Electronic Arts 2008 Annual Report Download - page 73

disposition constitutes taxable compensation that will be reported on a W-2 form. The Company takes the
position that any ordinary income recognized upon a sale or other disposition is not subject to withholding.
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 notified 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 Amendments of the 2000 Employee Stock Purchase Plan
At the 2008 Annual Meeting, stockholders will be asked to approve amendments to the Purchase Plan as
follows:
• 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; and
• Remove the ten-year term from the Purchase Plan, which is set to expire in 2010.
B-3