Can a DB plan sell employer securities to the employer?

[Scott]

Can a DB plan sell qualifying employer securities to the employer/plan sponsor? I know that the answer lies in the prohibited transaction exemption under ERISA Section 408(e), but I've read it and the regulations several times and can't nail down the proper interpretation. If you assume that the first two requirements (adequate consideration and no commission) are satisfied, it comes down to requirement #3, which says:

(3) if--

(A) the plan is an eligible individual account plan, or

(B) in the case of . . . an acquisition of qualifying employer securities by [a plan which is not an eligible individual account plan], the . . . acquisition is not prohibited by Section 407(a).

Does (B) mean that the exemption applies to a DB plan only if the plan is acquiring securities and it doesn't exceed the 10% limit of Section 407(a) (in other words, the exemption is unavailable for a sale by the plan), or that any acquisition or sale by a DB plan is OK, as long as an acquisition doesn't violate Section 407(a)?

Help!! Thanks!