Electronic Arts 2007 Annual Report Download - page 72

(b) Positions or names of employees who will be Participants for the Performance Period;
(c) Targeted goals for selected Performance Measures during the Performance Period;
(d) Bonus Target for each Participant or group of Participants; and
(e) Applicable Bonus Formula for each Participant, which may be for an individual Participant or a group
of Participants.
7. Determination of Amount of Bonus.
(a) Calculation. After the end of each Performance Period, the Committee shall certify in writing (to
the extent required under Code Section 162(m)) the extent to which the targeted goals for the
Performance Measures applicable to each Participant for the Performance Period were achieved or
exceeded. The Bonus for each Participant shall be determined by applying the Bonus Formula to the
level of actual performance that has been certified by the Committee. Notwithstanding any contrary
provision of this Plan, the Committee, in its sole discretion, may eliminate or reduce the Bonus
payable to any Participant below that which otherwise would be payable under the Bonus Formula.
The Committee may appropriately adjust any evaluation of performance under a Performance
Measure to exclude any of the following events that occurs during a Performance Period: (A) the
effects of currency fluctuations, (B) any or all items that are excluded from the calculation of non-
GAAP earnings as reflected in any Electronic Arts press release and Form 8-K filing relating to an
earnings announcement, (C) asset write-downs, (D) litigation or claim judgments or settlements,
(E) the effect of changes in tax law, accounting principles or other such laws or provisions affecting
reported results, (F) accruals for reorganization and restructuring programs, and (G) any other
extraordinary or non-operational items.
(b) Right to Receive Payment. Each cash portion of a Bonus under this Plan shall be paid solely from
general assets of the Company and its Affiliates. This Plan is unfunded and unsecured; nothing in this
Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any
right to, or form of, payment of a Bonus other than as an unsecured general creditor with respect to
any payment to which he or she may be entitled. Except as may otherwise be provided for in
Section 8 below, in the event a Participant terminates employment with the Company (or any
Affiliate) prior to the end of a Performance Period he or she shall not be entitled to the payment of a
Bonus for the applicable Performance Period.
8. Payment of Bonuses.
(a) Timing of Distributions. The Company and its Affiliates shall distribute amounts payable to
Participants as soon as is administratively practicable following the determination and written
certification of the Committee for a Performance Period, but in no event later than two and one-half
months after the end of the calendar year in which the Performance Period ends, except to the extent
a Participant has made a timely election to defer the payment of all or any portion of such Bonus
under the Electronic Arts Inc. Deferred Compensation Plan or any other Company approved deferred
compensation plan or arrangement.
(b) Payment. The payment of a Bonus, if any (as determined by the Committee at the end of the
Performance Period), with respect to a specific Performance Period requires that the employee be an
active employee on the Company’s or its Affiliate’s payroll on the date that such Bonus is paid,
subject to subsection (d), below. Additionally, the Committee may make exceptions to the foregoing
active employment requirement in the case of retirement, death or disability, or in the case of a
corporate change in control, in each case as determined by the Committee.
(c) The Bonus shall be payable in cash in a single lump sum.
(d) Change in Status. A Participant who has a change in status that results in being ineligible to
participate in this Plan in a Performance Period may receive a prorated Bonus, if any (as determined
Proxy Statement
C-3