eTrade 2005 Annual Report Download - page 506

100% of the amount of such loss) accrued on a cumulative basis during the period (taken as one accounting period) beginning on
April1, 2004 and ending on the last day of such fiscal quarter preceding the Transaction Date for which reports have been filed with
the SEC or provided to the Trustee, provided that such Adjusted Consolidated Net Income may only be recognized during those
quarters for which the Company has filed reports with the SEC to the extent provided in Section4.15 or has furnished comparable
financial information to the Trustee
plus
(2) the aggregate Net Cash Proceeds received by the Company after April1, 2004 as a capital contribution or from the issuance and sale
of its Capital Stock (other than Disqualified Stock or Preferred Stock) to a Person who is not a Subsidiary of the Company, including an
issuance or sale permitted by the Indenture of Indebtedness of the Company for cash subsequent to April1, 2004 upon the conversion
of such Indebtedness into Capital Stock (other than Disqualified Stock) of the Company, or from the issuance to a Person who is not a
Subsidiary of the Company of any options, warrants or other rights to acquire Capital Stock of the Company (in each case, exclusive of
any Disqualified Stock or any options, warrants or other rights that are redeemable at the option of the holder, or are required to be
redeemed, prior to the Stated Maturity of the Notes)
plus
(3) an amount equal to the net reduction in Investments (other than reductions in Permitted Investments) in any Person resulting from
payments of interest on Indebtedness, dividends, repayments of loans or advances, or other transfers of assets, in each case to the
Company or any Restricted Subsidiary or Regulated Subsidiary or from the Net Cash Proceeds from the sale of any such Investment
(except, in each case, to the extent any such payment or proceeds are included in the calculation of Adjusted Consolidated Net
Income), from the release of any Guarantee or from redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries (valued in
each case as provided in the definition of “Investments”), not to exceed, in each case, the amount of Investments previously made by
the Company or any Restricted Subsidiary or Regulated Subsidiary in such Person or Unrestricted Subsidiary
plus
(4) $100 million.
(b) The foregoing provision shall not be violated by reason of:
(1) the payment of any dividend or redemption of any Capital Stock within 60 days after the related date of declaration or call for
redemption if, at said date of declaration or call for redemption, such payment or redemption would comply with the preceding
paragraph;
(2) the redemption, repurchase, defeasance or other acquisition or retirement for value of Indebtedness that is subordinated in right of
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