The Capital Market Law

a) A committee to be known as the “the Committee for the Resolution of Securities Disputes” shall be established, and shall have jurisdiction over the disputes, in public and private actions, falling within the provisions of this Law, its Implementing Regulations, and the regulations, rules and instructions of the Authority, the Exchange, the Depository Center, and the Clearing Center. The Committee shall have all necessary powers to investigate and settle claims, including the power to issue subpoenas to witnesses, order the production of evidence and documents, issue decisions, and impose sanctions. b) The Committee shall consist of one circuit or more, and each circuit shall consist of three regular members and one substitute member with legal qualification and expertise in commercial, financial, and Securities disputes. The head and members of each circuit shall be appointed by a Royal Order for a three-year renewable term. Upon the lapse of such term with no restructuring of the members or renewal of their term, they shall continue to perform their work until a Royal Order is issued in this respect. c) The members of the Committee must not have a financial or commercial interest, whether directly or indirectly, with the parties of the claim considered before the Committee, and must have no familial relationship to the fourth degree with such parties. d) The Committee shall commence consideration of the claim within a period not exceeding fourteen days from the date of filing the claim with the Committee. e) The Committee’s jurisdiction shall include claims against decisions and actions taken by the Authority, the Exchange, the Depository Center or the Clearing Center, and the Committee shall have the right to issue a decision awarding damages and request to revert to the original status, or Page 27 of 60 issue another decision that is appropriate and would guarantee the rights of the aggrieved. f) The regulations and rules of the Authority shall specify the procedures that the Committee shall follow regarding the claims presented to it, and the rules for class-action claims in Securities disputes. g) No statement of claim may be filed with the Committee without filing a complaint first with the Authority and a (90) day period has passed from its filing date, unless the Authority notifies the claimant that he may file the claim with the Committee before the end of this period. The Authority may define exceptions to the provisions of this paragraph as it deems appropriate to achieve market safety and investors protection. h) The Committee’s decisions may be appealed before the Appeal Committee within thirty days from their notification date. i) A Committee known as “the Appeal Committee for Securities Disputes” shall be established. It shall consist of one circuit or more, and each circuit shall consist of three regular members and one substitute member with legal qualification and expertise in commercial, financial, and Securities disputes. The head and members of each circuit shall be appointed by a Royal Order for a three-year renewable term. Upon the lapse of such term with no restructuring of the members or renewal of their term, they shall continue to perform their work until a Royal Order is issued in this respect. The members of the Appeal Committee must not have a financial or commercial interest, whether directly or indirectly, with the parties of the claim being considered before them, and must have no familial relationship to the fourth degree with such parties. The Appeal Committee shall have jurisdiction of considering objections on the decisions of the Committee for the Resolution of Securities Disputes based on the information provided for in the claim’s file. The decisions of the Appeal Committee shall be final. j) At the request of the Authority, the Exchange, the Depository Center or the Clearing Center, final decisions shall be enforced through the government agency responsible for the enforcement of judicial Page 28 of 60 judgments. Decisions issued in favor of the parties pursuant to Articles 55, 56 and 57 of Chapter 10 of this Law shall be enforced by such parties in accordance with the procedure for enforcement of judicial judgment in civil proceedings. k) Evidence in Securities cases shall be admissible in all forms including electronic or computer data, telephone recordings, facsimile messages and electronic mail. Page 29 of 60 Chapter Five: Brokers and Members Regulation Page 30 of 60