Apple 1997 Annual Report Download - page 118

balance of the Loan (as defined in Section 4(g) below) as of the date on which such payment is made to you; the amount will be applied first to
accrued interest on the Loan as of such date, and the balance of said amount shall be applied to the then remaining principal balance on the
Loan.
(b) As soon as practicable following the date which is the later of
(i) the Expiration of the Revocation Period (but in no event later than thirty
(30) days following the expiration of such period) or (ii) the perfection of the security interest for the Loan as described in Section 4(g) (but in
no event later than thirty (30) days following the expiration of such period), you shall receive an additional payment from the Company in the
amount of One Million Dollars ($1,000,000), less applicable withholding taxes, representing the Component B Bonus (as defined in the
Employment Agreement) for the fiscal year of the Company ending September 27, 1997 (the "1997 Fiscal Year").
(c) You acknowledge that, as of the Director and Officer Resignation Date, you were a participant in the Company's Senior Officers Restricted
Share Plan (the "SORP"). You shall be eligible for an award of performance shares under the SORP for the 1997 Fiscal Year, subject to the
Company achieving the applicable performance goals and targets established for that year. A copy of said goals and targets is attached hereto
as EXHIBIT A. The actual number of performance shares and cash amount, if any, awarded to you for the 1997 Fiscal Year will be determined
by the Compensation Committee based upon the goals and targets for that year, and the percentage of your target award paid to you will be the
same percentage paid to other senior officers of the Company who were participants in the SORP for the entire 1997 Fiscal Year. The
performance shares and cash amounts, if any, payable to you under the SORP for the 1997 Fiscal Year shall be payable to you at the same time
as payments are made to other SORP participants. Except as provided in this Section 4(c), no other amounts shall be payable to you under the
SORP.
(d) On the Employee Resignation Date, the Company will pay you any accrued but unpaid salary you have earned through such date.
(e) During the Benefit Continuation Period (as hereinafter defined), you and your eligible dependents shall continue to be eligible to participate
in the medical, dental and health insurance plans applicable to you immediately prior to the Employee Resignation Date on the same terms and
conditions in effect for you and your dependents immediately prior to the Employee Resignation Date, or equivalent coverage obtained by the
Company. For purposes of the previous sentence, "Benefit Continuation Period" means the period beginning on the Employee Resignation
Date and ending on the earliest to occur of (i) the date you revoke the Release (as defined in Section 9 below), (ii) the Employee Resignation
Date (if you fail to execute the Release), or (iii) February 2, 2001; provided, however, that your coverage under such plans and arrangements
shall end on the date that you are eligible for comparable coverage under the plan of a subsequent employer. Following the end of the Benefit
Continuation Period, you shall be eligible to elect any applicable "continuation coverage" under Section 4980B(f) of the Internal Revenue Code
of 1986, as amended, as if the last day of the Benefit Continuation Period were the date of your "qualifying event" for such continuation
coverage.
(f) Following the Expiration of the Revocation Period, you shall be entitled to keep any of the Company computer and software products in
your office or made available to you at your home for business use as listed in EXHIBIT B; provided, however, that you agree to delete from
such products all confidential and propriety information of the Companies. During the Benefit Continuation Period, you shall continue to be
eligible to purchase Company products for your personal use at the discounted price then offered to employees of the Company; provided,
however, you shall be precluded from purchasing at a discounted price any more than ten (10) comparable items in any twelve- (12) month
period. In addition, the Company will deliver one "Spartacus" unit to you within ninety (90) days of the date on which such product becomes
available on the commercial market.
(g) In consideration of your execution and delivery of the Release, the Company hereby agrees to extend the maturity date of the loan made to
you pursuant to Section 3(c) of the Employment Agreement (the "Loan") until September 15, 1998, whereupon the then entire outstanding
principal amount thereof, together with all accrued and unpaid interest, shall be payable in full; provided,