AUTOMATED LOANS This feature is currently only available for clients that have elected our Full Service/Bundled Recordkeeping feature.

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1 LOANS The Group Annuity Contract permits loan withdrawals to Plan Participants, without incurring a Contingent Withdrawal Charge, if otherwise applicable. Your Plan document must authorize Plan loans. At the time of loan issuance, your payroll department and/or vendor should be notified of the terms of the loan so that loan repayments will be deducted from the Participant s paycheck on accordance with the Amortization Schedule. A Plan loan can be requested by either the submission methods below: Automated/On Line Loan Request (currently only available for Full Service/Bundled plans) Participants will log onto the participant web site to request a loan online. The loan disbursement check will be mailed directly to the participant s address on record and will contain the Truth in Lending disclosures. The Plan Administrator must provide the Amortization Schedule to the participant. Paper Loan Request Form The Loan Request Form is available through the Employer Plan Administration center via the Plan Sponsor Web internet site in the Custom Forms section. The participant needs to complete the form and either mail it to the address on the form or fax it. The loan disbursement check will be mailed to the Plan Administrator. The Plan Administrator must have the participant sign the Promissory Note (for the Plan Administrator s records). The Plan Administrator must also provide the Amortization Schedule to the participant. AUTOMATED LOANS This feature is currently only available for clients that have elected our Full Service/Bundled Recordkeeping feature. For existing Full Service clients who wish to add this feature to their Plan, the Authorization to Enable Auto Loans form located in the Custom Forms section of the Plan Sponsor web site must be completed and returned either by mail or fax. Please note, if your Plan Document requires spousal consent for certain distributions, this feature cannot be elected. Through the Loan Information option on the web, Participants are provided with an estimated available loan amount, current interest rate, minimum loan amount and the maximum number of payments. PARTICIPANT STEPS: By clicking the Loan Information Option, the Participant is presented with an available loan amount. The Participant can first model the loan b completing two of three fields (loan amount, number of payments and payment amount). They can then choose to take the loan they just modeled if it meets the plan s criteria by clicking Request Loan (if the loan does not meet the plan s criteria, clicking Request Loan will automatically adjust the loan to meet the plan s criteria). Otherwise, the participant can choose to model another loan. Participant will see the loan request verification page confirming the loan request and participant s address where the check will be mailed. At this point, they can either confirm the loan or return to loan modeling. If they click Confirm Loan, they will get the loan confirmation page with a confirmation number.

2 PLAN SPONSOR/ADMINISTRATOR STEPS: To determine new loans that have been established, the Plan Sponsor/Administrator should periodically go to the Standardized Reporting link on the Plan Sponsor web site to view the Automated Loan Amortization Schedule (R06722). IMPORTANT NOTES ON AUTOMATED LOANS Loan transactions that are processed prior to 4:00 PM EST are processed that same day. If the transaction is processed after the 4:00PM EST deadline, the loan will be processed on the next business day. Unless specifically stated in your Plan Document, loans are established at the Prime Interest Rate set by the Federal Government +1%. The re-payment frequency is based on the plan s payroll frequency. The Promissory Note and Truth in Lending Disclosures are printed on the back of the check. By signing the check, the Participant agrees to the terms of the loan. (see sample attached) Automated loans are not available for mortgage loans or those that require spousal consent. The Automated Loan Amortization schedule (R06722) is available to the Plan Sponsor/Administrator through the Standardized Reporting section of the Plan Sponsor web site within 24 hours after the loan is processed. This will remain available on line for a period of 90 days. This report provides information to set up payroll deductions for the repayment of the loan. A copy must be provided to the participant and if applicable, to your payroll vendor. LOAN AMOUNT The following can be used to determine the amount a Participant can borrow from the Plan, subject to investment restrictions. You may also call a Retirement Plan Account Manager (RPAM) to find out how much can be borrowed from the Plan (provided the Plan does not have assets invested outside of the Program i.e. providing your Plan is not split-funded ). The limits explained below are mandated by law in 72(p) of the Internal Revenue Code. The loan amount is deducted from the Participant s Retirement Plan Account value. The principal portion of each payment is deducted from the Participant s outstanding loan balance. Both principal and interest portions of the payment are added to the Participant s Retirement Account value under the label Loan Payment. MINIMUM LOAN AMOUNT The minimum loan amount is $1,000. MAXIMUM LOAN AMOUNT If this is the First Loan: The maximum allowable loan amount from all qualified Plans (if the Participant has never taken a loan) will be subject to the following limits: Vested Account Balance Maximum Allowable Loan $0-$100,000 = Half of available Vested Account Balance Over $100,000 = $50,000 If this is NOT the First Loan: If the Participant has previously taken a loan from any qualified Plan and there is an outstanding balance or there was an outstanding balance within the previous twelve-month period, the maximum allowable loan amount is subject to certain limits.

3 LOAN CHARGES A loan origination fee will be deducted from the Participant s Retirement Account value at the time a loan is made (the Employer may elect to pay this fee). Refer to your Employer Disclosure Brochure for additional details. INTEREST RATES FOR LOANS Unless specifically stated by the Plan Sponsor or Plan Trustee, loans are established at the Prime Interest Rate set by the Federal Government + 1%. The rate of interest charged to a participant under a Plan loan must be reasonable, i.e. it must not be too high or too low. Revenue Ruling states that setting an unreasonably low rate of interest is a violation of Internal Revenue Code 401(a)(13) and may place the Plan in jeopardy of disqualification. Please review your Adoption Agreement or loan procedure to obtain the interest rate you elected. The United States Department of Labor has indicated that a reasonable rate of interest must be based on the average rate charged by persons and lending institutions in the area in which the Plan is located. Therefore, one way of setting a reasonable rate would be to survey the interest rates charged by lending institutions on your area for fully secured loans in the amounts requested by Participants. An alternative method, used by many Plans, is to charge a rate equal to or slightly above (one to two percentage points) the published prime-lending rate charged by a representative bank in your area. In setting the rate, keep in mind that some states have usury laws that limit the rate of interest charged under qualified Plan loans. Your legal advisor can inform you about the laws of your state. LOAN REQUEST FORM The participant and the Authorized Individual should complete their respective sections of the Loan Request Form. The Loan Request Form should be returned to the processing office either by mail or fax. It will be processed if all the information on the form is complete and the amount requested is available. If not, a call will be placed to the Plan Administrator for clarification. If the telephone calls are unanswered/unreturned, correspondence will be sent requesting clarification. The interest rate that is set on the Loan Request Form is the rate at which those assets will be earning interest during the loan period. For example, a $10,000 loan for a year at an interest rate of 10% to be repaid quarterly accumulates $ of interest. This amount represents investment gain on the $10,000 loan amount. After receipt of the check and amortization schedule, the Authorized Individual must have the Participant/borrower sign a Plan Loan Note before releasing the check. All of the information needed to complete the Plan Loan Note is found on the amortization schedule. A sample Plan Loan Note is provided below. Note: The Plan Loan Note is for your records. Please do not send a copy to AXA Equitable Plan Administrative Services. The Amortization Schedule is available to the Plan Sponsor/Administrator through the Standardized Reporting section of the Plan Sponsor web site within 24 hours after the loan is processed. This will remain available on line for a period of 90 days. This report provides information to set up payroll deductions for the repayment of the loan. A copy must be provided to the participant and if applicable, to your payroll vendor.

4 EXAMPLE OF HOW TO DETERMINE THE MAXIMUM LOAN AMOUNT Assumptions: Date of loan processing: April 8, 2006 Highest balance outstanding of all Plan loans for the period April 8, 2005 to April 7, 2006=$5,000 Current outstanding loan balance(s)= $4,000 Vested account balance (not including loan amounts)=$22,000 IRS Language Example When added to the outstanding balance of all other loans from the Plan, the loan amount cannot exceed the lesser of (1) or (2) below: 1. $50,000 minus $50,000 minus (the highest outstanding balance of loans from the Plan during the one year period ending on the day before the date on which such loan was made (the processing date) ($5,000 minus minus the outstanding balance of loans from $4,000) = the Plan on the date on which such loan was made (the processing date) $50,000 - $1,000 = $49, one-half of the vested account balance (including outstanding loan balance) ($22,000 + $4,000) / 2 = $13,000 lesser of (1) or (2) (1) $49,000 or (2) $13,000 minus current outstanding loan balance $4,000 = Amount Available To Borrow = $9,000

5 SAMPLE PROMISSORY NOTE AND TRUTH AND LENDING DISCLOSURE ON LOAN CHECK

6 SAMPLE PLAN LOAN NOTE This is the note that covers my loan with you. In this note, "I," "me" and "my" refer to the borrower and "you" and "your" refer to the Retirement Plan Account Manager of the plan "Plan." PROMISE TO PAY: For value received I agree to pay to the order of the Plan $ dollars, the "Total of Payments" according to the Payment Schedule and the other terms of this note listed below. ANNUAL PERCENTAGE RATE FINANCE CHARGE AMOUNT FINANCED TOTAL OF PAYMENTS The cost of my credit as a yearly rate. The dollar amount the credit will cost me. The amount of my credit provided to me or on my behalf. The amount I will have paid after I have made all payments as scheduled. % $ $ $ PAYMENT SCHEDULE: My payment schedule will be payments of $. (Insert total number of payments) (Insert payment amount) The first installment shall be payable on / /. - payments from my earnings from employment. PREPAYMENT: I may, at my option and without penalty, prepay all or any part of the principal and interest at any time. Any such prepayment will be credited against any such remaining installments in reverse chronological order. ITEMIZATION: the amount financed of $ is loaned directly to me. SOURCE OF AMOUNT FINANCED/LOAN PAYMENTS: In order to make my loan, I understand that I am directing a transfer of the "Amount Financed" listed above from my plan account to a separate loan fund. The amount transferred will then be given to me and will consist of all or part of my interest in one or more of the Investment Options, depending upon the option I selected in my Loan Request Form. My loan payments will be credited to the Loan Fund in my name and will be invested upon repayment according to the same instructions used upon making of the loan, unless I elected on my Loan Request Form to allocate all payments to the Guaranteed Interest Account and provided that the Guaranteed Interest Account is offered under the Employer's plan. DEFAULT: In the event of default in the full and timely payment of any amount of principal or interest coming due hereunder, the entire principal sum plus accrued interest shall immediately become due and payable, with or without notice or demand by you. SECURITY: I am giving the Plan a security interest in my balance in the Loan Fund in exchange for this loan. If I default and the loan becomes payable, the Plan will become entitled to my balance in the Loan Fund. This agreement is governed by (Insert State) law. I have read this note and received a completed copy. I understand that it contains all my rights and responsibilities. The note cannot be changed without your written consent. Signature of Participant (Borrower) Date

7 LOAN REPAYMENTS Payments should be submitted along with your payroll contributions. Please see Contribution Submissions to add loan repayments. If a Participant wants to repay the loan in full, you can request the payoff amount by calling a Retirement Plan Account Manager. The payoff amount is only valid for a limited number of days. If a final loan payoff amount is being submitted separately, then it must be labeled as a loan payoff with the Plan s contract identification number and the Participants Social Security number. On a quarterly basis, loan repayments will be reflected on the Participant s Quarterly Transaction Report if a detailed Statement is selected which is an additional cost. Status of the loan is shown on these reports and Statements of Retirement Account until the loan is paid in full. Loan payments will be allocated to the Investment Options in accordance with the current investment allocation percentages we have on file the date the loan payment is received. NOTE: AXA Equitable does not accept Participant personal checks for a loan payoff. The only acceptable form of payment is either a certified check or money order. LOAN DEFAULTS Effective August 2, 2010, AXA implemented Auto Deem for all loans which fail to adhere to the default process below. Any loans established after this date, will be systematically deemed and will produce an IRS Form 1099 for that tax year. Failure to make any installment payment when due in accordance with the terms of the loan, violates the level amortization requirement under Code Section 72(p)(2)(c). If a Participant defaults on a loan, generally no other loan will be granted to that Participant. If a loan is in default it will automatically be deemed and will produce a 1099R at year-end in the amount of the unpaid loan balance. AXA Equitable adheres to the IRS Rules regarding Default Loans. This means that a loan is in default if not cured by the Cure Period End Date which is defined as: The last day of the calendar quarter following the quarter in which the payment was due. i.e. Loan payment with an expected due date of January 15 is not made Cure Period end date is June 30 If the loan is not paid up to date, the loan will be defaulted on July 1 and will become a deemed, taxable distribution to the participant. The Past Due Loans Report (R09117) and the Loan Status Detail (R02829) report are available under the Standardized Reporting section on the Plan Sponsor web site monthly. These reports remain available for a period of 90 days. The Plan Sponsor/Administrator should review these monthly so as ensure participants are current on their loans and will not be facing a taxable distribution. SAMPLE AMORTIZATION SCHEDULE The next page contains a sample Amortization Schedule that is available on the Standardized Reporting link on the Plan Sponsor web site.

8 REPORT NUMBER: R06066 LOAN AMORTIZATION SCHEDULE PAGE: 1 SOURCE PROGRAM: B15680 SUPER SHEET DATE: 10/21/2011 JOB: DRDTR784 CURRENT DATE: 10/22/2011 TIME: 00:53:35 INVESTMENT COMPANY UNIT ID: NAME: AXA EQUITABLE PLAN ID: NAME: TEST 401K PLAN JOHN T. SMITH MAIN STREET SOMWHERE ME LOAN NUMBER... 1 AMOUNT FINANCED.. 1, ANNUAL % RATE TOTAL PAYMENTS... 1, FINANCE CHARGE PAYMENT FREQUENCY... WEEKLY TOTAL PAYMENTS REMAINING PAYMENT DUE BEGINNING PAYMENT PRINCIPAL INTEREST REMAINING NUMBER DATE BALANCE AMOUNT AMOUNT AMOUNT BALANCE , , , , , , , , , , , , , , , , ,