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Framework Arrangement

Exhibit of Press Release: SEC, Australian Authorities Sign Mutual Recognition Agreement; 2008-182; Aug. 25, 2008

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Entities 3

agency Australian Securities And Investments Commission
agency sec and asic
agency United States Securities And Exchange Commission

Triples 3

SEC and ASIC note a common interest in protecting investors
SEC and ASIC recognize potential benefits that globalized markets and increased cross-border access may afford to investors
SEC and ASIC enter a bilateral arrangement to further the mutual recognition program

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Framework Arrangement · Source

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MUTUAL RECOGNITION ARRANGEMENT

BETWEEN THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION

AND THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION,

TOGETHER WITH THE AUSTRALIAN MINISTER FOR

SUPERANNUATIONAND CORPORATE LAW

Zhe United States Securities B e Australian Seczlrities
and Ekchange Commission and Investments Commission

and the Australian Minister for
Superannuation and Corporate Law

MUTUAL RECOGNITION ARRANGEMENT

BETWEEN

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION

AND

THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, TOGETHER

WITH THE AUSTRALIAN MINISTER FOR SUPERANNUATION AND CORPORATE

LAW

The U.S. Securities and Exchange Commission ("SEC) and the Australian Securities
and Investments Commission ("ASIC), together with the Australian Minister for
Superannuation and Corporate Law;

Noting a common interest in protecting investors, fostering fair and orderly markets, and
facilitating capital formation;

Recognizing the potential benefits that globalized markets and increased cross-border
access may afford to investors, including broader investment choices, lower transaction
costs resulting from increased competition and technology, increased efficiency of
transactions, greater opportunity for diversification, and more access to information
about foreign investment opportunities;

Desiring to enable investors to realize such benefits and accommodate the business
and economic opportunities of increased cross-border trading, while recognizing,
evaluating, and protecting against potential risks and maintaining appropriate standards
for investor protection;

Acknowledging the importance of enhanced regulatory cooperation and increased
efficiency with respect to markets and market participants operating on a cross-border
basis;

Noting the potential for reducing the risk of duplicative costs and regulatory compliance
burdens on markets and market participants operating on a cross-border basis and
subject to overlapping regulatory requirements from different national securities laws
and regulations; and

Recognizing the benefits resulting from a collaborative program to mutually recognize
one another's regulatory systems for purposes of considering exemptive relief to certain
markets or market participants in one another's jurisdictions;

Are entering into the following bilateral arrangement to further the mutual recognition
program ("Arrangement").

lfEM ONE: DEFINITIONS

1. "Authority" means the SEC or ASlC and, where applicable, the Australian Minister
for Superannuation and Corporate Law. Together, the SEC, ASlC and the Minister
are "the Authorities."

2. "Minister" means the Minister for Superannuation and Corporate Law, and any
subsequent Minister, in the Federal Government of Australia responsible for the
Corporations Act of 2001 and the Australian Securities and lnvestments Commission
Act of 2001. The Minister has certain responsibilities for the regulation of financial
markets and clearing and settlement facilities operating in Australia.

3. "Laws and Regulations" means:
a. For the United States, the Securities Act of 1933; Securities Exchange Act of

1934; Trust Indenture Act of 1939; lnvestment Company Act of 1940;
lnvestment Advisers Act of 1940; Sarbanes-Oxley Act of 2002; Securities
Investor Protection Act of 1970; and the regulations promulgated thereunder;

b. For Australia, the Corporations Act of 2001, the Australian Securities and
Investments Commission Act of 2001, and the regulations promulgated
thereunder.

4. "Person" means a natural person, unincorporated association, partnership, trust,
investment company or corporation.

5. "U.S. Qualified Investor" means a "qualified investor" as defined in Section
3(a)(54)(A) of the Securities Exchange Act of 1934, except that paragraph (xiii) is
excluded and, with respect to the types of entities specified in paragraph (xi), it is
contemplated that Australian Broker-Dealers will be able to do business with a
broader range of such entities than that open to broker-dealers from other non-U.S.
jurisdictions under Exchange Act Rule 15a-6(a)(3).

6. "Australian Wholesale Client" means a wholesale client as defined in Section 761 G
of the Corporations Act of 2001.

7. "Market" means:
a. For the United States, a national securities exchange registered under

Section 6 of the Securities Exchange Act of 1934 ("U.S. Market");
b. For Australia, a financial market licensed under the Corporations Act of 2001.

8. "Broker-Dealer" means:
a. For the United States, a broker or dealer registered under Section 15(b) of the

Securities Exchange Act of 1934, other than under paragraph 1 1 thereof
("U.S. Broker-Dealer").

b. For Australia, holders of an Australian financial services license under the
Corporations Act of 2001 that are participants of an Australian Market
("Australian Broker-Dealer").

9. "Market Rules" means rules promulgated, administered andlor enforced by the
operator of a Market applicable to its participants or members. For U.S. Market(s),
Market Rules include rules of the Financial Industry Regulatory Authority applicable
to participants or members of a U.S. Market(s).

10."Market Participant" means supplier of capital markets-related services, which
include trading in securities, asset management, advisory, and settlement and
clearing services for financial assets.

11."Exempted Entity" means a Market Participant that is authorized by or registered
with one Authority and which conducts financial services business in the, jurisdiction
of the other Authority pursuant to exemptive relief under the Laws and Regulations
of that Authority.

ITEM TWO: PURPOSE

12.The purpose of this Arrangement is to continue expanding the benefits to investors
of broader access to U.S. and Australian securities markets in a manner that
ensures the significant protections afforded to investors under each nation's system
are maintained and enhanced. To this end, the Authorities will consider applications
for exemption made by certain Market Participants, as defined and limited in this
Arrangement and subject to such terms and conditions as each Authority may find
appropriate.

ITEM THREE: GENERAL PROVISIONS

13.Nothing in this Arrangement shall be construed to limit the ability of an Authority to
determine, through its legislative, regulatory or other measures, the level of
regulation it deems necessary for the protection of its investors and to maintain the
integrity of the securities markets.

14.This Arrangement does not provide rights to any Person or alter the rights of any
Person under the Laws and Regulations of the Authorities.

15.Except where there is written consent between the Authorities, commitments
contained in a mutual recognition arrangement concluded by either Authority with a
third party not a signatory to this Arrangement will have no force and effect with
regard to this Arrangement.

16.Any differences regarding the interpretation or application of this Arrangement will be
resolved by consultation between the Authorities.

ITEM FOUR: SCOPE

17.This Arrangement initially will be limited to:

For Markets:

a. Australian Markets seeking to do business with U.S. investors, through U.S.
Broker-Dealers, in Australian equity or debt securities listed on an Australian
Market and subject to Australian Laws and Regulations and Market Rules.

i. The term Australian Market(s), as used in this Arrangement, is
limited to a financial market operated by ASX ("Australian Market"),
unless expanded in the future in accordance with paragraph 18.

b. U.S. Markets seeking to do business with Australian investors, through
Australian Broker-Dealers, in U.S. equity or debt securities listed on a U.S.
Market and subject to U.S. Laws and Regulations and Market Rules.

i. The term Australian Broker-Dealer(s), as used in this Arrangement,
is limited to holders of an Australian financial services license under
the Corporations Act of 2001 that are participants of ASX, unless
expanded in the future in accordance with paragraph 18.

c. The Authorities will endeavor to ensure that Australian Markets will not
unfairly discriminate in granting access to U.S. Broker-Dealers and,
conversely, that U.S. Markets will not unfairly discriminate in granting access
to Australian Broker-Dealers.

d. An Australian Market seeking to do business with U.S. investors will provide
U.S. investors, through U.S. Broker-Dealers, a risk disclosure statement
designed to make such U.S. investors aware that they are conducting
transactions with an Australian entity not subject to direct SEC oversight. The
risk disclosure statement will note that the Australian Laws and Regulations
and Market Rules are different from U.S. Laws and Regulations and Market
Rules, and rights and remedies in case of a dispute may be different from
those for transactions conducted on a U.S. Market.

e. A U.S. Market seeking to do business with Australian investors will provide
Australian investors, though Australian Broker-Dealers, a risk disclosure
statement designed to make such Australian investors aware that they are
conducting transactions with an U.S. entity not subject to direct ASIC
oversight. The risk disclosure statement will note that the U.S. Laws and
Regulations and Market Rules are different from Australian Laws and
Regulations and Market Rules, and rights and remedies in case of a dispute
may be different from those for transactions conducted on an Australian
Market.

For Broker-Dealers:

f. Australian Broker-Dealers seeking to do business with U.S. Qualified
Investors in Australian equity or debt securities listed on an Australian Market
and subject to Australian Laws and Regulations and Market Rules; and

g. U.S. Broker-Dealers seeking to do business with Australian Wholesale Clients
in U.S. equity or debt securities listed on a U.S. Market and subject to U.S.
Laws and Regulations and Market Rules.

h. An Australian Broker-Dealer seeking to do business with U.S. investors will
provide U.S. investors a risk disclosure statement designed to make such
U.S. investors aware that they are conducting transactions with an Australian
entity not subject to direct SEC oversight. The risk disclosure statement will
note that the Australian Laws and Regulations and Market Rules are different
from U.S. Laws and Regulations and Market Rules, and rights and remedies
in case of a dispute may be different from those for transactions conducted
through a U.S. Broker-Dealer.

i. A U.S. Broker-Dealer seeking to do business with Australian investors will
provide Australian investors a risk disclosure statement designed to make
such Australian investors aware that they are conducting transactions with an
US. entity not subject to direct ASlC oversight. The risk disclosure statement
will note that the U.S. Laws and Regulations and Market Rules are different
from Australian Laws and Regulations and Market Rules, and rights and
remedies in case of a dispute may be different from those for transactions
conducted through an Australian Broker-Dealer.

18.As the mutual recognition program moves forward, the Authorities may mutually
agree to modify this Arrangement in the future, conduct additional staff assessments
as appropriate, and extend its scope to cover other Market Participants.

ITEM FIVE: ASSESSMENT OF REGULATORY FRAMEWORKS

19.Staff of the 'SEC and ASlC have assessed certain aspects of one another's
regulatory regimes. The staffs recognize that securities regulations may
appropriately be tailored to the types of markets that have developed in particular
jurisdictions and may reflect different regulatory philosophies. These differences
may justify differences in regulation. Accordingly, in assessing the regulatory
frameworks, the staff of the SEC and ASlC consider and analyze core securities
regulatory principles and the manner these principles are given effect via regulation
within each system.

20. Each Authority expects to take into account the SEC and ASlC staff assessments in
considering exemptive relief, as permitted under each Authority's Laws and
Regulations, to certain Market Participants as set forth in Item Four. Such

exemptive relief may be granted subject to such terms and conditions as each
Authority may find appropriate. The terms and conditions must include, without
limitation:

a. Notice to investors in a jurisdiction from which exemptive relief is sought
that the Exempted Entity generally is not regulated in that jurisdiction, but
is subject to the Laws and Regulations of its home country; and

b. An exemption afforded by an Authority to an Exempted Entity does not
constitute a waiver of:

0) the US anti-fraud protections and administrative proceeding
authority; or

(ii) the Australian market misconduct provisions.

ITEM SIX: COOPERATION, CONSULTATION AND PERIODIC REVIEW

21 .The Authorities recognize the importance of close communication and intend to
consult regularly regarding developments and issues related to the operation of this
Arrangement. Such consultation will include periodic meetings between the
Chairmen of the SEC and ASIC.

22.The SEC and ASlC understand that changes to their respective Laws and
Regulations, including relevant Market Rules, may affect the basis and scope of this
Arrangement. Accordingly, the SEC and ASlC will keep each other informed of
material changes within their regulatory systems. Also, upon notification of such
changes by one Authority, the other Authority may request a meeting to consider
whether changes to the Arrangement may be required.

23.Without prejudice to paragraph 22, the SEC and ASlC will review the staff
assessments, in whole or in part as appropriate, and the operation of the
Arrangement periodically, as necessary, but no less than every five years.

24. Recognizing the necessity of close cooperation in the areas of supervision of Market
Participants, Market and Broker-Dealer oversight, and securities enforcement, the
SEC and ASlC have entered into cooperative arrangements for regulatory and
enforcement cooperation, which are attached as Annex 1. These arrangements
establish frameworks for consultation, cooperation and the exchange of information,
including assurances regarding the use and confidential treatment of non-public
information.

ITEM SEVEN: ENTRY INTO FORCE, RENEWAL, AMENDMENT AND TERMINATION

25.This Arrangement will take effect upon signature and will continue for a period of five
years from the date of signing. Upon completion of a periodic review pursuant to
paragraph 23, the Authorities may mutually decide to modify andlor renew the

Arrangement, provided that the Arrangement, as amended, remains subject to
periodic review and renewal every five years.

26.Without prejudice to paragraph 25, either Authority may terminate the Arrangement
and such termination will be effected by sixty days written notification to the other
Authority.

27. In the event that the Arrangement is terminated or not renewed, the Authorities will
evaluate, under their respective Laws and Regulations, whether exemptive relief
should be modified.

28.This Arrangement may be altered by the written consent of the Authorities.

Signed in &sldfldh)? &this am day of wt,2008 in duplicate, in the
English language.

Christopher Cox, Chairman Senator the Honorable Nick Sherry,
For the United States Minister for Superannuation and
Securities and Exchange Commission Corporate Law, on behalf of the

Australian Government c

/ /

Tony D'Aloisio, Chairman
For the Australian Securities and Investments
Commission

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