,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bcia  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ca1 #bjai ,mr4  
,br[n introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,securities ,ex*ange 
,act ( #aicd to impose requirem5ts      
relat+ to ! pur*ase ( c]ta9 equity      
securities by issu]s1 & = o!r purposes4 
#a4 ,%ort title  ,?is ,act may be cit$ z
 ! ,/ock ,buyback ,re=m & ,work]        
,divid5d ,act ( #bjai4  #b4 ,f9d+s      
,congress f9ds ! foll[+3 7#a7 ,ov] ! la/
 sev]al decades--  7,a7 ! volume & value
 ( /ock buybacks h increas$             
significantly1 ) p>ticul>ly l>ge        
increases occurr+ 9 ! #ae ye>s prec$+ ! 
date ( enactm5t ( ?is ,act2 &  7,b7 !   
weal? gap 9 ! ,unit$ ,/ates has wid5$   
dra/ically1 z corporate pr(its &        
executive comp5sation h skyrocket$1 b1 =
 work]s1 sal>ies & wages h b>ely        
increas$ & pur*as+ p[] has rema9$ !     
same4  7#b7 ,betwe5 #bjjd & #bjac1 "s ( 

! l>ge/ companies 9 ! ,unit$ ,/ates sp5t
 at lea/ #ajj p]c5t ( _! net income on  
/ock buybacks &1 betwe5 #bjaj & #bjag1  
companies 9 ! ,unit$ ,/ates sp5t m ?an  
#c1jjj1jjj1jjj1jjj on ^? buybacks4 ,aft]
 ! enactm5t ( *anges to ! tax laws ( !  
,unit$ ,/ates 9 ,decemb] #bjag1         
companies 9 ! ,unit$ ,/ates fur!r       
increas$ /ock buyback activity4  7#c7 ,9
 #bjah-- 7,a7 companies li/$ 9 ! ,s,p   
#ejj index sp5t #hjf1djj1jjj1jjj pur*as+
 _! own /ock1 an am\nt t is #ee p]c5t   
high] ?an 9 #bjag & #cf p]c5t high] ?an 
9 #bjjg1 ! ye> t--  7i7 _h previ\sly    
held ! record = ! l>ge/ total buyback   
am\nt2 &  7ii7 m>k$ ! beg9n+ ( ! mo/    
significant f9ancial crisis s9ce !      
,great ,depression2 &  7,b7 companies   
sp5t m money on /ock buybacks ?an on    
debt paym5ts1 capital exp5ditures1      
rese>* & developm5t1 or divid5ds4  7#d7 
,/ock buybacks b5efit l>ge %>ehold]s &  
corporate executives1 ! pay packages (  
:om include significant /ock            
comp5sation4 ,^? buybacks c also        

increase ! e>n+s p] %>e = a company &   
ne>ly #a_/b ( ! companies li/$ 9 ! ,s,p 
#ejj index l9k executive comp5sation to 
e>n+s p] %>e4  7#e7 ,comp>$ to ! typical
 work]1 ! comp5sation = a *ief executive
 (fic] 7ref]r$ to 9 ?is p>agraph z a    
,,ceo7 has increas$ significantly4 ,9   
#aihi1 ! ratio ( ,,ceo-to-work]         
comp5sation 0 #eh to #a1 b1 9 #bjag1 t  
ratio 0 #cab to #a4 ,ov] r\ghly ! same  
p]iod ( "t1 ! weal? gap 9 ! ,unit$      
,/ates has wid5$ consid]ably4 ,betwe5   
#aihi & #bjaf1 ! %>e ( weal? 9 ! ,unit$ 
,/ates held by ! top #a p]c5t (         
individuals 9 ! ,unit$ ,/ates ) respect 
to annual income increas$ f j bel[ #cj  
p]c5t to ne>ly #ci p]c5t1 :ile ! %>e (  
weal? held by ! bottom #ij p]c5t (      
individuals 9 ! ,unit$ ,/ates ) respect 
to annual income dropp$ f slightly m ?an
 #cc p]c5t to less ?an #bc p]c5t4  7#f7 
,s9ce #bjjj1 corporate pr(its1 z a      
p]c5tage ( total income 9 ! ,unit$      
,/ates1 h increas$ by ne>ly #e p]c5tage 
po9ts :ile work]s' sal>ies1 z a p]c5tage

 ( t total income1 h decreas$ by #d     
p]c5tage po9ts4  7#g7 ,! economic /r5g? 
( ! ,unit$ ,/ates is und]m9$ by ! weal? 
gap describ$ 9 ?is section4 ,accord+ to 
! ,organisation = ,economic ,co-op]ation
 & ,developm5t1 increas+ income         
inequality 9 ! ,unit$ ,/ates betwe5     
#aiij & #bjaj r$uc$ ! p] capita gross   
dome/ic product ( ! ,unit$ ,/ates by    
approximately #e p]c5tage po9ts4  7#h7  
,left unaddress$1 ! patt]ns ( corporate 
excess & gr[+ weal? inequality describ$ 
9 ?is section w wors5 & work]s w cont9ue
 to contribute to corporate pr(its )\t  
%>+ 9 ^? pr(its4  #c4 ,repur*ase (      
common /ock  7a7 ,repeal ( safe h>bor   
,section #bdj4aj;b-#ah ( title #ag1     
,code ( ,f$]al ,regulations1 %all h no  
=ce or effect4  7b7 ,disclosure & o!r   
requirem5ts ,! ,securities ,ex*ange ,act
 ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47  
is am5d$ by ins]t+ aft] section #i 7#ae 
,u4,s4,c4 #gh;i7 ! foll[+3  #i;,a4      
,issu] common /ock repur*ases  7a7      
,def9itions  7#a7 ,9 g5]al ,except z    

provid$ 9 p>agraph 7#b71 9 ?is section1 
! def9itions ( t]ms 9 section           
#bdj4aj;b-#ah7;a7 ( title #ag1 ,code (  
,f$]al ,regulations1 z 9 effect on ! day
 be=e ! date ( enactm5t ( ?is section1  
%all apply to any su* t]m t appe>s 9 ?is
 section4  7#b7 ,cov]$ pur*ase ,! t]m   
cov]$ pur*ase-- 7,a7 means a pur*ase 7or
 any bid or limit ord] t w\ld effect su*
 pur*ase7 ( ! common /ock ( an issu] 7or
 an equival5t int]e/1 includ+ a unit (  
b5eficial int]e/ 9 a tru/ or limit$     
p>tn]%ip or a depository %>e7 by or = ! 
issu] or any affiliat$ pur*as] 7includ+ 
riskless pr9cipal transactions72  7,b7  
includes a pur*ase describ$ 9           
subp>agraph 7,a7 t is effect$ dur+ a    
transaction describ$ 9 subp>agraph      
7,c77iv7 9 :i* ! consid]ation is solely 
ca% & !re is no valuation p]iod2 &  7,c7
 does n include a pur*ase describ$ 9    
subp>agraph 7,a7 t is effect$-- 7i7 dur+
 ! applicable re/rict$ p]iod ( a        
di/ribution t is subject to section     
#bdb4ajb ( title #ag1 ,code ( ,f$]al    

,regulations1 or any successor          
regulation2  7ii7 by or = an issu] plan 
by an ag5t indep5d5t ( ! issu]2  7iii7 z
 a fractional %>e pur*ase 7a fractional 
int]e/ 9 a security7 evid5c$ by a script
 c]tificate1 ord] =m1 or simil> docum5t2
  7iv7 dur+ ! p]iod f ! "t ( public     
ann\ncem5t1 z def9$ 9 section           
#bcj4afe7;f7 ( title #ag1 ,code ( ,f$]al
 ,regulations1 or any successor         
regulation1 ( a m]g]1 acquisition1 or   
simil> transaction involv+ a            
recapitalization1 until ! e>li] ( !     
completion ( t transaction or !         
completion ( ! vote by t>get %>ehold]s2 
7v7 pursuant to section #bdj4ac;e-#a (  
title #ag1 ,code ( ,f$]al ,regulations1 
or any successor regulation2  7vi7      
pursuant to a t5d] (f] t is subject to  
or specifically except$ f section       
#bdj4ac;e-#d ( title #ag1 ,code (       
,regulations1 or any successor          
regulation2 or  7vii7 pursuant to a t5d]
 (f] t is subject to section #ad7;d71 & 
any rules or regulations prescrib$ by ! 

,commission relat+ to t section4  7b7   
,requirem5t  7#a7 ,9 g5]al ,except z    
provid$ 9 p>agraph 7#b71 x %all be      
unlawful z a fraudul5t1 deceptive1 or   
manipulative act or practice "u section 
#i7;a77#b7 or #aj7;b7 ( ?is ,act or     
section #bdj4aj;b-#e ( title #ag1 ,code 
( ,f$]al ,regulations1 or any successor 
regulation1 = an issu] or affiliat$     
pur*as] ( ! issu] to effect a repur*ase 
( ! common /ock ( ! issu] unless ! issu]
 or affiliat$ pur*as]1 z applicable1    
complies ) ! requirem5ts "u ?is section4
  7#b7 ,exceptions ,p>agraph 7#a7 %all n
 apply-- 7,a7 to an issu] or affiliat$  
pur*as] ( an issu] if--  7i7 a violation
 ( ! requirem5ts "u ?is section occurr$ 
solely by reason ( ! conduct ( a brok]1 
deal]1 or o!r p]son act+ = ! issu] or   
affiliat$ pur*as]2  7ii7 ! issu] or     
affiliat$ pur*as] did n "k or h reason  
to "k t ! brok]1 deal]1 or o!r p]son 0  
engag+ or w\ld engage 9 t conduct2 &    
7iii7 ! issu] or affiliat$ pur*as] _h   
tak5 reasonable /eps to ensure t !      

brok]1 deal]1 or o!r p]son w\ld comply )
 ! requirem5ts "u ?is section2 or  7,b7 
to a brok]1 deal]1 or o!r p]son act+ =  
an issu] or affiliat$ pur*as] ( ! issu] 
if-- 7i7 a violation ( ! requirem5ts "u 
?is section occurr$ solely by reason ( !
 conduct ( ! issu] or affiliat$ pur*as]2
 &  7ii7 ! brok]1 deal]1 or o!r p]son   
did n "k or h reason to "k t ! issu] or 
affiliat$ pur*as] 0 engag+ or w\ld      
engage 9 conduct t w\ld violate !       
requirem5ts "u ?is section4  7c7        
,disclosure  7#a7 ,9 g5]al ,any issu] or
 affiliat$ pur*as] ( ! issu] t seeks to 
effect a plan or program to repur*ase   
common /ock ( ! issu] %all1 on or be=e !
 date on :i* ! issu] or affiliat$       
pur*as] beg9s repur*as+ common /ock "u !
 plan or program1 disclose to !         
,commission on a ,=m #h-,k a fil+ t     
includes--  7,a7 ! economic rationale1  
long-t]m b5efits1 & reason = !          
repur*ase2  7,b7 ! m9imum & maximum     
numb] 7if any7 ( %>es ( common /ock to  
be repur*as$1 & ! doll> value to be     

sp5t1 "u ! plan or program2  7,c7 !     
mann] & me?od ( repur*ase1 includ+ any  
price guidel9es or limitations1 or      
contractual plan or arrangem5t2  7,d7 ! 
int5d$ disposition or treatm5t ( !      
repur*as$ common /ock2  7,e7 :e!r any   
executive (fic] ( ! issu] or affiliat$  
pur*as] is pur*as+ common /ock dur+ !   
p5d5cy ( ! repur*ase2  7,f7 :e!r any    
executive (fic] ( ! issu] or affiliat$  
pur*as] is p]mitt$1 or int5ds1 to sell  
common /ock dur+ ! p5d5cy ( ! repur*ase2
  7,g7 a summ>y ( any communications    
betwe5 ! issu] & any hold]s ( common    
/ock ( ! issu] reg>d+ ! scope &         
implem5tation ( ! plan or program2 &    
7,h7 ! s\rce ( funds = ! repur*ase1     
specify+ if any debt w be incurr$ by !  
issu] or affiliat$ pur*as]4  7#b7       
,weekly disclosure  7,a7 ,9 g5]al ,9    
addition to ! requirem5t "u p>agraph    
7#a71 ea* issu] t effects a repur*ase ( 
common /ock ( ! issu] 9 any cal5d> week 
%all1 n lat] ?an ! la/ bus9ess day ( !  
foll[+ week1 file ) ! ,commission a     

public disclosure fil+ 79 su* =m & mann]
 z ! ,commission %all1 by rule1 e/abli%7
 t id5tifies--  7i7 ! numb] ( %>es (    
common /ock ( ! issu] t ! issu]         
repur*as$2  7ii7 ! av]age price paid p] 
%>e dur+ ! week cov]$ by ! fil+2 &      
7iii7 ! id5tity ( any brok]-deal] t     
effect$ ! pur*ase dur+ ! week cov]$ by !
 fil+4  7,b7 ,no repur*ase ,an issu]    
%all n be requir$ to submit a fil+ "u   
subp>agraph 7,a7 ) respect to any cal5d>
 week 9 :i* ! issu] does n repur*ase !  
common /ock ( ! issu]4  7#c7 ,def9ition 
,9 ?is subsection1 ! t]m executive (fic]
 has ! mean+ giv5 ! t]m 9 section       
#bdj4c;b-#g ( title #ag1 ,code ( ,f$]al 
,regulations1 z 9 effect on ! day be=e !
 date ( enactm5t ( ?is section4  7d7    
,pur*as+ requirem5ts  7#a7 ,"o brok] or 
deal]  7,a7 ,9 g5]al ,except z provid$ 9
 subp>agraph 7,b7 & p>agraph            
7#b77;,b77ii71 a cov]$ pur*ase %all be  
effect$ f or ?r\gh only #a brok] or     
deal] on any s+le day4  7,b7 ,exception 
,subp>agraph 7,a7 %all n apply to a     

cov]$ pur*ase t is n solicit$ by or on  
behalf ( an issu] or an affiliat$       
pur*as] ( ! issu]4  7,c7 ,same brok] or 
deal] ,if a cov]$ pur*ase is effect$ by 
or on behalf ( n less ?an #a affiliat$  
pur*as] ( an issu] 7or ! issu] & n less 
?an #a ( ! affiliat$ pur*as]s ( ! issu]7
 on a s+le day1 ! issu] & all affiliat$ 
pur*as]s %all use ! same brok] or deal]4
  7,d7 ,limit$ access to liquidity ,if a
 cov]$ pur*ase is effect$ on behalf ( an
 issu] by a brok]-deal] t is n an       
electronic communication network or o!r 
alt]native trad+ sy/em1 t brok]-deal] c 
access electronic communication network 
or o!r alt]native trad+ sy/em liquidity 
9 ord] to execute a repur*ase ( common  
/ock on behalf ( ! issu] or any         
affiliat$ pur*as] ( ! issu] on t day4   
7#b7 ,"t ( pur*ases  7,a7 ,9 g5]al ,a   
cov]$ pur*ase effect$ by an issu] or an 
affiliat$ pur*as] ( an issu] %all n be--
  7i7 ! op5+ 7regul> way7 pur*ase       
report$ 9 ! consolidat$ sy/em2  7ii7    
except z provid$ 9 subp>agraph 7,b71    

effect$ dur+ ! #aj m9utes be=e ! s*$ul$ 
close ( ! prim>y trad+ session 9 !      
pr9cipal m>ket = ! security1 & ! #aj    
m9utes be=e ! s*$ul$ close ( ! prim>y   
trad+ session 9 ! m>ket :]e ! pur*ase is
 effect$1 = a security t has an av]age  
daily trad+ volume report$ = t security 
dur+ ! #d cal5d> weeks prec$+ ! week 9  
:i* ! pur*ase is to be effect$ ( n less 
?an #a1jjj1jjj & a public float value ( 
n less ?an #aej1jjj1jjj2 or  7iii7      
effect$ dur+ ! #cj m9utes be=e ! s*$ul$ 
close ( ! prim>y trad+ session 9 !      
pr9cipal m>ket = ! security1 & ! #cj    
m9utes be=e ! s*$ul$ close ( ! prim>y   
trad+ session 9 ! m>ket :]e ! pur*ase is
 effect$1 = all o!r securities4  7,b7   
,pur*ase foll[+ close ( prim>y trad+    
session  7i7 ,9 g5]al ,a cov]$ pur*ase  
may be effect$ foll[+ ! close ( ! prim>y
 trad+ session until ! t]m9ation ( !    
p]iod 9 :i* la/ sale prices are report$ 
9 ! consolidat$ sy/em if--  7,i7 ! cov]$
 pur*ase is effect$ at a price t does n 
exce$ ! l[] (-- 7aa7 ! clos+ price ( !  

prim>y trad+ session 9 ! pr9cipal m>ket 
= ! security2 or  7bb7 any l[] bids or  
sale prices subsequ5tly report$ 9 !     
consolidat$ sy/em2 &  7,,ii7 all o!r    
applicable requirem5ts "u ?is section   
are met4  7ii7 ,diff]5t brok]s & deal]s 
,an issu] or an affiliat$ pur*as] ( an  
issu] may use #a brok] or deal] to      
effect a cov]$ pur*ase dur+ ! p]iod     
describ$ 9 clause 7i7 t is diff]5t f !  
brok] or deal] t ! issu] or affiliat$   
pur*as] us$ dur+ ! prim>y trad+ session4
  7iii7 ,limitation ,a cov]$ pur*ase    
effect$ dur+ ! p]iod describ$ 9 clause  
7i7 may be n be ! op5+ transaction ( !  
session foll[+ ! close ( ! prim>y trad+ 
session4  7#c7 ,price ( pur*ases ,any   
cov]$ pur*ase %all be effect$ at a      
pur*ase price t-- 7,a7 does n exce$ !   
highe/ indep5d5t bid or ! la/ indep5d5t 
transaction price1 :i*ev] is high]1     
quot$ or report$ 9 ! consolidat$ sy/em  
at ! "t ! cov]$ pur*ase is effect$2     
7,b7 = securities = :i* bids &          
transaction prices are n quot$ or       

report$ 9 ! consolidat$ sy/em1 does n   
exce$ ! highe/ indep5d5t bid or ! la/   
indep5d5t transaction price1 :i*ev] is  
high]1 display$ & dissem9at$ on any     
national securities ex*ange or on any   
int]deal] quotation sy/em1 z def9$ 9    
section #bdj4ae;c#b-aa ( title #ag1     
,code ( ,f$]al ,regulations 7or any     
successor regulation71 t displays n less
 ?an #b pric$ quotations = ! security1  
at ! "t ! cov]$ pur*ase is effect$2 &   
7,c7 = any o!r security n describ$ 9    
subp>agraph 7,b71 is n high] ?an !      
highe/ indep5d5t bid obta9$ f #c        
indep5d5t deal]s4  7#d7 ,volume (       
pur*ases  ,! total volume ( cov]$       
pur*ases effect$ by or = an issu] & any 
affiliat$ pur*as] ( ! issu] on any s+le 
day %all n exce$ #ae p]c5t ( ! av]age   
daily trad+ volume report$ = t security 
dur+ ! #d cal5d> weeks prec$+ ! week 9  
:i* ! cov]$ pur*ase is to be effect$4   
7#e7 ,alt]native conditions ,!          
conditions ( p>agraphs 7#a7 ?r\gh 7#d7  
%all apply 9 connection ) a cov]$       

pur*ase effect$ dur+ a trad+ session    
foll[+ ! imposition ( a m>ket-wide trad+
 susp5sion1 except t--  7,a7 ! "t (     
cov]$ pur*ases condition "u p>agraph    
7#b7 %all n apply ei!r-- 7i7 f ! reop5+ 
( trad+ until ! s*$ul$ close ( trad+ on 
! date on :i* t susp5sion is impos$2 or 
7ii7 at ! op5+ ( trad+ on ! next trad+  
day until ! s*$ul$ close ( trad+ t day1 
if a m>ket-wide trad+ susp5sion 0 9     
effect at ! close ( trad+ on ! prec$+   
day2 &  7,b7 ! volume ( cov]$ pur*ases  
condition "u p>agraph 7#d7 %all be      
modifi$ s t ! am\nt ( cov]$ pur*ases may
 n exce$ #ajj p]c5t ( ! av]age daily    
trad+ volume = t security4  7e7         
,prohibition on sales by executive      
(fic]s  7#a7 ,9 g5]al ,except z provid$ 
9 p>agraph 7#b71 ^u ! ann\ncem5t by an  
issu] ( ! initiation1 cont9uation1 or   
increase 9 size ( a repur*ase plan = !  
common /ock ( ! issu]1 an executive     
(fic] ( ! issu] may n sell %>es ( !     
common /ock ( ! issu] dur+ ! #g-;day    
p]iod beg9n+ on ! date ( ! ann\ncem5t4  

7#b7 ,exception ,an executive (fic] ( an
 issu] may sell %>es ( ! common /ock ( !
 issu] dur+ ! #g-;day p]iod describ$ 9  
p>agraph 7#a7 if ! sale ( ! %>es        
involves a sale ( common /ock t         
satisfies ! conditions "u section       
#bdj4aj;b#e-a7;c7 ( title #ag1 ,code (  
,f$]al ,regulations1 or any successor   
regulation4  7f7 ,additional regulation 
,! ,commission may1 by rule1 e/abli%    
fur!r disclosures1 conditions1 or       
requirem5ts to increase ! in=mation     
provid$ by issu]s ) respect to          
repur*ases ( common /ock4  4  7c7 ,=m   
#h-,k ,n lat] ?an #a ye> aft] ! date (  
enactm5t ( ?is ,act1 ! ,securities &    
,ex*ange ,commission 7ref]r$ to 9 ?is   
section z ! ,commission7 %all revise !  
=m describ$ 9 section #bdi4cjh ( title  
#ag1 ,code ( ,f$]al ,regulations1 or any
 successor regulation 7commonly kn[n z  
,=m #h-,k71 to require ! disclosure ( ! 
in=mation describ$ 9 section #i;,a7c7 ( 
! ,securities ,ex*ange ,act ( #aicd1 z  
add$ by subsection 7b74  7d7 ,/udy ,n   

lat] ?an #a ye> aft] ! date ( enactm5t (
 ?is ,act1 ! ,commission %all submit to 
,congress--  7#a7 ! results ( a /udy    
conduct$ by ! ,commission reg>d+ !      
impact ( ?is section1 & ! am5dm5ts made 
by ?is section1 on ?9ly trad$           
securities2 &  7#b7 recomm5dations      
reg>d+ any *anges to p>agraph 7#d7 (    
section #i;,a7d7 ( ! ,securities        
,ex*ange ,act ( #aicd1 z add$ by        
subsection 7b7 ( ?is section1 t !       
,commission det]m9es to be necess>y4    
#d4 ,work] divid5d  7a7 ,def9itions ,9  
?is section-- 7#a7 ! t]m ,commission    
means ! ,securities & ,ex*ange          
,commission2  7#b7 ! t]m cov]$ issu]--  
7,a7 means an issu]1 a class ( equity   
securities ( :i* is regi/]$ pursuant to 
section #ab ( ! ,securities ,ex*ange    
,act ( #aicd 7#ae ,u4,s4,c4 #ghl72 &    
7,b7 includes a consolidat$ subsidi>y ( 
an issu] describ$ 9 subp>agraph 7,a72   
7#c7 ! t]m eligible work]1 ) respect to 
a cov]$ issu]1 means a work] ) respect  
to ! cov]$ issu] :o1 9 a fiscal ye>--   

7,a7 p]=ms s]vices = ! cov]$ issu] = n  
few] ?an #cj days2  7,b7 z "p ( c>ry+   
out a contract describ$ 9 p>agraph      
7#aj77;,a77iv77,i77cc71 p]=ms s]vices or
 provides goods pursuant to t contract =
 n few] ?an #cj days2 or  7,c7 p]=ms    
s]vices = an employ] describ$ 9 p>agraph
 7#aj77;,a77v7 = n few] ?an #cj days2   
7#d7 ! t]ms employ1 employee1 employ]1 &
 goods h ! mean+s giv5 ^? t]ms 9 section
 #c ( ! ,fair ,labor ,/&>ds ,act ( #aich
 7#bi ,u4,s4,c4 #bjc72  7#e7 ! t]ms     
ex*ange & issu] h ! mean+s giv5 ^? t]ms 
9 section #c7;a7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a772  7#f7 ! t]m executive (fic]1 
) respect to a cov]$ issu]1 means-- 7,a7
 ! presid5t ( ! cov]$ issu]2  7,b7 any  
vice presid5t ( ! cov]$ issu] :o is 9   
*>ge ( a pr9cipal bus9ess unit1         
division1 or function ( ! cov]$ issu]1  
su* z sales1 adm9i/ration1 or f9ance2   
7,c7 any o!r (fic] ( ! cov]$ issu] :o   
p]=ms a policymak+ function = ! cov]$   
issu]2 &  7,d7 any o!r individual :o    

p]=ms a simil> policymak+ function to t 
describ$ 9 subp>agraph 7,c72  7#g7 ! t]m
 ,=m #aj-,k means ! =m describ$ 9       
section #bdi4caj ( title #ag1 ,code (   
,f$]al ,regulations1 or any successor   
regulation2  7#h7 ! t]m ,=m #aj-,q means
 ! =m describ$ 9 section #bdi4cjh;a (   
title #ag1 ,code ( ,f$]al ,regulations1 
or any successor regulation2  7#i7 !    
t]ms fran*isee & fran*isor h ! mean+s   
giv5 ^? t]ms 9 section #dcf4a ( title   
#af1 ,code ( ,f$]al ,regulations1 z 9   
effect on ! date ( enactm5t ( ?is ,act2 
&  7#aj7 ! t]m work]-- 7,a7 means1 )    
respect to a cov]$ issu]--  7i7 an      
employee :o is employ$ by ! cov]$ issu]2
  7ii7 an individual1 o!r ?an an        
employee describ$ 9 clause 7i71 :o is   
engag$ by ! cov]$ issu] to p]=m s]vices1
 includ+ by work+ z an indep5d5t        
contractor1 )\t reg>d to--  7,i7 ! label
 or classification assign$ to !         
individual1 or us$ to ref] to !         
individual1 by ! cov]$ issu]2 &  7,,ii7 
:e!r ! individual has e/abli%$1 & is !  

sole own] (1 a s+le-memb] limit$        
liability company2  7iii7 an employee :o
 is-- 7,i7 employ$ by an employ]--  7aa7
 o!r ?an ! cov]$ issu]2 &  7bb7 t is    
privately held2 &  7,,ii7 suppli$ by !  
employ] describ$ 9 subclause 7,i7 to    
p]=m s]vices = ! cov]$ issu]2  7iv7 an  
employee :o-- 7,i7 is employ$ by an     
employ]--  7aa7 o!r ?an ! cov]$ issu]2  
7bb7 t is privately held2 &  7cc7 ) :i* 
! cov]$ issu] ent]s into a contract1 "u 
:i* t employ] p]=ms s]vices =1 or       
provides goods to1 ! cov]$ issu]2 &     
7,,ii7 p]=ms s]vices or provides goods  
pursuant to ! contract describ$ 9       
subclause 7,i77cc72 &  7v7 an employee  
:o is employ$ by an employ]--  7,i7 o!r 
?an ! cov]$ issu]2  7,,ii7 t is         
privately held2 &  7,,iii7 t has a      
relation%ip or arrangem5t ) ! cov]$     
issu] su* t ! employ] is a fran*isee & !
 cov]$ issu] is a fran*isor2 &  7,b7    
does n include an executive (fic] ( a   
cov]$ issu]4  7b7 ,requirem5ts  7#a7    
,calculation ( work] divid5d ,= !       

purposes ( ! requirem5ts ( ?is section1 
= a fiscal ye> 7ref]r$ to 9 ?is section 
z ! cov]$ ye>71 ! paym5t describ$ 9     
p>agraph 7#c77;,a7 %all be calculat$ z  
foll[s3  7,a7 ,add+ ! foll[+ am\nts3 7i7
 ,9 t cov]$ ye>1 ! total am\nt sp5t by !
 cov]$ issu] on ! pur*ase ( common /ock 
7or an equival5t int]e/1 includ+ a unit 
( b5eficial int]e/ 9 a tru/ or limit$   
p>tn]%ip or a depository %>e7 ( ! cov]$ 
issu]1 )\t reg>d to ! means or me?od us$
 by ! cov]$ issu] to effect t pur*ase4  
7ii7 ,! total am\nt ( any increase 9    
ord9>y divid5ds decl>$ & paid by ! cov]$
 issu] 9 ! cov]$ ye> ) respect to !     
common /ock ( ! cov]$ issu]1 z comp>$ ) 
t am\nt 9 ! fiscal ye> prec$+ ! cov]$   
ye>4  7iii7 ,! total am\nt sp5t by !    
cov]$ issu] 9 ! cov]$ ye> on special or 
#a-"t divid5ds ) respect to ! common    
/ock ( ! cov]$ issu]4  7,b7 ,divid+ !   
sum obta9$ "u subp>agraph 7,a7 by       
#a1jjj1jjj4  7#b7 ,report+ ,ea* cov]$   
issu] %all--  7,a7 9 ea* ,=m #aj-,k     
submitt$ by ! cov]$ issu]1 disclose1 )  

respect to ! cov]$ ye> to :i* !         
submission applies--  7i7 ea* compon5t (
 ! calculation describ$ 9 p>agraph 7#a71
 & ! total am\nt ( t calculation1 if t  
calculation results 9 an am\nt t is     
great] ?an z]o2 &  7ii7 ! numb] (       
eligible work]s ) respect to ! cov]$    
issu]1 :i* ! cov]$ issu] %all id5tify by
 type ( work] & employ]2 &  7,b7 n lat] 
?an #cj days aft] ! la/ day ( a cov]$   
ye>1 provide to ea* work] ) respect to !
 cov]$ issu] a docum5t1 9 physical or   
electronic =m1 t discloses ! numb] (    
h\rs t ! work] work$ dur+ ! cov]$ ye>4  
7#c7 ,paym5t & v]ification  7,a7 ,9     
g5]al ,n lat] ?an ! la/ day ( ! fir/    
fiscal qu>t] t beg9s aft] ! end ( a     
cov]$ ye>1 if ! calculation "u p>agraph 
7#a7 ) respect to t cov]$ ye> results 9 
an am\nt t is great] ?an z]o1 ea* cov]$ 
issu] %all issue to ea* eligible work] )
 respect to ! cov]$ issu] = t cov]$ ye> 
a ca% paym5t z foll[s3  7i7 ,an eligible
 work] :o 0 employ$1 or o!rwise engag$1 
to p]=m s]vices = ! cov]$ issu]1 p]=m   

s]vices or provide goods pursuant to a  
contract describ$ 9 subsection          
7a77#aj77;,a77iv77,i77cc71 or p]=m      
s]vices = an employ] describ$ 9         
subsection 7a77#aj77;,a77v7 = few] ?an  
#ebj h\rs dur+ ! cov]$ ye> %all receive 
#be p]c5t ( ! am\nt calculat$ "u        
p>agraph 7#a74  7ii7 ,an eligible work] 
:o 0 employ$1 or o!rwise engag$1 to p]=m
 s]vices = ! cov]$ issu]1 p]=m s]vices  
or provide goods pursuant to a contract 
describ$ 9 subsection                   
7a77#aj77;,a77iv77,i77cc71 or p]=m      
s]vices = an employ] describ$ 9         
subsection 7a77#aj77;,a77v7 = n few] ?an
 #ebj h\rs & few] ?an #a1jdj h\rs dur+ !
 cov]$ ye> %all receive #ej p]c5t ( !   
am\nt calculat$ "u p>agraph 7#a74  7iii7
 ,an eligible work] :o 0 employ$1 or    
o!rwise engag$1 to p]=m s]vices = !     
cov]$ issu]1 p]=m s]vices or provide    
goods pursuant to a contract describ$ 9 
subsection 7a77#aj77;,a77iv77,i77cc71 or
 p]=m s]vices = an employ] describ$ 9   
subsection 7a77#aj77;,a77v7 = n few] ?an

 #a1jdj h\rs & few] ?an #a1efj h\rs dur+
 ! cov]$ ye> %all receive #ge p]c5t ( ! 
am\nt calculat$ "u p>agraph 7#a74  7iv7 
,an eligible work] :o 0 employ$1 or     
o!rwise engag$1 to p]=m s]vices = !     
cov]$ issu]1 p]=m s]vices or provide    
goods pursuant to a contract describ$ 9 
subsection 7a77#aj77;,a77iv77,i77cc71 or
 p]=m s]vices = an employ] describ$ 9   
subsection 7a77#aj77;,a77v7 = n few] ?an
 #a1efj h\rs dur+ ! cov]$ ye> %all      
receive #ajj p]c5t ( ! am\nt calculat$  
"u p>agraph 7#a74  7,b7 ,=m #aj-,q ,ea* 
cov]$ issu] t is requir$ to issue       
paym5ts "u subp>agraph 7,a7 ) respect to
 a cov]$ ye> %all c]tify1 9 ! fir/ ,=m  
#aj-,q submitt$ by ! cov]$ issu] aft] ! 
date on :i* ! cov]$ issu] is requir$ to 
make ! paym5ts1 t ! cov]$ issu] made !  
paym5ts4  7,c7 ,inability to make       
paym5ts ,if a cov]$ issu] is requir$ to 
issue a paym5t "u subp>agraph 7,a7 & is 
unable to issue ! paym5t because !      
individual to :om ! paym5t relates is1 z
 ( ! date on :i* ! paym5t is due1 no    

long] a work] ) respect to ! cov]$      
issu]1 ! cov]$ issu] %all--  7i7 9 a    
mann] t ! ,commission %all1 by rule1    
e/abli%1 deposit 9 an escr[ acc\nt !    
am\nt ( ! requir$ paym5t2 &  7ii7 9 !   
submission "u subp>agraph 7,b7 to :i* ! 
paym5t relates1 describe ! ef=ts ( !    
cov]$ issu] to issue ! paym5t4  7c7     
,en=cem5t ,) respect to a cov]$ issu] t 
is requir$ to issue ! paym5ts describ$ 9
 subsection 7b77#c77;,a7 & fails to     
issue ^? paym5ts--  7#a7 ! cov]$ issu]--
 7,a7 = ! #e-ye> p]iod beg9n+ on ! date 
on :i* ! cov]$ issu] 0 requir$ to issue 
! paym5ts1 may n make a pur*ase to :i*  
section #i;,a ( ! ,securities ,ex*ange  
,act ( #aicd1 z add$ by section #c7;b7 (
 ?is ,act1 applies1 except to acc\nt =  
common /ock t is issuable "u an employee
 /ock or option aw>d 9 any su* ye>2 &   
7,b7 = ea* ( ! fir/ #e fiscal ye>s aft] 
! cov]$ ye> ) respect to :i* ! cov]$    
issu] 0 requir$ to issue ! paym5ts1 %all
 issue ^? paym5ts 9 ! am\nt requir$ )   
respect to ! cov]$ ye>2 &  7#b7 !       

,commission may1 9 accordance )         
applicable laws & regulations1 br+ an   
en=cem5t action aga9/ ! cov]$ issu]4    
7d7 ,protections = work]s  7#a7         
,prohibition ,no cov]$ issu] may dis*>ge
 or 9 any mann] discrim9ate aga9/ any   
work] ) respect to ! cov]$ issu] )      
respect to ! comp5sation1 t]ms1         
conditions1 or o!r privileges (         
employm5t ( ! work] because ! work] is  
eligible to receive a paym5t f ! cov]$  
issu] "u subsection 7b77#c77;,a74  7#b7 
,private "r ( action  7,a7 ,9 g5]al ,any
 cov]$ issu] t fails to issue a paym5t  
to a work] ) respect to ! cov]$ issu] t 
is requir$ "u subsection 7b77#c77;,a7   
%all be liable to t work] 9 ! am\nt ( t 
paym5t & 9 an additional am\nt z        
liquidat$ damages4  7,b7 ,jurisdiction  
,an action to recov] ! liability        
describ$ 9 subp>agraph 7,a7 may be      
ma9ta9$ aga9/ a cov]$ issu] describ$ 9 t
 subp>agraph 9 any ,f$]al or ,/ate c\rt 
( compet5t jurisdiction by any #a or m  
work]s describ$ 9 t subp>agraph = & on  

behalf ( t work] or work]s & o!r work]s 
simil>ly situat$1 except t no work] %all
 be a p>ty pla9tiff to any su* action   
unless ! work] gives cons5t to become   
su* a p>ty & t cons5t is fil$ 9 ! c\rt 9
 :i* ! action is br\ght4  7,c7          
,attorney's fees ,! c\rt 9 :i* an action
 is br\ght "u subp>agraph 7,b7 %all1 9  
addition to any judgm5t aw>d$ to !      
pla9tiff or pla9tiffs 9 ! action1 all[ a
 reasonable attorney's fee to be paid by
 ! def5dant & ! co/s ( ! action4  7,d7  
,arbitration ,not)/&+ any o!r ,f$]al or 
,/ate law1 rule1 or regulation1 any     
agreem5t to arbitrate any dispute       
involv+ a cov]$ issu] & a work] )       
respect to ! cov]$ issu] %all n apply ) 
respect to ! "r ( ! work] to br+ an     
action "u ?is p>agraph4  7e7 ,rules (   
con/ruction  7#a7 ,9 g5]al ,no?+ 9 ?is  
section may be con/ru$ to-- 7,a7 sup]s$e
 any provision 9 any collective b>ga9+  
agreem5t to :i* a cov]$ issu] is a p>ty2
 or  7,b7 prev5t an individual f receiv+
 multiple paym5ts "u subsection         

7b77#c77;,a7 = a cov]$ ye> if !         
individual is an eligible work] )       
respect to m ?an #a cov]$ issu] 9 t     
cov]$ ye>4  7#b7 ,o!r pr(it-%>+         
agreem5ts ,no o!r pr(it-%>+ agreem5t    
betwe5 a cov]$ issu] & any work] )      
respect to ! cov]$ issu]1 o!r ?an z     
specifically describ$ 9 ?is section1 may
 be con/ru$ to satisfy ! requirem5ts (  
?is section4  #e4 ,commission           
requirem5ts  7a7 ,def9ition ,9 ?is      
section1 ! t]m ,regulation ,s-,k means  
"p #bbi ( title #ag1 ,code ( ,f$]al     
,regulations1 or any successor          
regulations4  7b7 ,updates ,n lat] ?an  
#a ye> aft] ! date ( enactm5t ( ?is     
,act1 ! ,securities & ,ex*ange          
,commission %all make any updates to    
,regulation ,s-,k t are requir$ z a     
result ( ?is ,act & ! am5dm5ts made by  
?is ,act4