Rules for the Construction, Maintenance and Use of the

NASDAQ SALMON INDEX – NQSALMON Version 1.5

NQSALMON Rules |

© Copyright 2016, The Nasdaq Group, Inc. All Rights Reserved.

1

Contents Definitions .....................................................................................................................................................3 1.

Introduction ...........................................................................................................................................4

2.

Index Contributor requirements ...........................................................................................................4

3.

Index Product, Spot reference Transactions and Prices to be reported to Nasdaq Clearing................4 3.1.

Index Product ................................................................................................................................4

3.2.

Spot Reference Transactions .........................................................................................................5

3.3.

Price (P)..........................................................................................................................................5

3.4.

Foreign Exchange Rates .................................................................................................................5

4.

Reporting Procedures ............................................................................................................................6

5.

Index Value ............................................................................................................................................6 5.1.

Formula for calculation of the Index Value ...................................................................................6

5.2.

Rounding off ..................................................................................................................................6

5.3.

Volume Limits ................................................................................................................................6

5.4.

Calculation Procedures ..................................................................................................................7

6.

Publication Procedures..........................................................................................................................7

7.

Audit and Control ..................................................................................................................................7

8.

Use of the NQSALMON ..........................................................................................................................7

9.

Changes in Conditions ...........................................................................................................................7

10. Limits of Liability ....................................................................................................................................8 Appendix 1 – Transportation Costs ...............................................................................................................9 Appendix 2 – Customs Clearing .................................................................................................................. 10 Appendix 3 – Volume limits........................................................................................................................ 11 Appendix 4 –Special production to be excluded from reporting to Nasdaq Clearing................................ 12

2

DEFINITIONS NQSALMON

Means The Nasdaq Salmon Index

NQSALMON Rules

Means rules for the construction, maintenance and use of the NQSALMON

Spot Reference Transactions

Means transactions where prices and corresponding volumes are agreed either in the week prior to invoicing or in the week of invoicing (Spot Reference Week)

Spot Reference Week

Means the week of invoicing

Reporting Week

Means the week after the Spot Reference Week in question, when applicable Spot Reference Transactions are reported to Nasdaq Clearing for calculation of the NQSALMON Means the volume weighted average price per weight class and the volume weighted average price across classes

Index Value

Index Contributor

Means Norwegian salmon exporters and salmon producers with export license reporting data to NQSALMON

Advisory Group

Means a group of a minimum of three Index Contributors

Internal Transactions

Means sales transactions were both parties are owned by the same ultimate parent company

3

RULES FOR THE CONSTRUCTION, MAINTENANCE AND USE OF THE NQSALMON (NQSALMON RULES) 1. Introduction Nasdaq Clearing AB (“Nasdaq Clearing”) has constructed the NQSALMON with the objective to create an index that reflects the weekly market spot price for fresh Atlantic Superior Salmon, head on gutted (HOG). The NQSALMON is calculated based on actual physical transactions reported to Nasdaq Clearing by Norwegian salmon exporters and salmon producers with export license, hereinafter referred to as Index Contributor(s). Nasdaq Clearing is the owner of the intellectual property rights and trademarks in NQSALMON and may grant third parties the right to use the index in accordance with the rules in section 10, subject to an agreement. Nasdaq Clearing will calculate the NQSALMON in accordance with the NQSALMON Rules. 2. Index Contributor requirements The Index Contributor shall have a valid export license for and sell at least 5 trucks [fresh Atlantic Superior Salmon, head on gutted (HOG)] per week, equal to approximately 5000 tons per year. The Index Contributor has to enter into an agreement with Nasdaq Clearing regulating the obligations of both parties, including Nasdaq Clearings rights to perform audit on reported prices and volumes. Termination/expulsion of an Index Contributor will be in accordance with the NQSALMON Index Contributor Agreement which Nasdaq Clearing has entered into with the Index Contributors.

3. Index Product, Spot reference Transactions and Prices to be reported to Nasdaq Clearing Data to be reported to Nasdaq Clearing by Index Contributors for the Spot Reference Week, shall be in accordance with the rules below. 3.1.

Index Product

“Index Product” means fresh, Atlantic Superior Salmon, head on gutted (HOG), 1-9+ kg, transported/delivered by truck. For the avoidance of doubt special production such as Label Rouge and ecologic/organic salmon does not qualify as Index Product. For information purposes, Nasdaq Clearing has set out a non-exhaustive list of special production under Appendix 4.

4

3.2.

Spot Reference Transactions

Spot Reference Transactions for the Index Product shall be reported to Nasdaq Clearing for the corresponding Spot Reference Week according to rules set out in 4. For the avoidance of doubt: I. Transactions where the price is fixed to the NQSALMON or any other market reference price shall not be included. II. Internal Transactions shall only be reported to NQSALMON after Nasdaq Clearing has verified that they satisfy the NQSALMON Rules. III. Index Product slaughtered prior to the week of invoicing shall be reported for the Spot Reference Week.

3.3.

Price (P)

Prices shall be reported in Norwegian kroner (NOK), and calculated to delivery point Oslo by adjusting the invoice price for transportation costs and import/export duty. For sales with delivery outside of Norway, transportation costs shall be deducted from the invoice price according to standard transportation costs published by Nasdaq Clearing, hereinafter referred to as the Deducted Transportation Costs published in Appendix 1 of this document. The Deducted Transportation Costs are published per country and is defined as the average cost of transporting 1 kg fresh Atlantic Superior Salmon, HOG, on truck from Oslo. Nasdaq Clearing may at any time change the Deducted Transportation Costs without any prior approval from the Advisory Group. For sales with delivery within Norway for final destination outside of Norway, transportation costs shall be added to the invoice price according standard transportation costs published by Nasdaq Clearing, hereinafter referred to as Added Transportation Costs published in Appendix 1 of this document. Nasdaq Clearing may at any time change the Added Transportation Costs without any prior approval from the Advisory Group. For sales where customs clearing is included in the invoice price, any Import and/or Export Duty shall be deducted from the invoice price, including a fixed import fee per invoice and a percentage import fee, hereinafter referred to as Import Fee Fixed and Import % Fee as published in Appendix 2 of this document. Prices reported to Nasdaq Clearing shall be reported in NOK for each of the weight categories 1-2 kg, 2-3 kg, 3-4 kg, 4-5 kg, 5-6 kg, 6-7 kg, 7-8 kg, 8-9 kg and 9 +kg. Invoice prices in different currencies shall be converted into NOK based on weekly foreign exchange rates published by Nasdaq Clearing. 3.4.

Foreign Exchange Rates

Each Monday, Nasdaq Clearing will publish the foreign exchange rates that shall be used by Index Contributors to convert Prices in foreign currencies into NOK. If Monday is a Norwegian public holiday, the foreign exchange rates will be published the following workday.

5

The foreign exchange rates published by Nasdaq Clearing reflect the average of the Monday through Thursday in the Spot Reference Week weighted 60% plus the Friday prior to the Spot Reference Week weighted 40%. If the applicable Friday is a Norwegian public holiday, Nasdaq Clearing will use the exchange rate for the nearest work day prior to the Friday in question. 4. Reporting Procedures Data for the applicable Spot Reference Week shall be reported to Nasdaq Clearing by Index Contributors before 14.00 every Tuesday. If Tuesday is a Norwegian holiday, the following workday shall be used. Index Contributors shall report prices and corresponding volumes per weight classes, 1-2 kg, 2-3 kg, 3-4 kg, 45 kg, 5-6 kg, 6-7 kg, 7-8 kg, 8-9 kg, 9+ kg, via the applicable Nasdaq Clearing web page. All Spot Reference Transactions reported to Nasdaq Clearing by Index Contributors shall be based on documented/invoiced prices in accordance with the rules in section 3. 5. Index Value 5.1.

Formula for calculation of the Index Value

𝐼𝑡 =

∑𝑛𝑖=1(∑𝑚 𝑗=1 𝑃𝑖 𝑗 𝑡 ∗ 𝑉𝑖 𝑗 𝑡 ) , , , , 𝑛 ∑𝑖=1(∑𝑚 𝑗=1 𝑉𝑖 , 𝑗, 𝑡 )

It

=

Index Value at time t

Pi,j,t

=

Price per weight class in NOK i , 1-2 kg, 2-3 kg, 3-4 kg, 4-5 kg, 5-6 kg, 6-7 kg, 7-8 kg, 8-9 kg 9+ kg, and per Index Contributor j at time t.

Vi,j,t

=

Volume per weight class i, 1-2 kg, 2-3 kg, 3-4 kg, 4-5 kg, 5-6 kg, 6-7, 7-8 kg, 8-9kg, 9+kg, and per Index Contributor j at time t.

n

=

Number of weight classes

m

=

Number of Index Contributors

5.2.

Rounding off

Index Value and prices reported by Index Contributors to Nasdaq Clearing shall be rounded off to two decimals in accordance with general rounding rules. 5.3.

Volume Limits

For the purpose of preventing a single Index Contributor to be considered to dominate the Index Value, Nasdaq Clearing may impose volume limits on each Index Contributor. Such limits will act as a protective measure against price manipulation from dominant players. It will also protect the Index Contributors from

6

revealing too much information regarding their sales prices. Notice of any volume limits will be published in accordance with Appendix 3 of this document. 5.4.

Calculation Procedures

Nasdaq Clearing is responsible for the weekly calculation of the Index Value including the % volume distribution per weight class. 6. Publication Procedures Nasdaq Clearing will publish the Index Value, total reported volumes, the % distribution and the Standard Deviation per weight class as soon as it has been calculated. Nasdaq Clearing shall make this data publicly available through its internet pages https://salmonprice.nasdaqomxtrader.com/public/home in a weekly report and through a historical data file. 7. Audit and Control Nasdaq Clearing shall every week perform quality control before accepting reported data from Index Contributors. If Nasdaq Clearing suspects any prices and corresponding volumes to be incorrect, Nasdaq Clearing will immediately contact the Index Contributor and ask for a recalculation of the price and corresponding volume in question. Nasdaq Clearing may at it sole discretion discard reported weekly data, should the prices and corresponding volumes be considered “off market” without any reasonable explanation given by the Index Contributor. Nasdaq Clearing shall perform audits and controls on a regular basis as well as randomly. Nasdaq Clearing may choose to use external audit companies to assist in the audit procedures. There will also be done historical analyses on each Index Contributor to verify that the reported data are reliable over time. The results will be shared between Nasdaq Clearing and each Index Contributor. 8. Use of the NQSALMON NQSALMON shall not be used to settle or clear financial derivatives contracts without Nasdaq Clearings prior written consent. NQSALMON, any other trade name, trademark, service mark, copyright, or patent of Nasdaq Clearings registered or unregistered, or any other intellectual property of Nasdaq Clearing (or its affiliates) shall not be used without Nasdaq Clearings prior written consent. 9. Changes in Conditions Nasdaq Clearing retains the right to amend the NQSALMON Rules. However, such measure will only be taken by Nasdaq Clearing after having consulted the Advisory Group. All changes shall be made public on the Nasdaq Clearing web page, and implemented in a way that Index Contributors have sufficient time to adjust their internal procedures.

7

10. Limits of Liability Nasdaq Clearing assumes no liability for loss or damages related to or arising out of the use of the Index. Nasdaq Clearing expressly disclaims all warranties of accuracy, completeness, merchantability or fitness for a particular purpose with respect to the Index. Neither Nasdaq Clearing nor any third party make any express or implied warranties or representations regarding the results which may be obtained as a consequence of the use of NQSALMON or regarding the value of NQSALMON at any given time. Nasdaq Clearing shall in no case be liable for errors or defects in NQSALMON nor obliged to provide notice of, or publish errors in NQSALMON.

8

Appendix 1 – Transportation Costs Deducted Transportation Costs for sales of fresh Atlantic Superior Salmon, HOG, with delivery outside of Norway: Country of delivery SE DK EE LV LT PL GB DE BE NL LU FR ES PT IT AT CH FI UA BY CZ SK

Deducted Transportation Costs (NOK) 0,55 0,63 1,00 1,00 1,00 1,10 1,88 0,98 1,05 1,05 1,05 1,50 1,93 2,07 1,73 1,58 1,58 0,60 1,75 1,75 1,75 1,75

Added Transportation Costs for sales of fresh Atlantic Superior Salmon, HOG, with delivery within Norway: Country of delivery NO for final destination outside NO

Added Transportation Costs (NOK) 0,65

Nasdaq Clearing retains the right to amend Appendix 1 of the NQSALMON Rules without any prior approval from the Advisory Group.

9

Appendix 2 – Customs Clearing Export Duty

0,9 %

Import Duty

The Import Duty applicable in the recipient country (Europe – 2,00%)

For all sales of fresh Atlantic Superior Salmon, HOG, where the Import Duty is included in the invoice price, the following fees shall be deducted from the invoice price. Import Fixed Fee

NOK 400 per invoice

Import % Fee

2% of the Import Duty

10

Appendix 3 – Volume limits Volume limit per Index Contributor: 25% An adjustment factor is calculated by using the volume limit on the total reported volume from the Index Contributor. The same adjustment factor applies to all weight classes reported by the Index Contributor.

11

Appendix 4 –Special production to be excluded from reporting to Nasdaq Clearing Below is a non-exchaustive list of products that shall be excluded from reporting to Nasdaq Clearing. The list is reviewed annually and ad hoc in consultation with the Advisory Group. Special Production Label Rouge DEBIO ASC

12