8-KMaterial AgreementsExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Material Agreement (Sep 27, 2006)

Filed September 27, 2006For Securities:EA

Summary

This 8-K filing by Electronic Arts Inc. (EA) on September 27, 2006, details a material definitive agreement related to the employment of Dr. Gerhard Florin, Executive Vice President and General Manager of International Publishing. The agreement formalizes the terms of his employment as he relocates to EA's international publishing headquarters in Geneva, Switzerland. Key aspects of the Florin Employment Agreement include his salary in Swiss francs, eligibility for a discretionary bonus, and specific provisions regarding termination, redundancy, and relocation assistance. The agreement also outlines post-employment restrictions on soliciting customers, engaging with suppliers, hiring employees, and competing with EA within Switzerland. While the agreement itself is not fully detailed in the filing, it references and incorporates terms from previously disclosed offer and relocation letters, offering a structured framework for a key executive's international role and transition.

Key Highlights

  • 1Dr. Gerhard Florin, EVP & GM, International Publishing, has entered into a new employment agreement with EA Swiss Sàrl as he relocates to Geneva, Switzerland.
  • 2The Florin Employment Agreement formalizes terms and conditions of his employment in Switzerland.
  • 3Key terms include a salary of 729,485 Swiss francs and eligibility for a discretionary bonus.
  • 4The agreement specifies a six-month notice period for termination (unless for gross misconduct).
  • 5Provisions for redundancy include 16 weeks' salary and relocation assistance for his family back to the UK within specific timeframes.
  • 6Post-employment restrictions include non-solicitation of customers, non-engagement with suppliers, non-hiring of employees, and a six-month non-compete clause in Switzerland.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report a material definitive agreement concerning the employment of a key executive, Dr. Gerhard Florin, as he relocates to EA's international publishing headquarters in Geneva, Switzerland.

The filing specifies Dr. Florin's base salary in Swiss francs (729,485) and his eligibility for a discretionary bonus. Other financial aspects relate to potential redundancy payments and relocation costs, which are contingent events and specific to the terms outlined in the agreement.

Yes, the agreement includes several post-employment restrictions. For a period of six months following termination, Dr. Florin is prohibited from soliciting certain customers, engaging with certain suppliers, employing or offering employment to certain EA employees, and competing with EA in Switzerland.

While this filing focuses on an individual employment agreement, the relocation of a key executive like Dr. Gerhard Florin to international publishing headquarters suggests a strategic focus on strengthening EA's international presence and operations management.