eTrade 2007 Annual Report Download - page 171

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NMS Stocks. For the avoidance of doubt, Parent shall not, and shall cause its Affiliates not to, take any actions that are intended,
designed or that would reasonably be expected to circumvent the terms or intention of this Section 2.1(e).
Section 2.2 Customer Complaints. The Company shall cooperate in good faith with Parent to attempt to resolve any
complaints from Parent Customers or Registered Representatives.
Section 2.3 Execution Quality Service Levels.
(a) The Company shall use commercially reasonable efforts, consistent with its duty of best execution, to obtain the most
favorable terms reasonably available for Covered Orders to fulfill the Execution Quality Service Levels set forth in Schedule A to this
Agreement as may be modified pursuant to this Section 2.3 or Schedule A to this Agreement.
(b) The Company and Parent and/or E*TRADE Securities may, from time to time, mutually agree in writing on changes to
the Execution Quality Service Levels, including those changes contemplated by Schedule A to this Agreement.
(c) The Company and Parent shall establish a committee (the “Execution Quality Committee”) to provide a forum for
discussion regarding routing and execution practices and resolution of disputes with respect to Covered Orders. In no event shall the
Execution Quality Committee have the power to bind any Party (including the power to amend or otherwise alter the terms of this
Agreement).
(d) Following the date of this Agreement, if the aggregate mix of Covered Order types or the aggregate mix of the types of
securities, customers or commission levels underlying the Covered Orders routed to the Company shall materially change from the
Existing Order Flow (such material change, an “Order Flow Change”), the Company and Parent and/or E*TRADE Securities shall
discuss in good faith and reasonably agree in writing on changes to this Agreement, including the Execution Quality Service Levels,
that would allow them to preserve, as equitably as possible, their respective commercial expectations in respect of this Agreement as of
the date of this Agreement, notwithstanding such Order Flow Change. It is understood that the Parties, in agreeing to such changes to
this Agreement, shall also reasonably agree in writing to modify the definition of Existing Order Flow to reflect the Order Flow
Change.
(e) Following the date of this Agreement, if the transaction product types offered or otherwise made available by Parent or
any of its Affiliates shall materially change from the Existing Products (such material change, a “Products Change”) the Company and
Parent and/or E*TRADE Securities shall discuss in good faith and reasonably agree in writing on changes to this Agreement,
including the Execution Quality Service Levels, that would allow them to preserve, as equitably as possible, their respective
commercial expectations in respect of this Agreement as of the date of this Agreement, notwithstanding such Products Change. It is
understood that the Parties, in agreeing to such changes to this Agreement, shall also reasonably agree in writing to modify the
definition of Existing Products to reflect the Products Change.
9