!!!!!!!  THIS IS CONFIDENTIAL: ATARI EYES AND EARS ONLY !!!!!!!!

There are two changes in effect on the bonus plan - Rich asked that
we mention these verbally since it will be a while before the changes
are published:

	1) Previously, the cap on overhead was $325; now it is $350.
	   Additionally this applies to "Standard single display games".
	   For games like 4-player Cyberball there would be no cap on
	   overhead; instead the standard overhead rate would apply fully
	   when calculating profit. Games like Compact Hard Drivin and
	   Stun Runner are likely to be treated as "non-standard" although
	   a final decision has not been reached as near as I could tell.
	   For reference, the standard overhead on Cyberball was $353.
	   The standard overhead on Escape is $325.50 derived from
	   4.34 hours of labor times the new $75/hr overhead rate.

	2) In games (like coin-op Tetris) where the 
	   implementation existed previously, and the coin-op game is a 
	   conversion of a pre-existing game, then there is a cap or 
	   maximum on the bonus pool of $240,000. Additionly the funding
	   percentages are different - they are 3% and 6% as opposed
	   to 4% and 7%. As I recall the profit levels are the same, i.e.
	   0% for the first $500,000, 3% between 500,000 and $3,000,000, and
	   6% above $3M up to the 240,000 cap.

!!!!!!!  THIS IS CONFIDENTIAL: ATARI EYES AND EARS ONLY !!!!!!!!