Carnival Cruises 2012 Annual Report Download - page 66

had at least 15 years of employment with Carnival Corporation, Carnival plc or any successor thereto and/or their subsidiaries.
5. BONUS
A. For purposes of this Plan, the terms below shall be defined as follows:
i. “Operating Income” shall mean the operating income of the Corporation as reported by the Corporation in its full year earnings report
issued following each Plan Year, including realized gains and losses recognized on the Corporation’s fuel derivatives. Operating Income
does not include interest income and expense, other non-operating income and expense, unrealized gains or losses on the Corporation’s fuel
derivatives and income taxes.
ii. The “Operating Income Target” for the Plan Year will be equal to the projected Operating Income for the Plan Year that corresponds to
the midpoint of the diluted earnings per share guidance publicly announced during the first month of the Plan Year by the Corporation.
The Committees may, in their discretion, increase or decrease the Operating Income Target or establish an alternative target for any reason
they deem appropriate. In addition, in the discretion of the Committees, certain items, including, but not limited to, gains or losses on ship
sales can be excluded from the Operating Income Target and the actual Operating Income for any Plan Year.
B. Within 75 days following the commencement of each Plan Year, the Committees will establish a Target Bonus (in the currency of his/her base
salary), for each participant for the first year of his/her participation in the Plan. In the second and subsequent Plan Years of participation, the
Target Bonus for each participant shall be calculated by multiplying the Target Bonus for the prior Plan Year by a percentage equal to 100 plus the
percentage change in the Operating Income Target for the new Plan Year as compared to the Operating Income Target of the prior Plan Year. The
Committees may, in their discretion, increase or decrease the Target Bonus for any reason they deem appropriate. The “ Target Bonus” is the
anticipated level of bonus for a participant if 100% of Corporation Operating Income Target is achieved, prior to the Committees exercising
discretion to increase or decrease the bonus payable to a participant as provided in 5.C.ii.
C. Within 75 days following the end of each Plan Year, the Committees shall determine each participant’s bonus for the prior Plan Year as follows:
i. The actual Operating Income for the Plan Year will be confirmed, and the Committees shall determine the preliminary bonus amount for
each participant by reference to the schedule appended to this Plan (the “ Bonus Schedule”), which calibrates the Operating Income Target
for the Plan Year with the Target Bonus for each participant. The performance range in the Bonus Schedule shall be from 72% to 123% of
the Operating Income Target with results at 72% or less producing a preliminary bonus amount equal to 50% of the Target Bonus and at
123% or more producing a preliminary bonus amount equal to 150% of the Target Bonus. Results from 97% to 103% of the Operating
Income Target will result in a preliminary bonus amount equal to 100% of the Target Bonus. The preliminary bonus amount for
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