Electronic Arts 2007 Annual Report Download - page 70

Appendix C
ELECTRONIC ARTS INC.
EXECUTIVE BONUS PLAN
Adopted by the Board of Directors May 29, 2007
Effective April 1, 2007
1. Purpose. The purpose of this Plan is to provide certain employees of the Company and its subsidiaries
with incentive compensation based upon the level of achievement of financial, business and other
performance criteria. This Plan is intended to permit the payment of bonuses that may qualify as
performance-based compensation under Code Section 162(m).
2. Definitions.
(a) “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint
ventures) controlled by the Company.
(b) “Board” means the Board of Directors of the Company.
(c) “Bonus” means a cash payment made pursuant to this Plan with respect to a particular Performance
Period, determined pursuant to Section 8 below; provided, however, that a Bonus shall not be greater
than an amount equal to two hundred percent (200%) of the Bonus Target, and notwithstanding the
foregoing, in any event the Bonus shall not exceed $5,000,000 in any Fiscal Year.
(d) “Bonus Target” shall mean a Bonus amount that may be paid if one hundred percent (100%) of all
the applicable Performance Measures are achieved at target in the Performance Period. The Bonus
Target shall be equal to a fixed percentage of the Participant’s base salary for such Performance
Period, and such fixed percentage shall not exceed one hundred and fifty percent (150%) of a
Participant’s base pay. Such percentage shall be determined by the Committee prior to the Predeter-
mination Date.
(e) “Bonus Formula” means as to any Performance Period, the formula established by the Committee
pursuant to Section 6 in order to determine the Bonus amounts, if any, to be paid to Participants
based upon the level of achievement of targeted goals for the selected Performance Measures. The
formula may differ from Participant to Participant or business group to business group. The Bonus
Formula shall be of such a nature that an objective third party having knowledge of all the relevant
facts could determine whether targeted goals for the Performance Measures have been achieved.
(f) “Code” means the United States Internal Revenue Code of 1986, as amended.
(g) “Company” means Electronic Arts Inc., a Delaware corporation.
(h) “Committee” means the Compensation Committee of the Board, or any other subcommittee of the
Board or Compensation Committee, who shall be comprised solely of “outside directors” within the
meaning of Code section 162(m).
(i) “Fiscal Year” means the 52- or 53-week period that ends on the Saturday nearest March 31.
(j) “Participant” means any senior executive of the Company or of an Affiliate who has been selected
by the Committee to participate in the Plan for a given Performance Period.
(k) “Performance-Based Compensation” means compensation that qualifies as “performance-based
compensation” within the meaning of Code Section 162(m).
(l) “Performance Measure” means any one or more of the following performance criteria, either
individually, alternatively or in any combination, applied to either the Company as a whole or to a
business unit, Affiliate, region, or business segment, either individually, alternatively or in any
combination, and measured either on an absolute basis or relative to a pre-established target, to a
previous period’s results or to a designated comparison group, in each case as specified by the
Committee: cash flow (including operating cash flows or free cash flow), revenue (on an absolute
Proxy Statement
C-1