IN RE: JOB SHOP TECHNICAL SERVXCES, XNC. 401(k) PROFIT SHARING PLAN
VOLUNTARY SETTLEMENT AGREEMENT
RESOURCE MANAGEMENT INTERNATIONAL INC.("Resource Management 11) , f ormerly
known as ITS MANAGEMENT CORP. , (11 ITS XXXXXX X. XXXXX, Secretary of Labor,
United States Department of Labor, ("the Secretary"), and XXXX XXXXXXX, Court
appointed Independent Trtstee of the JOB SHOP TECHNICAL SERVICES INC. 401(K)
PROFIT SHARING PLAN ("Job Shop 401(k) Plan"), agree as follows: WHEREAS, on
August 19, 1994 ITS purchased all the assets of JOB SHOP TECHNICAL SERVICES,
INC. ("Job Shop"), Plan Sponsor of the,Job Shop 401(k) Plan, and at the time of
said purchase Job Shop had failed to forward monies withheld from employees
@@paychecks for contribution to the Job Shop 401(k) Plan, and; WHEREAS, the
Secretary and Xxxx Xxxxxxx have asserted claims against Resource Management
relating to the August 19, 1994 Purchase by ITS of the assets of Job Shop
arising under Title I Of the EmPlo . xxx Retirement Income Security Act Of 1974,
as amended, (IIERIsAil), 29 u.S.C. lool, 9-t 2-e-q-, and based on theories Of
successor corporate liability, and; WHEREAS, the parties desire to resolve all
Potential disputes over these questions ,without resort to further
administrative or legal proceedings.
NOW, THEREFORE, it is mutually agreed between the Secretary, Xxxx Xxxxxxx,
on behalf of the Job Shop 401(k) Plan, and Resource
Management, that:
1 Resource Management, without admitting or denying any 'violation of ERISA,
the Secretary, and Xxxx Xxxxxxx, on behalf of the Job Shop 401'(k . )Plan, agree
to this settlement as a full and complete resolution of all claims that have
been, or could be, asserted by the Secretary or Xxxx Xxxxxxx on behalf of the
Job Shop 401 (k) Plan arising out of the August 19, 1994 purchase by ITS of the
assets of Job Shop. The Secretary of Labor and the Independent Trustee agree
that they will not resort to administrativ,ii-'o-r other legal proceedings
against Resource Management with respect to these issues.
2. This settlement is not binding on any government agency other than the
United States Department of Labor.
3. Resource Management shall pay to the Job Shop 401(k) Plan the principal
amount of $300,ooo.00. such payment shall be made in a lump sum on or before
March 31, 1997. In the even , t however that the public offering of stock by
Resource Management is not completed, in accordance with the terms of the
offering, on or before March 31, 19-97, Resource Management shall pay the
principal amount of $300,000.oo in 18 monthly installments, with, interest
accruing on the balance of the principal due, beginning on April 1, 1997 at a
rate equal to the post judgment interest rate that would be applicable if this
were a judgment under 28 U.S.C. 1961. The first installment of $16,666.78 is due
and payable on April 1, 1997. -The remaining seventeen installments of
$16,666.66 in principal, plus interest, are due on the first day of each month
thereafter, continuing until all payments are made. Resource Management may
pre-pay any installment.
4. In the event that Resource Management defaults in the payment of any
amount due under this Settlement Agreement, and fails to correct said default
within 20 days of the mailing by the Independent Trustee or his successor, of
written notice of such default, the entire principal amount remaining to be paid
under this Settlement Agreement shall become due and payable immediately and
the Independent Trustee may take whatever steps are necessary to exercise the
Plan's rights with respect to this agreement.
5. Resource Management shall provide the Secretary with notice of each
payment made to the Job Shop 401 (k) Plan under the terms of this Settlement
Agreement by mailing a copy of proof of each such payment to Xxxx X. Xxxxxx,
Regional Director, Pension Welfare Benefits Administration, 0000 Xxxxxxxx, Xxxx
000, Xxx Xxxx, Xxx Xxxx 00000.
6. Each party to this agreement shall bear his/its own costs disbursements
and attorneys fees. RESOURCE MANAGEMENT INTERNATIONAL, INC.
By: Xxxxxx X. Xxxxxxxx
Corporate Resolution attached.
CORP. SEAL
XXXX XXXXX XXXXXXXXX, ESQ.
Attorney for Resource Management
XXXXXX X. XXXXX
Secretary of Labor
United StatesDepartmerif
BY:
XXXXX X.'XXXXXXX
Attorney
JOB SHOP TECHNICAL SERVICES, INC. 401(k) PROFIT SHARING PLAN
BY:
JOH@K XXXXXXX
Independent Trustee
