Activision Blizzard (ATVI)

Annual Bonus for Other Senior Executives

The Compensation Committee established the fiscal year 2006 bonuses for other senior executives in a similar manner as for the Chairman and Co-Chairman. The Compensation Committee reviewed the financial performance of the Company and weighed the individual performance of each executive against pre-established goals for the year. In light of their and the Company's performance as measured against the goals, the Company's senior executives were awarded fiscal year 2006 annual cash bonuses, as set forth in the Summary Compensation Table included in this proxy statement. As a group, the bonuses reflect the overall financial performance of the Company for fiscal year 2006 and the individual accomplishments of each executive during fiscal year 2006 and were significantly lower than 2005 levels.

Annual Bonus for Other Senior Executives

The Compensation Committee established the fiscal year 2005 bonuses for other senior executives in a similar manner as for the Chairman and Co-Chairman. The Compensation Committee reviewed the financial performance of the Company and weighed the individual performance of each executive against pre-established goals for the year. In light of their and the Company's achievements, the Company's senior executives were awarded fiscal year 2005 annual cash bonuses, as set forth in the Summary Compensation Table included in this proxy statement. As a group, the bonuses reflect the overall impressive financial performance of the Company for fiscal year 2005 and the significant individual accomplishments of each executive during fiscal year 2005.