Atari, Inc. Fiscal Year 2006 Annual Incentive Plan Description
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Summary
Atari, Inc.'s 2006 Annual Incentive Plan sets target bonuses for employees as a percentage of their base salary. Bonus amounts depend on company and business unit financial performance, global cash flow, and, for studio employees, timely product delivery. Bonuses are paid after the fiscal year and audit completion. If worldwide operating profit is less than 80% of the plan, no bonus is required, but may be paid at the company's discretion. If profits or revenue exceed targets, bonuses can increase up to 150% of the target amount.
EX-10.38 6 y22324exv10w38.htm EX-10.38: DESCRIPTION OF ANNUAL INCENTIVE PLAN FOR FISCAL 2006 EX-10.38
Exhibit 10.38
ATARI, INC.
DESCRIPTION OF REGISTRANT’S FISCAL
YEAR 2006 ANNUAL INCENTIVE PLAN
YEAR 2006 ANNUAL INCENTIVE PLAN
Target annual bonuses are set for each 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 studio-based employees, one of which is based on the timeliness of product delivery. Bonuses are paid after the end of the fiscal year after the audit is complete. 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.
