Electronic Arts 2008 Annual Report Download - page 170

Summary of Plans and Plan Activity
Equity Incentive Plans
Our 2000 Equity Incentive Plan (the “Equity Plan”) allows us to grant options to purchase our common stock,
restricted stock, restricted stock units and stock appreciation rights to our employees, officers and directors.
Pursuant to the Equity Plan, incentive stock options may be granted to employees and officers and non-
qualified options may be granted to employees, officers and directors, at not less than 100 percent of the fair
market value on the date of grant.
We also have options outstanding that were granted under (1) the Criterion Software Limited Approved Share
Option Scheme (the “Criterion Plan”), which we assumed in connection with our acquisition of Criterion, and
(2) the JAMDAT Mobile Inc. Amended and Restated 2000 Stock Incentive Plan and the JAMDAT Mobile Inc.
2004 Equity Incentive Plan (collectively, the “JAMDAT Plans”), which we assumed in connection with our
acquisition of JAMDAT. We also have options and restricted stock units outstanding under the VG Holding
Corp. 2005 Stock Incentive Plan (the “VGH 2005 Plan”), which plan we assumed in connection with our
acquisition of VGH.
In connection with our acquisition of VGH, we also established the 2007 Electronic Arts VGH Acquisition
Inducement Award Plan (the “VGH Inducement Plan”), which allowed us to grant restricted stock units to
service providers who were employees of VGH or a subsidiary of VGH immediately prior to the consumma-
tion of the acquisition and who became employees of EA following the acquisition. The restricted stock units
granted under the VGH Inducement Plan vest pursuant to either (1) time-based vesting schedules over a period
of up to four years, or (2) the achievement of pre-determined performance-based milestones, and in all cases
are subject to earlier vesting in the event we terminate a recipient’s employment without “cause” or the
recipient terminates employment for “good reason”. We do not intend to grant any further awards under the
VGH Inducement Plan.
In addition, in connection with our acquisition of VGH, in exchange for outstanding stock options and
restricted stock, we granted service-based non-interest bearing notes payable solely in shares of our common
stock to certain employees of VGH who became employees of EA following the acquisition. These notes
payable vest over a period of four years, subject to earlier vesting in the event we terminate a recipient’s
employment without “cause” or the recipient terminates employment for “good reason”.
Options granted under the Equity Plan generally expire ten years from the date of grant and are generally
exercisable as to 24 percent of the shares after 12 months, and then ratably over the following 38 months. All
options granted under the Criterion Plan were exercisable as of March 31, 2005 and expire in January 2012.
The material terms of options granted under the JAMDAT and VGH 2005 Plans are similar to our Equity
Incentive Plan.
The following table summarizes our stock option activity for the fiscal year ended March 31, 2008:
Options
(in thousands)
Weighted-
Average
Exercise Price
Outstanding as of March 31, 2007 ................................... 35,864 $40.75
Activity for the fiscal year ended March 31, 2008:
Granted and Assumed
(1)
......................................... 8,131 47.50
Exercised ................................................... (5,471) 28.25
Forfeited, cancelled or expired .................................... (2,447) 53.22
Outstanding as of March 31, 2008 ................................... 36,077 43.32
(1)
Includes options to purchase approximately 1,150,000 shares of our common stock, which we assumed
under the VGH 2005 Plan in connection with our acquisition of VGH.
94