eTrade 2008 Annual Report Download - page 241

agreements with the employers under other retirement plans which are qualifiable under Code Section 401(a), including an elective
transfer, and may accept the direct transfer of plan assets, or may transfer plan assets, as a party to any such agreement. The Employer
shall not consent to, or be a party to a merger, consolidation, or transfer of assets with a plan which is subject to the survivor annuity
requirements of Code Section 401(a)(11) if such action would result in a survivor annuity feature being maintained under this Plan.
The Employer will not transfer any amounts attributable to elective deferral contributions, qualified matching contributions, and
qualified nonelective contributions unless the transferee plan provides that the limitations of section 1.401(k)-1(d) of the regulations
shall apply to such amounts (including post-transfer earnings thereon), unless the amounts could have been distributed at the time of
the transfer (other than for hardship), and the transfer is an elective transfer described in Q&A-3(b)(1) in section 1.411(d)-4 of the
regulations.
Notwithstanding any provision of the Plan to the contrary, to the extent any optional form of benefit under the Plan permits a
distribution prior to the Employee’s retirement, death, disability, or Severance from Employment, and prior to plan termination, the
optional form of benefit is not available with respect to benefits attributable to assets (including the post-transfer earnings thereon)
and liabilities that are transferred, within the meaning of Code Section 414(l), to this Plan from a money purchase pension plan
qualified under Code Section 401(a) (other than any portion of those assets and liabilities attributable to voluntary employee
contributions). The limitations of section 1.401(k)-1(d) of the regulations applicable to elective deferral contributions, qualified
matching contributions, and qualified nonelective contributions shall continue to apply to any amounts attributable to such
contributions (including post-transfer earnings thereon) transferred to this Plan, unless the amounts could have been distributed at the
time of the transfer (other than for hardship), and the transfer is an elective transfer described in Q&A-3(b)(1) in section 1.411(d)-4 of
the regulations.
The Plan may accept a direct transfer of plan assets on behalf of an Eligible Employee. If the Eligible Employee is not an Active
Participant when the transfer is made, the Eligible Employee shall be deemed to be an Active Participant only for the purpose of
investment and distribution of the transferred assets. Employer Contributions shall not be made for or allocated to the Eligible
Employee, until the time he meets all of the requirements to become an Active Participant.
The Plan shall hold, administer, and distribute the transferred assets as a part of the Plan. The Plan shall maintain a separate
account for the benefit of the Employee on whose behalf the Plan accepted the transfer in order to reflect the value of the transferred
assets.
Unless a transfer of assets to the Plan is an elective transfer as described below, the Plan shall apply the optional forms of benefit
protections described in the AMENDMENTS SECTION of this article to all transferred assets.
A Participant’s protected benefits may be eliminated upon transfer between qualified defined contribution plans if the conditions
in Q&A-3(b)(1) in section 1.411(d)-4 of the regulations are met. The transfer must meet all of the other applicable qualification
requirements.
A Participant’s protected benefits may be eliminated upon transfer between qualified plans (both defined benefit and defined
contribution) if the conditions in Q&A-3(c)(1) in section 1.411(d)-4 of the regulations are met. Beginning January 1, 2002, if the
Participant is eligible to receive an immediate distribution of his entire nonforfeitable accrued benefit in a single sum distribution that
would consist entirely of an eligible rollover distribution under Code Section 401(a)(31), such transfer will be accomplished as a
direct rollover under Code Section 401(a)(31). The rules applicable to distributions under the plan would apply to the transfer, but the
transfer would not be treated as a distribution for purposes of the minimum distribution requirements of Code Section 401(a)(9).
RESTATEMENT DECEMBER 15, 2006 74 ARTICLE X (5-19047)