Electronic Arts 2008 Annual Report Download - page 32

PROPOSAL 3. AMENDMENT TO THE 2000 EMPLOYEE STOCK PURCHASE PLAN
The 2000 Employee Stock Purchase Plan, which initially was approved by the stockholders on July 27, 2000,
provides our employees with a convenient means of purchasing equity in the Company through payroll
deductions. It also provides an incentive for continued employment. Since its adoption, 8,300,000 shares of
common stock have been reserved for issuance under the Purchase Plan.
Since the adoption of the Purchase Plan, we have experienced significant growth in the number of employees
who elect to participate in the Purchase Plan. The following table presents information since the beginning of
fiscal 2006 relating to the aggregate number of shares purchased under the Purchase Plan, as well as the
number of employees who have participated in the Purchase Plan.
Shares Purchased
Pursuant to 2000
Purchase Plan
No. of
Employees
Participating
as of the Last
Purchase Date
in Fiscal Year
Fiscal 2006 ................................................. 624,629 4,281
Fiscal 2007 ................................................. 705,188 4,255
Fiscal 2008 ................................................. 892,130 4,342
Fiscal 2009 .................................................
(1)
5,129
(2)
(1)
Fiscal 2009 purchases under the 2000 Purchase Plan will be made in August 2008 and February 2009.
(2)
Represents estimated number of participants in the 2000 Purchase Plan as of June 1, 2008. The increase in
the number of participants was due in part to an increase in the number of eligible employees following
our acquisition of VGH. Participants have the right to withdraw from the 2000 Purchase Plan at any time
prior to a purchase date. The number of participants may increase or decrease prior to February 2009, the
last purchase date in fiscal 2009.
We are proposing amendments to the 2000 Employee Stock Purchase that would:
•Increase the number of shares authorized under the Purchase Plan by 1,500,000 shares to a total of
9,800,000 shares.
The proposed amendment would increase the number of shares authorized under the Purchase Plan by
1,500,000 to a total of 9,800,000, an amount that we expect will continue to permit all current and potential
future employees to fully participate in the Purchase Plan at least through fiscal 2009.
•Remove the ten-year term from the Purchase Plan.
The proposed amendments would remove the ten-year term of the Purchase Plan, which is set to expire in
2010. Rather than adopt a new employee stock purchase plan, we believe it is more efficient to simply
extend the life of the Purchase Plan by removing the ten-year term.
For more information about the Purchase Plan, we urge you to read the summary of its material terms included
as Appendix B to this proxy statement.
Required Vote and Board of Directors’ Recommendation
Approval of this proposal requires the affirmative vote of a majority of the voting shares present at the meeting
in person or by proxy and voting for or against the proposal.
The Board recommends a vote FOR the amendments to the 2000 Employee Stock Purchase Plan.
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