In 2002, Compaq signed a merger agreement with Hewlett-Packard for $24.2 billion, including $14.45 billion for goodwill, where each Compaq share would be exchanged for 0.6325 of a Hewlett-Packard share. There would be a termination fee of US$675 million that either company would have to pay the other to break the merger. Compaq shareholders would own 36% of the combined company while HP's would have 64%. Hewlett-Packard had reported yearly revenues of $47 billion, while Compaq's was $40 billion, and the combined company would have been close to IBM's $90 billion revenues. It was projected to have $2.5 billion in annual cost savings by mid-2004. The expected layoffs at Compaq and HP, 8500 and 9000 jobs, respectively, would leave the combined company with a workforce of 145,000. The companies would dole out a combined $634.5 million in bonuses to prevent key employees from leaving if shareholders approve the proposed merger, with $370.1 million for HP employees and $264.4 million for Compaq employees.