Rule 16a–9 Stock splits, stock dividends, and pro rata rights.

The following shall be exempt from section 16 of the Act:

(a) The increase or decrease in the number of securities held as a result of a stock split or stock dividend applying equally to all securities of a class, including a stock dividend in which equity securities of a different issuer are distributed; and

(b) The acquisition of rights, such as shareholder or pre-emptive rights, pursuant to a pro rata grant to all holders of the same class of equity securities registered under Section 12 of the Act. Note: The exercise or sale of a pro rata right shall be reported pursuant to Rule 16a–4 and the exercise shall be eligible for exemption from Section 16(b) of the Act pursuant to Rule 16b–6(b).

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