eTrade 2007 Annual Report Download - page 163

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EQUITIES AND OPTIONS ORDER HANDLING AGREEMENT
This EQUITIES AND OPTIONS ORDER HANDLING AGREEMENT, dated as of November 29, 2007 (this
“Agreement”), by and among CITADEL DERIVATIVES GROUP LLC, a Delaware limited liability company (“the “Company”),
E*TRADE SECURITIES LLC, a Delaware limited liability company (“E*TRADE Securities”), and E*TRADE FINANCIAL
CORPORATION, a Delaware corporation (“Parent”) (each individually a “Party” and together the “Parties”).
WHEREAS, Parent and Affiliates of the Company have entered into that certain Investment and Securities Purchase
Agreement, dated as of November 29, 2007 (the “Investment Agreement”), which provides for, among other things, the issuance by
Parent to Affiliates of the Company of certain debt and equity securities and the purchase by an Affiliate of the Company of certain
assets from the bank Affiliate of Parent; and
WHEREAS, Parent and the Company at the Initial Closing (as defined in the Investment Agreement) are entering into this
Agreement which sets forth the terms upon which Parent and its Affiliates will route Covered Orders to the Company and the
Company will provide to Parent and its Affiliates routing, order handling and execution services for such Covered Orders (the
“Company Services”).
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and in
the Investment Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, the Parties hereto agree as follows:
ARTICLE I.
DEFINITIONS
Section 1.1 Certain Definitions. In this Agreement, the following words and phrases shall have the following meanings:
(a) “Adverse Reputational Event” shall mean, with respect to a Person, (i) a conviction of such Person for a felony or a plea
of guilty or nolo contendere to a felony by such Person, which in either case is final and non-appealable, or a disqualification,
suspension or temporary or permanent bar imposed on such Person by the Securities and Exchange Commission or any SRO for
misconduct that prohibits such Person from acting generally as a Broker-Dealer, if such disqualification or bar continues for more than
90 days or (ii) a plea or consent to the entry of an order by the Securities and Exchange Commission, a court of competent jurisdiction,
an SRO or a state securities regulator that includes a finding that such Person engaged in intentional wrongdoing (with scienter) or
fraud (with scienter) in the execution of customer orders as a market maker or order router.