eTrade 2009 Annual Report Download - page 212

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(b) Election of Measurement Funds. The Participant may elect one or more Measurement Funds for the purpose of crediting
and debiting amounts to his Deferral Account. A Participant, in connection with his initial deferral election, shall elect, on
the Election Form, one or more Measurement Fund(s) to be used to determine the additional amounts to be credited (or, in
the event of losses, debited) to his Deferral Account for the first calendar quarter or portion thereof in which the Participant
commences participation in the Plan and continuing thereafter for each subsequent calendar quarter in which the
Participant participates in the Plan, unless changed in accordance with the next sentence. Commencing with the first
business day that follows the Participant’s commencement of participation in the Plan and continuing thereafter for each
subsequent business day in which the Participant participates in the Plan, the Participant may (but is not required to) elect,
by submitting an Election Form to the Committee that is accepted by the Committee, to add or delete one or more
Measurement Fund(s) to be used to determine the additional amounts to be credited (or, in the event of losses, debited) to
his Deferral Account, or to change the portion of his Deferral Account allocated to each previously or newly elected
Measurement Fund. If an election is filed in accordance with the previous sentence, it shall apply to the next business day
and continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in
accordance with the previous sentence.
(c) Proportionate Allocation. In any election relating to Measurement Funds, the Participant shall specify on the Election
Form, in increments of one percentage point (1%), the percentage of his Deferral Account to be allocated to a
Measurement Fund (as if the Participant was investing a portion of his Deferral Account in that Measurement Fund).
(d) Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) will be
based on the performance of the Measurement Funds themselves. A Participant’s Deferral Account shall be credited or
debited on a daily basis based on the performance of each Measurement Fund selected by the Participant, as determined by
the Committee in its sole discretion, as though (i) a Participant’s Deferral Account were invested in the Measurement Fund
(s) selected by the Participant, in the percentages applicable to such business day at the closing price on such date;
(ii) the portion of the Annual Deferral Amount that was actually deferred during any day was invested in the Measurement
Fund(s) selected by the Participant no later than the close of business on the first business day after the day on which such
amounts are actually deferred from the Participant’s Annual Base Salary at the closing price on such date; and (iii) any
distribution paid to a Participant that decreases such Participant’s Deferral Account ceased being invested in the
Measurement Fund(s), in the percentages applicable to such day, no earlier than one business day prior to the distribution,
at the closing price on such date.