EXHIBIT 10(iii)(A)18          


LUCENT
TECHNOLOGIES


Executive Officer Severance Policy


Overview:  Lucent remains always mindful of the need to
balance competitive practice with shareowner interests on any component of
compensation.  Recognizing that
severance provides a safety net and an effective bridge that enables leaders to
exit the corporation and secure other employment, Lucent believes that
providing an appropriate level of severance is an important element in its
ability to attract, motivate, and retain the talented leadership necessary to
drive business success.  


Since October 2003, the practice and program we have in effect sets
severance payments equal to one year base salary plus the lesser of target or
actual bonus funding in the year of employment termination.  However, recognizing that on an ongoing
basis there could be a need to address unique circumstances, effective April
20, 2004, the umbrella policy that governs our severance programs will require
that Lucent obtain shareowner approval before entering into employment or
severance agreements with senior executives that provide severance benefits
that exceed 2.99 times base salary and bonus as defined and set forth below. 


EFFECTIVE DATE:  April 20, 2004. 

DESIGNATED PARTICIPANTS:  Section 16 officers.

COVERED AGREEMENTS:  

	
   
	
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  Employment
  or severance agreements entered into with covered executives after the
  effective date of the Policy.

	
   
	
   
	
   

	
   
	
  —
	
  Employment
  or severance agreements entered into with covered executives before the
  effective date of the Policy that are modified, extended or renewed after the
  effective date of the Policy.

	
   
	
   
	
   

	
   
	
  —
	
  The Policy
  does not apply to employment or severance agreements entered into with
  individuals who are not covered executives, even if the individual later
  becomes a designated participant.




BASE SALARY AND BONUS DEFINED:  For purposes of the “2.99 times” limit on
severance benefits:

	
   
	
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  Base salary
  is the annual rate of base salary in effect at termination.

	
   
	
   
	
   

	
   
	
  —
	
  Bonus is the
  lesser of (1) the target annual incentive amount for the year of termination
  or (2) the actual annual incentive funding amount, as a percentage of target,
  applicable to similarly situated active officers for the year of termination.




Items Included as Severance Benefits:  For purposes of the Policy, “severance
benefits” generally include:

	
   
	
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  Cash
  severance benefits (including cash amounts payable for the uncompleted
  portion of an employment agreement).















	
   
	
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  The value of
  other special benefits or perquisites provided for periods after termination
  of employment (but excluding special benefits or perquisites provided under
  any program generally applicable to all employees).

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  “gross-up” payments made in connection with severance benefits, including
  “gross-up” payments under Section Code 280G of the Internal Revenue Code

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  any special additional benefit or additional service period “credit” under
  Lucent’s retirement programs 

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  any consulting arrangement that exceeds one year from employment following
  termination of employment.

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  any special accelerated vesting of outstanding long term compensation awards
  under any long term incentive program determined consistent with Treasury
  regulations (subject to exceptions described below).




Items Excluded as Severance Benefits:  For purposes of the Policy, “severance
benefits” generally do not include:

	
   
	
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  Amounts
  earned or accrued for services prior to termination (such as pro rata bonus,
  unused vacation pay, etc.).

	
   
	
   
	
   

	
   
	
  —
	
  Retirement
  benefits earned or accrued under qualified and non-qualified retirement
  plans.

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  any other benefits provided under programs generally applicable to other
  employees.

	
   
	
   
	
   

	
   
	
  —
	
  Portion of
  any sign-on awards “earned” during employment period, or the lapse of any
  restrictions associated with “make-whole” awards provided to address
  forfeitures from prior employers.

	
   
	
   
	
   

	
   
	
  —
	
  Any benefit
  or payment required by law.

	
   
	
   
	
   

	
   
	
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  Amounts paid
  for services following termination of employment for a reasonable consulting
  agreement for a period of one year or less.

	
   
	
   
	
   

	
   
	
  —
	
  Amounts paid
  for post-termination covenants (such as a covenant not to compete).

	
   
	
   
	
   

	
   
	
  —
	
  The value of
  accelerated vesting of long term compensation awards that were outstanding prior
  to the effective date of the Policy that is generally applicable to other
  employees.