EXHIBIT 10.15







	





EMPLOYMENT
AGREEMENT



     This
Employment Agreement (“Agreement”) by and between Gateway, Inc., a Delaware corporation
(the “Company”), and Susan B. Parks (the “Executive”) is made as of August 1, 2000. 



     1.
Employment Period; Coordination with Change of Control Compensation Agreement. 










	 	     (a)
The Company hereby agrees to employ the Executive, and the Executive hereby accepts such
employment, pursuant to the terms and conditions set forth in this Agreement, for a
period commencing August 1, 2000 (the “Commencement Date”) and ending July 31,
2004, unless terminated earlier as provided herein (the “Initial Employment Period”),
provided that the Initial Employment Period shall be automatically extended for
successive one (1) year periods (“Additional Periods”) unless terminated
earlier as provided herein or a party gives written notice to the other party of
non-extension at least ninety (90) days prior to the end of the Initial Employment Period
or the then Additional Period. A notice of non-extension by the Company shall be deemed a
Termination without Cause as of the end of the then Initial Employment Period or
Additional Period or such earlier date after notice as the Executive shall elect. The
period of Executive’s actual employment hereunder after the Commencement Date shall
be referred to herein as the “Employment Period.” 






	 	     (b)
On or about the date hereof, Executive and the Company have entered or will enter into a
Change of Control Compensation Agreement substantially in the form attached hereto as
Exhibit “A”  (the “Change of Control Agreement”). This Agreement and
the Change of Control Agreement shall each remain in effect in accordance with their
respective terms, provided, however, that: 






	 	     (i)
If a Change of Control (as defined in the Change of Control Agreement) shall occur during
the Employment Period and at a time when the Change of Control Agreement is in effect,
then, (A) during the remaining Term (as defined therein) of the Change of Control
Agreement, the terms “Cause”  and “Good Reason”  and “Disability”  as
used in this Agreement shall have the meanings assigned to such terms in the Change of
Control Agreement, (B) Sections 6(a) and 6(c) of this Agreement and the third and fourth
sentences of Section 5(b) of this Agreement shall not apply to any termination of
Executive’s employment occurring during the remaining Term of the Change of Control
Agreement, and (C) the second sentence of Section 6(b) of this Agreement shall not apply
to options and other equity awards to which Section 6.1 (C) of the change of Control
Agreement applies; and 






	 	     (ii)
If a Pre-Change of Control Entitlement Event (as defined in the Change of Control
Agreement) shall occur during the Employment Period and at a time when the Change of
Control is in effect, then (A) Executive shall not be entitled to benefits under Section
6(a) of this Agreement, (B) Sections 5(b) and Section 6(b) of this Agreement shall be of
no force or effect (it being understood and agreed that any termination of Executive’s
employment that would qualify as both a Pre-Change of Control Entitlement Event (for
purposes of the Change of Control Agreement) and a termination of Executive’s
employment for “Cause”  or without “Good Reason”  (each as defined in
this Agreement) shall be treated solely as a Pre-Change of Control Entitlement Event) and
(C) Executive shall be entitled to receive Accrued Amounts (as defined in Section 6(d) of
this Agreement). 









	





     2.
Position and Duties. 










	 	     (a)
During the Employment Period, the Executive shall be employed as Senior Vice President,
Business.






	 	     (b)
The Executive shall devote her full business time, attention and best efforts to her
duties and responsibilities hereunder and shall comply with the Company’s written
rules and policies including, without limitation, the Company’s Code of Ethics and
Non-Harassment policy. It shall not be a violation of this Section for the Executive to
(i) manage her personal investments, (ii) be involved in charitable, civic and
professional activities, (iii) serve on for profit corporate or corporate advisory
boards or committees approved by the President and Chief Executive Officer, or (iv) deliver
lectures or fulfill speaking engagements, provided that the activities referred to in
subparts (i) through (iv) do not interfere with the performance of the Executive’s
responsibilities as an employee of the Company or violate the Company’s written
rules and policies. In the event the President and Chief Executive Officer of the Company
notifies Executive in writing that any such activity presents a conflict, or an
appearance of a conflict, of interest with the Company, or violates the Company’s
written rules and policies, the Executive shall cease the activity as soon as reasonably
practicable. 






	


     3.
Salary, Bonus and Benefits. 










	 	     (a)
Base Salary and Sign On Bonus. During the Employment Period, the Executive shall
receive an annual base salary of at least $425,000 (as increased from time to time, “Annual
Base Salary”), payable pursuant to the Company’s normal payroll practices.
Executive shall be paid a sign on bonus of $200,000 (less applicable payroll deductions),
which bonus shall be repayable should Executive leave Gateway (either voluntarily or
involuntarily) prior to her one-year anniversary date. 






	 	     (b)
Annual Bonus. During the Employment Period, the Executive’s annual target
bonus shall be equal to 65% of the Executive’s Annual Base Salary (the “Target
Bonus”) and shall be increased or reduced in accordance with the pay-out formula if
established target performance goals are exceeded or not met. The target performance
goals shall be established by the Compensation Committee of the Board (the Compensation
Committee) at the beginning of each calendar year if pursuant to a plan subject to
Section 162(m) of the Internal Revenue Code, or otherwise by the Company. 






	 	     (c)
Benefits. The Executive shall be treated in the same manner as, and shall be
entitled to such benefits and other perquisites as provided to, other senior executive
officers (“Senior Executive Officers”) of the Company. In this regard, the
Executive shall be entitled to benefits under the Company’s vacation, benefit and
welfare plans which are generally applicable to other Senior Executive Officers
including, without limitation, the Company’s relocation plan, the Company’s
stock option plan, the retirement savings plan, and the short-term and long-term
disability plans. 






	


2













	





     4.
Stock Options. 










	 	     (a)
Initial Option Grant. Executive shall be given an initial option grant (“Initial
Options”) to purchase 300,000 shares of Gateway common stock pursuant to the terms of the
Gateway, Inc. 2000 Equity Incentive Plan (“2000 Plan”) and the related stock option
agreement.






	 	     (b)
Recurring Options. Commencing in calendar year 2000 and thereafter in each
calendar year during the Employment Period, the Executive will be eligible for option
grants in accordance with the provisions of the Company’s stock incentive plan(s)
then in effect. All stock option grants under Section 4(b) of this Agreement will be
granted under, and subject to, such plans. 






	


     5.
Termination of Employment. 










	 	     (a)
Termination without Cause and Termination with Cause. The Company may terminate
the Executive’s employment during the Employment Period without Cause or with Cause.
For purposes of this Agreement, Termination without Cause shall mean any termination by
the Company during the Employment Period other than for Cause or as a result of death,
retirement, or Disability. Except as provided in Section 1(b) above, Termination for
Cause shall mean termination resulting from, as determined in the Company’s sole
discretion, the Executive’s (i) conviction (including a plea of guilty or nolo
contendere) of any felony of any kind (other than Limited Vicarious Liability or a
routine traffic infraction) or any other crime (whether it is a felony or not) involving
securities fraud, theft of assets of the Company, or falsification of the Company’s
books or records; (ii) material breach of the agreement signed by Executive as a
condition of employment (attached hereto as Exhibit “B” and made a part hereof) which
breach is not cured within twenty (20) days of written notice thereof; (iii) willful
misconduct with regard to the Company; or neglect or dereliction of duty resulting in
either case in economic harm to the Company or damage to the Company’s name or
reputation; (iv) failure to follow or in good faith attempt to follow failure to
follow or in good faith attempt to follow the reasonable lawful direction of the
President and Chief Executive Officer or Vice Chairman or the person to whom the
Executive directly reports; or (v) failure to comply with the Company’s Code of
Ethics or other policies including, without limitation, the Company’s Non-Harassment
policy. Limited Vicarious Liability, as used above, shall mean any liability which is based
on acts of the Company (x) for which the Executive is charged solely as a result of his
offices with the Company, (y) in which he was not directly or indirectly involved,
and (z) with respect to which he had no prior knowledge or reasonable belief that a law
was being violated. 






	 	     (b)
Good Reason. The Executive may terminate employment for Good Reason, which is
referred to herein as a Termination for Good Reason. Except as provided in Section 1(b)
above, Good Reason means: (i) a diminution in Executive’s title; provided,
however, that it shall not be deemed a diminution in Executive’s title where
Executive continues to carry the title Senior Vice President, (ii) the assignment of
duties to the Executive that are materially and adversely inconsistent with the Executive’s
position as Senior Vice President, (iii) any material diminution in Executive’s
authority or responsibility, or (iv) any material breach by the Company of this
Agreement. If the Executive determines that Good Reason exists, the Executive must notify
the Company in writing, within 180 days following the Executive’s knowledge of the
first event which the Executive determines constitutes Good Reason, or such event shall
not constitute Good Reason under this Agreement. If the Company remedies such event
within sixty (60) days following receipt of notice, the Executive may not terminate
employment for Good Reason as a result of such event. 






	


3













	












	 	     (c)
Death, Retirement, or Disability. The Executive’s employment shall terminate
automatically upon the Executive’s death or retirement during the Employment Period.
Except as provided in Section 1(b) above, the Executive’s employment under this
Agreement shall terminate for “Disability” where the Executive has been unable
to render the material services required by his position as a result of physical or
mental incapacity (as determined by the Company’s disability insurance carrier) for
a period of 180 consecutive days and the Company has notified the Executive of such
termination while he is so disabled. The parties agree that exceeding such a period would
constitute an undue hardship for the Company under Federal and state law including,
without limitation, the Americans with Disabilities Act and the California Fair
Employment and Housing Act. 






	 	     (d)
Termination without Good Reason. The Executive may terminate her employment with
the Company without Good Reason at any time. Any such termination is referred to herein
as a Termination without Good Reason. Notice of non-extension by the Executive under
Section 1 above shall be deemed a Termination without Good Reason as of the end of the
Employment Period. 






	 	     (e)
Notice of Termination. Any termination of the Executive’s employment by the
Company or by the Executive shall be communicated by Notice of Termination to the other
party. For purposes of this Agreement, a “Notice of Termination”  means a written
notice which indicates the specific termination provision in this Agreement relied upon
and to the extent practicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. 






	


     6.
Payment Obligations of the Company upon Termination. 










	 	     (a)
Termination without Cause; Termination for Good Reason. Upon (i) Termination
without Cause or (ii) Termination for Good Reason during the Employment Period, and
in either case subject to and conditioned on Executive’s timely execution and
non-revocation of a Separation Agreement and General Release of claims against the
Company and its subsidiaries and affiliates in a form satisfactory to the Company, the
Company shall pay the Executive an amount equal to two (2) times the sum of (x) the
Executive’s then current Annual Base Salary plus (y) the Executive’s then
current annual Target Bonus. The amount will be paid in a single lump sum payment within
twenty (20) days after the date of termination. Any Company stock options or other
equity, if any, held by the Executive as of the date of termination will be handled in
accordance with Section 4 of this Agreement and the applicable plan and grants. In
addition, the Executive will be entitled to Accrued Amounts, as defined in Section 6(d)
below. 






	 	     (b)
Termination for Cause or without Good Reason. If the Executive’s employment
is terminated by the Company for Cause or by the Executive without Good Reason during the
Employment Period, the Company will pay to the Executive the Executive’s Annual Base
Salary through the date of termination, to the extent not yet paid, and the Company shall
have no further obligations under this Agreement. In addition, all outstanding Company
stock options and other equity awards, if any, will be handled in accordance with Section 4
of this Agreement and the applicable plan and grants. In addition, the Executive will
also be entitled to other Accrued Amounts. 






	 	     (c)
Death, Retirement, or Disability. If the Executive’s employment is terminated
by reason of the Executive’s death, retirement, or disability during the Employment
Period, the Company will pay the Executive (or the Executive’s heirs or
representatives, if applicable) the Executive’s Annual Base Salary through the date
of termination, to the extent not yet paid and other Accrued Amounts, plus a pro-rated
amount of Executive’s Target Bonus. In addition, any Company stock options or other
equity, if any, held by the Executive as of the date of termination will be handled in
accordance with Section 4 of this Agreement and the applicable plans and grants. 






	


4













	












	 	     (d)
Accrued Amounts. Accrued Amounts shall mean Annual Base Salary and expense reimbursements
due for the period prior to any termination.






	


     7.
Excise Tax.The provisions of Annex B to the Change of Control Agreement are
incorporated herein by reference and shall survive the termination of the Change of
Control Agreement. 



     8.
Successors. 










	 	     (a)
This Agreement is personal to the Executive and shall not be assignable by the Executive
except by will or the laws of descent and distribution. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s heirs or legal representatives.
Notwithstanding the foregoing, any amounts that become payable hereunder pursuant to
Section 6, shall be payable to Executive’s estate if not paid prior to the
Executive’s death. 






	 	     (b)
This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns, provided that the Company may not assign this Agreement except in
connection with the assignment or disposition of all or substantially all of the assets
or stock of the Company or by law as a result of a merger or consolidation and only if
such assignee promptly delivers to Executive a written assumption of this Agreement in
form and substance reasonably acceptable to Executive. 






	


     9.
Miscellaneous. 










	 	     (a)
This Agreement shall be governed, by, and construed in accordance with, the laws of the
State of California, without reference to its conflict of law rules. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified except by a written agreement executed by the
parties hereto or their respective successors and legal representatives. 






	 	     (b)
All notices and other communications under this Agreement shall be in writing and shall
be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 






	 	
                  If to the Executive



                  Susan B. Parks

                  5 Burning Tree

                  Laguna Niguel, CA 92677



                  If  to the Company



                  Gateway, Inc.

                  4545 Towne Centre Court

                  San Diego, CA 92121

                  Attn: General Counsel







	


5













	





or to such other address as either
party furnishes to the other in writing in accordance with this Section 9(b). Notices and
communications shall be effective when actually received by the addressee.  










	 	     (c)
The invalidity or unenforceability of any provision of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement. If any provision
of this Agreement shall be held invalid or unenforceable in part, the remaining portion
of such provision, together with all other provisions of this Agreement, shall remain
valid and enforceable and continue in full force and effect to the fullest extent
consistent with law. 






	 	     (d)
Notwithstanding any other provision of this Agreement, the Company may withhold from
amounts payable under this Agreement all federal, state, local and foreign taxes that are
required to be withheld by applicable laws or regulations. 






	 	     (e)
The Executive’s or the company’s failure to insist upon strict compliance with
any provision of, or to assert any right under, this Agreement shall not be deemed to be
a waiver of such provision or right or of any other provision of or right under this
Agreement. 






	 	     (f)
Except as provided herein, the Executive and the Company acknowledge that this Agreement
constitutes the entire agreement between the parties and supersedes any prior agreement
between the Executive and the Company concerning the subject matter hereof. Except as
provided herein, the Executive shall not be entitled to participate in any severance
plans or severance programs of the Company during the Employment Period. 






	 	     (g)
The Company shall indemnify Executive with respect to claims (both during and after
employment) relating to Executive’s service as an employee and officer of the
Company and its affiliates and as a fiduciary of any benefit plan of any of the foregoing
to the full extent permitted by applicable law and the Company shall cover the Executive
under the Company’s Directors and Officers indemnification insurance policy (as in
effect from time to time) both during and after employment with regard to actions or
inactions in such capacities. 






	 	     (h)
The prevailing party in any litigation with regard to this Agreement or the grants
hereunder, as determined by the Court, shall be awarded by the Court his or its
reasonable legal fees and disbursements. 






	 	     (i)
This Agreement may be executed in several counterparts, each of which shall be deemed an
original, and said counterparts shall constitute but one and the same instrument. 






	


6













	





     IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand
and, pursuant to the authorization of its Board of Directors, the Company has
caused this Agreement to be executed in its name on its behalf, all as of the
day and year first above written. 










			COMPANY


By:

——————————————

Title:

——————————————

Date:

——————————————



Susan B. Parks

Date:

——————————————







	


7