eTrade 2002 Annual Report Download - page 142

Table of Contents
Index to Financial Statements
Assets managed by ETGAM for others, which include both securitized and on-balance sheet at December31, 2002 are presented in the
following table (dollars in thousands):
Asset-backed securities classified as trading securities $ 78,626
Asset-backed securities classified as available-for-sale 737,582
Total on-balance sheet asset-backed securities 816,208
Off-balance sheet securitized asset-backed securities (CDO I) 246,032
Total managed asset-backed securities $ 1,062,240
As of December 31, 2002, there were no assets past due 90 days or more and no net losses.
The Company’ s securitization of collateralized debt obligations uses a trust arrangement that meets the specified conditions of SFAS No. 140 to
be considered a Qualified Special Purpose Entity. Accordingly, this trust is not subject to the provisions of FIN No. 46.
11.RELATED PARTY TRANSACTIONS
The Company has the following lending and related party transactions with certain current and former officers and directors (in millions):
Original Balances as of December 31,
Individual Date Amount 2002 2001 Description
Former CEO 6/01 $ 12.5 $ — $ 12.5 5.75% full recourse loan for stock and related taxes(1)
11/00 $ 15.0 $ — $ — 6.09% five-year loan, secured by real estate(2)
5/00 $ 14.4 $ — $ 14.4 5.75% full recourse loan for stock and related taxes(1)
Director 9/01 $ 4.1 $ — $ — 3.82% short-term loan, repaid 10/01
12/00 $ 15.0 $ 13.5 $ 14.0 6.09% ten-year full recourse loan, secured by equity investments
and real property
Current officers and senior
management
6/00 $ 4.2 $ — $ 4.2 5.75% full recourse loan for stock and related taxes(1)
Former officers 5/01 $ 2.0 $ — $ — 4.25% one-year loan, repaid 10/01
2000 $ 9.8 $ — $ 1.6 6.20% to 6.80% relocation loans
(1) See Executive Loan Program below.
(2) In connection with the renegotiation of the Company’ s employment contract with its Former CEO and as part of other contractual
renegotiations undertaken by the Company, in August 2001 the Company cancelled this note. See Note 22.
Executive Loan Program
As of December 31, 2002, all loans to executive officers granted under the Company’ s executive loan program to facilitate their purchase and
holding of shares of the Company’ s stock were repaid either through tendering shares of common stock owned by the individual based on
current fair market value or payment of cash. The Company adopted this executive loan program in fiscal 2000 and the Company formally
terminated the plan in fiscal 2002. In total, the Company made loans to six executive officers of the Company under this program before it was
terminated. The executive officers who participated in this program exercised and held the option shares purchased with the proceeds of the
loans. Loans typically had a term of one year; during fiscal
2003. EDGAR Online, Inc.