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03/24/95 EXHIBIT 10.40
BASIC PLAN DOCUMENT # 05
PLAN # 002
IRS LETTER SERIAL NO.: D363689a
PRISM(R) PROTOTYPE RETIREMENT PLAN & TRUST
SECTION 401(k) PROFIT SHARING PLAN
(NONSTANDARDIZED)
ADOPTION AGREEMENT(1)
The Employer(2), designated below, hereby establishes a profit-sharing plan
(optionally including a cash or deferred arrangement (as defined in Section
401(k) of the Internal Revenue Code)) for all Eligible Employees as defined in
this Adoption Agreement pursuant to the terms of the PRISM(R) PROTOTYPE
RETIREMENT PLAN & TRUST BASIC PLAN DOCUMENT # 05.
A. EMPLOYER INFORMATION:
1. NAME: K T I , Inc.
2. ADDRESS: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
3. ADDRESS: Guttenberg, NJ 07093
4. ATTENTION: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ TELEPHONE: ▇▇▇-▇▇▇-▇▇▇▇
5. EMPLOYER TAXPAYER IDENTIFICATION NUMBER(3): ▇▇-▇▇▇▇▇▇▇
B. BASIC PLAN PROVISIONS:
1. PLAN NAME (SELECT ONE):
a. [ ] This plan is established effective _____, 19__,
(the "Effective Date") as a profit sharing plan
and trust (optionally with a "cash or deferred
arrangement" as defined in Code Section 401(k)) to
be known as _____ Plan and Trust (the "Plan") in
the form of the PRISM(R) PROTOTYPE RETIREMENT PLAN
& TRUST.
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(1) Footnotes in this Adoption Agreement are not to be construed as part of
the Plan provisions but are explanatory only. To the extent a footnote is
inconsistent with the provisions of the Basic Plan Document or applicable
law, the provisions of the Plan shall be construed in conformity with the
Basic Plan Document or law.
(2) Terms that are capitalized are defined in the PRISM(R) PROTOTYPE
RETIREMENT PLAN & TRUST BASIC PLAN DOCUMENT.
(3) The Plan will have an individual TIN, distinct from the Employer TIN.
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b. [X]This plan is an amendment and restatement in the
form of the PRISM(R) PROTOTYPE RETIREMENT PLAN & TRUST,
effective January 1, 1997, (the "Effective Date") of the
K T I 401(k) Savings & Investment Plan Plan and Trust
(the "Plan"), originally effective as of January 1, 1987
(the "Original Effective Date").
2. EMPLOYER'S THREE DIGIT PLAN NUMBER: 002
3. COMMITTEE MEMBERS(4):
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
4. DEFINITIONS:
a. COMPENSATION for allocation purposes:
i Will be determined over the following applicable period
(select only one):
(a)[X]the Plan Year
(b)[ ]the period of Plan participation during the
Plan Year
(c)[ ]a consecutive 12 month period commencing on
_________________and ending with, or within, the
Plan Year.
ii [ ]If selected, Compensation will include Employer
contributions made pursuant to a Salary Reduction
Agreement, or other arrangement, which are not
includible in the gross income of the Employee under
Sections 125, 402(e)(3), 402(h)(1)(B) Or 403(b)
of the Internal Revenue Code.
iii Shall NOT include (select as many as desired):
(a)[X]Bonuses
(b)[ ]Commissions
(c)[X]Taxable fringe benefits identified below:
Car allowances
(d)[ ]Other items of remuneration identified below:
_____________________
iv Shall be limited to $____, which shall be the maximum
amount of compensation considered for plan allocation
purposes (but not for testing purposes), and may not be
an amount in excess of the Internal
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(4) Committee members direct the day to day operation of the Plan. Committee
members serve at the pleasure of the Employer. See Section 11.4 for
changes in Committee membership. If no Committee members are specified,
the Employer shall assume responsibility for the operations of the Plan.
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Revenue Code Section 401(a)(17) limit in effect for the
Plan Year(5). If no amount is specified, Compensation
shall be limited to the Internal Revenue Code Section
401(a)(17) amount, as adjusted by the Secretary of the
Treasury from time to time.
b. EARLY RETIREMENT DATE:
i [ ] is not applicable to this Plan
ii [X] is the latter of the date on which the
Participant attains age 55 (not less than 55) and
the date on which the Participant completes 10
Years of Service.
c. HOUR OF SERVICE shall be determined on the basis of the method
selected below. Only one method may be selected. The method
shall be applied to all Employees covered under the Plan as
follows (select only one):
i [X] On the basis of actual hours for which an
Employee is paid, or entitled to be paid.
ii [ ] On the basis of days worked. An Employee shall be
credited with ten (10) Hours of Service if under
Section 1.1(U) of the Plan such Employee would be
credited with at least one (1) Hour of Service
during the day.
iii [ ] On the basis of weeks worked. An Employee shall be
credited with forty-five (45) Hours of Service if
under Section 1.1(U) of the Plan such Employee
would be credited with at least one (1) Hour of
Service during the week.
iv [ ] On the basis of semi-monthly payroll periods. An
Employee shall be credited with ninety-five (95)
Hours of Service if under Section 1.1(U) of the
Plan such Employee would be credited with at least
one (1) Hour of Service during the semi-monthly
payroll period.
v [ ] On the basis of months worked. An Employee shall
be credited with one hundred ninety (190) Hours of
Service if under Section 1.1(U) of the Plan such
Employee would be credited with at least one (1)
Hour of Service during the month.
d. LIMITATION YEAR shall mean the 12 month period commencing
on January 1 and ending on December 31.
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(5) If no amount is specified, the maximum amount of Compensation allowed under
Code Section 401(a)(17) (THE "$150,000 limit" ("$200,000 limit" prior to
the Plan Year beginning before January 1, 1994)), as adjusted from time to
time, shall be used.
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e. NORMAL RETIREMENT DATE for each Participant shall mean
(select one):
i [X] the date the Participant attains age: 65 (not
to exceed 65)
ii [ ] the latter of the date the Participant attains
age (not to exceed 65) or the (not to exceed
5th) anniversary of the participation
commencement date. If for the Plan Years
beginning before January 1, 1988, Normal
Retirement Date was determined with reference
to the anniversary of the participation
commencement date (more than 5 but not to
exceed 10 years), the anniversary date for
Participants who first commenced participation
under the Plan before the first Plan Year
beginning on or after January 1, 1988 shall be
the earlier of (A) the tenth anniversary of the
date the Participant commenced participation in
the Plan (or such anniversary as had been
elected by the employer, if less than 10) or
(B) the fifth anniversary of the first day of
the first Plan Year beginning on or after
January 1, 1988. Notwithstanding any other
provisions of the Plan, the participant
commencement date is the first day of the first
Plan Year in which the Participant commenced
participation in the Plan.
f. PERMITTED DISPARITY LEVEL, for purposes of allocating
Employer Contributions, shall mean (select only one):
i [X] Not applicable - the Plan does not use
permitted disparity.
ii [ ] The Taxable Wage Base, which is the contribution
and benefit base under section 230 of the Social
Security Act at the beginning of the year.
iii [ ] _______% (not greater than 100%) of the Taxable
Wage Base as defined in B(4)(f)(ii) above.
iv [ ] $______, provided that the amount does not exceed
the Taxable Wage Base as defined in B(4)(f)(ii)
above.
g. PLAN YEAR shall mean (select and complete only one of the
following):
i [X] the 12-consecutive month period which coincides
with the Limitation Year. The first Plan Year
shall be the period commencing on the Effective
Date and ending on the last day of the Limitation
Year.
ii [ ] the 12-consecutive month period commencing on
, 19 , and each annual anniversary
thereof.
iii [ ] the calendar year (January 1 through December 31).
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h. QUALIFIED DISTRIBUTION DATE, for purposes of making
distributions under the provisions of a Qualified Domestic
Relations Order (as defined in Internal Revenue Code Section
414(p)), [X] SHALL [ ] SHALL NOT be the date the order is
determined to be qualified. If SHALL is selected, the
Alternate Payee will be entitled to an immediate
distribution of benefits as directed by the Qualified
Domestic Relations Order. If SHALL NOT is selected, the
Alternate Payee may only take a distribution on the
earliest date that the Participant is entitled to a
distribution.
i. SPOUSE:
[ ] If selected, Spouse shall mean only that person who
has actually been the Participant's spouse for at
least one year.
j. YEAR OF SERVICE shall mean:
i For ELIGIBILITY purposes (select one of the following):
(a) [X] the 12 consecutive months during which an
Employee is credited with 1000 (not more than
1000) Hours of Service.
(b) [ ] a Period of Service (using the elapsed
time method of counting Service, as
described in Section 1.1(N)(3) of the Plan).
ii For ALLOCATION accrual purposes (select one of the
following):
(a) [X] the 12 consecutive months during which an
Employee is credited with 1000 (not more than
1000) Hours of Service.
(b) [ ] a Period of Service (using the elapsed time
method of counting Service, as described in
Section 1.1(N)(3) of the Plan).
iii For VESTING service purposes (select one of the
following):
(a) [X] the 12 consecutive months during which an
Employee is credited with 1000 (not more than
1000) Hours of Service.
(b) [ ] a Period of Service (using the elapsed time
method of counting Service, as described in
Section 1.1(N)(3) of the Plan).
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iv For purpose of computing Years of Service in plans where
Year of Service is defined in terms of Hours of Service),
the consecutive 12 month period shall be:
(a)For ELIGIBILITY purposes, the first Year of Service
shall be computed using the 12 month period commencing
on the Employee's date of hire and ending on the first
annual anniversary of the Employee's date of hire (the
"Initial Computation Period"). In the event an employee
does not complete an eligibility Year of Service during
this initial computation period, the computation period
shall be (select only one):
(1) [ ] the period commencing on each annual
anniversary of the Employee's date of hire
and ending on the next annual anniversary of
the Employee's date of hire.
(2) [X] the Plan Year, commencing with the Plan Year
in which the Initial Computation Period
ends.
(b)For VESTING purposes, Years of Service shall be computed
on the basis of:
(1) [ ] the period commencing on each annual
anniversary of the Employee's date of hire
and ending on the next annual anniversary of
the Employee's date of hire.
(2) [X] the Plan Year, commencing with the first
Plan Year an Employee completes an Hour of
Service.
(c)For ALLOCATION accrual purposes, Year of Service shall
be computed on the basis of the Plan Year.
v [X] For ELIGIBILITY purposes, Years of Service with
the following Predecessor Employers shall count
in fulfilling the eligibility requirements for
this Plan:
K T I Holdings, Inc.
vi [ ] For VESTING purposes, Years of Service with the
following Predecessor Employers shall count for
purposes of determining the nonforfeitable amount
of a Participant's account:
K T I Holdings, Inc.
5. COVERAGE:
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This Plan is extended by the Employer to the following Employees who
have met the eligibility requirements (select as many as
appropriate):
i [ ] All Employees
ii [ ] Salaried Employees
iii [ ] Sales Employees
iv [ ] Hourly Employees
v [ ] Leased Employees
vi [X] All Employees except (select as applicable):
(a) [X] those who are members of a unit of
Employees covered by a collective
bargaining agreement between the Employer
and Employee representatives, if
retirement benefits were the subject of
good faith bargaining and if two percent
or less of the Employees who are covered
pursuant to that agreement are
professionals as defined in Section
1.410(b)-9 of the Regulations. For this
purpose, the term "Employee
representative" does not include any
organization more than half of whose
members are Employees who are owners,
officers, or executives of the Employer.
(b) [X] those who are nonresident aliens (within
the meaning of Internal Revenue Code
Section 7701(b)(1)(B)) and who receive no
earned income (within the meaning of
Internal Revenue Code Section 911(d)(2))
from the Employer which constitutes
income from sources within the United
States (within the meaning of Internal
Revenue Code Section 861(a)(3)).
vii [ ] Union Employees (who are members of the following
unions or union affiliates:
viii [ ] Other Employees, described as follows:
6. ELIGIBILITY:
An Employee covered by the Plan may become a Participant upon
completion of the following eligibility requirements:
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a. SERVICE(6):
i [ ] There shall be no minimum service requirement
for an Employee to become a Participant.
ii [X] The Employee must complete 1 year of Service (not
more than 2 years) to be a Participant for
purposes of receiving allocations of Employer
Profit Sharing Contributions.
b. AGE:
i [ ] There shall be no minimum age requirement for
an Employee to become a Participant.
ii [X] The Employee must attain age 21 (not more than
21) to be a Participant in the Plan.
c. WAIVER OF AGE AND SERVICE REQUIREMENTS:
i [ ] Notwithstanding the provisions of Items B(6)(a)
and (b), Employees who have not satisfied the age
and service requirements, but would otherwise be
eligible to participate in the plan, shall be
eligible to participate on the Effective Date.
ii [ ] For new Plans, notwithstanding the provisions of
Items B(6)(a) and (b), Employees who have not
satisfied the age and service requirements, but
would otherwise be eligible to participate in the
plan, shall be eligible to participate on the
Effective Date.
d. ENTRY DATES:
Upon completion of the eligibility requirements, an Employee
shall commence participation in the Plan (select only one):
i [ ] As soon as practicable under the payroll practices
utilized by the Employer, and consistently applied
to all Employees, or if earlier, the first day of
the Plan Year(7).
ii [ ] As of the first day of the month following the
completion of the eligibility requirements.
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6 If a fractional year is elected, the elapsed time method of computing
service shall be used for the fractional year. Eligibility provisions for
optional cash or deferred arrangements are contained in Item C of this
Adoption Agreement.
7 Notwithstanding the foregoing, an Employee who has met the eligibility
requirements may not enter the Plan later than six months following the
date on which the Employee first completes the eligibility requirements.
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iii [X] As of the earliest of the first day of the Plan
Year, fourth, seventh or tenth month of the Plan
Year next following completion of the eligibility
requirements.
iv [ ] As of the earliest of the first day of the Plan
Year or seventh month of the Plan Year next
following completion of the eligibility
requirements.
v [ ] As of the first day of the Plan Year next
following completion of the eligibility
requirements (may only be selected if the
eligibility year of service requirement is 6
months or less).
7. VESTING:
a. The percentage of a Participant's Employer Contribution
Account (attributable to Employer Profit Sharing
Contributions) to be vested in him or her upon termination of
employment prior to attainment of the Plan's Normal Retirement
Date shall be(8):
COMPLETED YEARS OF SERVICE
1 2 3 4 5 6 7
--- --- --- --- --- --- ---
i [ ] 100%
--- ---
ii [ ] 100%
--- --- ---
iii [ ] 20% 40% 60% 80% 100%
--- --- --- --- --- ---
iv [ ] 20% 40% 60% 80% 100%
--- --- --- --- --- --- ---
v [ ] 10% 20% 30% 40% 60% 80% 100%
--- --- --- --- --- --- ---
vi [X] 20% 40% 60% 80% 100%
--- --- --- --- --- --- ---
vii [ ] 100%
--- --- --- --- --- --- ---
vii [ ] Full and immediate vesting upon entry into the Plan(9)
Notwithstanding anything to the contrary in the Plan,
the amount inserted in the blanks above shall not exceed
the limits specified in Code Section 411(a)(2).
b. For purposes of computing a Participant's vested account
balance. Years of Service for vesting purposes [X] SHALL [ ]
SHALL NOT include Years of Service before the Employer
maintained this Plan or any predecessor plan, and [ ] SHALL
[X] SHALL NOT include Years of Service before the Employee
attained age 18.
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8 Notwithstanding the selection made in this Item B(7)(a), a Participant
shall be fully vested in his or her Employer Contribution Accounts if the
Participant dies or becomes Disabled while in the employ of the Employer.
9 If more than one Year of Service is an eligibility requirement, Item viii
must be selected.
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c. Notwithstanding the provisions of this Item B(7)(c) of the
Adoption Agreement, a Participant shall become fully vested
in his Participant's Employer Contribution if:(10)
i [ ] the Participant's job is eliminated without the
Participant being offered a comparable position
elsewhere with the Employer.
ii [ ] for such reason as is described below:
8. EMPLOYER PROFIT SHARING CONTRIBUTIONS:
a. CONTRIBUTIONS:
i [X] In its discretion, the Employer may contribute
Employer Profit Sharing Contributions to the
Plan.
ii [ ] The Employer shall contribute Employer Profit
Sharing Contributions to the Plan in the amount of
% of the Compensation of all Eligible
Participants
under the Plan.
iii [X] If selected, the Employer may make Employer Profit
Sharing Contributions without regard to current or
accumulated Net Profits of the Employer for the
taxable year ending with, or within the Plan Year.
iv [ ] If selected, the Employer may designate all or
any part of the Employer Profit Sharing
Contributions as Qualified Nonelective
Contributions, provided, however, that
contributions so designated will be subject to
the same vesting, distribution, and withdrawal
restrictions as Before Tax Contributions(11).
b. ALLOCATIONS:
Employer Profit Sharing Contributions shall be allocated to
the accounts of eligible Participants according to the
following selected allocation formula:
i [ ] The Employer Profit Sharing Contributions shall be
allocated to each eligible Participant's account
in the ratio which the Participant's Compensation
bears to the Compensation of all eligible
Participants. Employer Profit Sharing Plan
Contributions, shall be allocated to the accounts
of
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10 The provisions of this section will be administered by the Employer on a
consistent and nondiscriminatory basis.
11 Amounts designated as Qualified Nonelective Contributions will be
allocated pursuant to Section 3.1(A)(14) of the Basic Plan Document.
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Participants who have completed a Year of
Service(12) (select one):
(a) [ ] as of the last day of the month
preceding the month in which the
contribution was made.
(b) [ ] as of the last day of the Plan quarter
preceding the quarter in which the
contribution was made.
(c) [X] as of the last day of the Plan Year.
ii [ ] The Employer Profit Sharing Contributions shall
be allocated in accordance with the following
formula:
(a)If the Plan is Top-Heavy, the contribution
shall be first credited to each eligible
Participant's Account in the ratio which the
Participant's Compensation bears to the total
Compensation of all eligible Participants, up
to 3% of each Participant's Compensation.
(b)If the Plan is Top-Heavy, any Employer Profit
Sharing Contribution remaining after the
allocation in (a) above shall be credited to
each eligible Participant's account in the
ratio which the Participant's Excess
Compensation(13) bears to the total Excess
Compensation of all eligible Participants, up
to 3% of each eligible Participant's Excess
Compensation.
(c)Any contributions remaining after the
allocation in (b) above shall be credited to
each eligible Participant's account in the
ratio which the sum of the Participant's total
Compensation and Excess Compensation bears to
the sum of the total Compensation and Excess
Compensation of all eligible Participants, up
to an amount equal to the maximum Excess
Percentage times the sum of the Participant's
Compensation and Excess Compensation. If the
Plan is Top-Heavy, the maximum Excess
Percentage is N/A% (insert percentage). If the
Plan is not Top-Heavy, the maximum Excess
Percentage is N/A% (insert percentage, which
shall not exceed the prior Excess Percentage
limitation specified by more than 3).
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12 In the event contributions are allocated on a basis other than a full plan
year, the Year of Service shall be based on the elapsed time method of
calculation, and a Participant shall be deemed to have completed an
appropriate Period of Service for allocation purposes if the Participant
has completed a pro-rata Period of Service corresponding to the interval
on which contributions are allocated.
13 Excess Compensation means a Participant's Compensation in excess of the
Permitted Disparity Level specified in the Definitions section of this
Adoption Agreement.
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NOTE: If the Permitted Disparity Level defined at
Item B(4)(f) is the Taxable Wage Base (which
is the contribution and benefit base under
section 230 of the Social Security Act at
the beginning of the year), then the maximum
Excess Percentage should be 2.7% if the Plan
is Top-Heavy and 5.7% if the Plan is not
Top-Heavy.
If the Permitted Disparity Level defined at
Item B(4)(f) is greater than 80% but less than
100% of the Taxable Wage Base, then the maximum
Excess Percentage should be 2.4% if the Plan is
Top-Heavy and 5.4% if the Plan is not
Top-Heavy.
If the Permitted Disparity Level defined at
Item B(4)(f) is greater than the greater of
$10,000 or 20% of the Taxable Wage Base, but
not more than 80%, then the maximum Excess
Percentage should be 1.3% if the Plan is
Top-Heavy and 4.3% if the Plan is not
Top-Heavy.
(d)Any remaining Employer Profit Sharing
Contribution shall be allocated among eligible
Participants' accounts in the ratio which the
Participant's Compensation bears to the total
Compensation of all Participants.
iii [X] If selected, and the Employer has elected to
allocate Employer Profit Sharing Plan
Contributions as of the last day of the Plan Year,
a Participant must be employed by the Employer on
the last day of the Plan Year in order to receive
an allocation(14).
iv [X] A Participant who terminates before the end of
the period for which contributions are
allocated shall share in the allocation of
Employer Profit Sharing Contributions if
termination of employment was the result of
(select all that apply):
(a) [X] retirement
(b) [X] disability
(c) [X] death
(d) [ ] other, as specified below:
9. ROLLOVER & TRANSFER CONTRIBUTIONS (SELECT ONE):
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14 This option shall only be effective if Item 8(b)(i)(c) has been selected.
Even if this Item is selected, the provisions of Section 4.8 of the Basic
Plan Document may supersede this requirement if necessary to satisfy Code
Sections 401(a)(26) and 410(b).
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a. [X] Subject to policies, applied in a consistent and
nondiscriminatory manner, adopted by the Committee, each
Employee, who would otherwise be eligible to participate
in the Plan except that such Employee has not yet met
the eligibility requirements, and each Participant may
make a Rollover Contribution as described in Internal
Revenue Code Sections 402(a)(5), 403(a)(4) or
408(d)(3).
b. [ ] Subject to policies, applied in a consistent and
nondiscriminatory manner, adopted by the Committee, each
Participant may make a Rollover Contribution as
described in Internal Revenue Code Sections
402(a)(5), 403(a)(4) or 408(d)(3).
c. [ ] No Employee shall make Rollover Contributions to the
Plan.
10. DISTRIBUTIONS:
a. DISTRIBUTIONS UPON SEPARATION FROM SERVICE:
The Normal Form of Benefit under the Plan shall be a single
lump sum distribution, made [X] (if selected) as soon as
administratively practical after receipt of a distribution
request from a Participant entitled to a distribution or [ ]
(if selected) upon the Participant's attainment of the Plan's
Early Retirement Date or the Plan's Normal Retirement Date,
whichever is earlier.
In addition to the Normal Form of Benefit, the Participant
shall be entitled to select from among the following optional
forms of benefit specified by the employer (select as many as
apply):
i [X] Installment payments
ii [ ] Such other forms as may be specified below:
b. IN-SERVICE DISTRIBUTIONS (SELECT AS MAY BE APPROPRIATE):
i [X] There shall be no in-service distribution of
Participant account balances derived from Employer
Profit Sharing Contributions.
ii [ ] Participants may request an in-service
distribution of their account balance attributable
to Employer Profit Sharing Contributions, for the
following reasons:
(a) [ ] For purposes of satisfying a financial
hardship, as determined in accordance
with the uniform nondiscriminatory
policy of the Committee;
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(b) [ ] Attainment of age 59-1/2 by the
Participant; or
(c) [ ] Attainment of the Plan's Normal
Retirement Date by the Participant.
11. FORFEITURES:
a. Forfeitures of amounts attributable to Employer Profit
Sharing Contributions shall be reallocated as of:
i [ ] the last day of the Plan Year in which the
Forfeiture occurred.
ii [X] the last day of the Plan Year following the
Plan Year in which the Forfeiture occurred.
iii [ ] the last day of the Plan Year in which the
Participant suffering the Forfeiture has incurred
five consecutive One Year Breaks in Service.
b. Forfeitures of Employer Profit Sharing Contributions shall
be reallocated as follows:
i [ ] Not applicable as Employer Profit Sharing
Contributions are always 100% vested and
nonforfeitable.
ii [ ] Used first to pay the expenses of administering
the Plan, and then allocated pursuant to one of
the following two options(15):
iii [ ] Forfeitures shall be allocated to Participant's
accounts in the same manner as Employer Profit
Sharing Contributions, Employer Matching
Contributions, Qualified Nonelective Contributions
or Qualified Matching Contributions, in the
discretion of the Employer, for the year in which
the Forfeiture arose.
iv [X] Forfeitures shall be applied to reduce the
Employer Profit Sharing Contributions, Employer
Matching Contributions, Qualified Nonelective
Contributions or Qualified Matching
Contributions, in the discretion of the
Employer, for the Plan Year following the Plan
Year in which the Forfeiture arose.
12. LIMITATIONS ON ALLOCATIONS:
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15 If this option is selected, iii or iv must be selected to reallocate
Forfeitures of Employer Profit Sharing Contributions remaining after
expenses of administering the Plan have been paid.
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If the Employer maintains or ever maintained another qualified
retirement plan in which any Participant in this Plan is (or was) a
participant, or could possibly become a participant, the Employer
must complete the following:
a. If the Participant is covered under another qualified defined
contribution plan maintained by the Employer other than a
Master or Prototype Plan:
i [ ] The provisions of this Plan shall apply as if
the other plan were a Master or Prototype plan;
or,
ii [ ] The following provisions will be effective to
limit the total Annual Additions to the Maximum
Permissible Amount, and will properly reduce any
Excess Amounts, in a manner that precludes
Employer discretion:
b. If the Participant is or ever has been a participant in a
qualified defined benefit plan maintained by the Employer, the
following provisions will be effective to satisfy the 1.0
limitation of Internal Revenue Code Section 415(e), in a
manner that precludes Employer discretion:
13. INTERNAL REVENUE CODE SECTION 411(d)(6) PROTECTED BENEFITS:
[ ] If selected, the Plan has Internal Revenue Code Section
411(d)(6) Protected Benefits from a prior plan that this Plan
amends, that must be protected.
14. TOP-HEAVY PLAN PROVISIONS:
For each Plan Year in which the Plan is a Top-Heavy Plan the
following provisions will apply:
a. The percentage of a Participant's Employer Contribution
Account to be vested in him upon termination of employment
prior to retirement shall be:
i [ ] a percentage determined in accordance with the
following schedule:
YEARS OF SERVICE PERCENTAGE
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Less than two 0
Two but less than three 20
Three but less than four 40
Four but less than five 60
Five but less than six 80
Six or more 100;
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ii [ ] 100% vesting after (not to exceed 3) Years of
Service; provided, however, that Years of
Service may not exceed two (2) if the service
requirement for eligibility exceeds 1 year; or
iii [X] computed in accordance with the vesting schedule
selected by the Employer in Items B(7)(a) or
C(4)(d), as long as the benefits under the vesting
schedule in Items B(7)(a) or C(4)(d) vest at least
as rapidly as the two options specified in this
Item B(14)(a), above.
If the vesting schedule under the Plan shifts in or out of the
schedules above for any Plan Year because of the Plan's
Top-Heavy status, such shift is an amendment to the vesting
schedule and the election in Section 2.2 of the Basic Plan
Document applies.
b. For purposes of minimum Top-Heavy allocations, contributions
and forfeitures equal to 3.0% (not less than 3%) of each
Non-key Employee's Compensation will be allocated to each
Participant's Contribution Account when the Plan is a
Top-Heavy Plan, except as otherwise provided in the Basic Plan
Document. This Item 14 will not apply to any Participant to
the extent the Participant is covered under any other plan or
plans of the Employer and the Employer completes the
following: (Insert the name of the plan or plans which will
meet the minimum allocation or benefit requirement applicable
to Top-Heavy plans.)
c. The Valuation Date as of which account balances or accrued
benefits are valued for purposes of computing the Top-Heavy
Ratio shall be the last day of each Plan Year.
d. If the Employer maintains or has ever maintained one or more
defined benefit plans which have covered or could cover a
Participant in this Plan, complete the following:
Present Value: For purposes of establishing Present Value to
compute the Top-Heavy Ratio, any benefit shall be discounted
only for mortality and interest based on the following:
Interest rate ______% Mortality table _____
15. INVESTMENTS:
a. Investments made pursuant to the investment direction
provisions of the Basic Plan Document shall be made into any
appropriate Investment Fund as selected by the Employer. In
addition, investment of Plan assets is expressly authorized,
as required by Revenue Ruling 81-100, in each of the
PAGE 16
17
following common or collective funds sponsored by the Trustee,
or an affiliate of the Trustee(16):
SOCIETY NATIONAL BANK EB MANAGED GUARANTEED INCOME
CONTRACT FUND, THE SOCIETY NATIONAL BANK MULTIPLE
INVESTMENT TRUST FOR EMPLOYEE BENEFIT TRUSTS, AND OTHER
COLLECTIVE TRUSTS EXEMPT FROM TAX UNDER IRC SECTION 501
AND AS DESCRIBED IN REV. RUL. 81-100.
b. [X] If selected, an Employer Stock Fund shall be available
as an Investment Fund pursuant to the terms of the Basic
Plan Document.
[X] If selected, and an Employer Stock Fund is
available as an Investment Fund, Participants will
have the right, notwithstanding any other
provisions of the Plan, to direct that a portion
of the Plan assets held for their benefit and
invested in the Employer Stock Fund be diversified
pursuant to the provisions of Section 10.7(F) of
the Basic Plan Document.
c. Participants may make changes of existing account balances
and future contributions from among the Investment Funds
offered:
i [X] Once during each business day that the Trustee
and the New York Stock Exchange are open.
ii [ ] Once during each calendar month.
iii [ ] Once during each quarter of the Plan Year.
iv [ ] Once during each rolling day period.
d. [ ] If selected, the Participant shall be restricted in
making changes of existing account balances from any
Investment Fund, as specified in the terms or conditions
of such Investment Fund, and the Employer shall attach
an addendum specifying such restriction.
e. The Participant will designate into which Investment Funds all
contributions to their accounts are made, EXCEPT the
following:
i [ ] Employer Profit Sharing Contributions
ii [ ] Employer Mandatory Matching Contributions
iii [ ] Employer Discretionary Matching Contributions
iv [ ] Qualified Matching Contributions
v [ ] Qualified Nonelective Contributions
-------------------
16 This Item is for use in identifying collective trust funds, which,
pursuant to Revenue Ruling 81-100 must be specifically referenced in the
Plan. Actual Investment Funds are referenced on the Investment Fund
Designation form attached to this Adoption Agreement.
PAGE 17
18
f. [ ] If selected, and to the extent a selection is made
above, the Employer shall attach an Investment Direction
Addendum specifying how the contributions so specified
shall be invested among the Investment Fund.
g. [ ] If selected, the Participant shall be restricted in
the use of the Employer Stock Fund as an Investment
Fund for designating the investment of contributions
in the Participant's account, as follows:
i [ ] The Participant may not direct the
investment of Plan assets held in their
account into the Employer Stock Fund.
ii [ ] The Participant may direct % of the
following contributions into the Employer
Stock Fund:
(a) [ ] Employer Profit Sharing
Contributions
(b) [ ] Employer Mandatory Matching
Contributions
(c) [ ] Employer Discretionary Matching
Contributions
(d) [ ] Qualified Matching Contributions
(e) [ ] Qualified Nonelective
Contributions
iii [ ] % of the following contributions will be
invested into the Employer Stock Fund, with
the balance invested among:
(a) [ ] the other Investment Funds,
including the Employer Stock
Fund
(b) [ ] the other Investment Funds, NOT
including the Employer Stock
Fund
16. LOANS (SELECT ONE):
a. [X] Loans may be made from the Plan in accordance with the
Basic Plan Document and such policies and procedures as
the Committee may adopt and apply on a consistent and
nondiscriminatory basis(17).
b. [ ] No loans shall be made from the Plan.
17. TRUSTEE:
-------------
17 If this option is selected, the Employer must establish appropriate
procedures for implementation of the Plan's loan program.
PAGE 18
19
The Trustee of this Plan shall be Key Trust Company (a bank or trust
company affiliated with KeyCorp within the meaning of Internal
Revenue Code Section 1504).
18. EFFECTIVE DATE ADDENDUM:
[ ] If selected, the following provisions shall have the
specified effective dates (which are different from the
date specified in Item B(1)):
PAGE 19
20
C. SECTION 401(K) PLAN PROVISIONS:
1. SERVICE:
An Eligible Employee shall be required to fulfill the following
eligibility service requirements in order to participate in the Plan
through a salary reduction agreement and for purposes of receiving
an allocation of Employer Matching Contributions:
a. [X] The Employee must complete 1 Year of Service (not more
than 1 year) to be a Participant for purposes of
receiving allocations of Employer Matching
Contributions.
b. [X] The Employee must complete 1 Year of Service (not more
than 1 year) to be a Participant for purposes of
entering into a Salary Reduction Agreement and having
Employee Before Tax Contributions or Employee After Tax
Contributions contributed to the Plan on the Employee's
behalf.
2. EMPLOYEE SALARY DEFERRALS:
a. [X] Participants shall be entitled to enter into a Salary
Reduction Agreement providing for Before Tax
Contributions to be made to the Plan.
i The minimum Before Tax Contribution shall be 1% of
the Participant's Compensation.
ii The maximum Before Tax Contribution shall be 15% of
the Participant's Compensation.
b. [ ] Participants shall be entitled to enter into a Salary
Reduction Agreement providing for After Tax
Contributions to be made to the Plan.
i The minimum After Tax Contribution shall be % of
the Participant's Compensation.
ii The maximum After Tax Contribution shall be % of
the Participant's Compensation.
iii [ ] If selected, notwithstanding the above, a
Participant shall not be able to enter into
a Salary Reduction Agreement providing for
After Tax Contributions to be made to the
Plan unless the Participant has entered into
a Salary Reduction Agreement that provides
for Before Tax Contributions to be made to
PAGE 20
21
the Plan in an amount of at least % of the
Participant's Compensation.
c. [ ] If selected, a Participant shall be entitled to enter
into a Salary Reduction Agreement providing that any
extraordinary item of compensation, not yet payable
(including bonuses), be withheld from the
Participant's Compensation and contributed to the
Plan as either a Before Tax Contribution, or After
Tax Contribution (provided such contributions are
authorized above, and to the extent that such
contribution, when aggregated with either the
Participants other Before Tax Contributions or After
Tax Contributions do not exceed the limitations
specified above, on an annual basis).
3. CONTRIBUTION CHANGES:
a. Participants may increase or decrease the amount of
contributions made to the Plan pursuant to a Salary Reduction
Agreement once each:
i [ ] Plan Year
ii [ ] Semi-annual period, based on the Plan Year
iii [X] Quarter, based on the Plan Year
iv [ ] Month
v [ ] Other, as specified below (provided that it is at
least once per year):
b. Claims for returns of Excess Before Tax Contributions for the
Participant's preceding taxable year must be made in writing,
and submitted to the Committee by March 15 (specify a date
between March 1 and April 15).(18)
4. EMPLOYER MATCHING CONTRIBUTIONS(19):
a. MANDATORY MATCHING CONTRIBUTIONS:
The Employer shall make contributions to the Plan, in an
amount as specified below:
i [X] An amount, equal to 75% of each Participant's
Before Tax Contributions, however, no match shall
be made on
------------
18 The date specified is for the refund of amount deferred in excess of the
Code Section 402(g) limit (the $7,000 limit) for the Participant's taxable
year.
19 The Employer shall have the right to designate all, or any portion of
Employer Matching Contributions as Qualified Matching Contributions, which
shall then be subject to the same vesting, distribution, and withdrawal
restrictions as Before Tax Contributions.
PAGE 21
22
Participant's Before Tax Contributions in excess
of 5% (or $_____) of the Participant's
Compensation.
ii [ ] An amount, equal to _____% of each Participant's
After Tax Contributions, but not to exceed _____%
of the Participant's Compensation, or $_____.
iii [ ] An amount, equal to _____% of each Participant's
contributions made pursuant to a Salary Reduction
Agreement (including both Before Tax Contributions
and After Tax Contributions), but only if the
Participant has entered into a Salary Reduction
Agreement providing for Before Tax Contributions
of at least _____% of the Participant's
Compensation, but not to exceed _____% of the
Participant's Compensation, or $_____.
iv [ ] An amount equal to the sum of the following:
(a) _____% of the first ______% of the
Participant's Compensation deferred
pursuant to a Salary Reduction
Agreement; plus,
(b) _____% of the next _____% of the Participant's
Compensation deferred pursuant to a
Salary Reduction Agreement; plus,
(c) _____% of the next _____% of the Participant's
Compensation deferred pursuant to a
Salary Reduction Agreement, but not to
exceed _____% of the Participant's
Compensation, or $_____.
v [ ] An amount equal to $_____, for each Participant
who enters into a Salary Reduction Agreement
providing for [ ] Before Tax Contributions, [ ]
After Tax Contributions, or [ ] either Before Tax
Contributions or After Tax Contributions (or a
combination of both) equal to or exceeding _____%
of the Participant's Compensation. Such
contributions shall be made and allocated:
(a) [ ] only during the first Plan Year the
Plan is in effect, or if a
restatement, for the first Plan Year
beginning with, or containing the
restatement Effective Date.
(b) [ ] each Plan Year that a Participant has
in force a Salary Reduction Agreement
meeting the criteria specified above.
(c) [ ] during the first Plan Year that the
Participant participates through a
Salary Reduction Agreement meeting the
criteria specified above.
PAGE 22
23
b. DISCRETIONARY MATCHING CONTRIBUTIONS:
[ ] The Employer shall make contributions to the Plan, in an
amount determined by resolution of the Board of
Directors on an annual basis. The Board resolution shall
provide for the percentage and/or amount of Before Tax
Contributions and/or After Tax Contributions to be
matched and the maximum percentage and/or amount of
Before Tax Contributions and/or After Tax Contributions
eligible for matching.
c. ALLOCATION OF MATCHING CONTRIBUTIONS:
Employer Matching Contributions shall be allocated pursuant to
the terms of the Basic Plan Document, notwithstanding the
foregoing:
i [X] A Participant who terminates before the end of the
period for which contributions are allocated shall
share in the allocation of Employer Matching
Contributions if termination of employment was the
result of (select all that apply):
(a) [X] retirement
(b) [X] disability
(c) [X] death
(d) [ ] other, as specified below:
ii [X] Employer Matching Contributions shall be allocated
to the accounts of Participants (select one):
(a) [ ] as of each pay period for which a
contribution was made pursuant to a
Salary Reduction Agreement.
(b) [ ] semi-monthly.
(c) [ ] as of the last day of the month
preceding the month in which the
contribution was made.
(d) [ ] as of the last day of the Plan quarter
preceding the quarter in which the
contribution was made.
(e) [X] as of the last day of the Plan year.
PAGE 23
24
iii [X] If selected, the Employer may make Employer
Matching Contributions without regard to current
or accumulated Net Profits of the Employer for the
taxable year ending with, or within the Plan
Year(20).
d. The percentage of a Participant's Employer Matching
Contribution Account(21) (attributable to Employer Matching
Contributions) to be vested in him or her upon termination of
employment prior to attainment of the Plan's Normal Retirement
Date shall be(22):
COMPLETED YEARS OF SERVICE
1 2 3 4 5 6 7
--- --- --- --- --- --- ---
i [ ] 100%
--- ---
ii [ ] 100%
--- --- ---
iii [ ] 20% 40% 60% 80% 100%
--- --- --- --- --- ---
iv [ ] 20% 40% 60% 80% 100%
--- --- --- --- --- --- ---
v [ ] 10% 20% 30% 40% 60% 80% 100%
--- --- --- --- --- --- ---
vi [X] 20% 40% 60% 80% 100%
--- --- --- --- ---
vii [ ] 100%
--- --- --- --- --- --- ---
vii [ ] Full and immediate vesting upon entry into the Plan
Notwithstanding anything to the contrary in the Plan,
the amount inserted in the blanks above shall not exceed
the limits specified in Code Section 411(a)(2).
e. Notwithstanding the provisions of this Item C(4)(e) of the
Adoption Agreement, a Participant shall become fully vested
in his Participant's Employer Matching Contribution Account
if(23):
i [ ] the Participant's job is eliminated without the
Participant being offered a comparable position
elsewhere with the Employer.
ii [ ] for such reason as is described below:
---------------
20 Net Profits will never be required for the contribution of Before Tax
Contributions, After Tax Contributions, Qualified Nonelective
Contributions or Qualified Matching Contributions.
21 Notwithstanding anything in the Adoption Agreement to the contrary,
amounts in a Participant's account attributable to Before Tax
Contributions, Qualified Nonelective Contributions, and Qualified Matching
Contributions shall be 100% vested and nonforfeitable at all time.
22 Notwithstanding the selection made in this Item B(7)(b), a Participant
shall be fully vested in his or her Employer Contribution Accounts if the
Participant dies or becomes Disabled while in the employ of the Employer.
23 The provisions of this section will be administered by the Employer on a
consistent and nondiscriminatory basis.
PAGE 24
25
f. CORRECTIVE CONTRIBUTIONS:
i [X] If selected, the Employer shall be authorized to
make Qualified Matching Contributions, subject to
the terms of the Basic Plan Document, in an amount
determined by resolution of the Board of Directors
on an annual basis.
ii [X] If selected, the Employer shall be authorized to
make Qualified Nonelective Contributions, subject
to the terms of the Basic Plan Document, in an
amount determined by resolution of the Board of
Directors on an annual basis.
5. GAP EARNINGS:
[ ] If selected, Gap Earnings, as defined in Section 3.2(G)(1)
of the Basic Plan Document, will be calculated for Excess
Elective Deferrals, Excess Contributions and Excess
Aggregate Contributions, and refunded to the Participant as
provided for in Article III of the Basic Plan Document.
6. FORFEITURES:
a. Forfeitures of amounts attributable to Employer Matching
Contributions shall be reallocated as of:
i [ ] the last day of the Plan Year in which the
Forfeiture occurred.
ii [X] the last day of the Plan Year following the
Plan Year in which the Forfeiture occurred.
iii [ ] the last day of the Plan Year in which the
Participant suffering the Forfeiture has incurred
the fifth consecutive One Year Break in Service.
b. Forfeitures of Employer Matching Contributions shall be
reallocated as follows:
i [ ] Not applicable as Employer Matching Contributions
are always 100% vested and nonforfeitable.
ii [ ] Used first to pay the expenses of administering
the Plan, and then allocated pursuant to one of
the following two options:
iii [ ] Forfeitures shall be allocated to Participant's
accounts in the same manner as Employer Profit
Sharing Contributions, Employer Matching
Contributions, Qualified Nonelective Contributions
or Qualified Matching Contributions, in the
PAGE 25
26
discretion of the Employer, for the year in which
the Forfeiture arose.
iv [X] Forfeitures shall be applied to reduce the
Employer Profit Sharing Contributions, Employer
Matching Contributions, Qualified Nonelective
Contributions or Qualified Matching
Contributions, in the discretion of the
Employer, for the Plan Year following the Plan
Year in which the Forfeiture arose.
c. Forfeitures of Excess Aggregate Contributions shall be:
i [X] Applied to reduce Employer contributions for the
Plan Year in which the excess arose, but allocated
as below, to the extent the excess exceeds
Employer contributions for the Plan Year, or the
Employer has already contributed for such Plan
Year.
ii [ ] Allocated after all other forfeitures under the
Plan:
(a) [ ] to the Matching Contribution account
of each Non-highly Compensated
Participant who made Before Tax
Contributions or After Tax
Contributions in the ratio which each
such Participant's Compensation for
the Plan Year bears to the total
Compensation of all such Participants
for the Plan Year; or,
(b) [X] to the Matching Contribution account
of each Non-highly Compensated
Eligible Participant in the ratio
which each Eligible Participant's
Compensation for the Plan Year bears
to the total Compensation of all
Eligible Participants for the Plan
Year.
7. IN-SERVICE DISTRIBUTIONS (SELECT AS MAY BE APPROPRIATE):
a. [ ] There shall be no in-service distribution of
Participant account balances derived from Before Tax
Contributions (including Qualified Nonelective
Contributions and Qualified Matching Contributions
treated as Before Tax Contributions under the terms
of the Basic Plan Document), or Employer Matching
Contributions.
b. [ ] Participants may request an in-service distribution
of their account balance attributable to Employer
Matching Contributions, for the following reasons:
PAGE 26
27
i [ ] For purposes of satisfying a financial
hardship, as determined in accordance
with the uniform nondiscriminatory policy
of the Committee;
ii [ ] Attainment of age 59-1/2 by the
Participant; or
iii [ ] Attainment of the Plan's Normal
Retirement Date by the Participant.
c. [X] Participants may request an in-service distribution
of their account balance attributable to Employee
Before Tax Contributions, for the following reasons:
i [ ] For purposes of satisfying a financial
hardship, as determined by the facts and
circumstances of an Employee's situation, in
accordance with the provisions of Section
3.9 of the Basic Plan Document;
ii [X] For purposes of satisfying a financial
hardship, using the "safe harbor" provisions
of Section 3.9 of the Basic Plan Document.
iii [ ] Attainment of age 59-1/2 by the Participant;
or
iv [ ] Attainment of the Plan's Normal
Retirement Date by the Participant.
PAGE 27
28
NOTICE: The adopting Employer may not rely on an opinion letter issued by the
National Office of the Internal Revenue Service as evidence that the Plan is
qualified under the provisions of Section 401 of the Internal Revenue Code. In
order to obtain reliance with respect to the Plan's qualification, the Employer
must apply to the Key District Office of the Internal Revenue Service for a
determination letter.
This Adoption Agreement may only be used in conjunction with Basic Plan Document
# 05.
This Plan document may only be used under the express authority of KeyCorp, its
subsidiaries and affiliates, and is not effective as completed until executed by
a duly authorized officer of KeyCorp, one of its subsidiaries or affiliates, and
approved by KeyCorp's counsel.
KeyCorp, as sponsor, may amend or discontinue this prototype plan document upon
proper notification to all adopting Employers pursuant to Revenue Ruling 89-13.
Failure to properly fill out an Adoption Agreement may result in
disqualification of the Plan, and adverse tax consequences to the Employer and
Plan Participants.
This Plan is sponsored by:
KeyCorp, on behalf of its operating subsidiaries, banking and trust company
affiliates
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
PAGE 28
29
IN WITNESS WHEREOF, the Employer and the Trustee, by their respective duly
authorized officers, have caused this Adoption Agreement to be executed on this
_____ day of _____, 19__.
EMPLOYER: KTI, Inc.
By:__________________________________________
Title:_______________________________________
TRUSTEE: Key Trust Company
By:__________________________________________
Title:_______________________________________
and
By:__________________________________________
Title:_______________________________________
APPROVED ON BEHALF OF TRUSTEE:
Initials: _________________ Date:____________
PAGE 29
30
INVESTMENT FUND DESIGNATION
KTI, Inc. (the "Named Fiduciary"), as an independent fiduciary with respect
to the KTI, Inc. 401(k) Savings and Investment Plan (the "Plan"), an employee
pension benefit plan covered by the applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") and its employees
who participate therein (the "Participants"), hereby designates the following
investment funds from among the investment fund options available for adopting
employers of the PRISM(R) PROTOTYPE RETIREMENT PLAN & TRUST (as defined in
Section 10.7 of the Plan), available for selection by Participants for the
investment of Plan assets held for their benefit:
(a) E.B. Money Market Fund
(b) The Bond Fund of America
(c) The ▇▇▇▇▇▇ ▇▇▇▇▇▇ Fund of Boston
(d) The Victory Stock Index Fund
(e) The Victory Growth Fund
(f) ▇▇▇▇▇▇ Vista Fund
(g) _____
(h) _____
[X] In addition, if selected, an Employer Stock Fund will also be available.
In making the selection of Investment Funds, the Named Fiduciary hereby confirms
and acknowledges that:
- The Named Fiduciary has had made available to it copies of the
prospectuses (to the extent required under applicable federal
securities law and regulation) for each investment fund available for
selection by adopting employers of the PRISM(R) PROTOTYPE RETIREMENT
PLAN & TRUST, and has received copies of each such prospectus for the
Investment Funds selected;
- The Named Fiduciary acknowledges that the Trustee of the Plan
may receive certain fees for services provide to, or on behalf
of an Investment Fund, or the sponsors or distributors
thereof, pursuant to plans of distribution adopted by the fund
under the provisions of Rule 12b-1 of the Investment Company
Act of 1940, and further acknowledges that (i) such fee, if
paid, is appropriate for services rendered to the fund, and
when aggregated with other fees for service payable to the
Trustee constitutes reasonable compensation for the Trustee's
services to the Plan; and (ii) the Plan will be able to redeem
its interest in any such Investment Fund on reasonably short
notice without penalty;
- The Named Fiduciary further acknowledges that it has selected the
Investment Funds on its determination, after due inquiry, that the
Investment Funds are appropriate vehicles for the investment of Plan
assets pursuant to the terms of the Plan, considering all relevant
facts and circumstances, including but not limited to (i) the
investment policy and philosophy of the Named Fiduciary developed
pursuant to ERISA Section 404; (ii) the ability of Participants, using
an appropriate mix of Investment Funds, to diversify the investment of
Plan as-
PAGE 30
31
sets held for their benefit; and, (iii) the ability of Participants to,
utilizing an appropriate mix of Investment Funds, to structure an
investment portfolio within their account in the Plan with risk and
return characteristics within the normal range of risk and return
characteristics for individuals with similar investment backgrounds,
experience and expectations; and,
- The Named Fiduciary acknowledges that it has not relied on any
representations or recommendations from the Trustee or any of its
employees in selecting the Investment Funds.
The Trustee agrees to follow the Named Fiduciary's direction with respect to
offering the Investment Funds available for selection by the Participants in the
Plan for the investment of Plan assets held for their benefit:
IN WITNESS WHEREOF, the Employer, by its duly authorized representative, has
executed this document in connection with adoption of the Plan utilizing the
PRISM(R) PROTOTYPE RETIREMENT PLAN & TRUST documents, as provided by the
Trustee.
NAMED FIDUCIARY: KTI, Inc.
By:___________________________________________
Title:________________________________________
Seen and accepted by the Trustee, who shall provide the Investment Funds
selected by the Employer pursuant to the terms of this document, and pursuant to
the Plan.
TRUSTEE: Key Trust Company
By:___________________________________________
Title:________________________________________
PAGE 31