NATI ONAL MARKET SYSTEM PLAN

OF THE OPTI ONS REGULATORY SURVEI LLANCE AUTHORI TY

The sel f - r egul at or y or gani zat i ons named bel ow as t he par t i es
t o t hi s pl an, and any ot her sel f - r egul at or y or gani zat i ons t hat may
subsequent l y become par t i es t o t hi s pl an, mai nt ai n mar ket s f or t he
t r adi ng of secur i t i es opt i ons t hat col l ect i vel y const i t ut e a nat i onal
mar ket syst em f or t he t r adi ng of such secur i t i es. These sel f -
r egul at or y or gani zat i ons have det er mi ned t hat i n or der t o enhance t he
ef f ect i veness and ef f i ci ency of r egul at i on of t hat nat i onal mar ket
syst em and of t hei r i ndi vi dual opt i ons mar ket s compr i si ng t hat
nat i onal mar ket syst em and t o avoi d dupl i cat i on of r egul at or y ef f or t ,
t hey shoul d shar e i n t he use, admi ni st r at i on, and cost of cer t ai n
r egul at or y and sur vei l l ance f aci l i t i es and i n t he r egul at or y and
sur vei l l ance i nf or mat i on pr ovi ded by t hese f aci l i t i es. These sel f -
r egul at or y or gani zat i ons have t her ef or e j oi nt l y devel oped and agr eed
upon t he f ol l owi ng pl an f or t hi s pur pose, and have agr eed t o f i l e i t
wi t h t he Secur i t i es and Exchange Commi ssi on ( t he Commi ssi on) as a
nat i onal mar ket syst empl an i n accor dance wi t h and subj ect t o Rul e 608
under t he Secur i t i es Exchange Act of 1934, as amended ( t he Exchange
Act ) . The t er m " Pl an" as used her ei n shal l mean t hi s pl an as f r om
t i me t o t i me amended i n accor dance wi t h t he pr ovi si ons her eof .

The Opt i ons Regul at or y Sur vei l l ance Aut hor i t y ( ORSA) shal l mean
t he par t i es t o t he Pl an act i ng j oi nt l y pur suant t o t he t er ms of t he
Pl an. Pur suant t o Sect i on 11A( a) ( 3) ( B) of t he Exchange Act , t he
Commi ssi on s appr oval of t he Pl an and any amendment s t her et o shal l
aut hor i ze and r equi r e t he par t i es t o t he Pl an t o act j oi nt l y wi t h
r espect t o mat t er s as t o whi ch t hey shar e aut hor i t y her eunder i n
r egul at i ng t he nat i onal mar ket syst em compr i si ng t hei r r espect i ve
mar ket s f or t he t r adi ng of secur i t i es opt i ons, i n pl anni ng, devel opi ng
and oper at i ng t he r egul at or y syst ems and f aci l i t i es used f or t hi s
pur pose, and i n shar i ng t he i nf or mat i on gener at ed by such r egul at or y
syst ems and f aci l i t i es, pr ovi ded t hat such j oi nt act i on shal l be
l i mi t ed t o ci r cumst ances i n whi ch i t i s necessar y i n or der t o f ul f i l l
t he pur poses and obj ect i ves as st at ed i n t he Pl an.

I . Par t i es

( a) The par t i es t o t he Pl an ar e t he f ol l owi ng sel f -
r egul at or y or gani zat i ons:

( i ) Amer i can St ock Exchange LLC
86 Tr i ni t y Pl ace
New Yor k, New Yor k 10006
( i i ) Bost on St ock Exchange, I nc.
100 Fr ankl i n St r eet
Bost on, Massachuset t s 02110

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( i i i ) Chi cago Boar d Opt i ons Exchange, I nc.
400 Sout h LaSal l e St r eet
Chi cago, I l l i noi s 60605

( i v) I nt er nat i onal Secur i t i es Exchange, I nc.
60 Br oad St r eet
New Yor k, New Yor k 10004

( v) Paci f i c Exchange, I nc.
115 Sansome St r eet
San Fr anci sco, Cal i f or ni a 94104

( vi ) Phi l adel phi a St ock Exchange, I nc.
1900 Mar ket St r eet
Phi l adel phi a, Pennsyl vani a 19103

( b) Any ot her sel f - r egul at or y or gani zat i on t hat mai nt ai ns a
mar ket f or t he t r adi ng of secur i t i es opt i ons i n accor dance wi t h r ul es
appr oved by t he Commi ssi on may become a par t y t o t he Pl an. A sel f -
r egul at or y or gani zat i on t hat does not mai nt ai n a mar ket f or t he
t r adi ng of secur i t i es opt i ons may not become a par t y, and, subj ect t o
Sect i on VI I I bel ow concer ni ng t he cont i nui ng l i abi l i t y of f or mer
par t i es f or cer t ai n obl i gat i ons under t he Pl an, a sel f - r egul at or y
or gani zat i on t hat i s a par t y shal l cease t o be a par t y at such t i me as
i t ceases t o mai nt ai n a mar ket f or t he t r adi ng of secur i t i es opt i on
cont r act s, unl ess i n ei t her case t he ot her par t i es t o t he Pl an, by a
maj or i t y vot e, appr ove such sel f - r egul at or y or gani zat i on becomi ng or
cont i nui ng t o be a par t y. As a condi t i on of becomi ng a par t y, a sel f -
r egul at or y or gani zat i on shal l : ( i ) agr ee i n wr i t i ng t o t he t er ms and
condi t i ons of t he Pl an, as t he same may be amended f r om t i me t o t i me,
( i i ) agr ee i n wr i t i ng t o t he t er ms and condi t i ons of any cont r act
pur suant t o whi ch t he par t i es t o t he Pl an have del egat ed r egul at or y
and sur vei l l ance f unct i ons under t he Pl an t o any par t y or ot her sel f -
r egul at or y or gani zat i on, and ( i i i ) pay a Par t i ci pat i on Fee t o ORSA i n
an amount t hat has been det er mi ned by a vot e of a maj or i t y of t he
par t i es t o t he Pl an as f ai r l y and r easonabl y compensat i ng ORSA f or
cost s i t has i ncur r ed i n devel opi ng and mai nt ai ni ng t he syst ems and
f aci l i t i es used f or t he pur poses of t he Pl an and f or cost s i t wi l l
i ncur i n pr ovi di ng f or t he new par t y s par t i ci pat i on. I n det er mi ni ng
t he amount of t he Par t i ci pat i on Fee t o be pai d by any new par t y, ORSA
shal l consi der t he f ol l owi ng f act or s:

t he por t i on of cost s pr evi ousl y pai d by ORSA f or t he devel opment ,
expansi on and mai nt enance of f aci l i t i es used by ORSA whi ch, under
gener al l y accept ed account i ng pr i nci pl es, woul d have been t r eat ed
as capi t al expendi t ur es and woul d have been amor t i zed over t he
f i ve year s pr ecedi ng t he admi ssi on of t he new par t y;

an assessment of cost s i ncur r ed and t o be i ncur r ed by ORSA, i f
any, t o accommodat e t he new par t y, whi ch ar e not ot her wi se
r equi r ed t o be pai d or r ei mbur sed by t he new par t y; and

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pr evi ous Par t i ci pat i on Fees pai d by ot her new par t i es.

I n t he event ORSA and a new par t y do not agr ee on t he amount of t he
Par t i ci pat i on Fee, t he amount of t he Fee wi l l be subj ect t o r evi ew by
t he Commi ssi on.

( c) An appl i cant may appl y t o become a par t y t o t he Pl an by
submi t t i ng t o ORSA a compl et ed Par t i ci pat i on Appl i cat i on on t he f or m
pr ovi ded by ORSA and by agr eei ng t o compl y wi t h t he r equi r ement s of
t he Pl an.
( d) Each par t y t o t he Pl an agr ees t o pr ovi de, and agr ees t o
aut hor i ze The Opt i ons Cl ear i ng Cor por at i on t o pr ovi de, such
i nf or mat i on wi t h r espect t o t r adi ng i n i t s mar ket f or t he t r adi ng of
secur i t i es opt i ons cont r act s t o any par t y or ot her sel f - r egul at or y
or gani zat i on t o whi ch ORSA del egat es al l or par t of i t s r egul at or y and
sur vei l l ance f unct i ons under t he Pl an as such sel f - r egul at or y
or gani zat i on may r easonabl y r equest f or pur poses of per f or mi ng such
f unct i ons.

I I . Admi ni st r at i on of ORSA

( a) ORSA Pol i cy Commi t t ee. ORSA shal l be admi ni st er ed by a
Pol i cy Commi t t ee, whi ch shal l be const i t ut ed as pr ovi ded i n Sect i on
I I ( c) , bel ow.

( b) Aut hor i t y of Pol i cy Commi t t ee. Except as ot her wi se
expr essl y pr ovi ded i n t he Pl an, t he ORSA Pol i cy Commi t t ee shal l make
al l pol i cy deci si ons on behal f of ORSA i n f ur t her ance of t he f unct i ons
and obj ect i ves of ORSA under t he Exchange Act and under t he Pl an,
i ncl udi ng but not l i mi t ed t o t he f ol l owi ng:

( 1) det er mi ne t he ext ent t o whi ch r egul at or y, sur vei l l ance
and i nvest i gat i ve f unct i ons shal l be conduct ed by ORSA on behal f of
t he par t i es;

( 2) make al l det er mi nat i ons per t ai ni ng t o cont r act s wi t h
par t i es t o t he Pl an or wi t h ot her per sons who pr ovi de goods or
ser vi ces t o ORSA, and wi t h par t i es t o t he Pl an or ot her sel f -
r egul at or y or gani zat i ons who engage i n r egul at or y, sur vei l l ance or
i nvest i gat i ve act i vi t i es on behal f of ORSA, and per i odi cal l y eval uat e
t he per f or mance of such per sons;

( 3) r evi ew and appr ove sur vei l l ance st andar ds and ot her
par amet er s t o be used by sel f - r egul at or y or gani zat i ons who per f or m
r egul at or y and sur vei l l ance f unct i ons on behal f of ORSA;

( 4) det er mi ne al l ot her pol i cy quest i ons per t ai ni ng t o t he
pl anni ng, devel opment and oper at i on of ORSA, i ncl udi ng t hose
per t ai ni ng t o budget ar y or f i nanci al mat t er s.

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( c) Composi t i on and Sel ect i on of Pol i cy Commi t t ee. The Pol i cy
Commi t t ee shal l consi st of one vot i ng member r epr esent i ng each par t y
and one al t er nat e vot i ng member r epr esent i ng each par t y who shal l have
a r i ght t o vot e onl y i n t he absence of t hat par t y s vot i ng member .
Each of t he vot i ng and al t er nat e vot i ng member s of t he Pol i cy
Commi t t ee shal l be appoi nt ed by t he par t y t hat he or she r epr esent s,
and shal l ser ve at t he wi l l of t he par t y appoi nt i ng such member .

( d) Act i on of Pol i cy Commi t t ee. Each of t he par t i es shal l have
one vot e on al l mat t er s vot ed upon by t he Pol i cy Commi t t ee and, except
as ot her wi se pr ovi ded her ei n, act i on of ORSA under t he Pl an shal l be
aut hor i zed by t he af f i r mat i ve vot e of a maj or i t y of t he member s of t he
Pol i cy Commi t t ee, subj ect t o t he appr oval of t he Commi ssi on whenever
such appr oval i s r equi r ed under appl i cabl e pr ovi si ons of t he Exchange
Act and t he r ul es of t he Commi ssi on t her eunder . Act i on aut hor i zed i n
accor dance wi t h t he Pl an shal l be bi ndi ng upon al l of t he par t i es,
wi t hout pr ej udi ce t o t he r i ght s of any par t y t o pr esent cont r ar y vi ews
t o any r egul at or y body or i n any ot her appr opr i at e f or um.

( e) Meet i ngs of t he Pol i cy Commi t t ee. Regul ar meet i ngs of t he
Pol i cy Commi t t ee may be at t ended by each par t y' s vot i ng r epr esent at i ve
or al t er nat e vot i ng r epr esent at i ve, by one or mor e nonvot i ng
r epr esent at i ves of t he par t i es, and by such ot her per sons t hat t he
Commi t t ee may i nvi t e t o at t end. Meet i ngs of t he Pol i cy Commi t t ee
shal l be hel d at such t i mes as shal l f r om t i me t o t i me be det er mi ned
by t he Pol i cy Commi t t ee, on not l ess t han 10 days not i ce. Speci al
meet i ngs of t he Pol i cy Commi t t ee may be cal l ed upon t he r equest of t wo
or mor e par t i es on not l ess t han t wo days' not i ce. At each meet i ng of
t he Pol i cy Commi t t ee, t he Commi t t ee shal l desi gnat e one of t he
r epr esent at i ves of t he par t i es t o pr esi de as Chai r man of t he meet i ng
and shal l desi gnat e a per son i n at t endance t o act as Secr et ar y t o
r ecor d t he mi nut es t her eof . The l ocat i on of t he r egul ar and speci al
meet i ngs of t he Pol i cy Commi t t ee shal l be f i xed by t he Commi t t ee,
pr ovi ded t hat i n gener al t he l ocat i on of meet i ngs shal l be r ot at ed
among t he l ocat i ons of t he pr i nci pal of f i ces of t he par t i es. Member s
of t he Pol i cy Commi t t ee may be pr esent at a meet i ng by conf er ence
t el ephone or ot her el ect r oni c means t hat enabl es each of t hem t o hear
and be hear d by al l ot her s pr esent at t he meet i ng, and act i on may be
t aken wi t hout a meet i ng i f al l of t he member s ent i t l ed t o vot e consent
t her et o i n wr i t i ng.

I I I . Funct i ons and Obj ect i ves of ORSA

( a) The f unct i ons and obj ect i ves of ORSA shal l i ncl ude:
( i ) pr ovi di ng f or t he j oi nt devel opment , admi ni st r at i on,
oper at i on and mai nt enance of syst ems and f aci l i t i es ut i l i zed i n
t he r egul at i on, sur vei l l ance, i nvest i gat i on and det ect i on of t he
unl awf ul use of undi scl osed, mat er i al i nf or mat i on i n t he t r adi ng
of secur i t i es opt i ons ( i ncl udi ng opt i ons on equi t y secur i t i es and
on gr oups or i ndexes of equi t y secur i t i es) on one or mor e of t he
mar ket s mai nt ai ned by t he par t i es t o t he Pl an and i n t he t r adi ng
of ot her r el at ed secur i t i es;
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( i i ) pr ovi di ng per sonnel i n suppor t of t he f unct i ons and
obj ect i ves st at ed i n ( i ) above;
( i i i ) shar i ng t he r egul at or y and sur vei l l ance i nf or mat i on
devel oped by ORSA wi t h t he par t i es t o t he Pl an and wi t h ot her
sel f - r egul at or y or gani zat i ons f or r egul at or y pur poses onl y, and
wi t h t he Commi ssi on; and
( i v) pr ovi di ng f or t he j oi nt per f or mance of any ot her
r egul at or y or sur vei l l ance f unct i ons or act i vi t i es t hat t he
par t i es det er mi ne t o br i ng wi t hi n t he scope of t he Pl an; pr ovi ded
t hat any det er mi nat i on t o expand t he r egul at or y or sur vei l l ance
f unct i ons or act i vi t i es of ORSA beyond t hose descr i bed i n
subsect i ons ( i ) , ( i i ) and ( i i i ) of t hi s Sect i on I I I ( a) shal l be
deemed t o be an amendment t o t he Pl an subj ect t o t he r equi r ement s
of Sect i on I X bel ow.
( b) The per f or mance of r egul at or y and sur vei l l ance f unct i ons by
ORSA pur suant t o t he Pl an shal l not be deemed t o r el i eve t he par t i es
of t hei r obl i gat i on t o enf or ce compl i ance wi t h t he pr ovi si ons of t he
Exchange Act , r ul es and r egul at i ons t her eunder , and t he par t i es own
r ul es by t hei r member s and per sons associ at ed wi t h t hei r member s.
Whenever i n t he cour se of per f or mi ng i t s r egul at or y and sur vei l l ance
f unct i ons ORSA obt ai ns i nf or mat i on i ndi cat i ng t her e may have been a
vi ol at i on by member s or associ at ed per sons of member s of one or mor e
of t he par t i es t o t he Pl an, ORSA shal l pr ompt l y i nf or m al l such
par t i es of t he r el evant f act s wi t hi n i t s possessi on. ORSA shal l not
have aut hor i t y t o t ake di sci pl i nar y act i on agai nst member s of t he
par t i es t o t he Pl an or per sons associ at ed wi t h such member s, but al l
such aut hor i t y shal l r emai n t hat of t he par t i es t hemsel ves; pr ovi ded,
however , t hat i n det er mi ni ng whet her t o commence di sci pl i nar y
pr oceedi ngs or t o t ake ot her di sci pl i nar y act i on agai nst per sons
wi t hi n i t s r egul at or y j ur i sdi ct i on, and i n conduct i ng such pr oceedi ngs
or t aki ng such act i on, a par t y may ut i l i ze r egul at or y and sur vei l l ance
i nf or mat i on f ur ni shed t o i t by ORSA.
I V. Per f or mance of Funct i ons.

( a) As and t o t he ext ent det er mi ned by i t s Pol i cy Commi t t ee,
ORSA may del egat e al l or par t of i t s r egul at or y and sur vei l l ance
f unct i ons under t he Pl an ( ot her t han f unct i ons descr i bed i n Sect i on
I I ( b) of t he Pl an) t o one or mor e of t he par t i es or one or mor e ot her
sel f - r egul at or y or gani zat i ons, and wher e appr opr i at e t o ent er i nt o
cont r act s wi t h such sel f - r egul at or y or gani zat i ons descr i bi ng t he
f unct i ons t o be per f or med by t hem and t he ser vi ce l evel s and ot her
t er ms r el at ed t her et o. Each per son who per f or ms admi ni st r at i ve or
oper at i onal f unct i ons on behal f of ORSA shal l be r equi r ed t o agr ee
t hat any nonpubl i c i nf or mat i on t hat becomes known t o such per son shal l
be hel d i n conf i dence, except as i t may be shar ed wi t h t he ot her
par t i es, wi t h ot her sel f - r egul at or y or gani zat i ons f or r egul at or y
pur poses onl y, and wi t h t he Commi ssi on, and except ( i f such per son i s
a par t y) as such per son may use and di scl ose such i nf or mat i on i n
accor dance wi t h t he pr ovi si ons of t he Pl an.

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( b) The Pol i cy Commi t t ee shal l per i odi cal l y ( not l ess
f r equent l y t han annual l y) r evi ew t he per f or mance of per sons t o whom
r egul at or y and sur vei l l ance act i vi t i es have been del egat ed under t he
Pl an, and eval uat e whet her such act i vi t i es have been per f or med i n a
r easonabl y accept abl e manner consi st ent wi t h t he ser vi ce l evel s
speci f i ed i n any cont r act gover ni ng t he per f or mance of such ser vi ces,
and whet her t he cost s of such ser vi ces ar e r easonabl e. I f t he Pol i cy
Commi t t ee det er mi nes t hat t he per f or mance of del egat ed act i vi t i es i s
not r easonabl y accept abl e or t hat cost s ar e unr easonabl e, t he Pol i cy
Commi t t ee may t er mi nat e t he del egat i on of act i vi t i es t o such per sons
subj ect t o appl i cabl e cont r act ual t er ms.

V. Di scl ai mer of Li abi l i t y; I ndemni f i cat i on.

( a) No par t y t o whi ch f unct i ons of ORSA ar e del egat ed i n
accor dance wi t h Sect i on I V of t he Pl an shal l be l i abl e t o any ot her
par t y f or any l oss, cl ai m, damage or expense what soever r esul t i ng f r om
i t s per f or mance of such f unct i ons, whet her based on war r ant y, expr ess
or i mpl i ed, negl i gence or any ot her gr ound, unl ess t he act s or
omi ssi ons upon whi ch a cl ai m of l i abi l i t y i s based const i t ut e wi l l f ul
or r eckl ess mi sconduct or gr oss negl i gence or a mat er i al br each of any
cont r act bet ween such par t y and ORSA pur suant t o whi ch f unct i ons of
ORSA have been so del egat ed.
( b) Any par t y t o whi ch f unct i ons of ORSA ar e del egat ed i n
accor dance wi t h Sect i on I V of t he Pl an shal l be i ndemni f i ed and hel d
har ml ess by ORSA f r om and agai nst any and al l l oss, l i abi l i t y, cl ai m,
damage and expense what soever , i ncl udi ng r easonabl e at t or neys f ees,
ar i si ng out of or based upon any cl ai m agai nst such par t y per t ai ni ng
t o such par t y s per f or mance of , or f ai l ur e t o per f or m, t he f unct i ons
del egat ed t o such par t y, unl ess t he act s or omi ssi ons of such par t y
upon whi ch t he cl ai m i s based const i t ut e wi l l f ul or r eckl ess
mi sconduct or gr oss negl i gence or a mat er i al br each of any cont r act
bet ween such par t y and ORSA pur suant t o whi ch f unct i ons of ORSA have
been so del egat ed. Cost s of ORSA i ncur r ed as a r esul t of t hi s
i ndemni f i cat i on shal l be al l ocat ed among t he par t i es, i ncl udi ng t he
i ndemni f i ed par t y, i n accor dance wi t h Sect i on VI of t he Pl an. Thi s
i ndemni t y agr eement shal l be i n addi t i on t o any l i abi l i t y whi ch ORSA
or any of t he par t i es may ot her wi se have.
( c) Pr ompt l y ( i n any event wi t hi n t hi r t y days) af t er r ecei pt by
a par t y of not i ce of t he commencement of any act i on i n r espect of
whi ch such par t y bel i eves i t i s ent i t l ed t o be i ndemni f i ed pur suant t o
Sect i on V( b) above, such par t y wi l l , i f a cl ai mf or i ndemni f i cat i on i n
r espect t her eof i s t o be made agai nst ORSA under Sect i on V( b) , not i f y
ORSA i n wr i t i ng of t he commencement t her eof ; but t he f ai l ur e so t o
not i f y ORSA wi l l not r el i eve ORSA f r om any l i abi l i t y i t may have t o
such par t y under Sect i on V( b) except t o t he ext ent ( i f any) t hat ORSA
shal l have been act ual l y pr ej udi ced t her eby, and wi l l not r el i eve ORSA
f r om any l i abi l i t y i t may have t o such par t y ot her wi se t han under
Sect i on V( b) above. I n case any such act i on i s br ought agai nst any
such par t y t hat not i f i es ORSA of a cl ai m f or i ndemni f i cat i on i n
r espect t her eof , ORSA wi l l be ent i t l ed t o par t i ci pat e i n, and, t o t he
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ext ent t hat i t may wi sh, t o assume and cont r ol t he def ense t her eof ,
wi t h counsel chosen by i t , and af t er not i ce f r om ORSA of i t s el ect i on
so t o assume t he def ense t her eof , ORSA wi l l not be l i abl e t o such
i ndemni f i ed par t y under Sect i on V( b) above f or any l egal or ot her
expenses subsequent l y i ncur r ed by such i ndemni f i ed par t y i n connect i on
wi t h t he def ense t her eof ot her t han r easonabl e cost s of i nvest i gat i on,
but t he i ndemni f i ed par t y may, at i t s own expense, par t i ci pat e i n such
def ense by counsel chosen by i t , wi t hout , however , i mpai r i ng t he
i ndemni f yi ng par t y' s cont r ol of t he def ense. ORSA may negot i at e a
compr omi se or set t l ement of any such act i on pr ovi ded t hat such
compr omi se or set t l ement does not r equi r e a cont r i but i on by t he
i ndemni f i ed par t y beyond i t s shar e of t he cost s of set t l ement i n
accor dance wi t h Sect i on VI bel ow.

VI . Fi nanci al Mat t er s.

( a) The cost s and expenses of ORSA t o be al l ocat ed among t he
par t i es i n accor dance wi t h par agr aph ( b) of t hi s Sect i on VI shal l
consi st of al l cost s and expenses dul y and pr oper l y i ncur r ed by any
par t y as a di r ect r esul t of i t s per f or mi ng r egul at or y or sur vei l l ance
f unct i ons on behal f of ORSA del egat ed t o i t i n accor dance wi t h Sect i on
I V of t he Pl an, t oget her wi t h any amount s char ged t o ORSA ( or char ged
t o any par t y aut hor i zed t o i ncur such char ges on behal f of ORSA) by
any ot her per son f or goods or ser vi ces pr ovi ded t o or f or t he benef i t
of ORSA. Such cost s and expenses shal l i ncl ude, wi t hout l i mi t at i on,
har dwar e and sof t war e expenses, i ncl udi ng l ease payment s and l i cense
f ees, syst ems devel opment , oper at i on and mai nt enance cost s, f ul l y
al l ocat ed cost s of per sonnel of a par t y who per f or m f unct i ons on
behal f of ORSA t hat have been del egat ed t o t hat par t y ( pr or at ed i n t he
case of per sonnel who spend l ess t han f ul l t i me on ORSA- r el at ed
act i vi t i es) , l egal f ees dul y and pr oper l y i ncur r ed by any par t y as a
di r ect r esul t of i t s per f or mi ng r egul at or y or sur vei l l ance f unct i ons
on behal f of ORSA del egat ed t o i t i n accor dance wi t h Sect i on I V of t he
Pl an, and a shar e of admi ni st r at i ve and over head cost s of a par t y
del egat ed t o per f or m f unct i ons on behal f of ORSA r ef l ect i ng a
r easonabl e al l ocat i on of such cost s t o i t s ORSA- r el at ed act i vi t i es.
Not wi t hst andi ng t he f or egoi ng, i n ant i ci pat i on t hat ORSA wi l l del egat e
t o t he Chi cago Boar d Opt i ons Exchange ( CBOE) t he per f or mance of
i nsi der t r adi ng sur vei l l ance act i vi t i es t hr ough t he ut i l i zat i on of t he
i nsi der t r adi ng sur vei l l ance syst em devel oped by CBOE, t he cost s and
expenses i ncur r ed by CBOE i n devel opi ng t hat syst em and al l
enhancement s t o t hat syst em t hr ough [ Dat e of SEC Appr oval of Pl an] ,
2005, wi l l not be deemed t o be cost s and expenses of ORSA subj ect t o
al l ocat i on among t he par t i es and wi l l be bor ne by CBOE wi t hout
r ei mbur sement . Cost s and expenses i ncur r ed by CBOE i n mai nt ai ni ng
t hat syst em af t er [ Dat e of SEC Appr oval of Pl an] , 2005, and cost s and
expenses of upgr ades t o t hat syst em as aut hor i zed by ORSA wi l l be
deemed t o be cost s and expenses of ORSA and wi l l be al l ocat ed among
t he par t i es i n accor dance wi t h par agr aph ( b) of t hi s Sect i on VI .

( b) Cost s and expenses of ORSA wi l l be al l ocat ed among t he
par t i es at t he end of each cal endar quar t er as f ol l ows:
8

( i ) The t ot al oper at i ng cost s and expenses and capi t al
cost s i ncur r ed by or on behal f of ORSA ( on an accr ual basi s)
dur i ng t he cal endar quar t er wi l l be det er mi ned i n accor dance wi t h
par agr aph ( a) of t hi s Sect i on VI . These cost s and expenses ar e
r ef er r ed t o as t he Tot al Al l ocabl e Cost s.
( i i ) Fi f t y per cent ( 50%) of t he Tot al Al l ocabl e Cost s shal l
be al l ocat ed equal l y among al l of t he exchanges t hat wer e par t i es
t o t he Pl an dur i ng t he quar t er ( such al l ocat i on shal l be made
pr o- r at a f or any exchange t hat was a par t y dur i ng l ess t han t he
ent i r e quar t er ) .
( i i i ) Twent y- f i ve per cent ( 25%) of t he Tot al Al l ocabl e
Cost s shal l be al l ocat ed among al l of t he exchanges t hat wer e
par t i es t o t he Pl an at any t i me dur i ng t he quar t er on t he basi s
of each exchange s cont r act vol ume mar ket shar e i n al l cl asses of
secur i t i es opt i ons t r aded by al l of t he exchanges dur i ng t he
quar t er .
( i v) Twent y- f i ve per cent ( 25%) of t he Tot al Al l ocabl e
Cost s shal l be al l ocat ed among al l of t he exchanges t hat wer e
par t i es t o t he Pl an at any t i me dur i ng t he quar t er on t he basi s
of t he number of cl asses of secur i t i es opt i ons t r aded on each
exchange as a per cent age of t he t ot al number of such cl asses
t r aded on al l exchanges, i n each case, aver aged over al l of t he
t r adi ng days of t he quar t er .
( v) The sumof t he cost s and expenses al l ocat ed t o a par t y
pur suant t o subpar agr aphs ( i i ) , ( i i i ) and ( i v) above shal l be
t hat par t y s al l ocat ed shar e of ORSA cost s and expenses f or t hat
quar t er .

( c) Wi t h r espect t o any cal endar quar t er i n whi ch CBOE has been
del egat ed t o per f or m sur vei l l ance act i vi t i es on behal f of ORSA, CBOE
shal l pr epar e an al l ocat i on of cost s and expenses of ORSA as pr ompt l y
as pr act i cabl e f ol l owi ng t he end of t he cal endar quar t er based upon
t he cost s and expenses i t i ncur r ed and t hose i ncur r ed by any ot her
par t y dur i ng t he quar t er j ust ended, whi ch i n each case ar e pr oper l y
aut hor i zed t o be al l ocat ed among t he par t i es i n accor dance wi t h t he
Pl an. A wr i t t en r epor t of t he al l ocat i on showi ng t he payabl es and
r ecei vabl es of each par t y f or t he quar t er and t he basi s of t he
al l ocat i on shal l be sent t o each par t y as soon as i t i s avai l abl e.
Each par t y s al l ocat ed shar e of ORSA s cost s and expenses as set f or t h
i n t he r epor t shal l be due and payabl e wi t hi n t hi r t y days of r ecei pt
of t he r epor t .

( d) An i ndependent audi t shal l be made year l y of al l cost s and
expenses char geabl e t o ORSA and of t he al l ocat i on of such cost s and
expenses among t he par t i es. The audi t shal l be per f or med by CBOE s
r egul ar i ndependent audi t or or such ot her i ndependent audi t or t hat may
be sel ect ed by ORSA s Pol i cy Commi t t ee.


9
VI I . Conf i dent i al i t y.

( a) The par t i es shal l use r egul at or y i nf or mat i on f ur ni shed t o
t hem by ORSA sol el y f or t he pur pose of enf or ci ng compl i ance wi t h t he
pr ovi si ons of t he Exchange Act , or f or ot her r egul at or y pur poses. The
par t i es and ORSA shal l hol d such i nf or mat i on i n conf i dence, and shal l
not publ i sh, di scl ose or di ssemi nat e t he same t o any ot her per son or
ent i t y ( ot her t han empl oyees or agent s of t he par t i es who ar e engaged
i n t he per f or mance of r egul at or y act i vi t i es on t hei r behal f ) except as
pr ovi ded i n Sect i on VI I ( b) bel ow.

( b) Not wi t hst andi ng Sect i on VI I ( a) above, a par t y may di scl ose
i nf or mat i on f ur ni shed t o i t by ORSA ( i ) t o ot her sel f - r egul at or y
or gani zat i ons f or r egul at or y pur poses onl y pur suant t o an ar r angement
f or t he shar i ng of r egul at or y i nf or mat i on among such or gani zat i ons,
( i i ) t o t he Commi ssi on, ( i i i ) t o ot her gover nment al agency f or use i n
t hei r of f i ci al capaci t i es, ( i v) pur suant t o an or der of a cour t or
ot her l awf ul pr ocess, or ( v) i n connect i on wi t h i t s own di sci pl i nar y
and ot her r egul at or y pr oceedi ngs.

( c) Each of t he par t i es and ORSA shal l t ake r easonabl e st eps t o
i nsur e t hat nonpubl i c busi ness i nf or mat i on speci f i c t o a par t y r emai ns
segr egat ed and conf i dent i al f r om t he ot her par t i es, except f or
i nf or mat i on t hat may be shar ed f or r egul at or y pur poses as pr ovi ded
her ei n.

VI I I . Ter m of Pl an; Wi t hdr awal ; Non- t r ansf er abi l i t y of Ri ght s Under t he
Pl an

The Pl an shal l r emai n i n ef f ect so l ong as t her e ar e t wo or mor e
par t i es t o t he Pl an. Any par t y may wi t hdr aw f r om t he Pl an at any t i me
on not l ess t han si x mont hs pr i or wr i t t en not i ce t o each of t he ot her
par t i es. Any par t y wi t hdr awi ng f r om t he Pl an shal l r emai n l i abl e f or
i t s pr opor t i onat e shar e of cost s and expenses al l ocat ed t o i t pur suant
t o Sect i on VI above f or t he per i od dur i ng whi ch i t was a par t y,
i ncl udi ng i t s shar e of ORSA s i ndemni f i cat i on obl i gat i ons i ncur r ed
whi l e i t was a par t y, but i t shal l have no f ur t her obl i gat i ons under
t he Pl an or t o any of t he ot her par t i es wi t h r espect t o t he per i od
f ol l owi ng t he ef f ect i veness of i t s wi t hdr awal . The r i ght of a par t y
t o par t i ci pat e i n j oi nt r egul at or y ser vi ces under t he Pl an shal l not
be t r ansf er abl e wi t hout t he consent of t he ot her par t i es.
I X. Amendment s t o t he Pl an
The Pl an may be amended f r om t i me t o t i me when aut hor i zed by t he
af f i r mat i ve vot e of al l of t he par t i es, pr ovi ded t hat t he pr ovi si ons
of Sect i on VI per t ai ni ng t o t he al l ocat i on of t he cost s and expenses
of ORSA among t he par t i es may be amended when aut hor i zed by t he
af f i r mat i ve vot e of not l ess t han 66- 2/ 3% of t he par t i es, subj ect i n
ever y case t o any r equi r ed appr oval of t he Secur i t i es and Exchange
Commi ssi on.

10
X. Appl i cabi l i t y of Exchange Act

The r i ght s and obl i gat i ons of t he par t i es t o t he Pl an shal l at
al l t i mes be subj ect t o any appl i cabl e pr ovi si ons of t he Exchange Act
and any r ul es and r egul at i ons pr omul gat ed t her eunder .

XI . Not i ces.

Any not i ce gi ven t o any of t he par t i es or t o ORSA f or pur poses of
t he Pl an shal l be i n wr i t i ng, and shal l be deemed gi ven i f sent by
pr epai d r egi st er ed or cer t i f i ed Uni t ed St at es mai l , r et ur n r ecei pt
r equest ed ( i f avai l abl e) , over ni ght mai l wi t h a nat i onal l y r ecogni zed
over ni ght mai l cour i er , addr essed t o t he par t y at i t s addr ess
i ndi cat ed bel ow i n t he case of not i ce t o one or mor e par t i es, or
addr essed t o al l of t he par t i es at t hei r addr esses i ndi cat ed bel ow i n
t he case of not i ce t o ORSA:

( i ) Amer i can St ock Exchange LLC
86 Tr i ni t y Pl ace
New Yor k, New Yor k 10006

( i i ) Bost on St ock Exchange, I nc.
100 Fr ankl i n St r eet
Bost on, Massachuset t s 02110

( i i i ) Chi cago Boar d Opt i ons Exchange, I nc.
400 Sout h LaSal l e St r eet
Chi cago, I l l i noi s 60605

( i v) I nt er nat i onal Secur i t i es Exchange, I nc.
60 Br oad St r eet
New Yor k, New Yor k 10004

( v) Paci f i c Exchange, I nc.
115 Sansome St r eet
San Fr anci sco, Cal i f or ni a 94104

( vi ) Phi l adel phi a St ock Exchange, I nc.
1900 Mar ket St r eet
Phi l adel phi a, Pennsyl vani a 19103

XI I . Count er par t s and Si gnat ur es

The Pl an may be execut ed i n any number of count er par t s, no one of
whi ch need cont ai n al l si gnat ur es of al l Par t i ci pant s, and as many of
such count er par t s as shal l t oget her cont ai n al l such si gnat ur es shal l
const i t ut e one and t he same i nst r ument .
11
I N WI TNESS WHEREOF, t hi s Pl an has been execut ed as of t he 23
r d
day of
December , 2005 by each of t he par t i es her et o.

AMERI CAN STOCK EXCHANGE LLC

By:

Ti t l e

BOSTON STOCK EXCHANGE, I NC.

By:

Ti t l e

CHI CAGO BOARD OPTI ONS EXCHANGE, I NC.

By:

Ti t l e

I NTERNATI ONAL SECURI TI ES EXCHANGE, I NC.

By:

Ti t l e
PACI FI C EXCHANGE, I NC.
By:

Ti t l e

PHI LADELPHI A STOCK EXCHANGE, I NC.

By:

Ti t l e