Document:

Exhibit 10.1

 Exhibit 10.1 

EXECUTION COPY 

EMPLOYMENT AGREEMENT 

This Employment Agreement (this “Agreement”) is made and entered into by and between E*TRADE Financial Corporation (the
“Company”) and Steven J. Freiberg (“Executive”) as of March 19, 2010. 
 W I T N E S S E T
H: 
 WHEREAS, Executive is willing to serve as the Chief Executive Officer of the Company, and the Employer desires to retain
Executive in such capacity, on the terms and conditions herein set forth; and 
 NOW, THEREFORE, in consideration of the
promises and the mutual covenants herein contained, the parties hereto hereby agree as follows: 
 1. Position and
Duties. As of April 1, 2010 (the “Effective Date”), the Company hereby agrees to employ Executive as the Chief Executive Officer of the Company, and Executive agrees to be employed by the Company, upon the terms and
conditions set forth herein. In such capacity, Executive shall report directly to the Board of Directors (the “Board”) of the Company and shall have and perform the authority and duties normally accorded to such position in a manner
consistent with applicable regulatory requirements and sound business practices. 
 On or promptly following the Effective Date,
Executive shall be appointed to the Board, and the Company agrees that Executive will continue to be re-nominated to the Board during his employment as Chief Executive Officer of the Company. Executive agrees that, upon any termination of his
employment, he shall resign from the Board unless otherwise requested by the Board. 
 Executive agrees to devote all necessary
time, energy and skill to his duties at the Company. The Company acknowledges that Executive may have continued involvement in charitable and civic activities which both parties expect will not create a business or competitive conflict with the
activities of the Company and that Executive may continue to serve as a member of the corporate boards of directors (as previously disclosed to the Board) on which he currently serves and, with the prior consent of the Board, other corporate boards
of directors. 
 The Company shall provide Executive with the same indemnification and D&O insurance protection provided
from time to time to its officers and directors generally. Notwithstanding anything to the contrary in this Agreement, the rights of Executive to indemnification and the D&O insurance coverage with respect to all matters, events or transactions
occurring or effected during Executive’s period of employment or service as a director with the Company shall survive the termination of Executive’s employment. 

 2. Term of Agreement. This Agreement shall remain in effect until the fourth
anniversary of the Effective Date (including any renewal pursuant to the next sentence, the “Term”), unless Executive’s employment is terminated earlier by either party, subject to payments under Section 5 hereof to the
extent applicable. The Term of this Agreement shall automatically renew for additional one-year periods unless either party provides at least ninety days’ prior written notice of termination of the Agreement. Executive’s employment with
the Company during the Term shall be “at-will”. 
 3. Compensation. During the Term, Executive shall be
compensated by the Company for his services as follows: 
 (a) Base Salary. Executive shall be paid an
annualized base salary of $1,000,000 per year (the “Base Salary”), subject to applicable withholding, in accordance with the Company’s normal payroll procedures. Executive’s Base Salary will be reviewed annually for
increases in the Board’s discretion. 
 (b) Performance Bonus. Executive shall have the opportunity
to earn an annual performance-based cash bonus. Executive’s cash bonus target amount shall be $3,000,000 (the “Annual Cash Target”). The actual bonus payment will depend on Executive and the Company meeting performance targets
for the applicable year as established by the Board (or the Compensation Committee of the Board); provided that Executive’s actual cash bonus for 2010 performance shall be not less than a prorated amount (representing the period of time from
the Effective Time through the end of the year) of his Annual Cash Target (the “2010 Cash Bonus”). The annual cash bonus will be paid at the same time and in the same manner as payments to other senior executives of the Company and
is subject to Executive’s continued employment with the Company on the applicable payment date, except as otherwise provided in Section 5 below. 

(c) Benefits. Executive shall have the right, on the same basis as other senior executives of the Company, to
participate in and to receive benefits under any of the Company’s employee benefit plans, as such plans may be modified from time to time. To the extent Executive declines participation in the Company’s medical plan, the Company shall pay
Executive $20,000 annually in order to assist with the cost of his continuing his existing medical coverage. 

(d) Business Expenses. The Company shall reimburse Executive for all reasonable out-of-pocket expenses incurred by
Executive in connection with his employment hereunder upon submission of appropriate documentation or receipts in accordance with the policies and procedures of the Company as in effect from time to time. 

4. Equity Compensation. 

(a) Annual Equity Awards. During the Term, Executive will be eligible to receive annual equity incentive awards
(“Annual Equity Awards”). Executive’s annual target level (“Annual Equity Target”) shall be $3,000,000 

 

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(based on the grant date fair value as determined by the Company under its practices for recognizing compensation expense in accordance with stock compensation accounting guidance). The actual
amount of Annual Equity Awards shall be based upon Executive and the Company meeting performance targets for the applicable year as established by the Board (or the Compensation Committee of the Board); provided that Executive’s equity awards
for 2010 performance shall be not less than a prorated amount (representing the period of time from the Effective Time through the end of the year) of his Annual Equity Target. The Annual Equity Awards shall consist of stock options, restricted
stock or other equity-based awards, or a combination thereof, as determined by the Compensation Committee in consultation with Executive; shall be granted at the same time (which is currently following completion of the applicable fiscal year) and
in substantially the same mixture as annual equity incentive awards are made to other executive officers; and shall vest annually over the period specified for annual grants at such time to other senior executives but over no more than four years.

 (b) General Terms. Each equity award will be evidenced by an agreement in the standard form under the
Company’s 2005 Equity Incentive Plan. The additional provisions set forth in Section 5 below shall be deemed to be incorporated into any such agreement and shall supersede any provision to the contrary. Executive will be eligible to
receive other equity compensation awards from time to time if the Company’s Board of Directors or its Compensation Committee, in its sole discretion, determines that such an award(s) is appropriate. 

5. Effect of Termination of Employment During the Term. Upon any termination of Executive’s employment
during the Term, he will be entitled to payment or provision when due of (1) any unpaid base salary and expense reimbursements and (2) other unpaid vested amounts or benefits under Company compensation, incentive, and benefit plans, all of
which shall be paid as soon as practicable but no later than 2 and
 1/2 months following the end of the year in which
termination occurs (except to the extent otherwise provided in the applicable plan), beyond which the Company and he shall have no further obligations to each other, except as specifically set forth in this Agreement (including the agreements set
forth in Section 12(d) below) or in a subsequent written agreement between him and the Company. 

(a) Involuntary Termination outside a Change in Control Period. If Executive’s employment with the Company is
terminated during the Term as a result of an Involuntary Termination outside of a Change in Control Period, then subject to Executive signing and not revoking the Release (so long as such Release is signed in a period such that the payments under
clause (i) below may be made no later than 2 and 1/2 months following the end of the year in which such termination of employment occurs), Executive shall receive the following severance benefits: 

(i) a lump sum cash severance payment equal to one times the sum of (x) Executive’s annual Base Salary at the
time of termination, 
  

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(y) Executive’s Annual Cash Target and (z) Executive’s Annual Equity Target (to the extent the Annual Equity Awards for the year of termination have not yet been granted), which
payment shall be paid within 30 days following the effectiveness of the Release; 
 (ii) a pro rata share of the
Annual Cash Target for the year in which termination of employment occurs, provided that, if the termination occurs after December 31, 2010, the Company’s performance meets the target performance level for the year of termination,
as determined at year-end, which payment shall be paid no later than 2 and 1/2 months following the end of the year in which such termination of employment occurs; 

(iii) all outstanding Company options, restricted stock awards, restricted stock units and other equity awards
(collectively, “Equity Grants”) shall become fully vested and, if applicable, exercisable (and any forfeiture provision shall lapse) in full as of the later of the date of Executive’s termination of employment or the last day
following Executive’s execution of the Release on which Executive may revoke such Release under its terms, and any Equity Grant which is a stock option shall remain exercisable until 12 months following such termination of employment (but in no
event beyond the maximum seven-year expiration date set forth in the option agreement); and 
 (iv) to the
extent Executive is eligible for and elects COBRA continuation through the Company, reimbursement for the cost of medical coverage at a level equivalent to that provided by the Company immediately prior to termination of employment, through the
earlier of: (A) 12 months following Executive’s termination of employment, or (B) the time Executive begins alternative employment; provided that (x) it shall be the obligation of Executive to inform the Company that new
employment has been obtained and (y) such reimbursement shall be made by the Company subsidizing or reimbursing COBRA premiums or, if Executive is no longer eligible for COBRA continuation coverage, by a lump sum payment based on the monthly
premiums immediately prior to the expiration of COBRA coverage. 
 (b) Involuntary Termination during a
Change in Control Period. If Executive’s employment with the Company is terminated during the Term as a result of an Involuntary Termination during a Change in Control Period, then subject to Executive signing and not revoking the Release
(so long as such Release is signed in a period such that the payments under clause (i) below may be made no later than 2 and 1/2 months following the end of the year in which such termination of employment occurs), Executive shall receive the
following severance benefits: 
  

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 (i) a lump sum cash severance payment equal to two times the sum of
(x) Executive’s annual Base Salary, (y) Executive’s Annual Cash Target and (z) Executive’s Annual Equity Target (to the extent the Annual Equity Awards for the year of termination and the subsequent year have not yet
been granted), which payment shall be paid within 30 days following the effectiveness of the Release; 
 (ii) a
pro rata share of the Annual Cash Target for the year in which termination of employment occurs, provided that, if the termination occurs after December 31, 2010, the Company’s performance meets the target performance level for the
year of termination, as determined at year-end, which payment shall be paid no later than 2 and 1/2 months following the end of the year in which such termination of employment occurs; 

(iii) each Equity Grant shall become fully vested and, if applicable, exercisable (and any forfeiture provision shall
lapse) in full as of the later of the date of Executive’s termination of employment or the last day following Executive’s execution of the Release on which Executive may revoke such Release under its terms, and any Equity Grant which is a
stock option shall remain exercisable until 12 months following such termination of employment (but in no event beyond the maximum seven-year expiration date set forth in the option agreement); and 

(iv) to the extent Executive is eligible for and elects COBRA continuation through the Company, reimbursement for the
cost of medical coverage at a level equivalent to that provided by the Company immediately prior to termination of employment, through the earlier of: (A) 24 months following Executive’s termination of employment, or (B) the time
Executive begins alternative employment; provided that (x) it shall be the obligation of Executive to inform the Company that new employment has been obtained and (y) such reimbursement shall be made by the Company subsidizing or
reimbursing COBRA premiums or, if Executive is no longer eligible for COBRA continuation coverage, by a lump sum payment based on the monthly premiums immediately prior to the expiration of COBRA coverage. 

(c) Death or Disability. 

(i) In the event of Executive’s death, all Equity Grants held by Executive, to the extent then outstanding, shall
become fully vested and, if applicable, exercisable, and any Equity Grant which is a stock option shall remain exercisable until 12 months following such termination of employment (but in no event beyond the maximum seven-year expiration date set
forth in the option agreement), and any forfeiture provision shall lapse, as of the date of Executive’s death. 
  

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 (ii) In the event Executive’s employment terminates as a result of his
death or Permanent Disability, Executive (or Executive’s estate, as applicable) shall be entitled to a pro rata share of Executive’s cash or other performance bonus (which during 2010 shall be a pro rata share of the 2010 Cash Bonus) to
the date of death or termination for Permanent Disability. 
 (d) Non-Renewal of this Agreement. To the
extent applicable, the following shall be in lieu of any payments otherwise payable pursuant to the foregoing provisions of this Section 5. 

(i) Company’s Non-Renewal. In the event that the Company delivers to Executive written notice of non-renewal
of this Agreement pursuant to Section 2 hereof and as a result of which Executive’s employment with the Company terminates at the end of the Term (other than for Cause), Executive shall be entitled to receive at the end of the Term
(A) a lump sum cash severance payment equal to the sum of Executive’s annual Base Salary and Executive’s Annual Cash Target and (B) accelerated vesting of all Equity Grants, subject to Executive signing and not revoking the
Release. 
 (ii) Executive’s Non-Renewal. In the event that Executive delivers to the Company
written notice of non-renewal of this Agreement pursuant to Section 2 hereof and as a result of which Executive’s employment with the Company terminates at the end of the Term (other than for Cause): 

(A) Any outstanding unvested Equity Grants shall not terminate but shall continue to vest on the scheduled vesting dates
set forth in the applicable award agreement, subject to Executive’s compliance with his Agreement Regarding Employment and Proprietary Information and Inventions with the Company and his not competing with the Company’s business as
conducted at the time of his termination of employment; and 
 (B) any Equity Grants that are stock options
shall remain exercisable for 12 months following the later of Executive’s termination of employment or the vesting date of the applicable portion of the stock option, but in no event beyond the maximum seven-year expiration date set forth in
the option agreement. 
 (e) Other Termination. In the event of a termination of Executive’s
employment not specified under Section 5(a), Section 5(b), Section 5(c) or Section 5(d) above, Executive shall not be entitled to any compensation or benefits from the Company, other than those earned and unpaid under
Section 3 through the date of his termination and, in the case of each stock option, restricted 
  

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stock award or other Company stock-based award granted to Executive, the extent to which such awards are vested through the date of his termination or as otherwise provided in the applicable
award agreement. 
 6. Certain Tax Considerations. 

(a) Section 409A. 

(i) The payments under Section 5 are intended to qualify for the short-term deferral exception to Section 409A
of the Code (“Section 409A”) described in the regulations promulgated under Section 409A (the “Section 409A Regulations”) to the maximum extent possible, and to the extent they do not so qualify, they are
intended to qualify for the involuntary separation pay plan exception to Section 409A described in the Section 409A Regulations to the maximum extent possible. To the extent Section 409A is applicable to this Agreement, this Agreement
is intended to comply with Section 409A, and shall be interpreted and construed and shall be performed by the parties consistent with such intent, and the Company shall have no right, without Executive’s consent, to accelerate any payment
or the provision of any benefits under this Agreement if such payment or provision of such benefits would, as a result, be subject to tax under Section 409A. 

(ii) Without limiting the generality of the foregoing, if Executive is a “specified employee” within the
meaning of Section 409A, as determined under the Company’s established methodology for determining specified employees, on the date of termination of employment, then to the extent required in order to comply with Section 409A, and
taking into account the involuntary separation pay plan exception, amounts that would otherwise be payable under this Agreement during the six-month period immediately following such termination date shall instead be paid (together with interest at
the then current six-month LIBOR rate) on the first business day after the first to occur of (i) the date that is six months following Executive’s termination of employment and (ii) the date of Executive’s death. 

(iii) Except as expressly provided otherwise herein, no reimbursement payable to Executive pursuant to any provisions of
this Agreement or pursuant to any plan or arrangement of the Company covered by this Agreement shall be paid later than the last day of the calendar year following the calendar year in which the related expense was incurred, and no such
reimbursement during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation”
within the meaning of Section 409A of the Code. 
  

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 (iv) For purposes of this Agreement, the terms “terminate,”
“terminated” and “termination” mean a termination of Executive’s employment that constitutes a “separation from service” within the meaning of the default rules of Section 409A of the Code; provided, however,
that, in the event of Executive’s Permanent Disability, “separation from service” means the date that is six months after the first day of disability. 

(b) 280G Limitation. If the payments and benefits provided to Executive under this Agreement, either alone or
together with other payments and benefits provided to him from the Company (including, without limitation, any accelerated vesting thereof) (the “Total Payments”), would constitute a “parachute payment” (as defined in
Section 280G of the Code) and be subject to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Code, the Total Payments shall be reduced if and to the extent that a reduction in the Total Payments would result in
Executive retaining a larger amount than if Executive received all of the Total Payments, in each case measured on an after-tax basis (taking into account federal, state and local income taxes and, if applicable, the Excise Tax). The determination
of any reduction in the Total Payments shall be made at the Company’s cost by the Company’s independent public accountants or another firm designated by the Company and reasonably approved by Executive, and may be determined using
reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company shall pay Executive’s costs incurred for tax, accounting and other professional advice in the event of a challenge of any such
reasonable, good faith interpretations by the Internal Revenue Service. 
 7. Certain Definitions. For the purposes of
this Agreement, the following capitalized terms shall have the meanings set forth below: 
 (a)
“Cause” shall mean any of the following: 
 (i) Executive’s theft, dishonesty, willful
misconduct in the performance of his duties, breach of fiduciary duty for personal profit, or falsification of any material employment or Company records; 

(ii) Executive’s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud,
dishonesty, misappropriation or moral turpitude, or which materially impairs Executive’s ability to perform his duties with the Company; 

(iii) Executive’s intentional and repeated failure to perform lawful stated duties after written notice from the
Company and a reasonable opportunity to cure such failure; 
 (iv) Executive’s improper disclosure of the
Company’s confidential or proprietary information; 
  

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 (v) any material breach by Executive of the Company’s Code of
Professional Conduct, which breach shall be deemed “material” if it results from an intentional act by Executive and has a material detrimental effect on the Company’s reputation or business; or 

(vi) any material breach by Executive of this Agreement or of any agreement regarding proprietary information and
inventions, which breach, if curable, is not cured within thirty (30) days following written notice of such breach from the Company. 

In the event that the Company terminates Executive’s employment for Cause, the Company shall provide written notice to Executive of
that fact prior to, or concurrently with, the termination of employment. Failure to provide written notice that the Company contends that the termination is for Cause shall constitute a waiver of any contention that the termination was for Cause,
and the termination shall be irrebuttably presumed to be an involuntary termination without Cause. However, if, within thirty (30) days following the termination, the Company first discovers facts that would have established “Cause”
for termination, and those facts were not known by the Company at the time of the termination, then the Company shall provide Executive with written notice, including the facts establishing that the purported “Cause” was not known at the
time of the termination, and the Company will pay no severance. 
 (b) “Change in Control”
shall mean the occurrence of any of the following events: 
 (i) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) or more than one person acting as a group (as determined under Treas. Reg. Section 1.409A-3(i)(5)(v)(B)) becomes the “beneficial owner” (as defined in Rule
13d-3 under said Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total combined voting power represented by the Company’s then outstanding voting securities other than the
acquisition of the Company’s common stock by a Company-sponsored employee benefit plan; 
 (ii) the Company
is party to a merger or consolidation which results in the holders of the voting securities of the Company outstanding immediately prior thereto failing to retain immediately after such merger or consolidation direct or indirect beneficial ownership
of more than fifty percent (50%) of the total combined voting power of the securities entitled to vote generally in the election of directors of the Company or the surviving entity outstanding immediately after such merger or consolidation;

  

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 (iii) a change in the composition of the Board occurring within a period of
twenty-four (24) consecutive months, as a result of which fewer than a majority of the directors are Incumbent Directors; 

(iv) effectiveness of an agreement for the sale, lease or disposition by the Company of all or substantially all of the
Company’s assets; or 
 (v) a liquidation or dissolution of the Company. 

(c) “Code” means the Internal Revenue Code of 1986, as amended. 

(d) “Change in Control Period” shall mean the period ending on the two year anniversary date of the
consummation of the Change in Control and commencing on the earlier of: 
 (i) 60 days prior to the date of
consummation of the Change in Control; 
 (ii) the date of the first public announcement of a definitive
agreement that would result in a Change in Control (even though still subject to approval by the Company’s stockholders and other conditions and contingencies); or 

(iii) the date of the public announcement of a tender offer that is not approved by the Incumbent Directors. 

(e) “Good Reason” shall mean any of the following conditions without Executive’s consent:

 (i) a material decrease in Executive’s Base Salary; 

(ii) a material, adverse change in Executive’s title, authority, responsibilities or duties, as measured against
Executive’s title, authority, responsibilities or duties immediately prior to such change; provided that following a Change in Control, for purposes of this subsection (ii), in addition to any other material, adverse change in title, authority,
responsibilities or duties, Executive not reporting to the Board of Directors or Executive not being Chief Executive Officer of the surviving combined company shall constitute an event of “Good Reason”; 

(iii) the relocation of Executive’s principal workplace to a location greater than fifty (50) miles from the
prior workplace; 
 (iv) any material breach by the Company of any provision of this Agreement, which breach is
not cured within thirty (30) days following written notice of such breach from Executive; 
  

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 (v) any failure of the Company to obtain the assumption (by operation of law
or by contract) of this Agreement by any successor or assign of the Company; 
 provided that Executive shall have
provided written notice to the Company of the existence of the condition constituting Good Reason within 90 days of the initial existence of the condition. 

(f) “Incumbent Directors” shall mean members of the Board who either (i) are members of the Board
as of the date hereof, or (ii) are elected, or nominated for election, to the Board with the affirmative vote of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of members of the Board). 

(g) “Involuntary Termination” shall mean the occurrence of one of the following: 

(i) termination by the Company of Executive’s employment with the Company for any reason other than Cause at any
time; 
 (ii) Executive’s resignation from employment for Good Reason within six months following the
occurrence of the event constituting Good Reason. 
 (h) “Permanent Disability” shall mean
Executive’s permanent and total disability within the meaning of Section 22(e)(3) of the Code. 
 (i)
“Release” shall mean a general release of all known and unknown claims against the Company and its affiliates and their stockholders, directors, officers, employees, agents, successors and assigns substantially in a form (including
non-disparagement provisions) reasonably acceptable to the Company, which has been executed by Executive and not revoked within the applicable revocation period; provided that such Release shall not release the right to indemnification or any of the
compensation and benefits Executive is due upon the applicable termination of employment. 
 8. Insider Trading Policy.
Executive agrees to abide by the terms and conditions of the Company’s Insider Trading Policy, as it may be amended from time to time. 

9. Dispute Resolution. In the event of any dispute or claim relating to or arising out of this Agreement (including, but not
limited to, any claims of breach of contract, wrongful termination or age, sex, race or other discrimination), and except for disputes that are subject to mandatory arbitration under FINRA rules if applicable, Executive and the Company agree that
all such disputes shall be fully and finally resolved 
  

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by binding arbitration conducted by the American Arbitration Association in New York, New York in accordance with its National Employment Dispute Resolution rules. Executive acknowledges that by
accepting this arbitration provision he is waiving any right to a jury trial in the event of such dispute. In connection with any such arbitration, the Company shall bear all costs not otherwise borne by a plaintiff in a court proceeding.

 10. Attorneys’ Fees. The prevailing party shall be entitled to recover from the losing party its attorneys’
fees and costs incurred in any action brought to enforce any right arising out of this Agreement. The Company shall pay Executive’s reasonable legal fees in connection with the review and negotiation of this Agreement. 

11. No Mitigation or Offset. Executive shall not be required to mitigate the amount of any payment provided for herein by seeking
other employment or otherwise and any such payment will not be reduced in the event such other employment is obtained. 
 12.
General. 
 (a) Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of and be binding upon the Company, Executive and each and all of their respective heirs, legal representatives, successors and assigns. The duties, responsibilities and obligations of Executive under this Agreement shall be personal and not
assignable or delegable by Executive in any manner whatsoever to any person, corporation, partnership, firm, company, joint venture or other entity. Executive may not assign, transfer, convey, mortgage, pledge or in any other manner encumber the
compensation or other benefits to be received by him or any rights which he may have pursuant to the terms and provisions of this Agreement. 

(b) Amendments; Waiver. No provision of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the
other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(c) Notices. Any notices to be given pursuant to this Agreement by either party to the other party may be effected
by personal delivery or by overnight delivery with receipt requested. Mailed notices shall be addressed to the parties at the addresses stated below, but each party may change its or his address by written notice to the other in accordance with this
Paragraph. 
 Mailed notices to Executive shall be addressed to the last known address provided by Executive to
the Company. 
 Mailed notices to the Company shall be addressed as follows: 

 

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 E*TRADE Financial Corporation 

135 East 57th Street 

New York, New York 10022 

Attention: General Counsel 

With a copy to: 

E*TRADE Financial Corporation 

135 East 57th Street 

New York, New York 10022 

Attention: Chair of the Compensation Committee 

(d) Entire Agreement. This Agreement constitutes the entire employment agreement between Executive and the Company
regarding the terms and conditions of his employment and any amounts due on termination of such employment, with the exception of (i) an Agreement Regarding Employment and Proprietary Information and Inventions, (ii) any indemnification
agreement between Executive and the Company and (iii) the Company’s employee benefit plans referenced in Section 3(c). This Agreement (including the documents described in (i) through (iii) herein) supersedes all prior
negotiations, representations or agreements between Executive and the Company, whether written or oral, concerning Executive’s employment by or service to the Company. 

(e) Withholding Taxes. All payments made under this Agreement shall be subject to reduction to reflect taxes
required to be withheld by law. 
 (f) Counterparts. This Agreement may be executed by the Company and
Executive in counterparts, each of which shall be deemed an original and which together shall constitute one instrument. 

(g) Headings. Each and all of the headings contained in this Agreement are for reference purposes only and shall
not in any manner whatsoever affect the construction or interpretation of this Agreement or be deemed a part of this Agreement for any purpose whatsoever. 

(h) Savings Provision. To the extent that any provision of this Agreement or any paragraph, term, provision,
sentence, phrase, clause or word of this Agreement shall be found to be illegal or unenforceable for any reason, such paragraph, term, provision, sentence, phrase, clause or word shall be modified or deleted in such a manner as to make this
Agreement, as so modified, legal and enforceable under applicable laws. The remainder of this Agreement shall continue in full force and effect. 

(i) Construction. The language of this Agreement and of each and every paragraph, term and provision of this
Agreement shall, in all cases, for any and all purposes, and in any and all circumstances whatsoever be construed as a whole, according to its fair meaning, not strictly for or against Executive or the

  

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Company, and with no regard whatsoever to the identity or status of any person or persons who drafted all or any portion of this Agreement. 

(j) Further Assurances. From time to time, at the Company’s request and without further consideration,
Executive shall execute and deliver such additional documents and take all such further action as reasonably requested by the Company to be necessary or desirable to make effective, in the most expeditious manner possible, the terms of this
Agreement and to provide adequate assurance of Executive’s due performance hereunder. 
 (k) Governing
Law. Executive and the Company agree that this Agreement shall be interpreted in accordance with and governed by the laws of the State of New York. 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year written below. 

 

																	
	Dated:  	 	
        3/19/10               
 
	 		 		 		 		 		 	E*TRADE FINANCIAL CORPORATION
									
		 		 		 		 		 		 		 	 By:
	 	/s/ Robert A. Druskin
		 		 		 		 		 		 		 		 	     Name:  Robert A. Druskin
		 		 		 		 		 		 		 		 	     Title:    Chairman & Interim Chief Executive Officer
								
	Dated:	 	         3/19/10
	 		 		 		 		 		 	/s/ Steven J. Freiberg
		 		 		 		 		 		 		 	Steven J. Freiberg

  

 14Letter Agreement - Jeffrey Benzing

 Exhibit 10.27 

 

			
		  	 Novellus Systems, Inc.
 4000
North First Street
 San Jose, CA 95134

TEL: (408) 943-9700
 FAX:
(408) 943-3422
  

	

	  	 Mr. Jeffrey Benzing
 21107
Michaels Drive
 Saratoga, CA 95070

		  	  
 Dear Jeff:

 
 Congratulations on your retirement as an officer of Novellus,
effective June 26, 2010. While you will continue as a part-time employee of Novellus over the next several years, it will not be at the hectic pace of the last twenty-one years.

 
 As you and I discussed, this is a four-year term contract for
part-time employment. This agreement supersedes all prior agreements relating to employment, retirement or severance benefits.
  

You will commence part-time employment on June 27, 2010. You will focus on technical advice and training as set forth in the
description of duties attached as Exhibit A. The position will terminate on June 26, 2014. You will be paid per the table below for your part-time employment in bi-weekly installments, less applicable tax withholdings, in accordance with the
company’s payroll cycle.

  

				
	 Time Period
	  	Total Part-Time Salary
	 6/27/2010-6/26/2011
	  	$	195,000
	 6/27/2011-6/26/2012
	  	$	97,500
	 6/27/2012-6/26/2013
	  	$	48,750
	 6/27/2013-6/26/2014
	  	$	48,750
	 Total
	  	$	390,000

  

			
		  	 You will also receive a pro-rata share of any management bonus to which you are entitled while in your current
position, if the company pays management bonuses for year 2010 performance.
  

In addition, on July 15, 2010, assuming you continue to be employed by the Company on that date, you will be granted a quantity
of restricted stock units equivalent to $390,000 (the “2010 Equity Award Value”), using the Novellus closing stock price on June 25, 2010. These restricted stock units will vest on the date of grant. Your current unvested stock
options and restricted stock grants as listed in Exhibit B will continue to vest while employed at Novellus. Once your employment ends with Novellus, you have 90 days to exercise your vested stock options.

 

 Page 1 

 So long as you remain employed by Novellus, you are eligible to continue
your health benefits, and participate in the Novellus 401(k) and Employee Stock Purchase plans as an employee. You will not participate in any Novellus Profit Sharing or Bonus Programs. You will have the services of a company-paid financial advisor
through December 2011 and of company-paid tax services for tax year 2010’s filing. Novellus will continue to pay its portion of contributions for your medical, dental, vision, life and disability insurance coverage and a portion for your
dependents during this four-year term. Your pre-tax payroll deductions must continue in order to maintain this coverage you and any dependents. 

Life insurance benefits amount to twice an employee’s annual salary. Your part-time salary has been set in the
table on the previous page. The insurance benefit payable to your beneficiary based on this table will be $390,000 for the first 12 month period, $195,000 for the second 12 month period, $97,500 for the third 12 month period and $97,500 for the last
12 month period of this agreement. After the termination of your employment, you will be entitled to convert this group life insurance coverage to an individual policy. 

Upon the termination of your employment, you and eligible dependents will also receive medical, dental and vision
coverage for life under Novellus’ “Officers’ Retirement Medical and Dental Coverage Plan,” as described in the plan which was approved by the Novellus board of directors in July 2005 and is attached to this agreement as Exhibit
C. Under this plan, you and your spouse will receive medical, dental and vision coverage for your lifetime. Dependent children are eligible up to attainment of age as outlined in the plan document. 

The foregoing sets forth all compensation and benefits that you will receive during the four-year term of employment.
You understand that absent written modification of this agreement by both you and an authorized representative of Novellus, no other employment or retirement benefits will be provided to you. 

You represent and warrant that while you remain employed by Novellus, you shall not, without the prior written consent
of Novellus, either (i) undertake or perform any work (whether as an employee or independent contractor or in any other capacity) for or on behalf of a competitor or potential competitor of Novellus or supplier to Novellus; or (ii) engage,
directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with your duties and responsibilities hereunder or create a conflict of interest with your Novellus employment. In addition,
you agree to notify Novellus promptly in the event you accept employment with any third party, and you hereby acknowledge and agree that Novellus may elect to terminate your employment under this agreement without good cause as a result, unless the
employment by or services provided to such third party was previously approved by Novellus. 
 You agree to
make full and complete written disclosure to Novellus of any intention to provide services to a third party prior to commencement of any work for a third party. You agree that such disclosure and Novellus’ consent are necessary to ensure that
you do not, directly or indirectly, disclose to any third parties information that is confidential or proprietary to Novellus. In the event you fail to disclose, or Novellus withholds consent, and Novellus determines that you have undertaken or
performed work, which creates a conflict of interest or 
  

 Page 2 

 
otherwise disadvantages Novellus, Novellus will be entitled to terminate your employment. The termination of your employment will trigger the immediate cessation of your salary and other benefits
you are entitled to as an employee described above. In addition, you will be required to repay to Novellus, in cash, an amount equal to (x) the 2010 Equity Award Value, net of applicable withholding taxes, multiplied by (y) a fraction, the
numerator of which shall be equal to 48 minus the number of calendar months between the commencement of your part-time employment, June 27, 2010 and the date of termination of your employment, and the denominator of which shall be 48. The
termination provisions of the medical, dental and vision coverage plan shall apply as described in Exhibit C. 

You acknowledge and agree that during your employment with Novellus you shall not, directly or indirectly,
(i) divert or attempt to divert from Novellus any business of any kind in which it is engaged as of the date of this agreement; (ii) employ or recommend for employment any person employed by Novellus; or (iii) engage in any business
activity that is competitive with Novellus in any location where Novellus conducts its business. In addition to the above restrictions on noncompetitive activity during the term of your employment, and regardless of whether any use of confidential
information is involved, you agree that, without Novellus’ prior consent, prior to June 26, 2014 you shall not, directly or indirectly, (i) solicit any customer of Novellus known to you to have been a customer with respect to products
or services competitive with products or services offered by Novellus; or (ii) solicit for employment any person employed by Novellus. 

It has been enjoyable working with you these past sixteen years. You have made enormous contributions to Novellus that
will always be appreciated. You have had a lasting effect on Novellus and the people with whom you have worked and we look forward to continuing to work with you in the future. 

 

							
		 	Sincerely,	 	
			
		 	NOVELLUS SYSTEMS, INC.	 	
			
		 	 /s/ Richard S. Hill
	 	
		 	Richard S. Hill	 	
		 	Chairman and CEO	 	
			
		 	I agree to the terms set forth herein.	 	

  

							
		 	/s/ Jeffrey Benzing	 	 8 January 2010
	 	
		 	 	 	
		 	Jeffrey Benzing	 	 Date
	 	

  

							
		 	Cc:	 	Novellus Board of Directors	 	
		 		 	Novellus Human Resources Department	 	

  

 Page 3 

 Exhibit A 

JOB DUTIES FOR JEFFREY BENZING 

Technical Advisory Duties 

Perform the duties of a member of the Technical Advisory Board of Novellus Systems, Inc. This is expected to include on-site board
meetings, plus preparation time. 
 Provide advice and assistance as needed to Novellus management during on-site Product
Design reviews. 
 Serve as a member of the Novellus Patent Committee. This is expected to include monthly meetings, including
preparation time. 
 Technical and Management Training 

Act as a mentor to the head(s) of the Novellus Platform Engineering organization and its successors. 

Participate in and be jointly responsible for the planning and content of the annual Novellus International Technology Conference (ITC).

 Provide advice and assistance as needed to Novellus management on technical training curriculum and content. 

General 

Consult with Novellus Executive Staff members on industry matters on an as needed basis. 

Provide feedback to Novellus Board of Directors on industry matters on an as needed basis. 

 

 Page 4 

 Exhibit B 

Jeff Benzing 

Unvested Stock Grants 

As of June 27, 2010 
  

												
	 	  	 	  	 	  	Shares Unvested
July 27, 2010	  	 	  	 
						
	 0022213
	  	12/14/2006	  	NQ Option	  	12,500    	  	$	33.39	  	Original grant of 50,000 shares. 25% (12,500) vest annually over 4 years. Will be fully vested on 12/14/2010.
						
	 024103
	  	12/14/2007	  	NQ Option	  	18,740    	  	$	26.01	  	Original grant of 50,000 shares. 1,042 shares vest monthly over 48 months. Will be fully vested on 12/14/2011.
						
	 024105
	  	12/14/2007	  	Restricted
Stock Unit	  	6,750    	  	$	0.00	  	Original grant of 18,000 shares. 375 shares vest monthly over 48 months. Will be fully vested on 12/14/2011.
						
	 026462
	  	12/18/2008	  	NQ Option	  	75,000    	  	$	12.47	  	Original grant of 100,000 shares. 25% (25,000) vest annually over 4 years. Will be fully vested on 12/18/2012.
						
	 027146
	  	12/18/2008	  	Restricted
Stock Unit	  	13,500    	  	$	0.00	  	Original grant of 18,000 shares. 25% (4,500) vest annually over 4 years. Will be fully vested on 12/18/2012.
						
	 P027146
	  	12/18/2008	  	Restricted
Stock Unit	  	12,000    	  	$	0.00	  	Target for 100% payout is 7.5% compound annual growth rate (CAGR) between base year 2008’s and measurement year 2011’s reported consolidated revenue. If goals are
achieved, shares will vest on 3/31/2012. If Company does not meet the revenue target described, the shares are forfeit.
	 Total
	  		  		  	138,490    	  			  	

  

 Page 5 

 Exhibit C 

Portions of 

MINUTES OF A MEETING 

OF THE BOARD OF DIRECTORS OF 

NOVELLUS SYSTEMS, INC. 

July 7, 2005 

5. Approval of Amended and Restated Executive Officers’ Medical and Dental Retirement Benefits 

Mr. Sherman explained that the Stock Option and Compensation Committee had recommended approval of an amended executive
officers’ medical and dental retirement plan. Upon motion duly made and seconded, the resolutions attached hereto as Attachment No. 2 were approved. 

 Attachment No. 2 

AMENDED AND RESTATED EXECUTIVE 

OFFICERS’ MEDICAL AND DENTAL RETIREMENT BENEFITS 

WHEREAS, on July 22, 1992 the Board of Directors (the “Board”), of the Company adopted a plan entitled Officers’
Retirement Medical and Dental Coverage (the “Plan”), all as set forth in the minutes of the meetings of the Board held on July 22, 1992 and a copy of the resolutions from each of such minutes is attached hereto as Appendix A; and

 WHEREAS, paragraph 4 of the Plan provides that the Board shall be entitled to amend the Plan at any time and in any respect
provided that any such amendment shall not materially reduce the benefits available to any executive officer who is entitled to receive Benefits (as defined below) under the Plan and who has retired prior to the date of any such amendment; and

 WHEREAS, the Stock Option and Compensation Committee of the Board has recommended to the Board that the Board amend and
restate the Plan in its entirety to provide as follows: 
 (1) Joseph Dox, Evert van de Ven, and James Farley, who are the only
former executive officers currently receiving Benefits under the Plan, shall be entitled to continue to receive such Benefits for the duration of their lifetime and the lifetimes of their spouses, if any, whichever is longer. 

(2) Robert Smith and Peter Hanley, who are the only former executive officers who the Company has previously agreed will receive such
Benefits upon the completion of their current employment contracts with the Company, shall be entitled to receive such Benefits for the duration of their lifetime and the lifetimes of their spouses, if any, whichever is longer. 

(3) John Chenault, Jeff Benzing, and Wilbert van den Hoek, who are the only current executive officers who the Company has determined
will receive Benefits under the Plan upon their termination of employment with the Company notwithstanding the restrictions in paragraph (5) below which shall not apply to such executive officers, shall be entitled to receive such Benefits for
the duration of their lifetime and the lifetimes of their spouses, if any, whichever is longer. 
 (4) The coverage described in
paragraphs (1), (2), and (3) above shall be available only to the designated current and former executive officers, their spouses, if any, and their dependent minor children, if any, and the covered executive officers shall be required to pay
premiums for such coverage equal to the rates applicable to active employees and their spouses and dependents, as specified by the Company from time to time. 

 (5) All other executive officers of the Company, as such term is defined in Rule 405 under
the Securities Act of 1933 shall be entitled to receive the Benefits described in paragraph (6) below upon their termination of employment with the Company for the duration of their lifetimes and the lifetimes of their spouses, if any,
whichever is longer, provided that (i) the executive officer shall then be in good standing with the Company at the time of his or her termination; (ii) the executive officer’s attained age at his or her termination of employment with
the Company is 60 or older; and (iii) the executive officer’s age plus years of service upon termination of employment with the Company equals 72 or more. Executive officers satisfying these criteria shall be referred to as “Eligible
Retirees.” 
 (6) The benefits provided under the Plan (“Benefits”) shall be determined by the Company, from time
to time, in its sole discretion and shall extend to Eligible Retirees, their spouses, if any, and their dependent minor children, if any. The Company shall use its best efforts to secure an insurance contract or other arrangement that provides
medical and dental coverage that is substantially comparable to that provided under the Company’s medical and dental benefit plans that apply to the Company’s active employees. Eligible Retirees shall be required to pay premiums for such
coverage equal to the rates then applicable to active employees and their spouses and dependents. 
 Although it is the current
intent of the Board that the benefits under this Plan shall continue until the death of the Eligible Retiree and his or her spouse, the Board retains the power to amend or terminate the Plan at any time in its sole discretion except as otherwise
provided herein. The Company shall be the “Plan Administrator” of the Plan in accordance with Section 402(a)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and in its capacity as Plan
Administrator, the Company shall have full discretion to construe and interpret the terms and provisions of the Plan, which interpretation or construction shall be final and binding on all parties, except as otherwise provided by law. The Plan
Administrator may delegate responsibilities for the operation and administration of the Plan, may employ persons to assist in fulfilling its responsibilities under this program and may designate fiduciaries and allocate or reallocate fiduciary
responsibilities under the Plan. 
 Notwithstanding any provision herein to the contrary, in the event an Eligible Retiree
becomes employed or affiliated with a competitor of the Company, all benefits under the Plan will permanently cease. In addition, if an Eligible Retiree subsequently becomes covered by a group health plan or other similar arrangement providing
medical and dental benefits maintained by a third party, both the Eligible Employee and his or her spouse, if any, will cease to be eligible to participate in the Plan while such other coverage remains in effect. For the purpose of the foregoing,
independent consulting with a third party shall not be considered to be employment; provided, however, that consulting services performed by an Eligible Retiree for a competitor of the Company will cause the permanent cessation of benefits under the
Plan. For purposes of the foregoing, a competitor of the Company will be deemed to be a company, division, or other business entity that is engaged in the manufacture of equipment used in the fabrication of integrated circuits. 

 The claims and appeals procedure that shall apply to benefit claims under the Plan shall be
the claims and appeals procedure that exists under the Company’s medical benefits plan that applies to its active employees. 

All future benefits for any individual who is not a current or former executive officer of the Company and who is currently a participant
in the Plan, including, without limitation, D. James Guzy, shall cease as of September 30, 2005. 

 Appendix A 

Portions of 

MINUTES OF MEETING 

OF THE BOARD OF DIRECTORS OF 

NOVELLUS SYSTEMS, INC. 

JULY 22, 1992 
  

	5)	Medical and Dental Plans 

The next topic for discussion was the Company’s medical and dental insurance plans. The Directors unanimously approved the following
resolution: 
 RESOLVED, that the resolution regarding officers’ retirement medical and dental coverage
approved by this Board in its January 31, 1992 meeting is hereby amended and clarified as follows: 
 (a) All benefits for
eligible officers under this coverage shall be extended to the immediate families of such officers; 
 (b) The monthly payment
required for such coverage shall be the same as that required from eligible full-time employees of the Company. 

 SCHEDULE A RESOLUTION REGARDING OFFICERS’ 

RETIREMENT MEDICAL AND DENTAL COVERAGE 

RESOLVED: That the Board hereby adopts the following amended policy with respect to continuing medical/dental coverage of executive officers. 

1. Eligible Officers: The policy shall apply to executive officers of the Company who are elected by the Board of Directors and
have the title of Vice President or higher who retire from the Company after the date of this resolution and who (i) have reached the age of sixty-five at or prior to such retirement; (ii) have reached the age of fifty-five at or prior to
such retirement and the sum of such officer’s age plus the full number of years of employment with the Company equals at least sixty-five or (iii) with the written consent of the President of the Company, such officer has reached the age
of fifty and the sum of his age plus the years of service with the Company equals at least sixty-five. 
 2. Benefits
Policy. Following the retirement of the eligible officer as defined above, such retired officer shall continue to be entitled to participation in the Company’s group medical and dental plans, as such plans may be amended from time to time
prior to the executive’s retirement. Such participation shall entitle the retired officer, his or her spouse, and those other eligible dependents of such retired officer who were covered at the time of retirement to continue to be covered in
the Company’s medical and dental plans as provided in this Paragraph 2. Alternatively, at the Company’s election, the retired executive shall be entitled to equivalent coverage. Such coverage shall continue for the remainder of the
lifetime of the eligible officer and, as to his or her spouse, for such spouse’s lifetime if he or she shall survive the retired officer. 

3. Termination of Coverage. Notwithstanding Section 2 above, upon employment or affiliation of an eligible officer with a
competitor of the Company, all benefits under this policy will and permanently. In addition, in the event the retired executive shall come out of retirement to accept employment as an employee of a third party, and the executive is eligible to
receive medical and/or dental benefits through the third party employer’s group plans, than the Company’s post-retirement medical coverage will stop until the executive resumes retirement. 

For the purpose of the foregoing, independent consulting shall not be considered employment with a third party in determining post
retirement medical/dental coverage. However, consulting services performed for a competitor of the Company will cause the permanent termination of the benefit. For the purpose of the foregoing, a competitor of the Company shall be

 
deemed to be a company, division or other business entity which is engaged in the manufacture of equipment used in the fabrication of integrated circuits. 

4. Amendment of Policy. The Board of Directors of the Company shall be entitled to amend this policy at any time and in any
respect provided that such amendment shall not materially reduce the benefits available to any Eligible Officer who is entitled to receive benefits under the policy who has retired prior to the date of such amendment.

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