Electronic Arts 2016 Annual Report Download - page 84

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We are not entitled to a deduction for amounts taxed as ordinary income or capital gain to a participant except to
the extent of ordinary income reported by participants upon a disqualifying disposition of shares within two years
from date of grant or within one tax year of the date of purchase, subject to the satisfaction of any tax-reporting
obligations. We are required to report to the IRS income recognized by a participant as a result of Share
purchases and disposition. In the future, we may be required to withhold (from a participant’s salary) the amount
due as taxes on such ordinary income.
ERISA
The ESPP is not subject to any of the provisions of the Employee Retirement Income Security Act of 1974 and is
not qualified under Section 401(a) of the Code.
Proposed Amendment of the ESPP
At the Annual Meeting, stockholders will be asked to increase by 3,000,000 the number of shares of the
Company’s common stock reserved for issuance under the ESPP.
D-4