Electronic Arts 2008 Annual Report Download - page 49

employees may receive a cash severance payment equal to two weeks of pay, with any additional payments to
be determined solely at our discretion. In addition, under the Severance Plan, we will pay the premiums for
continued health benefits, if such benefits are continued pursuant to COBRA, for a time period equal to the
number of weeks of cash severance paid.
Any severance arrangements with our executive officers, including the Named Executive Officers, whether
paid pursuant to the Severance Plan or otherwise, require the prior approval of the Committee. In the event of
a change of control of the Company, the cash severance payment payable under the Severance Plan may be
reduced, in whole or in part, by any amount paid under the CoC Plan.
On September 26, 2006, in connection with the establishment of our international publishing headquarters in
Geneva, Switzerland, we entered into an employment agreement with Dr. Florin setting forth the terms and
conditions of his employment with the Company in recognition of his relocation to Geneva. The agreement
provides for:
• a notice period of six months in the event of termination of his employment (other than for gross
misconduct);
• a redundancy payment of 16 weeks base salary (determined by the number of years of Dr. Florin’s
previous service to the Company according to our standard policy regarding the calculation of
redundancy payments) in the event that Dr. Florin is made redundant (that is, the Company no longer
requires the services for which he is employed, or his position is relocated to another company entity)
within three years of the effective date of the agreement; and
• payment of air fare and the cost of relocation of household goods for him and his family back to the
United Kingdom in the event that he is made redundant within two years of the effective date of the
agreement.
Treatment of Stock Options Upon Retirement
In May 2004, we implemented a special retirement provision in connection with the exercise of outstanding
vested stock options following a qualifying termination of employment. All stock option grants made after
April 2004 to employees, including the Named Executive Officers, contain this provision. Under the standard
provisions of our employee stock option plans, an optionee generally has three months following his or her
termination of employment to exercise his or her stock options that had vested as of his or her termination
date. After three months, these options expire. For an optionee whose length of service to the Company plus
age equals 60, and whose length of service is at least 10 years, this special retirement provision extends this
post-termination exercise period up to 60 months following termination of employment (but in no event
beyond the original term of the stock option).
Non-Competition and Non-Solicitation Agreements
Each of our newly-hired employees, including our executive officers, must enter into a standard proprietary
information agreement, which includes a provision that prohibits for one year after termination solicitation of
our employees to leave the Company. In addition, payouts under our CoC Plan are conditioned upon an
executive officer’s acceptance of a non-solicitation provision for a period of one year from the date of his or
her termination of employment.
Dr. Florin’s employment agreement contains the following additional restrictions, which apply for a six-month
period following the termination of his employment:
• a prohibition on soliciting or providing goods or services to, in competition with the Company, certain
customers of the Company;
• a prohibition on contracting with or engaging, in competition with the Company, certain suppliers of
the Company;
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