ANY
DISTRIBUTION THAT IS PAYABLE TO A DISTRIBUTEE WHO IS A MINOR OR TO A DISTRIBUTEE
WHO HAS BEEN LEGALLY DETERMINED TO BE UNABLE TO MANAGE HIS OR HER AFFAIRS BY
REASON OF ILLNESS OR MENTAL INCOMPETENCY MAY BE MADE TO, OR FOR THE BENEFIT OF,
ANY SUCH DISTRIBUTEE AT SUCH TIME CONSISTENT WITH THE PROVISIONS OF THIS PLAN
AND IN SUCH OF THE FOLLOWING WAYS AS THE LEGAL REPRESENTATIVE OF SUCH
DISTRIBUTEE SHALL DIRECT:
(A) DIRECTLY TO ANY SUCH MINOR DISTRIBUTEE IF, IN THE
OPINION OF SUCH LEGAL REPRESENTATIVE, SUCH MINOR IS ABLE TO MANAGE HIS OR HER
AFFAIRS, (B) TO SUCH LEGAL REPRESENTATIVE, (C) TO A CUSTODIAN UNDER A UNIFORM
GIFTS TO MINORS ACT FOR ANY SUCH MINOR DISTRIBUTEE, OR (D) AS OTHERWISE DIRECTED
BY SUCH LEGAL REPRESENTATIVE.
NEITHER THE ADMINISTRATOR NOR THE TRUSTEE SHALL
BE REQUIRED TO OVERSEE THE APPLICATION BY ANY THIRD PARTY OTHER THAN THE LEGAL
REPRESENTATIVE OF A DISTRIBUTEE OF ANY DISTRIBUTION MADE TO OR FOR THE BENEFIT
OF SUCH DISTRIBUTEE PURSUANT TO THIS SECTION.
ARTICLE 10
LOANS
SECTION 10.1.
MAKING OF LOANS.
SUBJECT TO THE PROVISIONS OF THIS
ARTICLE 10, THE RECORDKEEPER SHALL ESTABLISH A LOAN PROGRAM WHEREBY ANY
PARTICIPANT OR REXALL PARTICIPANT WHO
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IS AN ASSOCIATE AND WHO HAS NO OUTSTANDING LOANS MAY REQUEST, BY SUCH METHOD
PRESCRIBED BY THE RECORDKEEPER, TO BORROW FUNDS FROM THE PARTICIPANT'S ACCOUNT.
THE PRINCIPAL BALANCE OF SUCH LOAN, SHALL NOT EXCEED THE LESSER OF:
(A)
$50,000 LESS THE HIGHEST OUTSTANDING PRINCIPAL DURING THE PREVIOUS 12
MONTHS; AND
(B)
FIFTY PERCENT (50%) OF THE VESTED PORTION OF THE PARTICIPANT'S ACCOUNT,
EXCLUDING HIS OR HER ESOP ACCOUNT, AS OF THE VALUATION DATE COINCIDING WITH OR
IMMEDIATELY PRECEDING THE DATE ON WHICH THE LOAN IS MADE.
SECTION 10.2.
RESTRICTIONS.
AN APPLICATION FOR A LOAN SHALL BE MADE AT
THE TIME AND IN THE MANNER PRESCRIBED BY THE RECORDKEEPER.
THE ACTION OF THE
RECORDKEEPER IN APPROVING OR DISAPPROVING A REQUEST FOR A LOAN SHALL BE FINAL.
ANY LOAN UNDER THE PLAN SHALL BE SUBJECT TO THE TERMS, CONDITIONS AND
RESTRICTIONS SET FORTH IN THE LOAN PROGRAM ESTABLISHED BY THE RECORDKEEPER.
THE
MINIMUM LOAN AMOUNT IS $1,000.
A PARTICIPANT OR REXALL PARTICIPANT MAY HAVE
ONLY ONE LOAN OUTSTANDING AT ANY GIVEN TIME.
NOTWITHSTANDING ANYTHING HEREIN TO
THE CONTRARY, A PARTICIPANT WHO WAS PERFORMING SERVICES FOR SOLGAR, INC. BEFORE
JANUARY 1, 2006 MAY REQUEST TO HAVE A MAXIMUM OF FOUR REGULAR LOANS AND ONE HOME
LOAN OUTSTANDING AT ANY GIVEN TIME; PROVIDED, HOWEVER, THAT EACH SUCH LOAN MUST
HAVE BEEN REQUESTED BEFORE JANUARY 1, 2006.
SECTION 10.3.
DEFAULT.
IF ANY LOAN OR PORTION OF A LOAN MADE TO A
PARTICIPANT OR A REXALL PARTICIPANT UNDER THE PLAN, TOGETHER WITH THE ACCRUED
INTEREST THEREON, IS IN DEFAULT, THE TRUSTEE, UPON DIRECTION FROM THE
ADMINISTRATOR, SHALL TAKE APPROPRIATE STEPS TO COLLECT THE OUTSTANDING BALANCE
OF THE LOAN AND TO FORECLOSE ON THE SECURITY; PROVIDED, HOWEVER, THAT THE
TRUSTEE SHALL NOT LEVY AGAINST ANY PORTION OF SUCH A PARTICIPANT'S ACCOUNT UNTIL
SUCH TIME