L. Paul Bremer, Coalition Provisional Authority

“ The Board of Governors shall establish the above-mentioned fees, commissions and
charges for services offered by the Exchange, subject to Commission approval,
recognizing that the continued operating and development needs of the Exchange
shall be taken into consideration, but that accumulation of unnecessary surplus
funds is to be avoided. ”

“ Create the Exchange’s rules and submit them to the Commission for approval,
including rules to prevent conflicts of interest from influencing the work of the
Board and the Exchange and providing for the withdrawal of Governors from
voting when a conflict of interest arises. ”

“ The daily trading limits for the Broker shall be determined pursuant to
Exchange regulation based upon the Broker’s net capital adequacy. The
Broker’s net capital adequacy shall be determined based upon the Depository’s
assessment of the Broker’s ability to meet its trading obligations, as well as the
advice from the settlement bank to the Depository ”

“ The salaries, benefits, and all financial entitlements of the Commissioners shall be
presented to the Administrator for his approval in consultation with the Governing
Council. The Commission is authorized to fix the compensation of such officers,
attorneys, accountants, examiners, economists and other experts or employees as
may be necessary for carrying out its functions under this Law ”

“ Paragraphs 9 and 10 relate to transactions that were conducted after March 19, 2003
(after the closure of the Baghdad Stock Exchange and the opening of the Iraq Stock
Exchange) . Any transactions that fall under paragraphs 9 or 10 will be subject to
specific Exchange regulation and stringent oversight to ensure that such
transactions were not fraudulent or manipulative in nature. ”

“ The Commission shall ensure that rules of the Exchange and the Depository
provide fair and open access to membership, facilities and services and impose no
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burdens on competition except insofar as required to promote transparency,
efficiency and financial responsibility in the trading of securities, and that such
rules provide for fair and reasonable procedures for the denial, revocation or
restriction of access to such membership, facilities or services. ”

“ For the purposes of this law, the following terms shall be defined as follows:
1) “Commission” means the interim Iraq Securities and Exchange Commission.
2) “Commissioners” mean the members of the Iraq Securities and Exchange
Commission.
3) “Exchange” means the Iraq Stock Exchange (“ISX”) or such other exchange as the
Commission, pursuant to its rules, may license under this Law.
4) “General Assembly” means the body consisting of all Exchange members and
companies listed on the Exchange. ”

“ Impose an administrative penalty upon such person, payable to the Treasury of
the Government of Iraq, of up to 50 million dinars for any violation involving
fraud, deceit or willful or reckless disregard of a regulatory requirement, or of
up to 25 million dinars for any other violation. ”

“ Act in the best interest of clients at all times, including placing the interests of
clients ahead of the Broker’s interests, protecting clients’ rights and informing
clients of all relevant information relating to clients’ securities transactions ”

“ The BCC may make findings with respect to matters it considers, which may
include but not be limited to a dismissal of the charges, or a finding that the charges
are substantiated, along with a finding of appropriate penalties. ”

“ A bank may be accepted as a Broker if
authorized to act in that capacity under the Banking Law.
11) “Bank” means an entity authorized by the Central Bank of Iraq to conduct
banking operations in Iraq.
12) “Company” means a joint stock Company that is an issuer of securities subject to
the provisions of this Law or a Company referred to in Section 5 (1) (b) (ii) of this
Law.
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13) “Depository” means the Iraq Depository which will serve as the central clearing
and settlement facility for all securities transactions. ”

“ The financial statements included in the annual report shall be audited in
accordance with international auditing standards by an independent auditor
duly licensed in Iraq and shall be presented in accordance with international
accounting standards to the extent permissible under the standards in force in
Iraq. ”

“ Exchange or any of its constituencies shall be proposed by the Board of
Governors. One of these candidates shall have expertise in information
technology matters, for which the independent members of the Board of
Governors shall propose three or more nominees. ”