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conditions required that Chrysler establish the ESOT within the
rules of section 401(a) and that Chrysler contribute shares of
its common stock to the ESOT over a 4-year period from 1981
through 1984. In each of those 4 years, Chrysler was required to
contribute to the ESOT Chrysler common stock with a value of at
least $40.625 million; during that 4-year period, Chrysler was
required to contribute to the ESOT a total of at least $162.5
million of its common stock.
Employee stock ownership plans are tax-qualified plans which
provide significant tax benefits (as discussed infra) and are
designed to invest primarily in employer securities. Congress
established these plans as part of the Employee Retirement Income
Security Act of 1974, Pub. L. 93-406, sec. 407, 88 Stat. 880,
current version at 29 U.S.C. sec. 1107(d)(6) (1994), envisioning
that they “would function both as ‘an employee retirement benefit
plan and a “technique of corporate finance” that would encourage
employee ownership.’” Kuper v. Iovenko, 66 F.3d 1447, 1457 (6th
Cir. 1995) (quoting Martin v. Feilen, 965 F.2d 660, 664 (8th Cir.
1992) (quoting 129 Cong. Rec. S16629, S16636 (daily ed. Nov. 7,
1983) (statement of Sen. Long))); see also S. Rept. 97-144, at
119-123 (1981); 97 Cong. Rec. 17290-17294 (1981) (statement of
Sen. Long); S. Rept. 94-36, at 55-60 (1975). Employees generally
are not taxed on income of an employee stock ownership plan until
it is distributed to them, and they may avail themselves of
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