hook_theme correction

This is the autocomplete for hook_theme:

/**
 * Implements hook_theme().
 */
function EXTENSION_theme($existing, $type, $theme, $path) {
  return array(
    'example' => array(
      'arguments' => array('arg0' => NULL, 'arg1' => NULL),
      'template' => 'example',
    ),
  );
}

arguments should be variables.