Common use of Financial Hardship Clause in Contracts

Financial Hardship. For purposes of Article 4.01(a)(3) of this Agreement, financial hardship is as an immediate and heavy financial need of the Participant, as described in Treasury Regulation 1.401(k)-1(d)(3), where such Participant lacks other available resources. Financial needs considered immediate and heavy include, but are not limited to, 1) expenses incurred or necessary for medical care, described in Code Section 213(d), of the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse or dependents, 2) the purchase (excluding mortgage payments) of a principal residence for the Employee, 3) payment of tuition and related educational fees for the next 12 months of post-secondary education for the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse, children or dependents, 4) payment to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee’s principal residence, 5) funeral or burial expenses for the Participant’s deceased parent, Spouse, primary Beneficiary, child or dependent, and 6) payment to repair damage to the Employee’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income). No distributions on account of financial hardship shall exceed the amount determined to be necessary to meet the immediate financial need created by the hardship as described in those same regulations and the Plan and that cannot be otherwise reasonably accommodated from other resources of the Participant. Any distribution made on account of the Participant’s financial hardship shall be made to the Participant in a single sum payment in cash pursuant to instructions provided in writing or in another form acceptable to the Custodian, and delivered to the Custodian. Hardship distributions described in this Article 4.02 may consist only of the amounts contributed pursuant to the Participant’s salary reduction agreement, excluding the earnings on such contributions. The determination of whether a financial hardship exists shall be made pursuant to the terms of the Plan or by the Participant if the Plan doesn’t contain such terms and not by the Custodian. A Participant who requests a distribution on account of financial hardship shall certify, in a manner acceptable to the Custodian, that a financial hardship exists. If the Participant receives a hardship distribution, they will be prohibited from making any Elective Deferrals for a period of six months from the date of such distribution.

Financial Hardship. For purposes of Article 4.01(a)(3) of this Agreement, financial hardship is as an immediate and heavy financial need of the ParticipantEmployee, as described in Treasury Regulation 1.401(k)-1(d)(3), where such Participant Employee lacks other available resources. Financial needs considered immediate and heavy include, but are not limited to, 1) expenses incurred or necessary for medical care, described in Code Section 213(d), of the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse or dependents, 2) the purchase (excluding mortgage payments) of a principal residence for the Employee, 3) payment of tuition and related educational fees for the next 12 months of post-secondary education for the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse, children or dependents, 4) payment to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee’s principal residence, 5) funeral or burial expenses for the ParticipantEmployee’s deceased parent, Spouse, primary Beneficiary, child or dependent, and 6) payment to repair damage to the Employee’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to Code section 165(h)(5) and whether the loss exceeds 10 ten- percent of adjusted gross income), and 7) effective for distributions on or after January 1, 2018, expenses and losses (including loss of income) incurred by the Employee on account of a disaster declared by the Federal Emergency Management Agency (FEMA), provided that the Employee’s principal residence or principal place of employment at the time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster. No distributions on account of financial hardship shall exceed the amount determined to be necessary to meet the immediate financial need created by the hardship as described in those same regulations and the Plan and that Plan. In addition, the amount of the distribution cannot be otherwise reasonably accommodated from other resources of the Participant, such as through other distributions currently available under the Plan or by cash or other liquid assets that are reasonably available to the Participant. Any distribution made on account of the Participant’s financial hardship shall be made to the Participant in a single sum payment in cash pursuant to instructions provided in writing or in another form acceptable to the Custodian, and delivered to the Custodian. Hardship distributions described in this Article 4.02 may consist only of the amounts contributed pursuant to the Participant’s salary reduction agreement, excluding the earnings on such contributions. The determination of whether a financial hardship exists shall be made pursuant to the terms of the Plan or by the Participant if the Plan doesn’t contain such terms and not by the Custodian. A Participant who requests a distribution on account of financial hardship shall certify, in a manner acceptable to the Custodian, that a financial hardship exists. If the Participant receives a hardship distributiondistribution before January 1, they 2020, he or she will be prohibited from making any Elective Deferrals (and nondeductible employee contributions, if applicable) for a period of six months from the date of such distribution as described in the Plan. For hardship distributions that are made on or after January 1, 2020, the Participant’s Elective Deferrals (and nondeductible employee contributions, if applicable) will not be suspended for any period of time due to the receipt of a hardship distribution.

Financial Hardship. If the Adoption Agreement specifies that hardship withdrawals may be made pursuant to this Section 7.6(c), each Participant may request at such time and in such manner as the Plan Administrator may prescribe, to withdraw all or any portion of his Elective Deferral Account in order to meet a "Financial Hardship;" provided that no such withdrawal can exceed the aggregate amount of his Elective Deferrals contributed to the Plan to that date of withdrawal, reduced by prior withdrawals; and provided, further, that no such withdrawal shall be permitted until the full amount permitted to be withdrawn under Section 7.6(a) has been withdrawn. For purposes of Article 4.01(a)(3) of this AgreementSection 7.6(c), financial hardship is as Financial Hardship shall mean an immediate and heavy financial need of the Participant, as described in Treasury Regulation 1.401(k)-1(d)(3), where which such Participant lacks is not able to meet from any other reasonably available resources. The determination that the Participant is faced with a Financial needs considered Hardship and of the amount required to meet such Financial Hardship which is not reasonably available from other resources of the Participant shall be made by the Plan Administrator in accordance with uniform and nondiscriminatory standards and policies which shall be adopted by the Plan Administrator and consistently applied to each application for a withdrawal pursuant to this Section 7.6(c). An immediate and heavy include, but are not limited financial need will exist only with respect to, : (1) expenses incurred or necessary for medical care, care as described in Code Section 213(d), ) of the Employee, Code of the Employee’s primary Beneficiary, Participant or the Employee’s Spouse Participant's spouse or dependents, (2) the purchase (excluding mortgage payments) of a principal residence for the EmployeeParticipant, (3) payment of tuition and related educational education fees (including room and board expenses) for the next 12 twelve months of post-secondary education for the EmployeeParticipant, or the Employee’s primary Beneficiary, the Employee’s SpouseParticipant's spouse, children or dependents, and (4) payment the need to prevent the an eviction of the Employee from, or a mortgage foreclosure on the mortgage of, the Employee’s Participant's principal residence. If a Participant has an immediate and heavy financial need as described above, 5) funeral or burial expenses for he may receive a hardship withdrawal provided the Participant’s deceased parentPlan Administrator determines that such Participant is not able to meet such need from any other reasonably available resources. With respect to withdrawals from a Transferee Plan, Spouse, primary Beneficiary, child or dependent, and 6) payment to repair damage such withdrawals will be subject to the Employee’s principal residence that would qualify for a casualty loss deduction under Code spousal consent requirements of Section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income7.7(b). No distributions on account of financial hardship shall exceed the amount determined to be necessary to meet the immediate financial need created by the hardship as described in those same regulations and the Plan and that cannot be otherwise reasonably accommodated from other resources of the Participant. Any distribution made on account of the Participant’s financial hardship shall be made to the Participant in a single sum payment in cash pursuant to instructions provided in writing or in another form acceptable to the Custodian, and delivered to the Custodian. Hardship distributions described in this Article 4.02 may consist only of the amounts contributed pursuant to the Participant’s salary reduction agreement, excluding the earnings on such contributions. The determination of whether a financial hardship exists shall be made pursuant to the terms of the Plan or by the Participant if the Plan doesn’t contain such terms and not by the Custodian. A Participant who requests a distribution on account of financial hardship shall certify, in a manner acceptable to the Custodian, that a financial hardship exists. If the Participant receives a hardship distribution, they will be prohibited from making any Elective Deferrals for a period of six months from the date of such distribution.

Financial Hardship. For purposes (i) An in-service withdrawal will be on account of Article 4.01(a)(3) of this Agreement, financial hardship is as only if the Participants has an immediate and heavy financial need and the withdrawal is necessary to meet the need. (ii) A withdrawal will be deemed to be on account of an immediate and heavy need if it is occasioned by (A) a deductible' medical expense incurred by the Participant or his spouse, children or dependent; (B) purchase of the Participant, as described in Treasury Regulation 1.401(k)-1(d)(3), where such Participant lacks other available resources. Financial needs considered immediate and heavy include, but are 's principal residence (not limited to, 1) expenses incurred or necessary for medical care, described in Code Section 213(d), of the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse or dependents, 2) the purchase (excluding including mortgage payments); (C) of a principal residence for the Employee, 3) payment of tuition and related educational fees payments for the next 12 months semester or quarter of a post-secondary education for the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse, children Participants or dependents, 4) payment to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee’s principal residence, 5) funeral or burial expenses for the Participant’s deceased parent, Spouse, primary Beneficiaryhis spouse, child or dependent, ; (D) rent or mortgage payments to prevent the Participant's eviction from or the foreclosure of the mortgage on his principal residence; or (E) such other event or circumstance as the Puerto Rico Department of the Treasury permits. (iii) A withdrawal will be deemed necessary to satisfy the. Participant's financial needs if either (A) the Participant has made all non-hardship withdrawals and 6obtained all nontaxable loans available under all of the Employer's qualified retirements plan; or (B) payment to repair damage the Participant satisfies such other requirements as may be prescribed by the Puerto Rico Department of the Treasury. (iv) A Participant must establish to the Employee’s principal residence Plan Administrator's satisfaction both that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income)Participant has an immediate and heavy financial need and that the withdrawal is necessary and heavy. No distributions on account of financial hardship shall exceed the amount determined to be need withdrawal is necessary to meet the immediate need, as provided in subsections (ii) and (iii) above. A Participant's application for a hardship withdraw will be in writing on such form and containing such information (or other evidence or materials establishing the Participant's financial need created hardship) as the Plan 21 Administrator may require. The Plan Administrator's determination of the existence of and the amount needed to meet a financial hardship will be binding on the Participant. (c) Notwithstanding subsection (b) above, a Participant may make in-service withdrawals from his Elective Deferral Contribution subaccount after he has reached age 59-1/2. MANNER OF MAKING WITHDRAWALS: Any withdrawal by the hardship as described in those same regulations Participant under the Plan shall be made only after the Participant files a written request with the Plan Administrator specifying the nature of the withdrawal and the amount of funds requested to be withdrawn. Upon approving any withdrawal, the Plan Administrator shall furnish the Trustee with written instructions directing the Trustee to make the withdrawal in a lump sum payment of cash or an in kind distribution to the Participant. in making any withdrawal payment, the Trustee shall be fully entitled to rely on the instructions furnished by the Plan Administrator, and that canshall be under no duty to make any inquiry or investigation with respect thereto. Unless SECTION 8.6 is applicable, if the Participants is married, his Spouse must consent to the withdrawal pursuant to a Qualified Election (as defined in Section 8.4 (c) ) within the ninety (90) day period ending on the date of the withdrawal. LIMITATIONS ON WITHDRAWALS: The Plan Administrator and the Trustee may prescribe uniform and nondiscriminatory rules and procedures limiting the number of times a Participant may make a withdrawal under the Plan during any Plan Year, and the minimum amount a Participant may withdraw on any single occasion. LOANS TO PARTICIPANTS: (a) If elected in the Adoption Agreement, loans may be made to Participants under the following circumstances: (i) loans shall be made available to all Participants on reasonably equivalent basis; (ii) loans shall not be otherwise reasonably accommodated from made available to Employees in the Higher Paid Group, officers, or shareholders in an amount greater than the amount made available to other resources Participants; (iii) loans shall bear a reasonable rate of interest; (iv) loans shall be adequately secured; and (v) shall provide for repayment over a reasonable period of time. (b) Loans made pursuant to this section (when added to the outstanding balance of all other loans is obtained pursuant to Section 408 of ERISA. (c) Loans made pursuant to this section (when added to the outstanding balance of all other loans made by the plan to the Participant) shall be limited to one-half (1/2) 22 of the present value of the non-forfeitable accrued of the Participants under the Plan. (d) Loans shall provide for level amortization with payments to be made not less frequently than quarterly over a period not to unit which, within a reasonable time, is to be used (determined at the time the loan is made) as a principal residence of the Participants shall provide for periodic repayment over a reasonable period of time that may exceed five (5) years. (e) Any loan made pursuant to this section where the vested interest of the Participant is used to secure such loan shall require the written consent of the Participant's Spouse in a manner consistent with Section 8.4 ( c ). Any distribution made on account of Such written consent must be obtained within the Participant’s financial hardship 90-day period prior to the date the loan is made. However, no spousal consent shall be made required under this paragraph if the total accrued benefit subject to the Participant in a single sum payment in cash pursuant to instructions provided in writing security is not excess of $ 3,500. (f) Any loans granted or in another form acceptable to the Custodian, and delivered to the Custodian. Hardship distributions described in this Article 4.02 may consist only of the amounts contributed pursuant to the Participant’s salary reduction agreement, excluding the earnings on such contributions. The determination of whether a financial hardship exists renewed shall be made pursuant to a Participant loan program. Such loan program shall be established in writing and must include, but need not be limited to, the terms following; (i) the identity of the person or positions authorized to administer the Participants loan program; (ii) a procedure for applying for loans; (iii) the basis on which loans will be approved or denied; (iv) limitations, if any, on the types and amounts of loans offered; (v) the procedure under the program for determining reasonable rate of interest; (vi) the types of collateral which may secure a Participant loan; and (vii) the events constituting default and the steps that will be taken to preserve Plan assets. Such Participant loan program shall be contained in a separate written document which, when properly executed, is hereby incorporated by reference and made a part of the Plan. Furthermore, such Participant loan program may be modified or amended in writing from time to time without the necessity of amending this section. DISTRIBUTION OF BENEFITS UPON DEATH: Any death benefits (other than a Survivor Annuity or a Qualified Preretirement Survivor Annuity) to which a deceased Participant's Beneficiary is entitled will be paid by either of the following methods, to be determined in the sole discretion of the Participant (or, if applicable, his Beneficiary): -One lump-sum payment in cash or in property. 23 -Payment in monthly, quarterly, semi-annual, or annual cash installments. Installment payments will be made over a period to be determined in the sole discretion of the Participant (or, if applicable, his Beneficiary), but not in excess of the life expectancy of the Participant's Beneficiary. The Administrator will direct the Trustee to segregate the death benefit within the Trust Fund, or to purchase an annuity Contract from the Insurer. Installment payments will be made over a period to be determined in the sole discretion of the Participant (or, if applicable, his Beneficiary), but not in excess of the life expectancy of the Participant's Beneficiary. Installment payments will be as nearly equal as practicable. After installment payments begin, the Administrator, if so directed by the Beneficiary in the Beneficiary's sole discretion and provided that such installment payments are not made through an annuity contract purchased from an insurer, shall direct the Trustee to reduce the period over which the installment payments will be made and the Trustee will adjust the cash amount of installment accordingly. The Administrator, if so directed by the Beneficiary in the Beneficiary's sole discretion, shall direct the Trustee at any time to either accelerate any installment payment to a Participant's Beneficiary, or purchase an annuity Contract with all monies or properties held in the segregated Trust Fund. If a Retired Participant has started to receive his Normal Retirement Benefit and dies before his entire Vested interest has been distributed to him in accordance with Section 6.5, the balance of his interest in the Plan will be distributed at least as rapidly as under the method of distribution being used on the date of his death. If a Participant dies before lie has begun to receive any distribution of his interest in the Plan, his entire Vested interest will be distributed to his Beneficiaries within five years after the date of his death. The preceding paragraph will not apply to any portion of a deceased Participant's Vested interest which is paid over the life of the Participant's designated Beneficiary (or over a period not extending beyond the life expectancy of the designated Beneficiary) provided distribution begins no later than one year after the date of the Participant/s death. Notwithstanding the foregoing, if a. Participant's spouse is his designated Beneficiary, the date distribution must begin shall be no later than the date on which the deceased Participant would have reached Age seventy and one-half (70-1/2). If the surviving spouse dies before the distributions to such spouse begin, the requirements of paragraphs above will apply as if the spouse were the Participant. For purposes of this Section, the life expectancy of a Participant and a Participant's spouse may be redetermined, but no more frequently than annually, by use of the return multiples specified in Section 1.72-9 of the Income Tax Regulations. This paragraph will not apply if a Participant's benefits are paid in the form of a life annuity. in addition, in the case of any designated beneficiary other than the Participant/s spouse, life expectancy will be calculated 24 at the time payment first commences and payments for any 12 consecutive months period will be based on such life expectancy minutes the number of whole years passed since distribution first commenced. Notwithstanding the other requirements of this article and subject to the joint and survivor annuity requirements, distribution on behalf of any Employee, may be made in accordance with all of the following requirements (regardless of when such distribution commences): (i) The distribution by the trust is one which would not have disqualified such trust. (ii) The distribution is in accordance with a method of distribution designated by the Employee whose interest in the trust is being distributed or, if the Employee is deceased, by a Beneficiary of such Employee. (iii) Such designation was in writing, was signed by the Employee or the Beneficiary, and was made before January I, 1984. (iv) The Employee had accrued a benefit under the plan as December 31, 1983. (v) The method of distribution designated by the Employee or the Beneficiary specified the time at which distribution will commence, the period over which distributions will be made, and in the case of any distribution upon the Employee's death, the Beneficiaries of the Employee listed in order of priority. The method of distribution selected must assure that at least 50 percent of the present value of the amount available for distribution is paid within the life expectancy of the Participant. A distribution upon death will not be covered by this transitional rule unless the information in the designation contains the required information described above with respect to the distributions to be made upon the death of the Employee. For any distribution which commences before January I, 1984, but continues after December 31, 1983, the Employee, or the Beneficiary, to whom such distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method of distribution was specified in writing and the distribution satisfies the requirements in subsections (i) and (v) above. If a designation is revoked, any subsequent distribution must satisfy the requirements of the Code as amended. Any changes in the designation will be considered to be a revocation of the designation. However, the mere substitution or addition of another Beneficiary (one not named in the designation) under the designation will not be considered to be a revocation of the designation, so long as such substitution or addition does not alter the period over which distributions are to made under the designation, directly or indirectly (for example, by altering the relevant measuring life). 25 With respect to the distribution of a Qualified Preretirement Survivor Annuity, if the present value of a Qualified Preretirement Survivor Annuity does not exceed $3,500, the Administrator shall make a single sum distribution of such amount before the Annuity Starting Date without the consent of the surviving spouse. However, no distribution may be made after the Annuity Starting Date unless the surviving spouse consents in writing to such distribution. If the present value of a Qualified Preretirement Survivor Annuity is in excess of $3,500, the Administrator shall make a single sum distribution of such amount before the Annuity Starting Date only if the surviving spouse consents in writing to such distribution before the Administrator or a Notary Public. The present value of a Qualified Preretirement Survivor Annuity will be the account balance as of the date of the distributions TIME OF SEGREGATION FOR DISTRIBUTION: Subject to the requirements of the Plan and notwithstanding any other provision to the contrary, whenever the Trustee is to make a distribution or to commence a series of payments on, or as of an Anniversary Date, the distribution or series of payments may be made or begun on such date or as soon thereafter as is practicable, but in no event later than the 60th day after the close of the Plan Year in which the latest of the following events occurs: -the date on which the Participant attains the earlier of age 65 or the Normal Retirement Age specified herein, -the 10th anniversary of the year in which the Participant commenced participation in the Plan, or, -the date the Participant terminates his service with the Employer. DISTRIBUTION FOR MINOR BENEFICIARY: in the event a distribution is to be made to a minor, the Administrator may, in the Administrator's sole discretion, direct that such distribution be paid to the legal guardian, or if none, to a parent of such Beneficiary or a responsible with whom the Beneficiary maintains his residence, or to the custodian for such Beneficiary under the Uniform Gifts to Minors Act if such is permitted by the Participant if laws of the state in which said Beneficiary resides. Such a payment shall fully discharge the Trustee, Employer, and Plan doesn’t contain such terms and not by the Custodian. A Participant who requests a distribution from further liability on account of financial hardship such distribution. LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN: in the event that all, or any portion, of the distribution payable to a Participant or his Beneficiary hereunder shall, at the expiration of five (5) years after it shall certifybecome payable, in remain unpaid solely by reason of the inability of the Administrator, after sending a manner acceptable registered letter, return receipt requested, to the Custodianlast known address, that a financial hardship exists. If and after further diligent effort, to ascertain the Participant receives a hardship distribution, they will be prohibited from making any Elective Deferrals for a period of six months from the date whereabouts of such distribution.Participant or his Beneficiary the amount so distributable shall be forfeited and shall be used to reduce the cost of the Plan. In the event a Participant or Beneficiary is located subsequent to this benefit being forfeited, such benefit shall be restored. 26

Financial Hardship. For purposes of Article 4.01(a)(3) of this Agreement, financial hardship is as an immediate and heavy financial need of the Participant, as described in Treasury Regulation 1.401(k)-1(d)(3), where such Participant lacks other available resources. Financial needs considered immediate and heavy include, but are not limited to, 1) expenses incurred or necessary for medical care, described in Code Section 213(d), of the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse or dependents, 2) the purchase (excluding mortgage payments) of a principal residence for the Employee, 3) payment of tuition and related educational fees for the next 12 months of post-secondary education for the Employee, the Employee’s primary Beneficiary, the Employee’s Spouse, children or dependents, 4) payment to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee’s principal residence, 5) funeral or burial expenses for the Participant’s deceased parent, Spouse, primary Beneficiary, child or dependent, and 6) payment to repair damage to the Employee’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds 10 percent of adjusted gross income). No distributions on account of financial hardship shall exceed the amount determined to be necessary to meet the immediate financial need created by the hardship as described in those same regulations and the Plan and that cannot be otherwise reasonably accommodated from other resources of the Participant. Any distribution made on account of the Participant’s financial hardship shall be made to the Participant in a single sum payment in cash pursuant to instructions provided in writing or in another form acceptable to the Custodian, and delivered to the Custodian. Hardship distributions described in this Article 4.02 may consist only of the amounts contributed pursuant to the Participant’s salary reduction agreement, excluding the earnings on such contributions. The determination of whether a financial hardship exists shall be made pursuant to the terms of the Plan or by the Participant if the Plan doesn’t contain such terms and not by the Custodian. A Participant who requests a distribution on account of financial hardship shall certify, in a manner acceptable to the Custodian, that a financial hardship exists. If the Participant receives a hardship distribution, they will be prohibited from making any Elective Deferrals for a period of six months from the date of such distribution. It is the responsibility of the employer or the employer’s delegate to discontinue employee Elective Deferrals for a period of six months from the date of such distribution. The Custodian shall have no obligation to monitor or ensure compliance regarding the discontinuance of employee Elective Deferrals due to hardship.