16 CFR 802.35 - Acquisitions by employee trusts.
An acquisition of voting securities shall be exempt from the notification requirements of the act if:
(a) The securities are acquired by a trust that meets the qualifications of section 401 of the Internal Revenue Code;
(b) The trust is controlled by a person that employs the beneficiaries and,
(c) The voting securities acquired are those of that person or an entity within that person.
2. Assume that in the example above, “A” has total assets of $100 million (as adjusted). “C” also has total assets of $100 million (as adjusted) and is not controlled by Company A. The trust controlled by Company A plans to acquire 40 percent of the voting securities of Company C for in excess of $50 million (as adjusted). Since Company C is not included within “A,” “A” must observe the requirements of the act before the trust makes the acquisition of Company C's shares.