Employment Agreement - Electronic Arts Inc. and Rusty Rueff
ELECTRONIC ARTS
1450 FASHION ISLAND BLVD.
SAN MATEO, CA 94404
TEL 415 571 7171
[LOGO]
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.
Sincerely,
/s/ Larry Probst
Larry Probst
Chaiman & CEO
Electronic Arts
Accepted: /s/ Rusty Rueff
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Date: 9/18/98
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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.
Sincerely,
/s/ Larry Probst
Larry Probst
Chairman & CEO
Accepted: ___________________________________________
Date: _______________________________________________