eTrade 2008 Annual Report Download - page 219

No withdrawal shall be allowed which is not necessary to satisfy such immediate and heavy financial need. Such withdrawal
shall be deemed necessary only if all of the following requirements are met: (i) the distribution is not in excess of the amount of the
immediate and heavy financial need (including amounts necessary to pay any Federal, state, or local income taxes or penalties
reasonably anticipated to result from the distribution); (ii) the Participant has obtained all distributions, other than hardship
distributions, and all nontaxable loans currently available under all plans maintained by the Employer; and (iii) the Plan, and all other
plans maintained by the Employer, provide that the Participant’s elective contributions and participant contributions will be
suspended for at least six months after receipt of the hardship distribution. The Plan will suspend elective contributions and
participant contributions for six months as provided in the preceding sentence. A Participant shall not cease to be an Eligible
Participant, as defined in the EXCESS AMOUNTS SECTION of Article III, merely because his elective contributions or participant
contributions are suspended.
A request for withdrawal shall be made in such manner and in accordance with such rules as the Employer will prescribe for this
purpose (including by means of voice response or other electronic means under circumstances the Employer permits). Withdrawals
shall be a retirement benefit and shall be distributed to the Participant according to the distribution of benefits provisions of Article
VI. A forfeiture shall not occur solely as a result of a withdrawal.
SECTION 5.06—LOANS TO PARTICIPANTS.
Loans shall be made available to all Participants on a reasonably equivalent basis. For purposes of this section, and unless
otherwise specified, Participant means any Participant or Beneficiary who is a party-in-interest as defined in ERISA. Loans shall not
be made to Highly Compensated Employees in an amount greater than the amount made available to other Participants.
A loan to a Participant shall be a Participant-directed investment of his Account. The loan is a Trust Fund investment but no
Account other than the borrowing Participant’s Account shall share in the interest paid on the loan or bear any expense or loss
incurred because of the loan.
The number of outstanding loans shall be limited to one. The minimum amount of any loan shall be $1,000.
Loans must be adequately secured and bear a reasonable rate of interest.
The amount of the loan shall not exceed the maximum amount that may be treated as a loan under Code Section 72(p) (rather
than a distribution) to the Participant and shall be equal to the lesser of (a) or (b) below:
(a) $50,000, reduced by the highest outstanding loan balance of loans during the one-year period ending on the day before the
new loan is made.
(b) The greater of (1) or (2), reduced by (3) below:
(1) One-half of the Participant’s Vested Account.
(2) $10,000.
(3) Any outstanding loan balance on the date the new loan is made.
RESTATEMENT DECEMBER 15, 2006
52 ARTICLE V (5-19047)