Dell 2007 Annual Report Download - page 188

ARTICLE XIV
Participant Loans
14.1. General Rules Regarding the Participant Loan Program
(a) General. Unless otherwise provided by the Plan Sponsor, the Plan authorizes the Trustee to make loans on a nondiscriminatory basis to a
Participant or Beneficiary in accordance with the written loan policy established by the Committee, provided (i) the loan policy satisfies the
requirements of Subsection 14.1(b); (ii) loans are available to all Participants and Beneficiaries on a reasonably equivalent basis and are not
available in a greater amount for Highly Compensated Employees than for other Employees; (iii) any loan is adequately secured and bears a
reasonable rate of interest; (iv) the loan provides for repayment within a specified time; (v) the default provisions of the note prohibit offset of the
Participant's Nonforfeitable Account Balance prior to the time the Trustee otherwise would distribute the Participant's Nonforfeitable Account
Balance; and (vii) the loan otherwise conforms to the exemption provided by Code Section 4975(d)(1). If the joint and survivor annuity
requirements of Section 9.6 apply to a Participant, the Participant may not pledge any portion of his or her Account Balance as security for a loan
unless, within the ninety (90) day period ending on the date the pledge becomes effective, the Participant's spouse, if any, consents (in a manner
described in Section 9.6 other than the requirement relating to the consent of a subsequent spouse) to the security, or, by a separate consent, to an
increase in the amount of security.
(b) Loan Policy. If the Committee adopts a loan policy, pursuant to Subsection 11.3(m), the loan policy must be a written document and must include
(i) the identity of the person or positions authorized to administer the participant loan program; (ii) a procedure for applying for the loan; (iii) the
criteria for approving or denying a loan; (iv) the limitations, if any, on the types and amounts of loans available; (v) the procedure for determining
a reasonable rate of interest; (vi) the types of collateral which may secure the loan; and (vii) the events constituting default and the steps the Plan
will take to preserve Plan assets in the event of default. This Section specifically incorporates any written loan policy adopted by the Committee
as part of this Plan.
(c) Limitations. The following limitations shall apply to the Participant Loan Program:
(i) This Plan shall not provide loans in any amount that would exceed the applicable dollar limitations contained in Code Section 72(p)(2)(A),
which limitations shall be incorporated into the Plan's loan policy and shall be treated as being applicable under this Section.
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