eTrade 2008 Annual Report Download - page 194

The Plan provides for an automatic election to have Pre-tax Elective Deferral Contributions made. Such automatic election shall
apply when a Participant first becomes eligible to make Elective Deferral Contributions (or again becomes eligible after a period
during which he was not an Active Participant). The Participant shall be provided a notice that explains the automatic election and his
right to elect a different rate of Elective Deferral Contributions or to elect not to make Elective Deferral Contributions, and his right to
designate a portion of his Elective Deferral Contributions as Roth Elective Deferral Contributions. The notice shall include the
procedure for exercising that right and the timing for implementing any such election. The Participant shall be given a reasonable
period thereafter to elect a different rate of Elective Deferral Contributions or to elect not to make Elective Deferral Contributions,
and to designate a portion of his Elective Deferral Contributions as Roth Elective Deferral Contributions.
Each Active Participant affected by the automatic election shall be provided an annual notice that explains the automatic
election and his right to elect a different rate of Elective Deferral Contributions or to elect not to make Elective Deferral
Contributions, and his right to designate all or any portion of his Elective Deferral Contributions as Roth Elective Deferral
Contributions. The notice shall include the procedure for exercising those rights and the timing for implementing such elections.
An elective deferral agreement (or change thereto) must be made in such manner and in accordance with such rules as the
Employer may prescribe (including by means of voice response or other electronic system under circumstances the Employer
permits) and may not be made retroactively.
Employer Contributions are allocated according to the provisions of the ALLOCATION SECTION of this article.
A portion of the Plan assets resulting from Employer Contributions (but not more than the original amount of those
Contributions) may be returned if the Employer Contributions are made because of a mistake of fact or are more than the amount
deductible under Code Section 404 (excluding any amount which is not deductible because the Plan is disqualified). The amount
involved must be returned to the Employer within one year after the date the Employer Contributions are made by mistake of fact or
the date the deduction is disallowed, whichever applies. Except as provided under this paragraph and Article VIII, the assets of the
Plan shall never be used for the benefit of the Employer and are held for the exclusive purpose of providing benefits to Participants
and their Beneficiaries and for defraying reasonable expenses of administering the Plan.
SECTION 3.01A—ROLLOVER CONTRIBUTIONS.
A Rollover Contribution may be made by an Eligible Employee or an Inactive Participant if the following conditions are met:
Direct Rollovers. The Plan will accept a direct rollover of an Eligible Rollover Distribution from (i) a qualified plan
described in Code Section 401(a) or 403(a), including after-tax employee contributions and any portion of a designated
Roth account; (ii) an annuity contract described in Code Section 403(b), excluding after-tax employee contributions and
any portion of a designated Roth account; and (iii) an eligible plan under Code Section 457(b) which is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state.
(a) The Contribution is a Participant Rollover Contribution or a direct rollover of a distribution made after December 31, 2001
from the types of plans specified below.
RESTATEMENT DECEMBER 15, 2006 27 ARTICLE III (5-19047)