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literature on Prime, Mr. Traegde concluded that the risks
involved in the Prime Plan were minimal. Mr. Traegde expected to
get his DWB if he sold or closed his business, and he knew that
he could withdraw On-Site from the Prime Plan at any time.
Mr. Traegde also discussed Mr. Weiss' opinion letter on the Prime
Plan with Mr. Joynt, and Mr. Traegde relied on Mr. Joynt's advice
with respect thereto.
C. On-Site's Adoption of the Prime Trust
On-Site joined the Prime Plan by executing an Adoption
Agreement on December 28, 1988, effective as of December 31,
1988, and by contributing $100,026 to the Trust on the same day.
On-Site's contribution was applied primarily as follows: $89,645
to the full accrual of DWB's for its Covered Employees and
$10,340 to the cost of their death benefits. As of December 31,
1988, On-Site's Covered Employees were Mr. Traegde and four other
employees. Other On-Site employees became Covered Employees
during 1989, and still others became Covered Employees in
subsequent years. On December 29, 1989, On-Site made an
additional contribution of $50,030 to the Prime Plan. On-Site
made no contributions to the Prime Plan in 1990, 1991, or 1992.
On-Site submitted the following Adoption Agreements relating
to its participation in the Prime Plan:
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