The S-Network North American Disruptor Index (SNNADX) Index Rules - PDF document

May 2020 The S-Network North American Disruptor Index (SNNADX) Index Rules and Methodology

May 2020 TABLE OF CONTENTS I. GENERAL DESCRIPTION .......................................................................................................... 3 II. THE INDEX COMMITTEE ........................................................................................................... 3 III. INDEX VALUE AT INCEPTION ................................................................................................. 4 IV. ELIGIBILITY CRITERIA and WEIGHTING ............................................................................... 4 V. RULES FOR RECONSTITUTIONS, REBALANCINGS, AND INDEX CHANGES .................... 5 VI. ROLES OF PARTIES IN THE QUARTERLY REBALANCES .................................................. 5 VII. ROLES OF PARTIES IN THE QUARTERLY RECONSTITUTIONS ....................................... 6 VIII. CALCULATION OF INDEX VALUES ..................................................................................... 6 IX. DISSEMINATION ....................................................................................................................... 7 X. ONGOING MAINTENANCE ....................................................................................................... 7 XI. CALCULATION AND ADJUSTMENTS .................................................................................... 9 XII. DATA CORRECTION POLICY ............................................................................................... 12 XIII. APPENDIX REVIEW SCHEDULE ......................................................................................... 12 S-Network North American Disruptor Index (DSRPT) | 2

May 2020 The S-Network North American Disruptor Index (SNNADX) Official Rule Book I. General Description The S-Network North American Disruptor Index (Ticker: SNNADX) is an index of small to mid-cap stocks listed on North American stock exchanges that are materially engaged in the field of disruptive technologies, including artificial intelligence, blockchain, cybersecurity, financial technology, internet of things and robotics. The index includes both companies that provide disruptive technologies and companies that use disruptive technologies. SNNADX comprises seven main business segments: Artificial Intelligence. Companies whose technologies are focused on automation of cognitive processes such as speech recognition, deep learning and visual navigation. Blockchain. Companies who are directly involved in the development or use of blockchain technologies. Cybersecurity. Companies whose technologies protect computers, servers or networks against unauthorized access or attack. Financial Technology. Companies whose technologies support banking, investment and related services. Internet of Things. Companies whose technologies involve the Internet of computing devices embedded in everyday objects. Robotics . Companies whose technologies are focused on automation of physical processes such as manufacturing, surgery and transportation. 5G. Companies whose technologies enable fifth-generation cellular network communication. SNNADX uses an equal weighting methodology. II. The Index Committee The SNNADX Index Committee (“The Committee”) will be composed of not less than three members. The Committee Chairman will have extensive experience with and expertise in equity markets. The other members will have experience in disruptive technology, indexes and/or financial products. The Committee will be responsible for overseeing the activities of the calculation agent and approving all changes to the index related to its quarterly reconstitution and quarterly rebalancing. S-Network North American Disruptor Index (DSRPT) | 3

May 2020 The Committee meets quarterly, either in person or via teleconference, to discuss index issues and organize the quarterly reconstitution and quarterly rebalancings. The composition of the Committee may from time to time be changed to reflect changes in market conditions. All members of the index committee and their advisors shall comply with the S-Network Global Indexes ’ code of conduct and ethics with respect to the disclosure and use of material non-public information. III. Index Value at Inception The S-Network North American Disruptor Index (Ticker: SNNADX) had a value at inception of 1000, on its inception date of December 22, 2014. SNNADX is calculated both on a Price Only and on a Total Return basis. IV. Eligibility Criteria, Stock Selection and Weighting All stocks selected for inclusion in SNNADX must be listed on a North American stock exchange and principally engaged in one of the following sectors: a) artificial intelligence, b) blockchain, c) cybersecurity, d) financial technology, e) internet of things, f) robotics, or g) 5G. Constituents must have a market capitalization of no less than $100 million and no more than $50 billion. Constituents must have a float market capitalization of no less than $50 million. Constituents must have prices no less than $1 as of the snapshot date. Stocks must maintain an R-Score greater than 0.25 over the 90 days preceding the last business day of the month preceding the reconstitution month (the “snapshot date”) . The R-Score is calculated as follows: R-Score = 90-day ADTV (thousands USD) / Float Market Capitalization (millions USD) Buffers of 10% are applied to the eligibility criteria at each reconstitution for current constituents of the index. If a stock’s market capitalization falls by more than 50% after the snapshot date for additions and deletions pursuant to quarterly reconstitutions but before the effective date, the stock will be deleted from the index and a replacement stock will be chosen. Certain companies that are not principally engaged in one or more of the seven segments, but that derive significant revenues from businesses in one or more of the seven segments may be included in the index on a capitalization-adjusted basis, provided 1) such revenues represent more than 20% of the company’s total revenues and such revenues are independently reported in the company’s financial reports, 2) applicable revenues are likely to have a material impact on the company’s overall share price performance, or 3) the company’s applicable business is likely to have a significant impact on the sector as a whole. S-Network North American Disruptor Index (DSRPT) | 4

May 2020 The constituents of SNNADX are equally weighted. Share weights will be based on prices as of the close of trading on the 2 nd Friday of the rebalancing month (“ The Record D ate”). V. Rules for Reconstitutions, Rebalances, and Index Changes The SNNADX is calculated by S- Network Global Indexes, Inc. (“The Calculation Agent”). The Calculation Agent is also responsible for index maintenance and price dissemination. The Calculation Agent is responsible for the calculation of SNNADX. The calculation, maintenance and dissemination rules are as follows: Index Changes. The SNNADX Index is rebalanced quarterly on the third Friday of the last month of each calendar quarter. Index changes take place at each rebalancing date (the third Friday of the last month of each calendar quarter), except in the event of certain corporate actions, such as mergers, acquisitions, and delistings. In such cases, the change is applied on the effective date of the action, unless otherwise determined by the Index Committee. Share increases and decreases are reflected on the rebalancing date. Whenever possible, changes will be announced at least two business days prior to their implementation. Index Reconstitutions. The SNNADX Index is reconstituted quarterly on the third Friday of the last month of each calendar quarter. Additions and Deletions. Additions and Deletions to the Indexes are made 1) at the close of trading on the quarterly reconstitution date (third Friday of the last month of each calendar quarter) and 2) in the event of the deletion of a constituent stock due to a corporate action. Deletions are made at any time, in the event a stock is liquidated, delisted, files for bankruptcy, is acquired, or merges with another stock. Upon deletion, the weight of the removed stock is reallocated proportionately to the remaining constituents. Additions are made only upon the effective date of the quarterly reconstitutions. VI. Roles of Parties in the Quarterly Rebalances i) The Calculation Agent will screen a proprietary universe of companies materially engaged in one of the following sectors: a) artificial intelligence and b) cybersecurity c) financial technology d) internet of things and e) robotics, from which SNNADX constituents will be selected. ii) On the first Friday of the rebalancing month, the Calculation Agent shall provide the Committee, or its designee, with a list of constituents and their respective weights for the SNNADX Index. iii) The Committee shall approve or reject the changes and notify the Calculation Agent of its decisions not later than the Wednesday following the first Friday of the rebalancing month. iv) The effective date of the rebalancing will be on the close of business on the third Friday of the last month of each calendar quarter. The Calculation Agent will post all final rebalancing data and information on their respective FTP S-Network North American Disruptor Index (DSRPT) | 5