Carnival Cruises 2012 Annual Report Download - page 62

CCL Operating Income Target = Prior Plan Year’s actual CCL Operating Income per berth day multiplied by the current Plan Year’s
budgeted available lower berth days (“ ALBDs”).
iii. The “Corporation 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.
iv. The “Corporation 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 Compensation Committees may, in their discretion, increase or decrease the CCL Operating Income Target and/or the Corporation Operating
Income Target or establish an alternative target for any reason they deem appropriate. In addition, in the discretion of the Compensation
Committees, certain items, including, but not limited to, gains or losses on ship sales can be excluded from the CCL and/or Corporation
Operating Income Targets and the actual CCL and/or Corporation Operating Income for any Plan Year.
B. Within 75 days following the commencement of each Plan Year, the Administrators shall, in their discretion, determine a Target Bonus (in the
currency of his/her base salary) for each participant for the current Plan Year based on recommendations from CCL, which may, in the
Administrators’ discretion, be increased or decreased for any reason(s) deemed appropriate by them. The “ Target Bonus” is the anticipated level
of bonus for a participant if 100% of both the CCL Operating Income Target and Corporation Operating Income Target are achieved, prior to the
Administrators 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 Administrators shall determine each participant’s bonus for the prior Plan Year as
follows:
i. The actual CCL Operating Income, adjusted to reflect the impact of constant (prior year) fuel prices on fuel expense, and the actual
Corporation Operating Income for the Plan Year will be confirmed, and the Administrators shall determine the preliminary bonus amount
for each participant by reference to the schedule appended to this Plan (the “ Bonus Schedule”), which calibrates the weighted CCL
Operating Income Target (75%) and the Corporation Operating Income Target (25%) for the Plan Year with the Target Bonus for each
participant. The performance range in the Bonus Schedule is from 75% to 120% of the Operating Income Targets with results at 75% or
less producing a preliminary bonus amount equal to 50% of the Target Bonus and at 120% or more producing a preliminary bonus
amount equal to 150% of the Target Bonus. Results from 75% to 120% of the Operating Income Targets will be calculated using
interpolation.
3