eTrade 2008 Annual Report Download - page 221

agreement, the outstanding loan balance at the time of the revocation shall be treated as a deemed distribution. Loan repayments that
are accumulated through payroll deduction shall be paid to the Trustee by the earlier of (i) the date the loan repayments can
reasonably be segregated from the Employer’s assets, or (ii) the 15th business day of the month following the month in which such
amounts would otherwise have been paid in cash to the Participant.
Where payroll deduction is not available, payments in cash are to be timely made. Any payment that is not by payroll deduction
shall be made payable to the Employer or the Trustee, as specified in the promissory note, and delivered to the Loan Administrator,
including prepayments, service fees and penalties, if any, and other amounts due under the note. The Loan Administrator shall deposit
such amounts into the Plan as soon as administratively practicable after they are received, but in no event later than the 15th business
day of the month after they are received.
The promissory note may provide for reasonable late payment penalties and service fees. Any penalties or service fees shall be
applied to all Participants in a nondiscriminatory manner. If the promissory note so provides, such amounts may be assessed and
collected from the Account of the Participant as part of the loan balance.
Each loan may be paid prior to maturity, in part or in full, without penalty or service fee, except as may be set out in the
promissory note.
The Plan shall suspend loan payments for a period not exceeding one year during which an approved unpaid leave of absence
occurs other than a military leave of absence. The Loan Administrator shall provide the Participant a written explanation of the effect
of the suspension of payments upon his loan.
If a Participant separates from service (or takes a leave of absence) from the Employer because of service in the military and
does not receive a distribution of his Vested Account, the Plan shall suspend loan payments until the Participant’s completion of
military service or until the Participant’s fifth anniversary of commencement of military service, if earlier, as permitted under Code
Section 414(u). The Loan Administrator shall provide the Participant a written explanation of the effect of his military service upon
his loan.
If any payment of principal and interest, or any portion thereof, remains unpaid for more than 90 days after due, the loan shall be
in default. For purposes of Code Section 72(p), the Participant shall then be treated as having received a deemed distribution
regardless of whether or not a distributable event has occurred.
Upon default, the Plan has the right to pursue any remedy available by law to satisfy the amount due, along with accrued
interest, including the right to enforce its claim against the security pledged and execute upon the collateral as allowed by law. The
entire principal balance whether or not otherwise then due, along with accrued interest, shall become immediately due and payable
without demand or notice, and subject to collection or satisfaction by any lawful means, including specifically, but not limited to, the
right to enforce the claim against the security pledged and to execute upon the collateral as allowed by law.
In the event of default, foreclosure on the note and attachment of security or use of amounts pledged to satisfy the amount then
due shall not occur until a distributable event occurs in accordance with the Plan, and shall not occur to an extent greater than the
amount then available upon any distributable event which has occurred under the Plan.
RESTATEMENT DECEMBER 15, 2006 54 ARTICLE V (5-19047)