Page:United States Statutes at Large Volume 93.djvu/1362

 93 STAT. 1330

Cash contributions.

PUBLIC LAW 96-185—JAN. 7, 1980

(e) The cost reduction realized by the Corporation under the terms of this subsection shall not be recoupable. (f) If the Board determines that cash contributions from labor organizations or employees are legally committed so that the total contributions from employees and labor organizations during the period of September 13, 1979, through September 13, 1982, will exceed the total amount of wages and benefits not paid as a result of subsection (a), the Board may permit an increase in the levels and amounts of employee wages and benefits beyond the levels and amounts in effect on September 13, 1979, which would otherwise be prohibited by subsection (a), if (1) such increase will not impair the ability of the Corporation to continue as a going concern, or to meet such other tests of viability as the Board shall prescribe, and (2) the amount of such increase does not exceed the amount of the cash contributions committed. EMPLOYEE STOCK OWNERSHIP PLAN

15 USC 1866.

26 USC 4975. 26 USC 410.

26 USC 415.

26 USC 401.

Employer contributions.

SEC. 7. (a) No guarantee or commitment to guarantee any loan may be made under this Act until the Chrysler Corporation, in a written agreement with the Board which is satisfactory to the Board, agrees— (1) to establish a trust which forms part of an employee stock ownership plan meeting the requirements of subsection (c); (2) to make employer contributions to such trust in accordance with such plan; and (3) to issue additional shares of qualified common stock at such times as such shares are required to be contributed to such trust. (b) No guarantee or commitment to guarantee any loan may be made under this Act after the close of the one hundred and eighty-day period beginning on the date of the enactment of this Act unless the Chrysler Corporation has established a trust which forms part of an employee stock ownership plan meeting the requirements of subsection (c). (c) An employee stock ownership plan meets the requirements of this subsection only if— (1) such plan is maintained by the Chrysler Corporation; (2) such plan satisfies the requirements of section 4975(e)(7) of the Internal Revenue Code of 1954 (determined without regard to subparagraph (A) of section 410(b)(2) of such Code); (3) such plan provides that— (A) employer contributions to the trust may be made only in accordance with requirements of subsection (d); (B) each participant in the plan has a nonforfeitable right to the participant s accrued benefit under the plan; (C) each employer contribution to the trust shall be allocated in equal amounts (to the extent not inconsistent with the requirements of section 415(c) of such Code) to the accounts of all participants in the plan; and (D) distributions from the trust under the plan will be made in accordance with the requirements of section 401(k)(2)(B) of the Internal Revenue Code of 1954; and (4) such plan benefits 90 percent or more of all employees of the Corporation, excluding the employees who have not satisfied the minimum wage and service requirements, if any, prescribed by the plan as a condition of participation. (d)(1) Employer contributions meet the requirements of this subsection only if such contributions—

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