Former Gap Inc chief financial officer Heidi Kunz is to receive a severance package of $1.15 million, according to a Tuesday regulatory filing.

Kunz, whose resignation from Gap became effective last Friday, will be paid a $606,300 bonus and a year's salary Gap said in a letter filed with the SEC.

However, she must also repay the $2 million balance on an interest-free relocation loan that the company lent her in January 2000. The company said the loan must be repaid by 1 February 2005 or earlier if she sells the property used to secure the loan or breaches any provision of the termination agreement.