Stocks Corporate Actions

Additional Stocks are allocated on the Ex-date.

Cash payment is allocated on Ex-date for value Pay date.

Cash dividends are booked on the Pay date based on the holdings as one day prior to the Ex-date.

Dividend payments from Stock positions will be credited to the clients account with any applicable standard withholding taxes deducted.

The day before a Corporate Action event is scheduled to take effect (the Ex-date), open orders are deleted for certain event types:

For dividends and rights issues, all open orders for the given instrument will be deleted if the change in the market price is calculated to be over 20% due to the Corporate Action event.

The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for the value Pay Date.

For dividend option events with tradable coupons these will be allocated at ex-date. The default payment is stocks. Clients can however elect to receive cash.

For dividend options clients will be able to manually insert standing instructions at the individual security level.

The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.

For dividend reinvestments clients will be able to manually insert standing instructions at the individual security level.

For exchange offers, clients holding a position in their portfolio will have the possibility to elect prior to the deadline.

A fractional stock is less than one full stock, and can arise as a result of a Corporate Action entitlement calculation.

For the following Corporate Actions, cash compensation are paid, for fractions whenever fraction compensation is applicable:

• Stock splits
• Reverse stock splits
• Optional dividends on stock positions
• Mergers

Holdings in the liquidated company will be removed. Liquidation proceeds, if any, will be allocated.

For mandatory Mergers there are different outcomes:

1. Cash (distributed on Pay-Date)
2. Stocks (distributed on Ex-Date)
3. Mix of Cash & Stocks (distributed on Ex-date)

For mergers with elections, clients have the possibility to elect prior to the deadline.

Sometimes a Corporate Action involves an instrument that is not tradable online with DNB Trade.

Under those circumstances, the procedures are as follows:

Positions in new instruments that are not tradable online, assigned as a result of a Corporate Action, are booked to the clients account. The instrument will be added to the client account for reporting purposes.

Clients holding the stock as of Ex-date will be given the possibility to subscribe for new shares. The offer to purchase new shares is not transferable.

Clients holding Stock positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If Luminor Bank has not received a response from clients by the reply deadline date, the Bank will if possible, sell the rights on behalf of our clients before they expire.

If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason the Bank carries out this action is to prevent rights from being worthless when they expire.

For rights issues were a temporary line is paid as a result of the subscription, the temporary line will be moved into the ordinary line via a Pari Passu event.

Special and infrequent Corporate Actions that do not come under the descriptions above may occur.

Luminor Bank will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.

Additional Stocks are allocated on the Ex-date for value on the Pay Date.

New Stock positions are allocated on the Ex-date.

Taxes and fees may also occur on other corporate action other than cash dividends such as fee on a stock dividend or tax on a merger.

When such taxes and fees occur Luminor Bank will debit the client’s account accordingly.

Clients holding Stocks in their portfolio will have the possibility to tender.

Clients holding warrants will have the possibility to exercise their warrant prior to the deadline. Warrants not sold or exercised will lapse worthless.