Attached is a term sheet describing the key terms of the proposed employment
agreement with Michael Capellas.

 <<mc comp recommendation - revised (10-11)1.doc>>

Wanda G. Holloway
Senior Counsel, Human Resources
Compaq Computer Corporation
MS110701
20555 SH 249
Houston, TX  77070-2698
281-518-6943 (phone)/281-518-7644 (fax)


 - mc comp recommendation - revised (10-11)1.doc