Although the Savings Program is meant to help you save for the future, you have access to your funds today through loans and withdrawals.

You may borrow money from a portion of your vested account balance and pay back the loan through payroll deduction. You will repay loan amounts, plus interest, back to your Savings Program account. You will not be taxed on the money you borrow from your account, provided you repay the loan as required, and any interest that you pay is credited to your account. Loan payments are made on an after-tax basis.

There are two types of loans available to employees: general and residential. General loans are available for any reason. Residential loans are for the purchase or building of your primary residence. You may only have one general loan and one residential loan outstanding at any one time. You must wait at least 30 days after a loan is repaid before taking another loan of the same type.

Loan Amounts
The maximum amount available for a loan is the lesser of:

• 50% of your vested account balance at the time of the loan
• or
• $50,000 minus your highest outstanding loan balance during the previous 12 months.

Your account balance is based on the market value of the funds at the time the loan is requested. The minimum loan amount is $1,000.

Loans are in the form of cash only. For information about the maximum loan amount available to you, check your account on the internet or call Participant Services.

Loan Fee
There is a one-time, nonrefundable application fee of $50 for each loan. This fee will be deducted from your account balance after the loan has been granted, and will be taken from your most conservative investment fund (as determined by The Recordkeeper).

Interest Rate
The loan interest rate used for the entire term of the loan is the Treasury Rate plus 4%, as published in The Wall Street Journal on the first business day of the month preceding the month in which the loan is requested. The rate in effect when you take a loan is the rate you will pay for the term of your loan. Under current federal income tax law, none of the interest on a loan from the Savings Program is tax deductible.

Loan Funding
If a loan is approved, a loan account is set up in your name. The loan amount is taken from your different types of savings in this order:

• first from your before-tax accounts, starting with Company matching contributions
• second from your after-tax accounts, starting with Company matching contributions
• third from any pre-tax or after-tax rollover contributions.
• fourth from your Roth contributions and then your Roth rollover contributions

By funding your loan with these savings, you are, in essence, borrowing money that is not otherwise generally available for withdrawal, and leaving money in your account that can be withdrawn.

The loan amount is then transferred proportionally from the investment funds in which you have elected to invest your different types of savings.

Repaying Your Loan
Repayment on loans will be automatically deducted from your paychecks. General loans must be repaid within 4.5 years and residential loans must be repaid within 15 years. The minimum loan repayment period is six months.

As you repay your loan, your savings will be restored in the reverse order from which your loan was taken, starting with Roth rollover contributions, rollover contributions, followed by after-tax contributions and the Company matching contributions on those funds, then before-tax and Company matching contributions. Your repayments will be invested in the same Savings Program funds you have chosen for your current contributions.

You may pay off your outstanding loan at any time prior to maturity by sending a certified check to The Recordkeeper for the payoff amount. Loans must be paid off in full - no partial payments are allowed. You must call Participant Services to find out payoff amounts.

If you take a long-term leave of absence or are on long-term disability, you must continue to make repayments directly to The Recordkeeper. You will receive a monthly invoice with which to continue your monthly payments. If payments are not continued, the outstanding loan balance is considered a deemed distribution on the last day of the 12th month of missed payments or the maturity date of the loan, whichever comes first.

Any payments missed because of a short-term absence will be automatically deducted from your paycheck when you return to work.

Loan Default
A portion of your account balance equal to the amount of your original loan serves as collateral of the loan. If you default on your loan, The Recordkeeper will satisfy your unpaid loan balance by using the collateral in your account. Your loan will default if you:

• leave the Company and do not pay the outstanding balance within six months
• fail to make a scheduled loan repayment by the end of the following quarter
• or
• do not repay your loan by the end of the term of the loan.

If your loan defaults, the outstanding balance of your loan will be treated as a taxable distribution when the default occurs. Your defaulted loan will be subject to IRS distribution rules such as the 10% penalty if you are under age 59 ½. You will remain obligated for any unpaid balance on a loan that is in default. Thus, if you do not repay your loan, the amount payable to you from the Savings Program will be reduced by the outstanding balance on the loan.

You may not take out a new loan while you have a loan which is in default.

Change in Payroll Frequency
If your pay period changes from weekly to monthly or vice versa, the repayment of the remaining principle loan balance will be adjusted for the new payroll frequency. You will receive notice of the new payroll deduction amount.

Taking a Loan For a general loan: Log on to your account or call Participant Services to find out the maximum loan amount available to you and current interest rates. Select the loan amount and terms that best suit your needs. You will be mailed a check and loan disclosure statement to your address on record with payroll, generally within three business days. The check and loan disclosure statement constitute your legal notification of your loan responsibilities. Your endorsement indicates your acceptance of those responsibilities and your promise to repay the loan within the agreed-upon period. For a residential loan: Log on to your account or call Participant Services to request a residential loan package, which will include a promissory note. Sign and return the application along with any other paperwork to The Recordkeeper within 60 days of the date on the note. You will be mailed a check and loan disclosure statement, generally within three business days after your loan is approved. The check and the loan disclosure statement constitute your legal notification of your loan responsibilities and your promise to repay the loan within the agreed-upon period.