Activision Blizzard (ATVI)

Additional Compensation in Connection with New Employment Agreements in Fiscal 2007

        In order to enhance responsiveness, communication and cooperation between the Company's global brand marketing and studio divisions, the Company created the position of Executive Vice President, Publishing, of Activision Publishing in fiscal 2007 and promoted Ms. Kaminsky to this position. In order to induce Ms. Kaminsky to accept this position, the Compensation Committee authorized the Company to enter into an employment agreement with Ms. Kaminsky with the terms summarized above under "—Employment Agreements." Under the terms of her employment agreement, in addition to her annual base salary, annual bonus, equity grants and perquisites and personal benefits, Ms. Kaminsky received as part of her fiscal 2007 compensation a signing bonus of $35,000.

        The Company is also focused on increasing worldwide sales. In October 2006, the Company hired Mr. Hodous to fill the position of Chief Customer Officer of Activision Publishing, and the Compensation Committee authorized the Company to enter into an employment agreement with him on the terms summarized above under "—Employment Agreements." Under the terms of his employment agreement, in addition to his annual base salary, annual bonus, equity grants and perquisites and personal benefits, Mr. Hodous received as part of his fiscal 2007 compensation a signing bonus of $150,000. In accordance with the Company's policy for executives serving outside the United States, he also received certain perquisites and benefits described in the summary of his employment agreement under "—Employment Agreements" above and in the Summary Compensation Table below, which the Compensation Committee took into consideration in establishing his base salary.