Apple 2000 Annual Report Download - page 73

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In connection with a relocation assistance package, the Company loaned Mr. Johnson (Senior Vice President, New Business Development)
$1,500,000 for the purchase of his principal residence. The loan is secured by a deed of trust and is due and payable in May 2004. Under the
terms of the loan, Mr. Johnson agreed that should he exercise any of his stock options prior to the due date of the loan, that he would pay the
Company an amount equal to the lessor of (1) an amount equal to 50% of the total net gain realized from the exercise of the options; or (2)
$375,000 multiplied by the number of years between the exercise date and the date of the loan. The largest amount of the indebtedness
outstanding on this loan during fiscal year 2000 was $1,500,000.
Mr. Jerome York, a member of the Board of the Directors of the Company, is a member of an investment group that purchased
MicroWarehouse, Inc. ("MICROWAREHOUSE") in January 2000. He also serves as its Chairman, President and Chief Executive Officer.
MicroWarehouse is a multi-billion dollar specialty catalog and online retailer and direct marketer of computer products, including products
made by the Company, through its MacWarehouse catalogue. During fiscal year 2000, MicroWarehouse accounted for 3.26% of the
Company's net sales.
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