Lin BaoCheng and Isabella went to Apple.
They had already contacted the company beforehand, so Steve Jobs, accompanied by Apple's management team, received them.
After some polite exchanges, Jobs asked curiously: "Allen, you said you had official business to discuss with Apple. What is it?" He wondered what Lin could possibly want to negotiate with Apple.
"Jobs, this is an office software developed by New Century Software," Lin said.
Since there was a computer available, Lin took a hard drive from Isabella, loaded the program, and opened the office software.
"Let me introduce its functions to you," Lin continued, explaining the features.
After a while, Jobs and the others understood the software's capabilities.
"Allen, this software can improve office efficiency. I believe it will definitely have a market," Jobs said. Inwardly, he was already thinking about installing it on Apple computers to enrich their applications.
Apple's personal computers were popular among individuals because they weren't as large as mainframes. But they lacked software. Many buyers found little use for them, limiting sales.
Office software could change that. It would give Apple computers practical office functions, opening not only the personal market but also enterprises and schools.
"I also believe it will have a market," Lin said confidently, without false modesty. In America, modesty could be mistaken for lack of confidence, inviting exploitation.
Isabella added: "Mr. Jobs, we want the office software to run on Apple computers, enriching their applications. With office functionality, more users will choose Apple."
Jobs glanced at Lin, who seemed thoughtful, then replied to Isabella: "Ms. Isabella, if your software wants to use Apple's channel for sales, I can agree. But your company must pay a channel fee."
Though Apple needed the software, Jobs wasn't naïve. He framed it as New Century borrowing Apple's channel, demanding payment instead of offering support.
"Paying a channel fee is impossible," Isabella retorted. "Apple's sales are only about ten thousand units. That's hardly a channel. Our software will attract new users and boost Apple's sales. Apple should pay us a fee for each copy sold."
Lin was a major Apple shareholder, so Isabella knew the company's sales figures.
Though ten thousand units seemed small, it was significant. The cheapest Apple computer with 4KB memory cost US$1,298, while the 48KB model cost US$2,638.
Ten thousand units meant about US$20 million in revenue, with profits above 30% — not insignificant.
This success was thanks to Lin's financing. Apple had grown faster with his backing, and later, with his guarantee, secured a US$10 million unsecured loan. Without Lin, second‑generation Apple computers might have sold only a thousand units.
It was like a snowball effect. With little capital at first, sales were limited. Profits accumulated slowly. But as capital grew, sales accelerated.
Jobs argued: "Though sales are only ten thousand now, last month alone we sold several thousand units. Demand exceeds supply. Sales will keep rising. Every Apple buyer is a potential software customer. So your company should pay Apple a channel fee for each sale."
"That's only the future. We're talking about the present," Isabella countered. She admitted Apple's sales would grow, but future potential wasn't valid grounds for current negotiations.
"Ahem!"
Lin coughed, stopping Jobs from replying further. "Jobs, I'm both an Apple shareholder and New Century's owner. Let me be direct. Installing office software on Apple computers benefits both Apple's sales and our software sales. It's mutually advantageous. So I propose no fees — equal cooperation."
Jobs didn't decide immediately. Though he agreed inwardly, he looked to Apple's executives. They nodded subtly, showing no objection. For them, Apple's computer sales were paramount. Whether the software sold well didn't matter, as long as it boosted hardware sales.
"Allen, since you put it that way, I have no objection," Jobs said. "But I need New Century Software to sign an exclusivity agreement — the software must not run on other personal computers."
Isabella responded: "The office software can be exclusively licensed to Apple in the personal computer market for two years. But there will be no restrictions in the mainframe market. Also, Apple must sign an exclusivity agreement too — no other office software on Apple computers for two years."
"Agreed," Jobs said without hesitation. Two years was plenty for Apple.
Though agreed verbally, they didn't sign immediately. Isabella brought in New Century's lawyer to draft the contract with Apple's lawyer. Jobs and Isabella then signed on behalf of their companies.
Apple computers were only New Century Software's first market. Next, the company would target government agencies, schools, banks, and enterprises. Lin wouldn't need to personally handle those negotiations.