Electronic Arts 2005 Annual Report Download - page 34

STOCK OPTION GRANTS
STOCK OPTION GRANTS
The following table shows stock options granted to the Named Executive OÇcers during the last Ñscal year. In
accordance with the rules of the Securities and Exchange Commission, the table sets forth the hypothetical
gains that would exist for the options at the end of their respective 10 year terms. This hypothetical gain is
based on assumed annualized rates of compound stock price appreciation of 5% and 10% from the dates the
options were granted to the end of their respective ten year option terms. Actual gains, if any, on option
exercises are dependent on the future performance of EA's common stock. The hypothetical gains shown in
this table are not intended to forecast possible future appreciation, if any, of the stock price.
Options Granted in Fiscal 2005
Potential Realized Value at
Percent of Assumed Annual Rates of
Number of Total Options Stock Price Appreciation for
Securities Granted to Exercise Option Term
Underlying Employees in Price Per Expiration
Options Granted FY2005 (%)(1) Share(2) Date 5% 10%
Lawrence F. Probst III ÏÏ 100,000(3) 1.13 $64.92 03/01/15 $4,082,784 $10,346,576
200,000(4) 2.25 $64.92 03/01/15 $8,165,568 $20,693,152
Don A. Mattrick ÏÏÏÏÏÏÏ 75,000(3) 0.84 $64.92 03/01/15 $3,062,088 $ 7,759,932
125,000(4) 1.41 $64.92 03/01/15 $5,103,480 $12,933,220
Bruce McMillan ÏÏÏÏÏÏÏ 50,000(3) 0.56 $64.92 03/01/15 $2,041,392 $ 5,173,288
100,000(4) 1.13 $64.92 03/01/15 $4,082,784 $10,346,576
Warren C. Jenson ÏÏÏÏÏÏ 100,000(3) 1.13 $64.92 03/01/15 $4,082,784 $10,346,576
Gerhard Florin ÏÏÏÏÏÏÏÏ 50,000(3) 0.56 $64.92 03/01/15 $2,041,392 $ 5,173,288
75,000(4) 0.84 $64.92 03/01/15 $3,062,088 $ 7,759,932
(1) EA granted and/or assumed options to purchase 8,881,515 shares of common stock to all employees
(excluding non-employee Directors) in Ñscal 2005.
(2) The exercise price is equal to the fair market value on the date of grant.
(3) Options will Ñrst vest and become exercisable as to 24% of the shares underlying the option 12 months
from date of grant and will then vest in 2% increments on the Ñrst calendar day of each month thereafter
for 38 months.
(4) Options will Ñrst vest and become exercisable as to 25% of the shares underlying the option 24 months
from date of grant; 25% of the shares 36 months from date of grant; and 50% of the shares 48 months from
date of grant.
All option grants listed above were made pursuant to EA's 2000 Equity Incentive Plan. The material terms
regarding the exercise price of options, vesting, change of control, and prohibitions on ""repricing'' are
contained in Appendix A to this proxy statement.
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