Electronic Arts 2007 Annual Report Download - page 60

Appendix A
GENERAL DESCRIPTION OF THE 2000 EQUITY INCENTIVE PLAN
History
The Company’s 2000 Equity Incentive Plan (the “Equity Plan”) was adopted by our Board of Directors on
January 27, 2000 and approved by our stockholders on March 22, 2000. The Equity Plan has been amended
several times since it was initially adopted. The following general description of the Equity Plan includes all
prior amendments as well as amendments proposed to be adopted by the Company’s stockholders at the 2007
Annual Meeting.
Shares Subject to the Equity Plan
The stock subject to issuance under the Equity Plan consists of shares of the Company’s authorized but
unissued common stock. The Equity Plan, as amended to date, authorizes the issuance of up to
67,400,000 shares of common stock pursuant to awards of stock options, stock appreciation rights, restricted
stock and restricted stock units. As proposed to be amended, the number of shares authorized for issuance
under the Equity Plan would be increased to 76,400,000. In addition, shares are again available for grant and
issuance under the Equity Plan that (a) were subject to an option granted under the Equity Plan that
terminated, to the extent then unexercised, (b) were subject to a restricted stock or restricted stock unit award
under the Equity Plan that is subsequently forfeited or repurchased by us at the original issue price, if any, or
(c) are subject to an award of restricted stock or restricted stock units under the Equity Plan that otherwise
terminates without shares being issued. The following types of shares are not available for future grant or
issuance as awards under the Equity Plan: (x) shares that are not issued or delivered as a result of the net
settlement of a stock option or stock appreciation right; (y) shares that are used to pay the exercise price or
withholding taxes related to an award granted under the Equity Plan; and (z) shares that are repurchased by us
with the proceeds of a stock option exercise.
The number of shares issuable under the Equity Plan, and under outstanding options and other awards, is
subject to proportional adjustment to reflect stock splits, stock dividends and other similar events.
Limitation on Number of Shares Subject to Restricted Stock Awards and Restricted Stock Unit Awards.
The number of shares of common stock that may be issued pursuant to awards of restricted stock and
restricted stock units may not exceed 15,000,000 in the aggregate. As proposed to be amended, the number of
shares that would be issuable pursuant to awards of restricted stock and restricted stock units would be
decreased to 11,000,000 in the aggregate.
Eligibility
The Equity Plan provides for the issuance of incentive stock options, nonqualified stock options, stock
appreciation rights, restricted stock and restricted stock units. The Equity Plan provides that employees
(including officers and directors who are also employees) of EA or any parent or subsidiary of EA may
receive incentive stock options under the Equity Plan. Nonqualified stock options, stock appreciation rights,
restricted stock, and restricted stock units may be granted to employees and directors of EA or any parent or
subsidiary of EA. As of June 1, 2007, approximately 7,100 persons were in the class of persons eligible to
participate in the Equity Plan. No person is eligible to receive more than 1,400,000 shares of common stock
(of which no more than 400,000 shares may be covered by awards of restricted stock) in any calendar year,
other than new employees who will be eligible to receive up to 2,800,000 shares of common stock (of which
no more than 800,000 shares may be covered by awards of restricted stock) in the calendar year in which they
commence employment. No awards of restricted stock or stock appreciation rights have been made to date
under the Equity Plan. A participant may hold more than one award granted under the Equity Plan.
Proxy Statement
A-1