THQ 2005 Annual Report Download - page 96

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73
10.Employee Defined Contribution Plan
We sponsor for our United States employees a defined contribution plan under Section 401(k) of the
Internal Revenue Code. Commencing January 1, 2005 the plan was amended to allow employees the
ability to defer up to 60% of their annual compensation (up to the annual maximum amount allowable by
law). The plan also provides that the company will make a matching contribution equal to each employee’s
deferral, up to 4% of eligible compensation. We may also contribute funds to the plan in the form of a
discretionary profit-sharing contribution. Expensesunder the plan were $2.7 million, $1.7 million,
$389,000, and $1.5 million in the fiscal years ended March 31, 2005 and 2004, Transition 2003 and the year
ended December 31, 2002, respectively.
11.Stock Option Plans
As of March 31, 2005, we utilize two stock option plans, the THQ Inc. Amended and Restated 1997 Stock
Option Plan (the “1997 Plan”) and the THQ Inc. Third Amended and Restated NonexecutiveEmployee
Stock Option Plan (the “NEEP Plan”). The 1997 Plan provides for the issuance of up to 14,357,500 shares
available for employees, consultants and non-employee directors and the NEEP plan provides for the
issuance of up to 2,142,000 shares available for nonexecutive employees of THQ of which no morethan
20% is available for awards to our nonexecutive officers and no more than 15% is available for awards to
the nonexecutive officers or general managers of our subsidiaries or divisions.
As of March 31, 2005, 3,199,514 options under the 1997 Plan were available for grant and 93,965 options
under the NEEP Plan were available for grant. Stock options granted under the 1997 Plan may be
incentive stock options or non-qualified stock options. Options may be granted under the 1997 Plan to, in
the case of incentive stock options, all employees (including officers) of THQ; or, in the case of non-
qualified stock options, all employees (including officers), consultants and non-employee directors of
THQ. The NEEP Plan has primarily the same attributes as the 1997 Plan, but participation is reserved for
employees who are not executive officers and only non-qualified options may be granted.
The purchase price per share of common stock purchasable upon exercise of each option may not be less
than the fair market value of such share of common stock on the date that such option is granted.
Generally, options granted under these plans become exercisable over three years and expire within five
years from the date of grant.