eTrade 2008 Annual Report Download - page 220

For purposes of this maximum, a Participant’s Vested Account does not include any accumulated deductible employee contributions,
as defined in Code Section 72(o)(5)(B), and all qualified employer plans, as defined in Code Section 72(p)(4), of the Employer and
any Controlled Group member shall be treated as one plan.
The foregoing notwithstanding, the amount of such loan shall not exceed 50 percent of the amount of the Participant’s Vested
Account. For purposes of this maximum, a Participant’s Vested Account does not include any accumulated deductible employee
contributions, as defined in Code Section 72(o)(5)(B). No collateral other than a portion of the Participant’s Vested Account (as
limited above) shall be accepted.
The Participant’s outstanding loan balance shall include any deemed distribution, along with accrued interest, that has not been
repaid (offset).
Each loan shall bear a reasonable fixed rate of interest to be determined by the Loan Administrator. In determining the interest
rate, the Loan Administrator shall take into consideration fixed interest rates currently being charged by commercial lenders for loans
of comparable risk on similar terms and for similar durations, so that the interest will provide for a return commensurate with rates
currently charged by commercial lenders for loans made under similar circumstances. The Loan Administrator shall not discriminate
among Participants in the matter of interest rates; but loans granted at different times may bear different interest rates in accordance
with the current appropriate standards.
The loan shall by its terms require that repayment (principal and interest) be amortized in level payments, not less frequently
than quarterly, over a period not extending beyond five years from the date of the loan. If the loan is used to acquire a dwelling unit,
which within a reasonable time (determined at the time the loan is made) will be used as the principal residence of the Participant, the
repayment period may extend beyond five years from the date of the loan, but shall not be made for a period longer than the
repayment period consistent with commercial practices.
The Participant shall make an application for a loan in such manner and in accordance with such rules as the Employer shall
prescribe for this purpose (including by means of voice response or other electronic means under circumstances the Employer
permits). The application must specify the amount and duration requested.
Information contained in the application for the loan concerning the income, liabilities, and assets of the Participant will be
evaluated to determine whether there is a reasonable expectation that the Participant will be able to satisfy payments on the loan as
due. Additionally, the Loan Administrator will pursue any appropriate further investigations concerning the creditworthiness and
credit history of the Participant to determine whether a loan should be approved.
Each loan shall be fully documented in the form of a promissory note signed by the Participant for the face amount of the loan,
together with interest determined as specified above.
There will be an assignment of collateral to the Plan executed at the time the loan is made.
In those cases where repayment through payroll deduction is available, installments are so payable, and a payroll deduction
agreement shall be executed by the Participant at the time the loan is made. If the Participant has previously been treated as having
received a deemed distribution and the subsequent loan is being made before the deemed distribution, along with accrued interest, has
been repaid (or offset), a payroll deduction agreement shall be required for loans made on or after January 1, 2004. If a payroll
deduction agreement is required because of a previous deemed distribution and the Participant later revokes such
RESTATEMENT DECEMBER 15, 2006 53 ARTICLE V (5-19047)