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12 . Loan Interest Rate. The interest rates for a Plan _loan shall commensurate with interest rates being charged by entities in the business of lending money under similar circumstances. Generally, the rate assumed will be Prime Rate + 1 . 00%* . The Prime Rate shall be the prime rate published by the Wall Street Journal two weeks prior to the end of the most recent calendar-year quarter. NRS may adjust the loan interest rate for participants entering active duty in the military services as may be required by law. 13. Annual Loan Maintenance and Asset Fees. An annual loan maintenance fee of $50. 00* will also be deducted from the participant's account until the loan is repaid in full . The amount of the outstanding loan balance will be subject to the maximum asset fee , administrative charge or such other fees NRS is entitled to receive under its separate agreement with the Sponsor. 14. Loan Default Fee. At the time when a default occurs, a $50 . 00* loan default fee will be deducted from the participant's account. This charge will only affect participants who fail to make a required loan payment. 15 . Loans for the Purchase of a Principal Residence. All loans issued by the Plan will be general loans to be repaid in five (5) years unless the Sponsor affirmatively elects to offer loans for the purchase of the participant's principal residence , which may be repaid in fifteen ( 15) years. Such loans shall be solely secured by the participant's vested account balance . All administrative procedures set forth herein shall apply to such loans. If the Plan Sponsor elects to permit loans for the purchase of the Participant' s principal residence , please check this box. ❑ 16 . Loan Correction . In the event an error occurs in the administration of the loan , NRS may undertake correction of the error in accordance with methods proscribed by the IRS or through any IRS correction program . The undersigned Sponsor hereby adopts these Participant Loan Administrative Procedures , effective for loans issued on or after the effective date set forth below, and instructs NRS to administer loans made to Plan participants in accordance with these terms. The Sponsor acknowledges the following : (i) that the Sponsor has decided to offer loans under the Plan and is instructing NRS to administer loans under the Plan ; (ii) that it understands that, as a result of offering loans under the Plan , the Plan participants could be subject to adverse tax consequences upon default of the loan ; (iii) that the Sponsor has independently weighed these risks, and despite the risks has determined that offering loans under the Plan is in the best interest of Plan participants ; and (iv) NRS shall not be liable for any adverse tax consequences described in (ii) , except as specifically stated under paragraph 10 herein , resulting from the Plan Sponsor's decision to offer loans under the Plan . Plan Sponsor ("Sponsor") : Indian River County BOCC APPROVED AS TO FORM Street Address : 1801 27th Street AND LEGAL S ICIENCY BY 627Af City, State, Zip Code: Vero Beach , FL 32960 ALAN P. P CH Plan Name (" Plan") : Indian River County BOCC — COUNTYATTORNEY Entity No . : 0036758001 Effective Date: starch 12 , 2013 * These fees, rates, and minimums are subject to change by NRS upon reasonable notice to the Plan Sponsor. Loan fees will appear as administrative charges on Participant Statements. NRN4445A0- 1011 i