This excerpt taken from the HPQ 10-Q filed Jun 8, 2007.
XXI. CHANGE IN CONTROL
In the event that the Company is merged into or acquired by another entity in a transaction involving a change in control, the Committee shall have complete authority and
discretion, but not the obligation, to accelerate the vesting of outstanding stock options and the termination of restrictions on Stock Awards.
The Committee may also ask the Board of Directors to negotiate, as part of any agreement involving a sale or merger of the Company, a sale of substantially all the Companys assets or similar transaction, terms providing protection for employees holding stock options or Stock Awards.