The commitment agreement of July 1, 1999 mortgaged the shares of the plan in Class A common shares as a guarantee of DasLoan. The agreement also specified that the mortgaged shares will be released from the account in a suspenseful way according to the method of principle and interest rates. Plan also requires that shares be released on a principled and interest rate basis, or “if the requirements of the Reg. 54.4975-7 (b) (ii) are completed, only Main payments. In addition, the plan provides that the share commitments financed “must provide for the release of the shares thus mortgaged on the basis of capital and interest paid by the agent for the acquisition loan.” The current legislation concerns the state in which the agreement is concluded and the agreement should be in accordance with those laws. Sanctions for default should be clearly mentioned. It is a tripartite agreement between a lender, a borrower and an agent. It is the agent`s responsibility to ensure that the loan is repaid on time. The lender is the business, the borrower is the employee and the agent is a bank or financial institution. Staff stock options are reinstated as soon as the loan has been fully paid by the employee with interest. An ESOP loan and pawning contract is required when an employee needs a loan and wishes to mortgage the stock options they exercise. The purpose of the ESOP Loan and Pledge Agreement is to ensure that the employee uses the stock options granted to him by the company as collateral against a loan. The employee is able to easily get a loan because the lender is the business and is not obliged to sell the stock options. The ESOP loan agreement must set the effective date of the agreement, the percentage of the underpaid shares, the principal, interest, the term of the loan, the effective interest rate of the loan, the collateral, the donor`s guarantees and guarantees, the eligible guarantees, the delivery, the default, the absence of exemption, the absence of exemption, the binding effect, the transfer or the , communications, guarantees, guarantees, complete insolvency, , no exemption, binding effect, no transfer or transfer, , use of the proceeds of the loan, compensation, interpretation, construction clauses and advance.

Therefore, since an ESOP loan and pledge agreement is a tripartite agreement between lenders, borrowers and trustees, it is important that their names and relationships are clearly mentioned. TAM concluded that the loan did not meet the conditions of the general rule or the special rule. The general rule requires the release of shares using a method of principle and interest rates, but DOL found that the principle method was used only to calculate the release of shares from `99 to 2004.