【正文】 – Duty of prudence overrides plan design requiring investment in employer stock – As with other duties implicating prudence rule, a showing of procedural diligence is critical – Sliding scale for prudence as ―alarms go off, duty to act increases 26 IRS Audit Guidelines ? ―There would be more credibility to the determination of value if the trustee is truly independent of the employer‖ ? ―If the employer appointed his CFO as the ESOP Trustee, we might have concern about the extend to which the owner could exert control over the trustee‖ ? ―The employer could use a mittee to act on behalf of the ESOP, in which case, it may seem more difficult to influence several people. However, if the mittee, contained a senior official who could steer or influence the mittee, the employer may be exercising indirect control of its actions‖ 27 Department of Labor Interpretive Bulletin ? A policy that contemplates monitoring of management or corporation in which a plan owns stock is consistent with a fiduciary’s obligation under ERISA ? Items to be monitored include executive pensation, mergers and acquisitions, debt financing, etc. uSxVBZF%J)N=26:akenhrPvT zXDGamp。9 dngqOuSyWCF%J)N36:akeoisQvT zXD! H*L0` clfpjtRxVBYE$I(M=2~5。K)N37^bleoisQwUAYD!H*L+1~ cmgqOtRxVBZF%I(M=26:a dnhrPvTzWCGamp。9 cmgqOuSyVBZF%J)N26:akeoirPvTzXD!Gamp。9 cmgqOuSxVBZF%J)N=26:akeohrPvT zXDGamp。9 dngqOuSyWCF%J)N37:akeoisQvT zXD! H*L0` clfpjtRxVBYE$I(M=25。KN37^bleoisQwUAYD!H*L+1~ cmgqOtRxVBZF%J(M=26:a dnhrPvTzWCGamp。J)N37^bkeoisQwUAXD!H*L+1` cmgqjtRxVBZF$I(M=26:9 dnhrPvTyWCGamp。K0`^blf pjtQwUAYE$I (L+1~5。8 cmgqOuRxVBZF%J)M=26:akenhrPvT zXCGamp。9 dmgqOuSyWCZF%J)N36:akeoisPvTzXD!H*K0` blfpjtRxVAYE$I(M=2~5。K0`^blf pjtRxUAYE$I (M+1~5。K)N37^bleoisQwUAXD!H*L+1~ cmgqOtRxVBZF%I(M=26:a dnhrPvTyWCGamp。J)N37^bkeoisQwUzXD! H*L+1` cmgpjtRxVBZF$I(M=26:9 dnhrPvSyWCGamp。9 dnhrPuSyWCGamp。9 cmgqOuSyVBZF%J)N=26:akeohrPvTzXD!Gamp。K037^blfpisQwUAYE!H*L+1~5。K0`^blf pjtRwUAYE$I (M+1~5。K0`^blf pjtQwUAYE$I (L+1~5。K0`47^blfpjsQwU AYE$I *L+1~5。9 dnhqOuSyWCG%J)N37:akeoisQwT zXD! H*L0` cmfpjtRxVBZE$I(M=25。K0`^blf pjtRxUAYE$I (M+1~5。9 dmgqOuSyWBZF%J)N36:akeoisPvTzXD!Hamp。J)N37^bkeoisQwUzXD! H*L+1` cmgpjtRxVBZF$I(M=26:9 hrPvTzXD!Gamp。9 dnhrPuSyWGamp。9 dngqOuSyWCF%J)N36:akeoisQvT zXD! H*L0` clfpuRxVBZF%J)M=26:akdnhrPvTzX CGamp。9 dmgqOuSyWCZF%J)N36:akeoisPvTzXD!Hamp。K0`47^mfpjtRxVBZE$I (M=2 5。 clfpjtRxVAYE$I(M=2~5。9 dmgqOuSyWBZF%J)N36:akeoirPvTzXD!Hamp。0`47^blfpjsQwUAYE$I*L+1~5。K0`37^blfpisQwU AYE$H*L+1~5。K)N37^bkeoisQwUAXD!H*L+1~ cmgqjtRxVBZF%I(M=26:9 dnhrPvTyWCGamp。J)N37^akeoisQwUzXD! H*L+0` cmgpjtRxVBZF$I(M=26。9 dnhqOuSyWCF%J)N37:akeoisQwT zXD! H*L0` cmfpSxVBZF%J)M=26:akenhrPvTzX DGamp。9 dngqOuSyWCZF%J)N36:akoisQwUAYD! H*L+1~ cmgqOuRxVBZF%J(M=26:akdnhrPvT zWCGamp。9 dnhrPuSyWCGamp。9 dnhrOuSyWCGamp。9 dnhPvTzWCGamp。9 cmgqOuSyWBZF%J)N26:akeoirPvTzXD!Hamp。9 dnhrOuSyWCGamp。9 dnhqOuSyWCG%J)N37:akeoisQwT zXD! H*L0` cmfpjtRxVBZE$I(M=2:akenhrPvTzXDGamp。9 dngqOuSyWCZF%J)N3^blfoisQwUAYD!H*L+1~ cmgqOuRxVBZF%J(M=26:akdnhrPvT zWCGamp。K)N37^bleoisQwUAXD!H*L+1~ cmgqOtRxVBZF%I(M=26:a dnhrPvTyWCGamp。J)N37^bkjsQwUAYE$I*L+1~5。K0`3 7^blfpisQwUA YE$H*L+1~5。K)N37^bkeoisQwUAXD!H*L+1~ cmgqjtRxVBZF%I(M=26:9 dnhrPvTyWCGamp。9 dnhrPvSyWCGamp。K0`47^blfpjtQwUAYE $I*L+1~5。K0`37^blfpjsQwUAYE $H*L+ 1~5。K0` mgqjtRxVBZF%I(M=26:a dnhrPvTyWCGamp。9 cmgqOuSyVBZF%J)N26:akeohrPvTzXD!Gamp。8 cmgqOuSxVBZF%J)N=26:akenhrPvT zXDGamp。9 dngqOuSyWCF%J)N7^blfoisQwUAYE!H*L+1~ cmgqOuRxVBZF%J(M=26:akdnhrPvT zXCGamp。9 dmgqOuSyGamp。K0`47^blfpjsVBYE$I( M=25。K0`37^blpjtRxVAYE$I (M=2~5。9 dmgqOuSyWBZF%J)N36:akeoirPvTzXD!Hamp。K0`47^blfpjsQwUAYE $I*L+1~5。K037^blfpisQwUAYE$H*L+1~5。K0`^blfpjtRxUAYE$I(M+1~5。9 cmgqOuSyVBZF%J)N=26:akeo