Sample Business Contracts

Employment Agreement - Electronic Arts Inc. and Rusty Rueff

Employment Forms

  • Employment Contract. Employers can customize an employment agreement that states the salary, benefits, working hours and other important provisions for their new or existing employee.
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  • Commission Agreement. Employers who compensate their sales employees based on commissions can prepare an agreement to reduce misunderstandings by specifying the base salary and how commissions are calculated.
  • Executive Employment Agreement. Companies may offer their business executives a contract that is different from the one provided to their regular employees. Executive employment agreements may be more complex because the compensation structure may include a combination of salary and commissions, provide for bonuses based on sales, stock or other financial targets, and include non-compete, confidentiality and severance provisions.
  • Sales Representative Contract. Independent sales representatives offer companies the potential to increase the sale of products or services without the burden of increasing headcount. Both parties should understand how commissions are calculated, when commissions will be paid, as well as how the representative will treat confidential information from the company and whether the representative may also sell a competing line of products or services.
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TEL 415 571 7171


September 9, 1998

Rusty Rueff
181-12 Turn of River Road
Stamford, CT 06905

Dear Rusty:

I am pleased to offer you a regular full-time  position as Senior Vice President
Human Resources reporting to me. Your annual base salary will be $240,000 with a
50% target  bonus.  The bonus will be guaranteed at 100% of target in the fiscal
year ending  March 31,  1999,  and 75% of target in the fiscal year ending March
31, 2000.

I will recommend to the Board of Directors  that you be granted a  Non-qualified
Option to purchase  70,000 shares of Electronic  Arts common stock in accordance
with our Stock Option Plan.  This grant will vest at a rate of 2% per month over
a 50 month period  commencing with your hire date. Your unvested equity position
will be reviewed on an annual basis in conjunction  with the EA executive  stock
option program.

Electronic  Arts will provide you with a $2,500 per month (net of taxes) housing
allowance for a three-year  period. We agree to pay the difference  between your
acquisition  cost and the sale price on your  property  at 181-12  Turn of River
Road if the selling price is less than the initial  purchase  price of $612,500.
In addition,  Electonic Arts will be  responsible  for all normal and reasonable
relocation costs associated with moving to Northern California.

Your employment with Electronic Arts is for an indefinite  term. In other words,
the  employment  relationship  is "at will" and you have the right to  terminate
that employment  relationship at any time.  Also,  although I hope that you will
remain with us and be successful here, Electronic Arts must, and does retain the
right to  terminate  the  employment  relationship  at any time.  Should  you be
terminated  without  cause prior to March 31, 2000,  you will receive one year's
salary plus bonus as severence.

This offer  assumes  that you have the legal right to work in the United  States
and can submit appropriate proof. If you accept the offer, please so indicate by
signing this letter where indicated and returning it to my attention.

Electronic  Arts'  mission is to make fun  software  for  consumers  and to help
interactive entertainment become a part of everyday life. To play a leading role
in this new  industry,  EA needs a dedicated  team of pioneers  with  vision,  a
passion for quality,  a  willingness  to innovate and a desire to achieve  great
things while vigilantly  maintaining our integrity. I would be delighted to have
you join us.


/s/ Larry Probst

Larry Probst
Chaiman & CEO
Electronic Arts

Accepted:  /s/ Rusty Rueff

Date:    9/18/98


September 17, 1998

Rusty Rueff
181-12 Turn of River Road
Stamford, CT 06905

Dear Rusty:

This will confirm our  discussion on Tuesday,  September 15. EA will provide you
with a one-time  $50,000  (gross) signing bonus to help offset the expected loss
on improvements made to your current residence, and the temporary loss of income
you will experience in conjunction with Patti's resignation from Pepsi.

We also agree to extend  vesting on your stock  option grant for a period of six
months if you are terminated without cause prior to March 31, 2000.

EA agrees to provide a relocation program similar to the Frito-Lay plan with the
exception  that we will  not be  responsible  for any  loan  points  nor will we
provide one month's salary in conjunction with your move to Northern California.

I am thrilled that you have decided to join Electronic  Arts, and very much look
forward to working  with you.  Would you please  acknowledge  acceptance  of the
offer by  signing  in the space  below and  returning  to my  attention  at your
earliest convenience. Thank you.


/s/ Larry Probst
Larry Probst
Chairman & CEO

Accepted: ___________________________________________

Date: _______________________________________________