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                                                                   EXHIBIT 10.60

                          [ROSS TECHNOLOGY LETTERHEAD]

                                  May __, 1998

Mr. Jack W. Simpson, Sr.
ROSS Technology, Inc.
5316 Highway 290 West, Suite 500
Austin, Texas 78735

         Re:      Employee Retention and Severance Plan

Dear Jack:

         Per our discussions, ROSS Technology, Inc. is pleased to offer you the
following benefits under its Employee Retention and Severance Plan. These
benefits supplement the benefits you have under your employment agreement with
the Company. This letter constitutes the "Individual Letter" referred to in the
Plan.

         We have used some capitalized terms in this letter. Those terms have
the meanings set forth in the Plan. A copy of the Plan can be obtained from the
Human Resources Department.

         You will be entitled to receive a Retention Bonus of $350,000 upon the
termination of your employment if you continue your employment with the Company
through December 31, 1998 (or such other earlier date as the Company may
otherwise terminate your employment without cause (as defined in your employment
agreement) or you earlier quit for Good Reason or pursuant to Section 7.5.4 of
your employment agreement). However, if your employment is terminated for cause,
you will not receive the Retention Bonus.

         If you become entitled to receive the Retention Bonus described above,
the Company will also extend the period of time set forth in Section 7.5.3 of
your employment agreement during which the Company is required to fund the
annuity specified in Section 5.3 of that agreement from May 21, 1999 to November
21, 1999 by making two additional quarterly payments.

         As a condition to receiving this Retention Bonus and the extended
funding of your annuity, you will have to sign a release on a form provided by
the Company, releasing any claims you may have against the Company. (You will,
of course, still receive any severance payments or other benefits to which you
may become entitled under your employment agreement as the result of the
termination of your employment.) A copy of the form of release is included with
this letter as Exhibit A. Because the Age Discrimination in Employment Act
applies to you, you will have twenty one days from the date you are presented
with the release to decide whether to sign it and payment of any sums due you
under this letter will occur eight days after you have executed the release and
delivered it to the Company (which is when the release will become effective as
to ADEA claims; the other waivers will be effective upon signing). This
Retention Bonus and the extended funding of your annuity will not be subject to
reduction for any amounts you receive under any subsequent employment.

         Assuming that cause for termination of your employment under your
employment agreement does not otherwise exist, the Company has agreed that, if
it has begun shutdown, dissolution, liquidation or other similar proceedings, it
will terminate your employment without cause on or prior to December 31, 1998
(unless you otherwise agree to an extension), which will trigger Section 7.3 of
your employment agreement. The intention of this is to encourage you to remain
with the Company through these difficult times and to help maximize the value of
the Company and its assets. You agree that the shutdown, dissolution or
liquidation of the Company, by itself, will not constitute a termination of your
employment without cause, or permit you to resign either for Good Reason or
pursuant to Section 7.5.4 of your employment agreement.



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         This Retention Bonus and the extended funding of your annuity are
subject to the terms and conditions of the Plan. This means, among other things,
that your receipt of the Retention Bonus and the extended funding of your
annuity is conditioned on your refraining from disclosing any confidential
material or information of the Company, and your compliance with any
confidentiality policies of the Company and with the terms of any
confidentiality agreements you have entered into with the Company. The Company
may sue you because you disclose, or to prevent your disclosure of, confidential
material or information.

         The Plan is a welfare benefit plan within the meaning of the Federal
Employee Retirement Income Security Act of 1974 ("ERISA"). This letter
constitutes the Summary Plan Description required under ERISA. This letter
merely summarizes the detailed and technical provisions of the Plan. In the
event of a conflict between this letter and the Plan, the terms and provisions
of the Plan will control. You may obtain a copy of the Plan from the Human
Resources Department. Attached to this letter is an Exhibit B describing your
rights under ERISA. The Plan contains a claims procedure and an arbitration
provision.

                                                Very truly yours,

                                                -------------------------------
                                                Fred T. May
                                                Chairman of the Board

AGREED TO AND ACCEPTED:


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Name

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Date




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