eTrade 2008 Annual Report Download - page 181

highly compensated employee definition in Code Section 414(q), except as provided in Internal Revenue Service Notice 97-45
(or superseding guidance).
The determination of who is a highly compensated former Employee is based on the rules applicable to determining Highly
Compensated Employee status as in effect for that determination year, in accordance with section 1.414(q)-1T, A-4 of the
temporary Income Tax Regulations and Internal Revenue Service Notice 97-45.
The determination of who is a Highly Compensated Employee, including the determinations of the number and identity of
Employees in the top-paid group, the compensation that is considered, and the identity of the 5-percent owners, shall be made in
accordance with Code Section 414(q) and the regulations thereunder.
Hour of Service means, for the elapsed time method of crediting service in this Plan, each hour for which an Employee is paid,
or entitled to payment, for performing duties for the Employer. Hour of Service means, for the hours method of crediting service
in this Plan, the following:
For purposes of this subparagraph (b), a payment shall be deemed to be made by, or due from the Employer, regardless of
whether such payment is made by, or due from the Employer, directly or indirectly through, among others, a trust fund or
insurer, to which the Employer contributes or pays premiums and regardless of whether contributions made or due to the
trust fund, insurer or other entity are for the benefit of particular employees or are on behalf of a group of employees in the
aggregate.
(a) Each hour for which an Employee is paid, or entitled to payment, for performing duties for the Employer during the
applicable computation period.
(b) Each hour for which an Employee is paid, or entitled to payment, by the Employer on account of a period of time in which
no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. Notwithstanding the preceding
provisions of this subparagraph (b), no credit will be given to the Employee:
(1) for more than 501 Hours of Service under this subparagraph (b) on account of any single continuous period in which
the Employee performs no duties (whether or not such period occurs in a single computation period); or
(2) for an Hour of Service for which the Employee is directly or indirectly paid, or entitled to payment, on account of a
period in which no duties are performed if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker’s or workmen’s compensation, or unemployment compensation, or
disability insurance laws; or
(3) for an Hour of Service for a payment which solely reimburses the Employee for medical or medically related
expenses incurred by him.
RESTATEMENT DECEMBER 15, 2006
14 ARTICLE I (5-19047)