EMPLOYEE LOANS

Contents

 Purpose of the Policy

 Detailed Policy Statement

 Eligibility

 Loan Limitations

 Loan Repayment Terms and Interest Charges

 Procedure for Obtaining an Employee Emergency Loan

 Definitions

 Getting Help

 Responsibilities and Authority

 Other Loans

o Personal Loans

o Salary Advance

o Season ticket loan

o Computer loan

o Bicycle loan

o Car loan

 Applying for a loan

 Tax Liability

 Recovery

 Appendix 1/2/3

 Guarantors

 Acknowledgement of Debts

 Exceptions

Purpose of the Policy

WTSC makes available to its employees an emergency loan program. The purpose of this program is to
provide loans to employees who have an immediate need for funds as the result of an emergency and
have no other source of money available within the time necessary to act, or who have a dire personal
financial hardship and cannot obtain a loan from a credit union or comparable lending institution. The
program is not intended to compete with local credit unions or other lending institutions; it is intended
to fill the needs of company employees that are not being met by those sources.
This policy describes office-specific provisions and operational practices related to implementing the
Staff Emergency Loan Fund policy at WTSC. It combines pertinent portions of related WTSC policies
with office-specific provisions. Accordingly, this policy should not be used as a comprehensive
reference to the related WTSC policy. In cases where a comprehensive reference is needed, the WTSC
policy should be consulted. Where conflicts exist between this policy and WTSC policies, WTSC
policies shall take precedence.

Please refer to Section III for the definitions of important terms used in this policy.

Detailed Policy Statement

Eligibility

In certain circumstances the company provides financial loans to its employees. The amount and
conditions under which loans are provided may be varied from time to time, added to or even
withdrawn.

This policy applies to all permanent employees not in a probationary period and also not under notice of
dismissal. Temporary employees are not eligible for loans.

Loans must be used for their stated purpose. Failure to do so constitutes fraud and is regarded as a
serious matter. This will lead to disciplinary action being taken which could result in dismissal.

Employees should carefully consider whether they are able to meet the loan repayments before applying
for a loan under this scheme.

All applications should be completed and authorised in line with the procedure and forwarded to the
directorate HR section for processing. Loans must be processed through the Accounts Payable System
and paid directly to the provider. Payments must not be credited directly to the employee through the
payroll system.

Directorate HR sections are responsible for obtaining proof of purchase of the items concerned. Should
the employee's employment be terminated for whatever reason, then the balance of the loan must be
repaid to the company before the last day of service in accordance with the loan agreement.

An “Emergency”
For the purposes of this policy, an emergency is considered to be an event that
a. could not be reasonably expected to occur, and
b. is unlikely to occur again.
Examples of “Emergencies” that meet the qualifications for obtaining an Emergency
Loan:
a. Delay in receiving a payroll payment as a result of an error made by the payroll
department, or due to a failure in the payroll processing system.
b. Inability of a new employee to adapt to a monthly company pay cycle during the first
month of employment.
c. Inability to pay for travel related to attending the funeral of a close family
member.
d. Theft of an employee’s available cash.
e. Expenses related to the repair of an automobile that is used by the employee to
get to and from work.
Examples of “Emergencies” that do not meet the qualifications for obtaining an
Emergency Loan:
 a. Inability to pay recurring, predictable, or routine expenses, such as credit card and
utility bills, and automobile maintenance costs.
b. Inability to pay for taxes, insurance, or vehicle registration fees.
c. Inability to pay for school registration fees.
d. Inability to pay for moving expenses.
e. Inability to pay for vacation or holiday expenses.
f. Financial hardship resulting from an annual furlough.

Loan Limitations
All emergency loans are subject to the following limitations: 
1. The maximum loan granted shall not exceed (amount).
2. An employee may obtain up to two employee emergency loans within a 12-month period;
however, an employee may not obtain a second emergency loan if an unpaid balance remains
on an existing emergency loan.

Loan Repayment Terms and Interest Charges

1. Term. The maximum loan repayment period is twelve months.
2. Interest
3. Minimum payment. The minimum monthly repayment amount is (amount)
4. Payment method. Repayment of an emergency loan must be made through a monthly
payroll deduction, unless an alternate means of repayment is approved in writing by the
Director or relevant personnel in charge.
5. Application of payment. Any partial payment will be applied first to the interest amount
due, with the remainder applied against the principal balance.
6. First payment. The first repayment of a loan will be scheduled for the next available payroll
deduction, with subsequent payments deducted monthly until the emergency loan is paid in
full.
7. Payment due date. Payments are due within five working days of the scheduled monthly
repayment date specified in the promissory note.
8. Late payment. A late payment fee, not to exceed (amount) per month, will be charged for
failure to make payment within five working days of the scheduled monthly repayment date.
9. Prepayment. No penalty will be charged for prepayment.
10. Employment termination. All loans are due and payable in full upon termination of
employment with the WTSC.

Procedure for Obtaining an Employee Emergency Loan

1. A prospective borrower may obtain information about requesting an employee emergency
loan from the HR department.

2. Based on a review of the emergency loan request, the Director of the HR department or
his/her designee will determine the amount of the emergency loan to be provided and the
terms and conditions of its repayment.

3. The prospective borrower must indicate his or her agreement with all of the terms and
conditions of the emergency loan by signing a promissory note. A signed promissory note is
required in order for an emergency loan to be made. A copy of the promissory note will be
provided to the borrower.

4. To enable repayment of the emergency loan, the borrower must sign an automatic payroll
deduction authorization which is included as part of the promissory note.
Definitions
Close family member - employee's spouse, domestic partner, parent, child (including the child of
a domestic partner), sibling, grandparent, or grandchild, including in-laws and step-relatives in the
relationships just listed.
Emergency – an event that could not be reasonably expected to occur, and is unlikely to occur
again.
Principal balance – the portion of the original loan amount remaining to be repaid.

Getting Help
Human Resource Department assists prospective employee-borrowers. Please consult the relevant
HR personnel.

Responsibilities and Authority

A WTSC Employee receiving a loan from the employee emergency loan program is responsible
for repayment of the loan and complying with all of the requirements described in this policy.

The Director of Human Resource is responsible for administering the WTSC

employee emergency loan program. This includes evaluating and approving employee emergency
loan applications, collecting repayments, and pursuing collection on past due loan accounts.
The Director of Admin Department is responsible for reviewing the appeal of a prospective
borrower whose loan application has been rejected by Human Resource Depending on the results
of the review, the Admin department may approve granting the emergency loan.

Other Loans

The types of loans are as follows. Full details on each loan type are available from directorate HR
sections.

Personal Loans

Personal Loans may never exceed the employee’s net salary for one month. A loan agreement will
be drawn up and repayment terms will be stipulated therein. Repayments are to be deducted in
accordance with the loan agreement from the employees’ monthly salary and must be repayable
within a maximum of 6 months from the start of the agreement.

Repayments should never exceed 20% of the employee’s monthly net remuneration.

All approved Personal Loans will be paid out to the employee within 4 days. All applications must
reach the Finance Department timely to ensure that this process is not delayed unnecessarily.

No loans will be available to any employee within their initial probationary period (normally 3
months), any exception to this constraint would be solely at the discretion of the HR department
and Senior Management

No Personal Loan will be granted if there is a balance outstanding on a previous personal loan or
advance.

All Loans must be settled in full, including costs on termination of employment

Any deviation on any of the statutes above needs to be approved by CEO or his duly
authorized representative.
Salary Advance

A Salary Advance may not exceed the employee’s recoverable amount, which includes remuneration
to date of loan, plus unpaid leave, less any outstanding training related expenditure linked to
employment contract and or acknowledgement form.

Any advance will be loaded for full recovery at the end of the month in which the moneys are advanced.

No Advance will be available to any employee within their initial probationary period (3 months),
any exception to this constraint would be solely at the discretion of the HR department and Senior
Management

“Advance Documentation Form” that stipulates repayment terms needs to be signed in full by the
employee and returned to Finance before any monies is paid to the employee.

All loan agreements and supporting documentation will be filed on the employee’s personal file.

No advance will be granted if there is a balance outstanding on a previous loan or advance.

All advances must be paid in full, including costs on termination of employment.

Any deviation on any of the statutes above needs to be approved by CEO or his duly authorized
representative.

Season ticket loan

An interest free loan to the value of an annual season ticket to meet the cost of commuting from home to
the employee's usual place of work.

Computer loan

An interest free loan of up to (amount) for the purchase for home use of personal computing hardware
and software, including peripherals. Software purchased should be work-related and not include
computer games. This is repaid over a period of up to 24 months. The loan must be completely repaid
before any further loan is granted.

The employee will abide by the company’s guidelines on the Data Protection Act, software licensing
agreements and controls to reduce the risk of spreading computer viruses.

Purchases must be made in the employee's name and delivered to their home address.

Equipment purchased must be new and bought from a reputable dealer providing a minimum of a
twelve-month guarantee.

A copy of the computer loan form and conditions are attached as Appendix 2. .

Bicycle loan

One interest free loan of up to (amount) to purchase a bicycle for personal use to either commute to
work and/or to travel on official company business. This is repaid over twelve months.

Employees in receipt of any other form of travel benefit from the company such as a season ticket loan,
lease car or car loan, are not eligible to receive a bicycle loan.

As part of the conditions of granting the loan, the employee is required to take out insurance to cover
loss of the bicycle through theft during the time of the loan. Employees should also consider other
insurance to include personal injury, death and third-party liability.

A copy of the bicycle loan form and conditions are attached as Appendix 3.
Car loan

This is an interest bearing loan of up to (amount) to purchase a car, which is repaid over a period of up
to four years or over the life expectancy of the car for cars over three years old (whichever is the shorter
period) and over a period of up to five years for cars three years or younger.

To be eligible for a car loan the employee is required to meet the following conditions:

 be classified as an 'essential user' or;

 be a 'casual user' and:

 have been an authorised casual user for at least 12 months prior to the loan application

 be expected to use the car on work-related business for 1,500 miles in every twelve month
period

 if not a diesel powered engine, be fitted with a catalytic converter and be adapted to run on
unleaded petrol

 have a manufacturer's retail price of (amount) or less, including all associated on the road costs

An employee applying for a loan for a second-hand car must:

 provide an independent report (not from the seller of the car) on the condition of the car, its
estimated life and value.

 During the repayment period employees will be required to produce annually copies of the
vehicle registration, MOT certificate and current insurance certificate for their vehicle. These
documents should be shown to the directorate HR manager and a note placed on the employees
personal file.
 Forms to apply for a car loan are available from directorate HR sections.
 have a manufacturer's retail price of (amount) or less, including all associated on the road costs

An employee applying for a loan for a second-hand car must:

 provide an independent report (not from the seller of the car) on the condition of the car, its
estimated life and value.

 Forms to apply for a car loan are available from directorate HR sections.

Applying for a loan

Requests for loans should be made to directorate HR sections.

Employees granted a loan must provide evidence of the purchase (an invoice) to their directorate HR
section within four weeks of applying for the loan. Where proof of purchase is not provided, then
consideration should be given to an investigation under the company disciplinary procedure.

Tax Liability

Any tax liability arising directly or indirectly from the loan is the responsibility of the employee.

Recovery

The loan will be recovered from salary or wage. The loan application form permits the company to
deduct monies from the employee's final payment in the event of him or her leaving before the loan has
been fully paid. If insufficient monies are available to do this the employee is required to settle the
outstanding amount within four weeks of leaving, after which interest is added at the company’s
bankers' base rate plus an additional three per-cent.

Appendix 1/2/3

Conditions relating to the granting of loan/computer loan/bicycle

Win Thein & Sons agrees to provide an interest free loan to the employee subjected to the following
conditions:

The loan will be used solely to purchase a season ticket/computer. Failure to do so constitutes fraud and
is regarded as a serious matter. This will lead to disciplinary action being taken, which could result in
dismissal.

The employee agrees to repay the loan by deductions from monies payable by the company to the
employee by way of wage or salary due each week/month

Should the employee's employment be terminated for whatever reason, the employee agrees to repay the
balance of the loan in full. The outstanding sum will be deducted from any other sum due to the
employee on termination

Should monies still be owed to the company at termination and remain outstanding one month later,
then the employee agrees to repay to the company the balance of the loan and interest on that balance at
the company’s bankers' base rate plus an additional three per cent. The company reserves the right to
recover any outstanding amount through application to the Courts

The employee agrees to present a copy of the paid invoice for the season ticket/computer/bicycle to
their personnel section within one month of purchasing the season ticket

The employee should discuss any difficulties arising from these arrangements with their personnel
section

The employee's signature signifies that they understand these conditions and agree to be bound by them.

Guarantors

A staff member who is not eligible for a staff loan may arrange for another staff member to act as
guarantor for a loan. Under these circumstances, the guarantor must be someone who would qualify in
his/her own right for a loan in terms of the rules of the Scheme. A guarantor will not be eligible for a staff
loan until such time as the loan, which s/he has guaranteed, has been redeemed.

Acknowledgement of Debts

Applicants/guarantors are required to acknowledge their debt in writing, authorize the monthly
repayments from their salary and, in the event of termination of employment for whatever reason, the
recovery of any outstanding balance from any monies due to him/her or his/her estate, with the exception
of the retirement fund.

Exceptions

Scheme may be waived in the following circumstances:

(i) Bereavement in the immediate family. A death certificate and proof of relationship must be provided.
(ii) Medical expenses arising from serious illness of the staff member or his/her immediate family, which
are not recoverable from a medical scheme.
(iii) Expenses or losses incurred as a result of serious accident or assault.
(iv) Uninsured housing expenses, such as fire or storm damage, water or sewerage bursts, where
evidence is produced of expenditure incurred.
 (v) Outcome of litigation involving incarceration, if prescribed amounts are not paid by specified date.

Contracts

DEED OF PLEDGE

This Deed of Pledge (the “Agreement”) is effective [DATE],

BETWEEN: [YOUR COMPANY NAME] (the "Lender"), a company organized and existing
under the laws of the [State/Province] of [STATE/PROVINCE], with its head
office located at:

[YOUR COMPLETE ADDRESS]

AND: [COMPANY NAME] (the "Borrower"), a company organized and existing under
the laws of the [State/Province] of [STATE/PROVINCE], with its head office
located at:

[COMPLETE ADDRESS]

AND: [COMPANY NAME] (the "Nominee"), a company organized and existing under
the laws of the [State/Province] of [STATE/PROVINCE], with its head office
located at:

[COMPLETE ADDRESS]

THE PARTIES HERETO HAVE AGREED AS FOLLOWS:

1. LOAN

Subject to and in accordance with all the terms and conditions of that certain
promissory note executed by the Borrower in favor of the Lender, dated [DATE], a
copy of which is annexed hereto as Schedule “A”, as same may be amended and
supplemented at any time and from time to time (the “Note”), the Borrower has
borrowed from the Lender the principal amount of [AMOUNT] Dollars in the lawful
currency of [COUNTRY] (the “Loan”), with interest thereon at the rate stipulated
therein.

2. PLEDGE

2.1 Pledge:

As a general and continuing collateral security for the repayment by the Borrower to the
Lender of the principal amount of the Loan and of all interest thereon and all other sums
payable pursuant to the terms of the Note and this Deed of Pledge (collectively the
“Debt”), the Borrower, in accordance with the provisions of the laws of [State/Province]
of [STATE/PROVINCE], does hereby pledge and charge to and in favor of the Lender,
hereunto present and accepting, the property described in Schedule “B” hereto (the
“Pledged Property”).

2.2 Nomination of Nominee:

The Lender and Borrower hereby jointly nominate and appoint the Nominee as their
 representative for the purposes of obtaining and, subject to the provisions of Section
2.7 hereof, continuously retaining physical possession of the Pledged Property at the
Nominee’s place of business located at [NOMINEES ADDRESS] from the date of these
presents until such time as the Pledge created hereunder is terminated by reason of
extinction of the Loan secured hereby, and the Nominee hereby undertakes to so act.

2.3 Obligations of Nominee:

The Nominee shall, in its possession of the Pledged Property, have all the obligations
of a depositary under a simple voluntary deposit pursuant to the laws of
[State/Province] of [STATE/PROVINCE], except as may be expressly derogated from
hereinafter.

2.4 Loss or Deterioration:

The Nominee shall be liable to the Borrower and the Lender for any loss or
deterioration of the Pledged Property, unless he can prove that the said loss or
deterioration is the result of a fortuitous event (cas fortuit) or an irresistible force (force
majeure) and was not caused by any fault of the Nominee.

2.5 Expenses of Preservation:

The Borrower shall reimburse the Nominee upon demand on a dollar-for-dollar basis for
any necessary expenses incurred by the Nominee in the preservation of the Pledged
Property.

2.6 Loss of Possession:

The Nominee hereby undertakes to notify the Borrower and Lender forthwith in writing
of any loss or any threat of loss of physical possession of the Pledged Property by the
Nominee (“Notice of Loss of Possession”), such notice to be given in accordance with
the provisions of Article 2.6 hereof.

2.7 Return of Possession to Borrower:

At no time during the duration of the present Pledge shall the Nominee, return or allow
the Pledged Property to be returned, in whole or in part, to the Borrower or to any
person designated by the Borrower alone without the prior written consent of the
Lender and upon the terms and subject to the conditions set forth in such consent. In
the event of a failure to respect the provisions of this Section 2.7, the Nominee shall be
personally liable to the Lender for any loss suffered by the latter as a result of any loss
or reduction of the security created hereunder.

8.8 Termination of Pledge:

For the purposes of this Article 2.8, the Pledge shall be considered to have terminated
and the Nominee shall be authorized to return the Pledged Property to the Borrower or
any person designated by the Borrower upon receipt by the Nominee of written notice
from the Lender attesting that the Debt has been extinguished, by payment in full or
otherwise (“Notice of Extinction”).

The Lender shall forward such Notice of Extinction to the Nominee and the Borrower in
accordance with the provisions of Article 2.8 hereof within [NUMBER] days from the
date of such extinction of the Debt. The Nominee shall, within [NUMBER] days from the
date of receipt of the Notice of Extinction, release and return physical possession of the
Pledged Property to the Borrower or any person designated by the Borrower to receive
the physical possession of the Pledged Property in accordance with the means of
delivery chosen by the Borrower and at the sole cost and expense of the Borrower.

3. COVENANTS OF THE BORROWER

The Borrower hereby warrants, covenants and agrees that:

3.1 Title to Pledged Property:

He is the lawful owner of the Pledged Property; that he has good, right and lawful authority
to pledge and charge the Pledged Property as provided in this Deed of Pledge; that the
Pledged Property is free and clear of all liens, privileges, hypothecs, charges and
encumbrances whatsoever, save and except for any undetermined or inchoate lien, privilege
or charge which has not been registered or filed pursuant to law and save and except for any
charges subordinated to the charge hereof; and that he shall preserve, warrant and defend
his title to the Pledged Property and rights and every part thereof, for the benefit of the
Lender, its successors and assigns, against the claims and demands of all persons
whomsoever.

3.2 Payment of Loan, Interest and Accessories:

He shall punctually pay or cause to be paid the principal of the Loan, any interest
thereon and accessories thereto on the dates, at the place and in the moneys, amounts
and manner provided for with respect thereto in the Note.

3.3 Payment of Taxes:

He shall pay or cause to be paid as and when due and payable all taxes, rates,
charges, levies or dues, assessments, ordinary or extraordinary, governmental or other
charges of a like nature, assessed or payable in respect of any of the Pledged Property
or assessed on the Borrower, his rights or franchises; that he shall exhibit or cause to
be exhibited to the Lender when required, on demand, the receipts and vouchers
establishing such payments; and that in the event of his failure to pay such sums, the
Lender may (but shall be under no obligation to) do so, and all sums so paid by the
Lender shall be repaid by the Borrower on demand, with interest thereon at the rate and
in the manner stipulated in the Note from the date of any such payment; provided,
however, that the Borrower shall not be in default hereunder in the payment of any such
tax, rate, charge, levy or assessment if he shall be contesting the imposition thereof in
good faith by all appropriate legal proceedings and if the Borrower shall have furnished
security satisfactory to the Lender sufficient in amount to cover any loss or liability
which may result should such contestation be unsuccessful.

3.4 Other Charges:

He shall not permit or suffer the creation or registration of any lien, privilege, hypothec,
mortgage, pledge or charge upon or in respect of the Pledged Property or any part
thereof. Notwithstanding the foregoing provisions of this Section 3.4, the Borrower shall
not be in default hereunder if, within [NUMBER] days of the date of registration of any
such privilege, he is in good faith contesting the validity thereof by all appropriate legal
proceedings and shall have furnished security satisfactory to the Lender sufficient in
amount to cover any liability which may result should such contestation be
unsuccessful.

3.5 Repair:

He shall at all times preserve, repair and keep in repair and good order and condition,
or cause to be preserved, repaired and kept in repair and good order and condition, the
Pledged Property and at all reasonable times allow the Lender or its representatives
access into and upon the Permanent Location in order to view the state and condition
of the Pledged Property.

3.6 Maintenance of Pledged Property:

He shall diligently maintain or cause to be maintained the Pledged Property.

3.7 Total Loss of Pledged Property. In the event of the total loss of the Pledged Property,
the Lender, without notice or formal notice of any kind:
 3.7.1 may declare the entire principal amount of the Loan then outstanding, interest
accrued and unpaid thereon, as well as any accessories payable under the
Note and this Deed, to be immediately due and payable;

3.7.2 may revoke any and all rights granted to the Borrower hereunder and under
the Note; and

3.7.3 shall have the right to apply the proceeds of insurance received by it to the
payment by preference of the outstanding principal amount of the Loan,
interest accrued and unpaid thereon and any accessories payable hereunder
and under the Note.

The receipt by the Lender of any such proceeds of insurance shall not constitute a payment and shall not operate novation of the
indebtedness of the Borrower under the Note or under this Deed of Pledge unless the said proceeds are expressly applied to the repayment
of said amounts.

3.8 Partial Loss of Pledged Property:

In the event of a loss other than a total loss of the Pledged Property, all insurance proceeds
received by the Lender, may, in its absolute discretion:

3.8.1 be applied to the repayment only to the extent of the outstanding principal
amount of the Loan, interest accrued and unpaid thereon and any accessories
payable hereunder and under the Note, and all other amounts the repayment
of which is secured by the terms of this Deed of Pledge. The application of
insurance proceeds under this subsection 3.8.1 shall be imputed to the
[installments of] principal required under the Note [, in inverse order of their
maturities]; or

3.8.2 be remitted to the Borrower for the purpose of permitting him to reimburse
expenditures made or to discharge indebtedness incurred by the Borrower in
repairing or replacing the Pledged Property.

The receipt by the Lender of any such proceeds of insurance shall not constitute a payment and shall not
operate novation of the indebtedness of the Borrower under the Note or under this Deed of Pledge unless
the said proceeds are expressly applied to the repayment of said amounts.

9.9 Insurance Coverage:

The Borrower shall insure and constantly keep insured the Pledged Property (the
Pledged Property for these purposes is sometimes referred to as the “Insured
Property”) for an amount of not less than the full replacement cost thereof without
depreciation against all loss or damage by fire, hurricane, hail, lightening, cyclone,
tornado, explosion, riot, impact by aircraft or vehicles, vandalism or malicious acts, civil
commotion, smoke and any other perils which presently are or hereafter may be from
time to time embraced by or defined in a standard fire insurance policy with extended
coverage or additional perils supplemental coverage and such other risks as the Lender
may reasonably require the Borrower to be insured against.

9.10 All insurance coverage contemplated hereby must be obtained from and maintained by
insurance companies or associations of underwriters in [COUNTRY] or elsewhere,
chosen by the Borrower and acceptable to the Lender. Notwithstanding the above, any
amount of insurance provided for above should be increased at the request of the
Lender if in its reasonable opinion the amount for which the Borrower maintains such
insurance is less than the amount that the Lender considers adequate. No insurance
policy taken out by the Borrower shall contain a co-insurance clause without the prior
written authorization of the Lender.

9.11 Insurance Premiums and Assignment of Insurance:

The Borrower shall duly and reasonably pay or cause to be paid the premiums and
other moneys payable for that purpose and he shall assign to the Lender the proceeds
of any such insurance (other than liability insurance) so that the proceeds of any such
insurance shall be paid to the Lender as its interest may appear and shall be received
by the Lender.
 9.12 For this purpose, the Borrower shall execute all transfers necessary and not less than
[NUMBER] days prior to the expiry of a policy or at least [NUMBER] days prior to the
date fixed for cancellation of a policy, should notice of cancellation be given, the
Borrower shall deliver to the Lender evidence of renewal or replacement thereof. Such
evidence shall be in form satisfactory to the Lender and shall be retained by the Lender
until the security hereby created shall have been discharged. The Borrower shall notify
the Lender of any change or modification affecting the Insured Property.

3.12 Receipt of Insurance Proceeds not Payment:

The receipt by the Lender of any proceeds of insurance shall not constitute a payment
and shall not operate novation of the indebtedness of the Borrower under the Note or
this Deed of Pledge unless the said proceeds are expressly applied to the repayment of
the outstanding amounts payable by the Borrower under the Note and this Deed of
Pledge.

3.13 Application of Proceeds of Insurance:

In no case shall the receipt or application of proceeds of insurance in accordance with the
terms of this Deed of Pledge lessen, novate, or in any other way modify or affect the
security hereby created, any law, usage or custom to the contrary notwithstanding.

3.14 Restriction on Alienation:

During the term of the present Pledge, the Borrower shall not convey, sell, lease,
transfer, assign or otherwise dispose of any of the Pledged Property.

3.15 Facilitating Realization of Security:

After the security hereby created shall have become enforceable and the Lender shall
have determined to enforce the same, the Borrower shall from time to time execute and
do all such assurances and things as the Lender may reasonably require for facilitating
the realization of the Pledged Property and for exercising all the powers, authorities and
discretion hereby conferred upon the Lender.

4. EVENTS OF DEFAULT

4.1 Event of Default:

The security hereby constituted shall become enforceable upon any breach, default or
failure of performance or observance by the Borrower of any covenant, provision or
condition contained herein or in the Note unless such breach, default or failure has
been remedied within the time period, if any, provided therefore in the Note (herein
sometimes called “Events of Default”).

4.2 Remedies:

In the event that any one or more of the Events of Default shall have occurred, the
Lender, without notice or delay:

4.2.1 may declare the entire amount of the Loan then outstanding in principal and
interest and any other amounts outstanding under the Note and this Deed of
Pledge to be immediately due and payable;

4.2.2 may revoke any and all rights granted to the Borrower under the Note and this
Deed of Pledge; and

4.2.3 shall have the right, without prejudice to any other rights and recourses which
it may have, to require the Borrower and the Nominee to deliver on demand
the Pledged Property so that the Lender may, at its sole option:
 (i) retain the Pledged Property pursuant to the laws of [State/Province] of
[STATE/PROVINCE] or;

(ii) sell it at auction, and after notice, in the manner provided by the laws of
[State/Province] of [STATE/PROVINCE]

and the Lender shall have the right to payment by preference out of the proceeds of sale, of the entire amount of the Loan then
outstanding in principal, interest and accessories and all other sums the repayment of which is secured by this Deed of Pledge, including
the costs relating to the repossession and the sale.

4.3 Waiver:

Notwithstanding the provisions of Section 4.2 hereof, the Lender shall have the right at
all times, but without prejudice to its right to subsequently invoke such a default, to
waive an Event of Default or to give the Borrower a delay within which he could remedy
such a default or to take such other actions and do such other things as the Lender
may in its discretion deem advisable or necessary in its interests or in the interests of
the Borrower.

4.4 Rights of Entry:

Should an Event of Default have occurred, the Lender may enter upon the premises
where the Pledged Property is located and take immediate possession thereof, whether
it is affixed to realty or not and remove same, the whole without the Lender incurring
any liability to the Borrower or the Nominee for or by reason of such entry or taking of
possession, whether for damages to property or otherwise. The Borrower and the
Nominee agree to give the Lender unrestricted access to the premises where the
Pledged Property is located.

5. NOTICE

5.1 All notices which shall be given by one party to another hereunder or in
connection herewith shall be deemed to have been validly given or made if sent by
registered mail or delivered by hand (in which case, delivery must be acknowledged) to the
addresses hereinafter set forth or to any other addresses of which any party hereto has given
notice to the other parties hereto in accordance with this Article 5:

5.1.1 if to the Lender:

[YOUR COMPANY NAME], [YOUR COMPLETE ADDRESS], Attn [NAME]

with a copy to:
[NAME]
[COMPANY NAME]
[FULL ADDRESS]
Attention: [NAME]

5.1.2 if to the Borrower:

[COMPLETE ADDRESS]

5.1.3 if to the Nominee:

[COMPLETE ADDRESS]

5.2 Any notice given by mail have been received and should be deemed on the
[NUMBER] business day next following the day on which the envelope containing it was
deposited in a post office or public letter box in [COUNTRY]. Any notice given by hand
should be deemed and received on the day it was delivered.

6. GENERAL PROVISIONS
 6.1 Markings:

The Borrower and the Nominee undertake that during the term hereof the Pledged Property
shall at all times have a plaque affixed thereto to the effect that same is owned by the
Borrower, and pledged in favor of the Lender pursuant to this Agreement. The plaque shall
further indicate that the Nominee is in possession of the Pledged Property solely as
nominee of the Borrower and Lender under this Agreement.

6.2 Governing Law:

This Deed and the interpretation and enforcement thereof shall be governed by and
construed in accordance with the the laws of the [State/Province] of
[STATE/PROVINCE] and the laws of [COUNTRY] applicable therein.

6.3 Severability:

Any provision of this Deed that is prohibited or unenforceable shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof.

6.4 Omission:

The omission on the part of the Lender to give notice of any Event of Default hereunder
or to avail itself of any of its rights hereunder shall not be deemed or construed to be a
waiver of any such Event of Default or rights.

6.5 Waiver:

The waiver by the Lender, following any default by the Borrower to pay any sum owing
to the Lender, or the exercise by the Lender of any right or recourse under the Note or
under any deed, instrument or document described or referred to in the Note or under
this Deed of Pledge, shall not preclude the Lender from exercising any other right or
recourse, all its rights and recourses being cumulative and not alternative.

6.6 Counterparts:

This Deed may be executed in one of more counterparts, each of which when so
executed shall be deemed to be an original and such counterparts together shall
constitute but one of the same instrument.

6.7 Business Day:

In the event that any action to be taken hereunder falls on or any delay provided
hereunder expires on a day which is not a Business Day, (a Business Day being any
day excluding Saturday, Sunday and any other day which in the [State/Province] of
[STATE/PROVINCE], [COUNTRY] is a legal holiday or on which financial institutions
are authorized by law or by legal proclamation to close), the said action shall be taken
on or the said delay shall be deemed to expire on, as the case may be, the next
succeeding Business Day.

7. EFFECTIVE DATE

The present Deed of Pledge shall take effect as and from the date hereinabove first
mentioned.

IN WITNESS WHEREOF, each party to this agreement has caused it to be executed at [PLACE OF
EXECUTION] on the date indicated above.
LENDER BORROWER

Authorized Signature Authorized Signature

Print Name and Title Print Name and Title

NOMINEE

Authorized Signature

Print Name and Title

SCHEDULE A
PROMISSORY NOTE
SCHEDULE B
PLEDGED PROPERTY
Loan application form

Name

Job title

Amount required £

Reason for the loan

Commencement date

Declaration

I have read and understood and will abide by the conditions set out in the Society’s Employee Loans
Policy, and I authorise the Egypt Exploration Society to deduct an amount in equal monthly instalments
over the period of the loan from my salary.

Signature of

applicant Date

Loan approval
Signed

Job title

Date

Finance & Business Manager notified

for payroll purposes
Loan confirmation letter template

Monday, 09 June 2014

Dear NAME

Acceptance of a Staff Loan

This letter is to confirm that the Egypt Exploration Society has accepted your application for an
interest-free loan to the amount of £x. This loan has been granted for the purpose of the
payment of DESCRIBE LOAN PURPOSE and on your agreement to the following terms and
conditions:

 That you shall repay the total loan disbursed in total by end of
<month, year>. or
 That you shall repay the total loan disbursed through deductions from your
monthly salary at
<amount> per month commencing from <month, date> salary. In this regard, you are
authorising the Society to make monthly deduction of <amount> per month over
<number> instalments until full repayment of the loan sum of £x.
 If you leave the Society’s service due to resignation or dismissal / termination you
shall repay the Society immediately any outstanding loan sum.
 It is also agreed that should the Company be forced to seek legal advice / commence
legal proceedings to enforce its rights under this agreement, the Company shall also
be entitled to claim its solicitor-client fees in addition to the sums due and owing to it
from you.
 INSERT HERE ANY ADDITIONAL CONDITIONS RELATED TO THE SPECIFIC
PURPOSE OF THE LOAN

Please sign below if you accept the above conditions.

Employee On behalf of the Society

Name Ms. Susan Royce

Job Treasurer