Common use of Description and functioning Clause in Contracts

Description and functioning. The Index is a factor Index. A factor Index uses a constant factor to track the daily percentage change in the market price of an Reference Instrument (e.g., an equity, an Index or a commodity) as compared to the most recent Fixing Price (as defined in section 2.1) of that Reference Instrument. The factor defines in which direction (whether the same or inverse) and what degree of leverage the factor Index reflects the daily price change of the Reference Instrument. In this case, the Index Reference Instrument is represented by the ordinary share of Enel S.p.A., traded on the Reference Exchange, as defined in Section 2.1. To calculate the increase or decrease of the Index, a leverage- and a financing-component is used. The leverage component reflects the change in price of the Reference Instrument between two Fixing Prices and transfers this movement (either positive or negative) onto the Index by multiplying the percentage of change with the assigned leverage. Thereby, a disproportionate effect on the value of the Index occurs. This leverage effect inherits the risk of an over proportional capital loss (“downside risk”). For example: (excluding the financial component and events like dividends, corporate actions, etc.) If a factor short Index has a factor of 2: - a 5% increase in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index decreasing by 2 x 5%. - a 5% decrease in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index increasing by 2 x 5%. The financial component contains the costs of borrowing money at a one-day rate (EONIA Rate, see Section 3 for more information) increased by a per annum rate (ICF Rate) that reflects the Index calculation fee. The Index will be continuously calculated during the Reference Instrument trading hours on the Reference Exchange by the Index Calculation Agent. This means, that the Index will be re-calculated at every change in price of the Reference Instrument. The Index Calculation Agent will charge an annual fee of 0.7% p.a., which will be deducted daily (based on a year comprising 360 days), during the calculation of the Index. For periods longer than one day, the compounding effect shall be taken into account. Indeed, returns on the Reference Instrument cannot simply be multiplied with the selected factor since the performance of the factor Index depends on each individual daily performance of the Reference Instrument. If the performance of a factor Index is compared against that of the Reference Instrument over a period longer than one day, the observed price trends will deviate not only for prices of the Reference Instrument which constantly rise or fall, but also for those which fluctuate.

Description and functioning. The Index is a factor Index. A factor Index uses a constant factor to track the daily percentage change in the market price of an Reference Instrument (e.g., an equity, an Index or a commodity) as compared to the most recent Fixing Price (as defined in section 2.1) of that Reference Instrument. The factor defines in which direction (whether the same or inverse) and what degree of leverage the factor Index reflects the daily price change of the Reference Instrument. In this case, the Index Reference Instrument is represented by the ordinary share of Enel S.p.A.A, traded on the Reference Exchange, as defined in Section 2.1. To calculate the increase or decrease of the Index, a leverage- and a financing-component is used. The leverage component reflects the change in price of the Reference Instrument between two Fixing Prices and transfers this movement (either positive or negative) onto the Index by multiplying the percentage of change with the assigned leverage. Thereby, a disproportionate effect on the value of the Index occurs. This leverage effect inherits the risk of an over proportional capital loss (“downside risk”). For example: (excluding the financial component and events like dividends, corporate actions, etc.) If a factor short long Index has a factor of 2: - a 5% increase in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index decreasing increasing by 2 x 5%. - a 5% decrease in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index increasing decreasing by 2 x 5%. The financial component contains the costs of borrowing money at a one-day rate (EONIA Rate, see Section 3 for more information) increased by a per annum rate (ICF Rate) that reflects the Index calculation fee. The Index will be continuously calculated during the Reference Instrument trading hours on the Reference Exchange by the Index Calculation Agent. This means, that the Index will be re-calculated at every change in price of the Reference Instrument. The Index Calculation Agent will charge an annual fee of 0.7% p.a., which will be deducted daily (based on a year comprising 360 days), during the calculation of the Index. For periods longer than one day, the compounding effect shall be taken into account. Indeed, returns on the Reference Instrument cannot simply be multiplied with the selected factor since the performance of the factor Index depends on each individual daily performance of the Reference Instrument. If the performance of a factor Index is compared against that of the Reference Instrument over a period longer than one day, the observed price trends will deviate not only for prices of the Reference Instrument which constantly rise or fall, but also for those which fluctuate.

Description and functioning. The Index is a factor Index. A factor Index uses a constant factor to track the daily percentage change in the market price of an Reference Instrument (e.g., an equity, an Index or a commodity) as compared to the most recent Fixing Price (as defined in section 2.1) of that Reference Instrument. The factor defines in which direction (whether the same or inverse) and what degree of leverage the factor Index reflects the daily price change of the Reference Instrument. In this case, the Index Reference Instrument is represented by the ordinary share of Enel ASSICURAZIONI GENERALI S.p.A., traded on the Reference Exchange, as defined in Section 2.1. To calculate the increase or decrease of the Index, a leverage- and a financing-component is used. The leverage component reflects the change in price of the Reference Instrument between two Fixing Prices and transfers this movement (either positive or negative) onto the Index by multiplying the percentage of change with the assigned leverage. Thereby, a disproportionate effect on the value of the Index occurs. This leverage effect inherits the risk of an over proportional capital loss (“downside risk”). For example: (excluding the financial component and events like dividends, corporate actions, etc.) If a factor short Index has a factor of 2: - a 5% increase in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index decreasing by 2 x 5%. - a 5% decrease in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index increasing by 2 x 5%. The financial component contains the costs of borrowing money at a one-day rate (EONIA Rate, see Section 3 for more information) increased by a per annum rate (ICF Rate) that reflects the Index calculation fee. The Index will be continuously calculated during the Reference Instrument trading hours on the Reference Exchange by the Index Calculation Agent. This means, that the Index will be re-calculated at every change in price of the Reference Instrument. The Index Calculation Agent will charge an annual fee of 0.7% p.a., which will be deducted daily (based on a year comprising 360 days), during the calculation of the Index. For periods longer than one day, the compounding effect shall be taken into account. Indeed, returns on the Reference Instrument cannot simply be multiplied with the selected factor since the performance of the factor Index depends on each individual daily performance of the Reference Instrument. If the performance of a factor Index is compared against that of the Reference Instrument over a period longer than one day, the observed price trends will deviate not only for prices of the Reference Instrument which constantly rise or fall, but also for those which fluctuate.

Description and functioning. The Index is a factor Index. A factor Index uses a constant factor to track the daily percentage change in the market price of an Reference Instrument (e.g., an equity, an Index or a commodity) as compared to the most recent Fixing Price (as defined in section 2.1) of that Reference Instrument. The factor defines in which direction (whether the same or inverse) and what degree of leverage the factor Index reflects the daily price change of the Reference Instrument. In this case, the Index Reference Instrument is represented by the ordinary share of Enel ASSICURAZIONI GENERALI S.p.A.A, traded on the Reference Exchange, as defined in Section 2.1. To calculate the increase or decrease of the Index, a leverage- and a financing-component is used. The leverage component reflects the change in price of the Reference Instrument between two Fixing Prices and transfers this movement (either positive or negative) onto the Index by multiplying the percentage of change with the assigned leverage. Thereby, a disproportionate effect on the value of the Index occurs. This leverage effect inherits the risk of an over proportional capital loss (“downside risk”). For example: (excluding the financial component and events like dividends, corporate actions, etc.) If a factor short long Index has a factor of 2: - a 5% increase in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index decreasing increasing by 2 x 5%. - a 5% decrease in the price of the Reference Instrument (as compared to the latest Fixing Price), will result in the value of the Index increasing decreasing by 2 x 5%. The financial component contains the costs of borrowing money at a one-day rate (EONIA Rate, see Section 3 for more information) increased by a per annum rate (ICF Rate) that reflects the Index calculation fee. The Index will be continuously calculated during the Reference Instrument trading hours on the Reference Exchange by the Index Calculation Agent. This means, that the Index will be re-calculated at every change in price of the Reference Instrument. The Index Calculation Agent will charge an annual fee of 0.7% p.a., which will be deducted daily (based on a year comprising 360 days), during the calculation of the Index. For periods longer than one day, the compounding effect shall be taken into account. Indeed, returns on the Reference Instrument cannot simply be multiplied with the selected factor since the performance of the factor Index depends on each individual daily performance of the Reference Instrument. If the performance of a factor Index is compared against that of the Reference Instrument over a period longer than one day, the observed price trends will deviate not only for prices of the Reference Instrument which constantly rise or fall, but also for those which fluctuate.