eTrade 2008 Annual Report Download - page 245

If this Plan is amended to change the method of crediting service from the hours method to the elapsed time method for
any purpose under this Plan, the Employee’s service shall be equal to the sum of (4), (5), and (6) below:
such fractional part of a year. The number of months and any fractional part of a month shall be determined by
multiplying the fractional part of a year, expressed as a decimal, by 12. For the remaining portion of the computation
period (the period beginning on the second day of the computation period and ending on the last day of the
computation period if the change is made on the first day of the computation period), the Employee will be credited
with his actual Hours of Service.
(3) The Employee’s service determined under this Plan using the hours method after the end of the computation period
in which the change in service method was effective.
(4) The number of whole years of service credited to the Employee under the Plan as of the beginning of the
computation period in which the change in service method is effective.
(5) The greater of (i) the service that would be credited to the Employee for that entire computation period using the
elapsed time method or (ii) the service credited to him under the Plan as of the date the change is effective.
(6) The Employee’s service determined under this Plan using the elapsed time method after the end of the applicable
computation period in which the change in service method was effective.
(b) Transfers Between Plans with Different Service Methods. If an Employee has been a participant in another plan of the
Employer that credited service under the elapsed time method for any purpose that under this Plan is determined using the
hours method, then the Employee’s service shall be equal to the sum of (1), (2), and (3) below:
(1) The number of whole years of service credited to the Employee under the other plan as of the date he became an
Eligible Employee under this Plan.
(2) One year of service for the applicable computation period in which he became an Eligible Employee if he is credited
with the required number of Hours of Service. For that portion of such computation period ending on the date he
became an Eligible Employee (for the first day of such computation period if he became an Eligible Employee on
the first day of such computation period), the Employee will be credited with the greater of (i) his actual Hours of
Service or (ii) the number of Hours of Service that is equivalent to the fractional part of a year of elapsed time
service credited as of the date he became an Eligible Employee, if any. In determining the equivalent Hours of
Service, the Employee shall be credited with 190 Hours of Service for each month and any fractional part of a
month in such fractional part of a year. The number of months and any fractional part of a month shall be
determined by multiplying the fractional part of a year, expressed as a decimal, by 12. For the remaining portion of
such computation period (the period beginning on the second day of such computation period and ending on the last
day of such computation period if he became an Eligible Employee on the first day of such computation period), the
Employee will be credited with his actual Hours of Service.
RESTATEMENT DECEMBER 15, 2006
78 ARTICLE X (5-19047)