Hypothetical Investment Option, which the
Committee in its sole discretion has delineated as the option with respect to
which OER Deferrals are credited, is a frozen fund, currently the Vanguard
Balanced Fund. Participants will not have, among the Hypothetical Investment
Options, the right to request that additional Deferral Account balances be
credited in accordance with the deemed return on investment of the so delineated
Hypothetical Investment Option described above.
SECTION 6. PAYOUT TO THE PARTICIPANTS.
6.1 Termination After Retirement Date. If a Participant's Termination
Date is on or after his or her Retirement Date and the Participant's Deferral
Account balance is equal to or greater than $25,000 on the Retirement Date, the
form and commencement of benefit may be made in accordance with the
Participant's election and this Section 6.1. An election under this section is
only valid if made before the date that is at least twelve (12) months prior to
the Participant's Termination Date, and on or before the last day of the
calendar year preceding the Termination Year.
6.1.1 Form of Payout. A Participant making a valid election under this
Section 6.1 may elect to receive either (a) a single lump sum payout by
January 15 of the year following the Termination Year, or (b) a payout
in annual installments over a five (5) to fifteen (15) year period
beginning on or before the January 15 following the Termination Year.
6.1.2 Commencement of Payout. A Participant making a valid election
under this Section 6.1 may elect to further defer the Payout
Commencement Date, under either the single lump sum or the annual
installment election addressed in Section 6.1.1, by an additional one
(1), two (2) or three (3) years beginning after the January 15
following the Termination Year.
6.1.3 Earnings on Deferral Accounts. Whatever the form of payout under
Section 6, and whatever the timing of the Payout Commencement Date, the
Deferral Account of a Participant shall continue to be credited with
Earnings until all amounts in such an account are paid out to the
Participant.
6.2 Default Form and Commencement of Payout. If a Participant's
Termination Date is on or after his or her Retirement Date and a valid election
under Section 6.1 is not made, and the Participant's Deferral Account balance is
equal to or greater than $25,000 on the Retirement Date, then the Participant
shall receive his or her payout in annual installments over the fifteen
(15) year period beginning on or before January 15th following the Termination
Year. If, however, such Deferral Account balance is less than $25,000 on the
Retirement Date, then the Participant shall receive a single lump sum payout on
or before January 15th following the Retirement Date.
6.3 Death of Participant. If a Participant dies and an election was made
under Section 6.1, the Beneficiary will be paid according to the election even
though the election was not made twelve (12) months or more prior to the
Participant's death. If the Participant dies and no valid election was made, and
the Participant's Deferral Account balance is equal to or greater than $25,000
on the date of death, then the Beneficiary will receive the payout in annual
installments over the fifteen (15) year period beginning on or before January
15th in the calendar year following the year of the Participant's death. If,
however, such Deferral Account balance is less than $25,000 on the date of
death, then the Beneficiary shall receive a single lump sum on or before January
15th of the year following the year of death.
6.4 Termination Prior to Retirement Date. If the Participant's
Termination Date precedes his or her Retirement Date, then the Participant will
receive a single lump sum payout as soon as practicable after the Termination
Date in accordance with procedures established by the Committee.
6.5 Committee Discretion. Notwithstanding anything in this Section 6 to
the contrary, the Committee shall have the discretion to modify the availability
and timing of a valid election under Section 6.1, and the timing, form and
amount (e.g., payouts affected by a forfeiture under Section 4.2) of any payout,
in any manner it deems appropriate; provided, however, that any alteration with
respect to a Covered Officer must be consistent with the requirements for
deductibility of compensation under section 162(m) of the Code.
SECTION 7. HARDSHIP PROVISION.
7.1 Unforeseeable Emergencies. Neither the Participant nor his or her
Beneficiary is eligible to withdraw amounts credited to a Deferral Account prior
to the time specified in Section 6. However, such credited amounts may be
subject to early withdrawal if an unforeseeable emergency occurs that is caused
by an event beyond the Participant's or Beneficiary's control and would result
in severe financial hardship to the individual if early withdrawal is not
permitted. A severe financial hardship exists only when all other reasonably
available financial resources have been exhausted. The Committee shall have sole
discretion to determine whether to approve any hardship withdrawal, which amount
will be limited to the amount necessary to meet the emergency. The Committee's
decision is final and binding on all interested parties.
7.2 Waiting Period. If the Committee approves a hardship withdrawal, the
Participant (1) may not defer Base Pay, as specified in Section 3, for the
remainder of the calendar year within which the withdrawal is received, and (2)
may not defer Bonuses, as specified in Section 3, for the remainder of the
calendar year in which the hardship withdrawal is received
SECTION 8. OTHER ACCESS TO DEFERRAL ACCOUNTS.
8.1 Unanticipated Needs. Neither the Participant nor his or her
Beneficiary is eligible to withdraw amounts credited to a Deferral Account prior
to the time specified in Section 6. However, such credited amounts may be
subject to early withdrawal if an unanticipated need for funds occurs, other
than a need specified in Section 7; provided, however, that the Participant
permanently forfeits at least ten percent (10%) of the amount to be withdrawn.
Additionally, unless otherwise determined by the Committee, withdrawals based on
an unanticipated need for funds may be made no more than once each calendar year
and the amount to be withdrawn must be equal to or greater than $25,000.
8.2 Waiting Period. If the Participant withdraws amounts credited to a
Deferral Account under this section, he or she (1) may not defer Base Pay, as
specified in Section 3, for the remainder of the calendar year within which the
withdrawal is received, and (2) may not defer Bonuses, as specified in Section
3, for the remainder of the calendar year in which the hardship withdrawal is
received.
SECTION 9. DESIGNATION OF BENEFICIARY.
The Participant shall, in accordance with procedures established by the
Committee, (1) designate a Beneficiary hereunder, and (2) shall have the right
thereafter to change such designation. Notwithstanding the foregoing, with
respect to an employee who became a Plan Participant during the Transition
Period, as described in Section 2.2, all existing beneficiary designations on
file with the Agilent Plan shall be deemed and treated as designations under
this Plan. In the case of a Participant's death, payment due under this Plan
shall be made to the designated Beneficiary or, in the absence of such
designation, by will or the laws of descent and distribution in the
Participant's state of residence at the time of his or her death.
SECTION 10. CHANGE IN CONTROL.
10.1 Discretion to Accelerate. In the event of a proposed change in
control of Agilent, as defined below, the Committee shall have complete
authority and discretion, but no obligation, to accelerate payments of both
terminated and active Participants.
10.2 Proposed Change in Control. A "proposed change in control" shall
mean (1) a tender offer by any person or entity, other than Agilent or an
Agilent subsidiary, to acquire securities representing 40 percent or more of the
voting power of Agilent or (2) the submission to Agilent's shareholders for
approval of a transaction involving the sale of all or substantially all of the
assets of Agilent or a merger of Agilent with or into another corporation.
Notwithstanding the foregoing, neither the initial public offering of voting
common stock in Agilent, nor the distribution by HP of shares of Agilent voting
common stock in a transaction which qualifies under Section 355 of the Code,
shall constitute a "proposed change in control" for purposes of this Section 10.
10.3 Request for Negotiation. The Committee may also ask the Board of
Directors to
negotiate, as part of any agreement involving the sale or merger of
Agilent, or a sale of substantially all of Agilent's assets or a similar
transaction, terms providing for protection of Participants and their interests
in the Plan.
SECTION 11. LIMITATION ON ASSIGNMENTS.
Benefits under this Plan are not subject to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, attachment or garnishments by
creditors of the Participant or the Participant's Beneficiary and any attempt to
do so shall be void.
SECTION 12. ADMINISTRATION.
12.1 Administration by Committee. The Committee shall administer the
Plan. No member of the Committee shall become a Participant of the Plan. The
Committee shall have the sole authority to interpret the Plan, to establish and
revise rules and regulations relating to the Plan and to make any other
determinations that it believes necessary or advisable for the administration of
the Plan. Decisions and determination by the Committee shall be final and
binding upon all parties, including shareholders, Participants, Beneficiaries
and other employees. The Committee may delegate its administrative
responsibilities, as it deems appropriate.
12.2 Books and Records. Books and records maintained for the purpose of
the Plan shall be maintained by the officers and employees of Agilent at its
expense and subject to supervision and control of the Committee.
SECTION 13. NO FUNDING OBLIGATION.
Agilent is under no obligation to transfer amounts credited to the
Participant's Deferral Account to any trust or escrow account, and Agilent is
under no obligation to secure any amount credited to a Participant's Deferral
Account by any specific assets of Agilent or any other asset in which Agilent
has an interest. This Plan shall not be construed to require Agilent to fund any
of the benefits provided hereunder nor to establish a trust for such purpose.
Agilent may make such arrangements as it desires to provide for the payment of
benefits, including, but not limited to, the establishment of a rabbi trust or
such other equivalent arrangements as Agilent may decide. No such arrangement
shall cause the Plan to be a funded plan within the meaning of Title I of ERISA,
nor shall any such arrangement change the nature of the obligation of Agilent
nor the rights of the Participants under the Plan as provided in this document.
Neither the Participant nor his or her estate shall have any rights against
Agilent with respect to any portion of the Deferral Account except as a general
unsecured creditor. No Participant has an interest in his or her Deferral
Account until the Participant actually receives the deferred payment.
SECTION 14. AMENDMENT AND TERMINATION OF THE PLAN.
Agilent, by action of the Committee, in its sole discretion may suspend
or terminate the Plan or revise or amend it in any respect whatsoever; provided,
however, that amounts already credited to Deferral Accounts will continue to be
owed to the Participants or Beneficiaries and will continue to accrue Earnings
and continue to be a liability of Agilent. 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, however, that Agilent reserves
the right to change the basis of return on investment of the Deferral Account
with respect to any Participant or Beneficiary. Participants or Beneficiaries
will be given notice prior to the discontinuance of the Plan or reduction of any
benefits provided by the Plan.
SECTION 15. TAX WITHHOLDING.
If Agilent concludes that Tax is owing with respect to any deferral of
income or payment hereunder, Agilent shall withhold such amounts from any
payments due the Participant, or otherwise make appropriate arrangements with
the Participant or his or her Beneficiary for satisfaction of such obligation.
SECTION 16. CHOICE OF LAW.
This Plan, and all rights under this Plan, shall be interpreted and
construed in accordance with ERISA and, to the extent not preempted, the law of
the State of Delaware, unless otherwise stated in the Plan.
SECTION 17. NOTICE.
Any written notice to Agilent required by any of the provisions of this
Plan shall be addressed to the chief personnel officer of Agilent or his or her
delegate and shall become effective when it is received.
SECTION 18. NO EMPLOYMENT RIGHTS.
Nothing in the Plan, nor any action of Agilent pursuant to the Plan,
shall be deemed to give any person any right to remain in the employ of Agilent
or affect the right of Agilent to terminate a person's employment at any time
and for any reason.
SECTION 19. SEVERABILITY OF PROVISIONS.
If any particular provision of this Plan is found to be invalid or
unenforceable, such provision shall not affect any other provisions of the Plan,
but the Plan shall be construed in all respects as if such invalid provision had
been omitted.
SECTION 20. ROLLOVERS FROM OTHER PLANS.
20.1 Discretion to Accept. The Committee shall have complete authority
and discretion, but no obligation, to allow the Plan to create Deferral Accounts
for Rollover Participants and credit such accounts with amounts to reflect the
Rollover Participant's deferral account in a Rollover Plan. The amounts credited
to such Deferral Accounts are fully subject to the provisions of this Plan.
Reference in the Plan to such a crediting as a "rollover" or "transfer" of
assets 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.
20.2 Status of Rollover Participants. A Rollover Participant and his or
her 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 or she has becomes an Eligible
Employee under the terms of the Plan.
20.3 Payment to Rollover Participants. If at the time of rollover or
transfer, payments from a Rollover Participant's account in a Rollover Plan have
already commenced from a Rollover Plan, he or she shall continue to receive such
payments in accordance with the form and timing of payment provisions of such
plan. If a Rollover Participant is not yet eligible to receive payments from the
Rollover Plan at the time of the rollover or transfer, he or she is bound by the
payout provisions of this Plan.
SECTION 21. CODE SECTION 162(m).
With respect to Covered Employees, this Plan is designed to satisfy the
special requirements for performance-based compensation set forth in Section
162(m)(4)(C) of the Code, and the Plan shall be so construed. Furthermore, if a
provision of the Plan as it relates to a Covered Officer causes a deferral or
payment to fail to satisfy these special requirements, the Plan shall be deemed
amended to satisfy the requirements to the extent permitted by law and subject
to Committee approval.
SECTION 22. DEFINITIONS.
22.1 Agilent means Agilent Technologies, Inc., a Delaware corporation,
and any business entity within the Agilent consolidated group.
22.2 Base Pay means the annual base salary rate of cash compensation for
employees on the U.S. payroll of Agilent, excluding bonuses, incentive
compensation, commissions, overtime pay, Bonuses, severance payments, shift
differential, payments under the Agilent Technologies, Inc. Disability Plan or
the HP Income Protection Plan, the Agilent or HP Supplemental Income Protection
Plan, or any other additional compensation.
22.3 Base Pay Threshold means the amount defined in Code Section
401(a)(17), as adjusted by the Secretary of the Treasury under Code Section
415(d), in effect on January 1st of the calendar year for which amounts are to
be deferred.
22.4 Beneficiary means the person or persons designated by a Participant
pursuant to Section 9, in accordance with and accepted by Agilent, to receive
any amounts payable under the Plan in the event of the Participant's death.
22.5 Bonus shall have the same meaning as set forth in the Agilent
Technologies, Inc. Performance-Based Compensation Plan for Covered Employees, as
amended and restated effective November 1, 2001 and shall have the same meaning
as "Variable Payment" and "Variable Pay" as set forth in the Agilent
Technologies, Inc. Pay-For-Results Plan for Non-Covered Employees, effective
November 1, 2001 (PFR Plan) or any other management bonus plan or arrangement
that provides a bonus compensation opportunity to Eligible Employees as defined
by the Committee from time to time. Bonus does not include any sales incentive
compensation or commission
22.6 Code means the Internal Revenue Code of 1986, as amended from time
to time.
22.7 Committee means the Compensation Committee of the Board of
Directors of Agilent or its delegate.
22.8 Covered Officer shall have the same meaning as "covered employee"
does under Code section 162(m).
22.9 Deferral Account means the account balance of a Participant in the
Plan created from Deferred Amounts or from a credit to a Participant's account
from a Rollover Plan, and the Earnings thereon prior to a payout to the
Participant.
22.10 Deferred Amount means the amount the Participant elects to have
deferred from Base Pay and/or a Bonus, pursuant to Section 3.
22.11 Distribution Date has the same meaning as this same defined term
in the Master Separation and Distribution Agreement between HP and Agilent,
effective August 12, 1999.
22.12 Earnings means the deemed return on investment (or charge on
investment loss) allocated to a Participant's Deferral Account, based on the
return of the Hypothetical Investment Options.
22.13 Eligible Employee means an employee on the U.S. payroll of Agilent
who has a Base Pay rate at the time of election as specified in Section 3 equal
to or in excess of the Base Pay Threshold.
22.14 ERISA means the Employee Retirement Income Security Act of 1974,
as amended from time to time.
22.15 Hypothetical Investment Options means those options listed in
Appendix A of this Plan. Said options are at the sole discretion of and subject
to amendment or termination by the Committee.
22.16 HP means Hewlett-Packard Company, a Delaware corporation.
22.17 Participant means any individual who has a Deferral Account under
the Plan or who is receiving or entitled to receive benefits under the Plan. The
term Participant also refers to a Rollover Participant, except where expressly
provided otherwise.
22.18 Payout Commencement Date means the date on which the payout to a
Participant of amounts credited to his or her Deferral Account first commences.
22.19 Plan, unless preceded by (i) "HP", in which case the term refers
to the Hewlett-Packard Company Deferred Compensation Plan, or (ii) "Rollover",
in which case the terms refers to a Rollover Plan, means the Agilent
Technologies, Inc. Deferred Compensation Plan.
22.20 Retirement Date means the date on which a Participant has met the
definition of Retirement, as defined in the Retirement Plan. For this purpose,
the Committee may, in its discretion, permit the years of service of a Rollover
Participant to include the years of service with the employer for which a
Rollover Participant worked immediately preceding employment with Agilent.
22.21 Retirement Plan means the Agilent Technologies, Inc. Retirement
Plan as may be amended from time to time.
22.22 Rollover Participant means an individual with a Deferral Account
in the Plan transferred from a Rollover Plan in accordance with the provisions
of Section 19. 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.
22.23 Rollover Plan means-
22.23.1 The nonqualified deferred compensation plan of any other
employing business entity within the HP consolidated group, until
the Distribution Date; or
22.23.2 The Hewlett-Packard Company Officers Early Retirement
Plan, to the extent a Deferral Account is created or added to for
a Participant or Rollover Participant, due to the termination of
this plan; or,
22.23.3 The nonqualified deferred compensation plan of a business
entity acquired by Agilent through acquisition of a majority of
the voting interest in, or substantially all of the assets of,
such entity.
22.24 Tax or (Taxes) means any federal, state, local, or any other
governmental income tax, employment tax, payroll tax, excise tax, or any other
tax or assessment owing with respect to amounts deferred, any Earnings thereon,
and any payments made to Participants or Beneficiaries
under the Plan.
22.25 Termination Date means the date on which the Participant ceases to
be an employee of Agilent.
22.26 Termination Year means the calendar year within which a
Participant's Termination Date falls.
22.27 Transition Period means the period commencing with the beginning
of Agilent's Payroll Date (as defined in the Master Separation and Distribution
Agreement between HP and Agilent, effective August 12, 1999), and ending on the
Distribution Date (as defined in the Master Separation and Distribution
Agreement between HP and Agilent, effective August 12, 1999).
SECTION 23. EXECUTION.
IN WITNESS WHEREOF, Agilent has caused this Plan to be duly adopted by the
undersigned this ___ day of ___________ 2001, effective November 1, 2001.
AGILENT TECHNOLOGIES, INC.
By:
----------------------------------------------------
D. Craig Nordlund,
Senior Vice President, General Counsel and Secretary
Agilent Technologies, Inc.
APPENDIX A
Hypothetical Investment Options as of January 1, 2002
Vanguard Institutional Index 500 Fund
Vanguard Balanced Fund
Spartan U.S. Equity Index Fund
Fidelity Growth & Income Portfolio
Fidelity Intermediate Bond Fund
Fidelity Low-Priced Stock Fund
Spartan Extended Market Index Fund
Fidelity Contra Fund
Fidelity Magellan Fund
Institutional Money Market Fund
ICAP Equity Portfolio
Janus Aspen Series Worldwide Growth Portfolio
MAS Mid-Cap Growth Fund
PIMCO Total Return Fund
Harbor Capital Appreciation Fund
Domini Social Equity Fund
Templeton Foreign Fund