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This excerpt taken from the HPQ 8-K filed Jul 27, 2005. Severance
Benefit: Participants
will be eligible for the following severance payment in the event of a
Qualifying Termination (as defined below):
• For an Executive Officer who holds the title of Chief Executive Officer within 90 days before termination of HP employment, a lump sum severance payment in an amount equal, before taxes and other withholdings, to 2 times the sum of (i) his or her annual base salary as in effect immediately before termination of employment (“Base Salary”) and (ii) average annualized cash bonus under the applicable short-term bonus plan for three years’ worth of performance periods ending with the performance period most recently ended prior to termination of employment (“Average Bonus”);
• For Executive Officers who hold the title of Executive Vice President within 90 days before termination of HP employment, a lump sum severance payment in an amount equal, before taxes and other withholdings, to 1.5 times the sum of Base Salary and Average Bonus;
• For Executive Officers who hold the title of Senior Vice President or Vice President within 90 days before termination of HP employment, a lump sum severance payment in an amount equal, before taxes and other withholdings, to 1 times the sum of Base Salary and Average Bonus.
The severance payment under this plan shall be subject to applicable deductions and tax withholding and shall be payable within 10 days after execution of the release of claims described below. Any payments under this plan shall be reduced by any cash severance benefit payable to the participant under any other HP plan, program or agreement, including cash amounts paid or payable for the uncompleted portion of employment agreements and prorated cash bonuses under the applicable short-term bonus plan.
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