NEW YORK (CNN/Money) - Microsoft allowed its former President and Chief Operating Officer Rick Belluzzo to keep a $15 million loan, the world's largest software maker said in its annual report filed with the Securities and Exchange Commission.

Shares of Microsoft (MSFT: Research, Estimates) fell 52 cents to $47.30 in before-hours trading Monday.

Microsoft extended the loan to Belluzzo, now the chief executive of Quantum Corp. (DSS: Research, Estimates), in December 2000 against the value of stock options he was given earlier. The options allowed him to buy up to 3.5 million shares.

The loan reflected a minimum benefit Belluzzo could have received from the potential exercise of his options, which were subsequently cancelled.

Belluzzo, who left the company earlier this year, was also given a $350,000 bonus for work during fiscal 2002, the filing disclosed.

Microsoft also said Belluzzo retains his right to be compensated for accrued vacation, receive health or other insurance, and exercise other options besides the 3.5 million he forfeited when the loan was forgiven.

Details of Belluzzo's agreement follows news of the compensation package for General Electric's former CEO Jack Welch that were disclosed in divorce filings made by his wife.  

-- from staff and wire reports