FN10.   H-1B status can be extended in one-year increments beyond the normal six-year maximum if the employee has started the permanent residence application process at least 365 days before his sixth anniversary in H-1B status.  See Section 106(a) of the American Competitiveness in the Twenty-First Century Act of 2000 (AC21), Pub. L. No. 106-313, 101–16, 114 Stat. 1251, 1251–62 (8 U.S.C. 1184 note).    If the employee cannot complete the permanent residence process because he is from a country such as China or India that is affected by quotas, the H-1B status can be extended in three year increments.  See INS Memorandum, M. Pearson, “Initial Guidance for Processing H-1B as Affected by AC21” (June 19, 2001), published on AILA InfoNet at Doc. No. 01062031 (posted June 20, 2001), at. 4.  This memorandum sets forth policy regarding AC21, for which regulations have not yet been promulgated.   A copy is attached as Appendix F., courtesy of the American Immigration Lawyers Association.