According to Hewlett-Packard (HP)’s Friday filing with the Securities and Exchange Commission (SEC), a substantial severance package will be paid by the computer giant to its recently-resigned CEO Mark Hurd.

As per the documents forwarded, Hurd, who agreed to step down on Friday, in accordance with the HP’s executive severance plan, will be paid over $12.2 million. Hurd’s resignation came in the wake of the allegations of sexual harassment against him by a woman HP contractor.

Hurd will also be allowed to purchase up to 775,000 shares of outstanding options for HP’s common stock till September 7. Though there has been no disclosure about the strike price, the shares that Hurd purchases will be considered vested as of his resignation.

Furthermore, Hurd will also receive 330,177 shares based on his performance from January 17, 2008, till his Friday resignation. However, the documents filed with the SEC clarified that the total amount of those shares has been reduced since Hurd had quit before the three-year performance period which would have ended on October 31.

The filing also disclosed that, on December 11, an additional 15,853 shares which Hurd had received in 2009, will be settled at a price at par with or lesser than the $46.30 closing price of HP’s shares, on the New York Stock Exchange on Friday – the price cap will apparently ensure that Hurd does not gain from the increase in share prices in the interim period.