Atari, Inc. Fiscal Year 2008 Annual Incentive Plan Description
Atari, Inc.'s 2008 Annual Incentive Plan outlines how eligible employees can earn annual bonuses based on a percentage of their base salary. Bonus amounts depend on company and business unit profit and revenue results, worldwide financial performance, and, for production staff, timely product delivery. No bonuses are required if the company achieves less than 80% of its profit target, but higher performance can increase bonus payouts up to 150% of the target amount.
Exhibit 10.32
ATARI, INC.
DESCRIPTION OF REGISTRANT’S FISCAL
YEAR 2008 ANNUAL INCENTIVE PLAN
Target annual bonuses are set for each eligible employee based upon a percentage of base salary. Bonuses are calculated based on three components, one of which relates to the U.S. Company’s and/or the business unit’s profit and revenue results, one of which is measured against worldwide cash flow, profit and revenue results, and in the case of production related employees, one of which is based on the timeliness of product delivery. If Atari, Inc.’s worldwide operating profit attainment for the fiscal year is less than 80% of the Company’s plan, no bonus is required to be paid for the fiscal year; bonuses then become discretionary. If profits and/or revenue exceed plan for the fiscal year the bonus rate is accelerated for the incremental profits and revenue above plan, with a maximum of 150% payout of the bonus target.
