STANDARD MANUALS EXEMPTIONS

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STANDARD MANUALS EXEMPTIONS The manual exemptions permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain: 1. The names of issuers, officers, and directors 2. An issuer s balance sheet 3. A profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations Furthermore, the manual exemption is a nonissuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. As you will see from the following chart, most of the accepted manuals are those published in Standard and Poor s, Moody s Investor Service (or Mergent s if the state has amended its laws and rules to recognize the official name change See IMPORTANT NOTE below), Fitch s Investment Service, and Best s Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare that they recognize securities manuals but do not specify the recognized manuals. The states that do not have any provisions do not expressly recognize the manual exemption. Securities practitioners wishing to claim the manual exemption in states that do not have any provisions or in states that simply declare their recognition of the exemption without specifying particular manuals are advised to contact the securities administrators in those states to determine their exact position on this exemption. IMPORTANT NOTE Moody s s no longer exist, and in their place Mergent s s are now recognized and accepted in those states that previously recognized Moody s s, whether or not the state has amended its laws or regulations or adopted a policy statement or an administrative order to officially recognize the name change from Moody s to Mergent s.

Standard s Exemptions 2 ALABAMA No provisions ALASKA [Law at 8134] 1. Standard & Poor s 2. Mergent FIS, Inc. (formerly Financial Communications Company, Inc., formerly Moody s s ) 3. Fitch s Investor Service, L.P. [Regulation at 8462; Order at 8573] ARIZONA [Law at 9136] 2. Mergent s Municipal and Governmental 3. Mergent s Transportation 4. Mergent s Public Utility 5. Mergent s Bank and Financing 6. Standard & Poor s Corporation [Rule at 9524] ARKANSAS [Law at 10,164] 1. Standard & Poor s Standard Corporation 2. Mergent s Industrial 3. Mergent s Bank and Finance 4. Mergent s Transportation 5. Mergent s Public Utility 6. Mergent s OTC Industrial 7. Mergent s International 8. Mergent s Municipal and Governmental [Rule at 10,480] The name change from Moody s to Mergent s s is recognized by the Arkansas Securities Department for purposes of claiming the manual exemption under the Arkansas Securities Act and rules. Mergent s s appearing in electronic formats including CD-ROM and Internet are recognized. [Administrative Order at 10,673] CALIFORNIA 1. Evidences of indebtedness rated as investment grade securities as defined by: a. Standard & Poor s Rating Services b. Moody s Investor Service c. Fitch IBCA, Inc. [Rule at 11,820B] COLORADO [Law at 13,112] 1. Mergent Industrial 2. Mergent Municipal and Governmental 3. Mergent Transportation 4. Mergent Public Utility 5. Mergent Bank and Finance 6. Mergent OTC Industrial 7. Mergent International 8. Standard & Poor s Standard 9. Periodic Supplements to each recognized Securities [Rule at 13,429] The name change from Moody s to Mergent s s is recognized by the Colorado Securities Division for purposes of claiming the manual exemptions under the Colorado Securities Act and rules. Mergent s s appearing in electronic formats including CD-ROM and Internet are recognized. [Administrative Order at 13,666B] CONNECTICUT [Law at 14,120] 1. Standard & Poor s Standard 2. Moody s Industrial 3. Moody s Bank and Finance 4. Moody s Transportation 5. Moody s OTC Industrial 6. Moody s Public Utility 7. Moody s International [Regulation at 14,481A; Order at 14,585] Mergent s Inc. s print-published and CD-ROM and electronic versions of the above manuals are recognized and accepted for exemption purposes. [Letter at 14,611] DELAWARE [Law at 15,109] 2. Mergent s Transportation 3. Mergent s Public Utility 4. Mergent s Bank & Finance 5. Mergent s OTC Industrial 6. Standard & Poor s Standard 7. Fitch s Individual Stock Bulletin [Rule at 15,518]

Standard s Exemptions 3 DISTRICT OF COLUMBIA [Law at 16,122] A nationally recognized securities manual designated... by the Commissioner... 2. Mergent s Transportation 3. Mergent s Public Utility 4. Mergent s Bank and Finance 5. Mergent s International 6. Standard & Poor s Standard Corporation Description 7. Fitch s Individual Stock Bulletin 8. Mergent s OTC Industrial [Rule at 16,500; P.S. at 16,753] FLORIDA [Law at 17,106] 1. Mergent s Investors Service s 2. Standard & Poor s Corporation [Rule at 17,450] GEORGIA [Law at 18,107] A nationally recognized securities manual or its electronic equivalent. 1. Standard & Poor s Standard Corporation Descriptions. 2. Mergent s Industrial and 3. Mergent s Transportation and 4. Mergent s Public Utility and 5. Mergent s Bank and Finance and 6. Mergent s Municipal and Government and 7. Mergent s International and 8. Fitch s Individual Stock Bulletin. 9. Best s Insurance Reports Life-Health. 10. Any other securities manual determined at the Commissioner s discretion to be a nationally recognized securites manual, that requires the continuous disclosure by any issuer relying on the manual for the registration exemption. [Rule at 18,416; Administrative Order at 18,544] GUAM [Law at 19,132]... a recognized securities manual... HAWAII [Law at 20,107] A nationally recognized securities manual or its electronic equivalent. IDAHO [Law at 21,107] 1. Standard & Poor s Corporation 2. Mergent s Industrial 3. Mergent s International 4. Walker s of Western Corporations 5. Best s Insurance Reports-Life-Health [Rule at 21,456] ILLINOIS No provisions INDIANA [Law at 24,107] A nationally recognized securities manual or its electronic equivalent. [Rule at 24,674] Name change from Moody s to Mergent s s is recognized and does not affect application of the secondary trading exemption [Administrative Order at 24,702] IOWA [Law at 25,113] A recognized securities manual approved by the Commissioner KANSAS [Law at 26,107(2)] A nationally recognized securities manual or its electronic equivalent designated by rule, order, or a record filed with the securities exchange commission. Standard & Poor s manual of standard corporate descriptions and Mergent s s formerly know as Moody s s. [ 26,405P; 26,628] KENTUCKY No provisions

Standard s Exemptions 4 LOUISIANA No provisions MAINE [Law at 29,037] A nationally recognized securities manual. Any Mergent, Standard & Poor s or Fitch securities manual that contains, in whatever format, the information specified in 32 M.R.S.A. 16202(2)(D)(1) (4). [Rule at par. 29,427] MARYLAND [Law at 30,172] 2. Mergent s Transportation 3. Mergent s Public Utility 4. Mergent s Bank & Finance 5. Standard & Poor s Standard. [Rule at 30,433; Administrative Order at 30,621] MASSACHUSETTS [Law at 31,132] 1. Standard & Poor s Standard 2. Moody s Industrial 3. Moody s Bank and Finance 4. Moody s Transportation 5. Moody s OTC Industrial 6. Moody s Public Utility [Rule at 31,472] The official change in the name from Moody s to Mergent s securities manuals is recognized by the Massachusetts Securities Division and does not affect availability of the securities manuals exemption. [Policy Statement at 31,650] MICHIGAN [Law at 32,110] 1. Moody s Industrial 2. Moody s Transportation 3. Moody s Public Utility 4. Moody s Bank and Finance 5. Moody s Municipal and Government 6. Moody s OTC Industrial 7. Moody s International 8. Standard and Poor s Corporation 9. Best s Life Insurance Reports 10. Best s Insurance Reports (Fire and Casualty) [Rule at 32,476, 32,623] MINNESOTA [Law at 33,107] A nationally recognized securities manual or its electronic equivalent designated by rule, order, or a record filed with the Securities Exchange Commission. 1. Standard & Poor s Corporation 2. Mergent s Industrial and Industrial News Reports 3. Mergent s Bank & Finance and Bank & Finance News Reports 4. Mergent s Transportation and Transportation News Reports 5. Mergent s Public Utility and Public Utility News Reports 6. Mergent s OTC Industrial and OTC Industrial News Reports 7. Mergent s International [Regulation at 33,404] MISSISSIPPI [Law at 34,137] 2. Mergent s Municipal and Government 3. Mergent s Transportation 4. Mergent s Public Utility 5. Mergent s Bank and Finance 6. Standard and Poor s Standard Corporate Descriptions or 7. Mergent s Over-the-Counter Industrial 8. Mergent s International [Rule at 34,532]

Standard s Exemptions 5 MISSOURI [Law at 35,107] 1. Fitch s Rating Register [Rule at 35,510] MONTANA No provisions [except to claim a foreign security exemption across]. Requires, among other conditions to be satisfied, that the most recent edition of Mergent s or Standard & Poor s Corporation, or the periodic supplements to these publications contains a description of the issuer s business, officers names, and audited balance sheet. [Rule at 36,472] The most recent edition of Mergent s, Standard & Poor s Corporation or supplements to these publications that appears on CD-ROM, the Internet or in another recognized format is considered an acceptable format for purposes of this exemption. [Rule at 36,472] NEBRASKA [Law at 37,114] 1. s published by Moody s Investors Service 2. s published by Standard and Poor s Corporation [Reg. at 37,459] NEVADA [Law at 38,149, 38,150] 2. Mergent s Municipal and Governmental 3. Mergent s Public Utility 4. Mergent s Transportation 5. Mergent s Bank and Finance 6. Mergent s International 7. Standard & Poor s Corporation [Rules at 38,473, 38,474] NEW HAMPSHIRE [Law at 39,177] The following manuals are approved for nonissuer distributions of an outstanding security other than common stock (equity) with the security rated in one of the top three categories of the manuals: 1. Moody s s 2. Fitch s 3. Standard & Poor s s NEW JERSEY [Law at 40,104] 1. Moody s s 2. Standard & Poor s s [Rule at 40,591] s issued by Mergent s and Standard and Poor s in either print or electronic format are recognized for the securities manuals exemption under the New Jersey Securities Act. [Rule at 40,525] The change in the name of Moody s s to Mergent s s does not affect the New Jersey Securities Bureau s recognition of these manuals for the exemption for nonissuer transactions by registered brokerdealers. The CD-ROM and Internet versions of Mergent s s is an acceptable substitute for the print version. [No-Action Letter at 40,691W] NEW MEXICO [Law at 41,157] A Standard & Poor s, Mergent or Fitch securities manual that contains, in whatever format, the information in 58-13C-202B4(a) to (d) of the New Mexico Uniform Securities Act is designated a nationally recognized securities manual for purposes of the registration exemption under Section 58-13C-202B4(a) to (d) of the New Mexico Uniform Securities Act. [Rule at 41,571H] NEW YORK No provisions NORTH CAROLINA [Law at 43,122] 1. Standard and Poor s Corporation 2. Mergent s Industrial 3. Mergent s Over-the-Counter Industrial 4. Mergent s International 5. Periodic supplements to each recognized securities manual [Rule at 43,412]

Standard s Exemptions 6 NORTH DAKOTA [Law at 44,106] 1. Standard and Poor s 2. Mergent s Industrial 3. Mergent s Bank and Finance 4. Mergent s Transportation 5. Mergent s Public Utility 6. Fitch s Investor Service, Inc. OHIO [Law at 45,103] a recognized securities manual OKLAHOMA [Law at 46,107] 1. Best s Insurance Reports, Life-Health 2. Moody s Industrial 3. Moody s International 4. Standard and Poor s Corporate [Rule at 46,514] OREGON [Law at 47,103] 1. Fitch s Investors Service with ratings of BBB or better for bonds, and ratings of F-3 or better for commercial paper 2. Moody s Investors Service with Ratings of Baa or better for bonds, and ratings of P-3 or better for commercial paper 3. Standard & Poor s Corporation with ratings of BBB or better for bonds, and ratings of A-3 or better for commercial paper [Rule at 47,548] [Law at 47,104] 1. Fitch s Investor Service 2. Mergent s Investor Service 3. Standard and Poor s Corporation [Rule at 47,555] PUERTO RICO [Law at 49,132] 2. Mergent s Transportation 3. Mergent s Public Utility 4. Mergent s Bank & Finance 5. Standard & Poor s Standard [Rule at 49,537; Policy Statement at 49,604] RHODE ISLAND [Law at 50,124] 1. Fitch Investor Services, Inc. 2. Moody s Investor Services 3. Standard & Poors Corp. [Rule at 50,408] SOUTH CAROLINA [Law at 51,132] 1. Standard & Poor s Corporation 2. Mergent s s [Rule at 51,507] SOUTH DAKOTA [Law at 52,317] 1. Standard and Poor s Standard 2. Moody s Industrial 3. Moody s Bank and Finance 4. Moody s Public Utility 5. Moody s Municipal and Government 6. Moody s Transportation 7. Moody s OTC Industrial 8. Moody s OTC Unlisted 9. Moody s International [Rule at 52,810W] TENNESSEE No provisions. PENNSYLVANIA No provisions Commercial paper is of prime quality when it is in one of the three highest ratings of a nationally recognized statistical rating organization [Regulation at 48,421]

Standard s Exemptions 7 TEXAS Law at 55,105] 1. S&P Capital IQ Standard Corporation Descriptions (including the Daily News Section) 2. Best s Insurance Reports Life-Health 3. Mergent s Bank & Financial and News Reports 4. Mergent s Industrial and News Reports 5. Mergent s Public Utility and News Reports 6. Mergent s Transportation and News Reports 7. Mergent s Municipal and Government and News Reports 8. Mergent s International and News Reports 9. Mergent s OTC Industrial and News Reports (Reports only for updating ) [Rule at 55,557; Securities Bulletin at 55,801] U.S. VIRGIN ISLANDS [Law at 60,508] A nationally recognized securities manual or its electronic equivalent. UTAH [Law at 57,144] 1. Standard & Poor s Corporation 2. Mergent s Industrial 3. Mergent s Bank & Finance 4. Mergent s Transportation 5. Mergent s OTC Industrial 6. Mergent s Public Utility 7. Mergent s OTC Unlisted 8. Mergent s International [Rule at 57,411] The electronic version of Standard & Poors Corporation is recognized by the Utah Securities Division to the same extent as the print version, for purposes of the Utah manual exemption in 57,411 [No-action letter at 57,498] VERMONT [Law at {58,107] A nationally recognized securities manual or its electronic equivalent. VIRGINIA No provisions WASHINGTON [Law at 61,133] 1. Fitch Investors Service 2. Moody s Investors Service 3. Standard & Poor s Corporations. [Rule at 61,530; for nonissuer transaction exemptions involving the NASAA Uniform Exemption, see 61,749J, 61,749L] WEST VIRGINIA [Law at 63,132] 1. Moody s Industrial 2. Moody s Transportation 3. Moody s Public Utility 4. Moody s Bank and Finance 5. Moody s Municipal and Government 6. Moody s OTC Industrial 7. Standard and Poor s Corporation 8. Best s Life Insurance Reports 9. Best s Insurance Reports (Fire and Casualty) [Regulation at 63,492] Mergent s published versions of Moody s s are recognized by the West Virginia Securities Division for the exemption for transactions in outstanding securities. [Administrative Order at 63,634] WISCONSIN [Law at 64,172] Any Standard & Poor s, Mergent s or Fitch securities manual containing in whatever format the information specified in 551.202(2) (d) 1. through 4. [par. 64,172] is designated a nationally recognized securities manual for the s. 551.202(2) exemption for nonissuer transactions by or through a registered or exempt broker-dealer. [Rule at 64,512]

Standard s Exemptions 8 WYOMING [Law at 66,114] 1. Moody s s 2. Standard & Poor s 3. Fitch s 4. Value Line Regulation at 66,433]