Electronic Arts ( ERTS) has decided to be a little less generous to employees who hold underwater stock options. The video-game maker has tweaked the terms of a proposed program that would allow insiders to exchange out-of-the-money options for fewer shares of restricted stock, according to regulatory documents filed with the Securities and Exchange Commission on Thursday. Under the new terms, fewer options would qualify for the exchange and EA could cancel the whole program if the company's stock continues to rise. EA made the changes after gaining input on the program from investors and Institutional Shareholder Services, the leading proxy voting advisor, said company spokesman Jeff Brown. "People felt the floor needed to be slightly higher" for the options eligible for the exchange, Brown said. "We wanted this to be a win for employees and shareholders." Stock options give insiders the right to buy shares of the company's stock at a certain price for a certain period of time. When employees exercise options, they typically sell the underlying stock immediately and recognize a gain on the difference between the market price of the stock they sell and the exercise price of the option. If an option carries an exercise price above the market price of the underlying stock, the option is underwater, or essentially worthless, at least for the time being. As part of the program, employees would be able to exchange options that carried an exercise price 25% or more above the average closing price of EA's shares on the five days prior to the day the exchange program begins. Previously, the company proposed that employees would be able to exchange options that carried an exercise price of 15% or more above the average closing price of EA shares over that period. Additionally, the company added a provision that would call off the exchange program if the average price of the company's stock was $55 or greater over the five-day period. Shares of EA closed trading on Friday up $1.79, or 4%, to $45.31. The company's stock is up 13% since hitting a 52-week low of $39.99 last month.