Electronic Arts 2005 Annual Report Download - page 54

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Tax Treatment of non-U.S.-based Participants. For participants residing outside the U.S., the Company will
assess its requirements regarding tax, social insurance and other applicable taxes in connection with
participation in the Purchase Plan. These requirements may change from time to time as laws or
interpretations change.
Tax Treatment of the Company. The Company is entitled to a deduction in connection with the disposition
of shares acquired under the Purchase Plan only to the extent that the employee recognized ordinary income
on a disqualifying disposition of the shares. The Company treats any transfer of record ownership of shares,
including transfer to a broker or nominee or into ""street name,'' as a disposition, unless it is notiÑed to the
contrary. In order to enable the Company to learn of disqualifying dispositions and ascertain the amount of the
deductions to which it is entitled, employees are required to notify the Company in writing of the date and
terms of any disposition of shares purchased under the Purchase Plan.
Proposed amendment of the 2000 Employee Stock Purchase Plan. At the meeting, stockholders will be asked
to approve an amendment to the Purchase Plan to increase by 1,500,000 the number of shares of the
Company's common stock reserved for issuance under the Purchase Plan. None of these proposed shares have
been granted or issued on the basis of such proposed approval.
B-3