eTrade 2008 Annual Report Download - page 196

SECTION 3.02—FORFEITURES.
The Nonvested Account of a Participant shall be forfeited as of the earlier of the following:
All or a portion of a Participant’s Nonvested Account shall be forfeited before such earlier date if, after he has a Severance from
Employment, he receives, or is deemed to receive, a distribution of his entire Vested Account or a distribution of his Vested Account
derived from Employer Contributions which were not 100% vested when made, under the RETIREMENT BENEFITS SECTION of
Article V, the VESTED BENEFITS SECTION of Article V, or the SMALL AMOUNTS SECTION of Article X. The forfeiture shall
occur as of the date the Participant receives, or is deemed to receive, the distribution. If a Participant receives, or is deemed to receive,
his entire Vested Account, his entire Nonvested Account shall be forfeited. If a Participant receives a distribution of his Vested
Account from Employer Contributions that were not 100% vested when made, but less than his entire Vested Account, the amount to
be forfeited shall be determined by multiplying his Nonvested Account from such Contributions by a fraction. The numerator of the
fraction is the amount of the distribution derived from Employer Contributions that were not 100% vested when made and the
denominator of the fraction is his entire Vested Account derived from such Contributions on the date of the distribution.
A Forfeiture shall also occur as provided in the EXCESS AMOUNTS SECTION of this article.
Forfeitures shall be determined at least once during each Plan Year. Forfeitures may first be used to pay administrative
expenses. Forfeitures of Matching Contributions that relate to excess amounts as provided in the EXCESS AMOUNTS SECTION of
this article, that have not been used to pay administrative expenses, shall be applied to reduce the earliest Employer Contributions
made after the Forfeitures are determined. Any other Forfeitures that have not been used to pay administrative expenses shall be
applied to reduce the earliest Employer Contributions made after the Forfeitures are determined. Upon their application to reduce
Employer Contributions, Forfeitures shall be deemed to be Employer Contributions.
If a Participant again becomes an Eligible Employee after receiving a distribution which caused all or a portion of his Nonvested
Account to be forfeited, he shall have the right to repay to the Plan the entire amount of the distribution he received (excluding any
amount of such distribution resulting from Contributions which were 100% vested when made). The repayment must be made in a
single sum (repayment in installments is not permitted) before the earlier of the date five years after the date he again becomes an
Eligible Employee or the end of the first period of five consecutive one-year Periods of Severance which begin after the date of the
distribution.
If the Participant makes the repayment above, the Plan Administrator shall restore to his Account an amount equal to his
Nonvested Account that was forfeited on the date of distribution, unadjusted for any investment gains or losses. If no amount is to be
repaid because the Participant was deemed to have received a distribution, or only received a distribution of Contributions which were
100% vested when made, and he again performs an Hour of Service as an Eligible Employee within the repayment period, the Plan
Administrator shall restore the Participant’s Account as if he had made a required repayment on the date he performed such Hour of
Service. Restoration of the Participant’s Account shall include restoration of all
(a) the date the record keeper is notified that the Participant died (if prior to such date he has had a Severance from
Employment), or
(b) the Participan
t
’s Forfeiture Date.
RESTATEMENT DECEMBER 15, 2006 29 ARTICLE III (5-19047)