Electronic Arts 2006 Annual Report Download - page 42

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
EA's common stock.
Options Granted in Fiscal 2006
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 FY2006(1) Share(2) Date 5% 10%
Lawrence F. Probst IIIÏÏÏÏÏ 225,000(3) 2.41 $52.03 03/01/16 $7,362,312 $18,657,545
Warren C. Jenson ÏÏÏÏÏÏÏÏÏ 52,500(3) 0.56 $52.03 03/01/16 $1,717,873 $ 4,353,427
V. Paul Lee ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 52,500(3) 0.56 $52.03 03/01/16 $1,717,873 $ 4,353,427
150,000(4) 1.61 $57.42 09/02/15 $5,416,669 $13,726,904
Gerhard FlorinÏÏÏÏÏÏÏÏÏÏÏÏ 35,000(3) 0.37 $52.03 03/01/16 $1,145,249 $ 2,902,285
75,000(4) 0.80 $57.42 09/02/15 $2,708,335 $ 6,863,452
Nancy L. Smith ÏÏÏÏÏÏÏÏÏÏ 35,000(3) 0.37 $52.03 03/01/16 $1,145,249 $ 2,902,285
Former executive oÇcers:
Don A. Mattrick ÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì Ì
Bruce McMillan ÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì Ì Ì
(1) EA granted and/or assumed options to purchase 9,337,605 shares of common stock to employees
(excluding non-employee directors) in Ñscal 2006.
(2) The exercise price of each stock option is equal to the closing price of EA common stock on the date
of grant.
(3) These options were granted on March 1, 2006, will Ñrst vest and become exercisable as to 24% of the
underlying shares 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) These options were granted on September 2, 2005, and will vest and become exercisable as to 100% of
the underlying shares on September 2, 2009.
All option grants listed above were made pursuant to EA's 2000 Equity Incentive Plan. The material terms
of the options, including their exercise price, vesting terms, change of control provisions, and prohibitions
on ""repricing'' are summarized in Appendix A to this proxy statement.
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