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THE HEDGEFUND ELEXIR - 2005-12-01 Please observe that this is a free translation of the official Swedish document. The Swedish original “Fondinformation/Fondbestämmelser för hegefonden Elexir” is the only legally binding document. TABLE OF CONTENTS SUMMARY...........................................................................................................................2

Warning............................................................................................................................................... 2 Structure.............................................................................................................................................. 3 Fund Objective.................................................................................................................................... 3 Investment Philosophy........................................................................................................................ 3 Portfolio Strategies.............................................................................................................................. 3 Analysis............................................................................................................................................... 3 Fund Restrictions and Risk Control .................................................................................................... 4 Subscription and Redemption of Share Units ..................................................................................... 4 Fees ..................................................................................................................................................... 4 The Fund management company ........................................................................................................ 4

THE FUND`s OBJECTIVE....................................................................................................4 FUND INVESTMENT PHILOSOPHY..................................................................................5 THE FUND MANAGER........................................................................................................5 PORTFOLIO STRATEGIES..................................................................................................6 ANALYSIS............................................................................................................................6 RESTRICTIONS AND RISK CONTROL..............................................................................7 COMPENSATION STRUCTURE .........................................................................................8 SUBSCRIPTION AND REDEMPTION OF FUND UNITS...................................................8 INSTRUCTIONS FOR SUBSCRIPTION OF FUND UNITS.................................................8 INSTRUCTIONS FOR REDEMPTION OF FUND UNITS ...................................................9 ACCOUNTING AND REPORTS ..........................................................................................9 TAX REGULATIONS .........................................................................................................10

Tax regulations for the fund.............................................................................................................. 10 Tax Regulations for fund unit shareholders ...................................................................................... 10

OTHER INFORMATION ....................................................................................................11 Fund Management Company ............................................................................................................ 11 The Board of Directors: .................................................................................................................... 11 The fund and fund units legal classification ..................................................................................... 12 Discontinuation and transfer of fund operations............................................................................... 12 Appendix (1) ..................................................................................................................................... 13

PERFORMANCE INDICATORS, RISK ADJUSTED RETURN...............................................................13 Appendix (2) ..................................................................................................................................... 14

SPAN-MODEL ............................................................................................................................................14 Appendix (3) ..................................................................................................................................... 16

MANAGEMENT OF CURRENCY EXPOSURE .......................................................................................16 Appendix (4) ..................................................................................................................................... 17

EXAMPLE OF FEE CALCULATIONS......................................................................................................17 Appendix (5) ..................................................................................................................................... 18

VALUATION PRINCIPAL, NAV - RATE CALCULATION....................................................................18 Appendix (6) ..................................................................................................................................... 19

THE FUND STATUTES OF THE HEDGEFUND ELEXIR ......................................................................19

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Every investment fund in Sweden must, according to § 26 of the Swedish law on investment funds (1990:1114), present a brochure containing information regarding the fund and respective business operations. The brochure shall include the conditions of the fund and any additional information necessary for the general public to evaluate the funds operations. There are two essential differences between national funds and traditional investment funds in Sweden. National funds have more independent investment rules than traditional investment funds, and are not regulated by the EU-directive on investment funds. Fund management in Elexir differs from traditional fund management in terms of investment objects and risk management. Elexir has received permit from the Swedish Financial Supervisory Authority to exclude various limitations, which apply to customary investment funds. Elexir is a national fund according to § 3 of the law on investment funds (1990:1114) and is not to be considered an UCIT-fund. National law in other countries might prohibit investors to invest in the fund. Fund managers of the fund management

company have no obligation to monitor that foreign investors are within their national legal parameters. It is the responsibility of the individual investor to adhere to the code of law and regulations in Sweden and abroad. There are no guarantees that an investment in Elexir will not result in a loss. Historical returns on investment are no guarantee for future returns. The capital that is invested in the fund may increase or decrease in value and consequently the investor is not guaranteed to recover the initial capital invested. An investment made in Elexir should be considered a long-term investment.

SUMMARY The Elexir hedgefund is classified as a Swedish National Fund with investments in standardized electricity derivatives, including electricity futures, forwards and options quoted on the Nord Pool ASA (NP) as the exchange and Nord Pool Clearing ASA (NPC) as the clearinghouse. The electricity derivatives can in addition to NP, be traded on the OTC market. All transactions are cleared through NPC. Markedskraft Fonder AB manages the fund. Hedge funds in Sweden are classified as National Funds and differ from traditional funds in that they adhere to more liberal investment rules. The fund and the fund management company are under the supervision of the Swedish Financial Supervisory Authority. WARNING As a single investment the Elexir Hedge Fund is to be considered high risk. However, an investment in Elexir as a minor part of a larger portfolio with stocks and bonds may provide the entire portfolio with a lower risk. Hence, we recommend investing a minor part of your investment capital in the Elexir Hedge Fund in order to make the most of the risk diversification.

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STRUCTURE The fund is a national fund pursuant to §3 of the law (1990:1114) of investment funds, with exception of paragraph 1 and 2 of §19, sub section 3 of §30 and the first sentence of sub section 1 of §32, and is carried out according to the stated law, according to the funds regulations and articles of association for Markedskraft Fonder AB, as well as other stipulations which commit the support of the law or any other statute. The following are also exceptions: FFS 1997; 11 chapter 5, sub section 1 second sentence of §4, chapter 6, the first sentence of §2 and chapter 6 sub section 1 and 2 of §7. FUND OBJECTIVE Elexir’s objective is to achieve a high return on investment in absolute terms regardless of the developments on other financial markets. Elexir’s goal is to provide an attractive diversification alternative to other investment products as the electricity market does not attempt to exhibit a systematic correlation with other financial markets. The fund holds no permit which allows for physical delivery of derivative positions. INVESTMENT PHILOSOPHY Elexir’s investment philosophy is based on the belief that price trends of specific electricity derivatives are more predictable than the general market trends. With the aid of systematic, fundamental, and technical analysis, Markedskraft attempts to achieve positions with excellent relationship between risk and return. A portfolio that includes these positions may be an attractive investment alternative, and is expected to display a low systematic correlation with other asset classes. The fund executes investments exclusively in standardized electricity derivatives where Nord Pool Clearing ASA (NPC) assumes all counter-party risk as the clearinghouse. PORTFOLIO STRATEGIES The fund management is based on several types of portfolio strategies. Every trading strategy uses a specific method that considers the different strategies differences. ANALYSIS The analytical function of the fund is based on quantitative and technical analysis.

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FUND RESTRICTIONS AND RISK CONTROL Within the statutes of the fund, investment restrictions are defined. Market risks are assessed with the help of Nordic SPAN® 1 where the Value-at-Risk element is represented by Scenario Risk. Risk reports are produced by an external provider independent of the fund manager to ensure satisfactory internal control. SUBSCRIPTION AND REDEMPTION OF SHARE UNITS Share units in the fund may be subscribed for or redeemed through the fund management company the last banking day of every month. Application for subscription and redemption must be provided in writing to the firm no later than 12:00 mid-day, five banking days prior to the final banking day of the month. The value of the share units in the fund is officially announced on a monthly basis. FEES The administration fees is an annual 1 percent of the fund’s asset value and is calculated monthly. The performance-based fee is 25 percent of any return that exceeds the average Swedish one-month deposit interest rate2. The performance-based fees are taken out only when any negative performance, realized within the calendar year, has been compensated to the shareholder. The acquisition commission may be no higher than 3 percent. There is no fee in connection with redemption of the fund shares. THE FUND MANAGEMENT COMPANY Markedskraft Fonder AB manages the Elexir fund. The fund’s authorized auditor is John Adolfsson, BDO, Box 241 93, S - 104 51 Stockholm. The appointed auditor of the Swedish Financial Supervisory Authority is Mats Ivarsson, Lindebergs Grant Thornton AB, Box 5756, S – 114 87 Stockholm. The Custodial Institute is Nordea Bank AB (publ), Smålandsgatan 26, SE – 105 71 Stockholm. THE FUND`S OBJECTIVE The fund manager of Elexir aims to achieve a high-risk adjusted return in absolute terms as opposed to a return comparable with other equity market indexes. The fund managers goal is also to reach an excellent risk adjusted return over time as defined by the Sharpe - quote (see appendix 1).

1 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity 2 The Swedish Central Bank’s (Sveriges Riksbanks), or to any source referred to by the Swedish Central Bank, last publication of average Swedish one-month deposit interest rate for the specified month.

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Elexir’s return is not expected to exhibit a systematic correlation with other markets. The result of including Elexir in a traditional portfolio comprised of equities and bonds may result in an improved balance between expected return and actual risk in the portfolio. FUND INVESTMENT PHILOSOPHY The individual derivative price development depends in part on the product specific component (portfolio risk) and in part on the general trend in the electricity market (market risk). The fund manager’s investment philosophy is based on the principal that individual product trends are more predictable than market risk. It is the opinion of the fund manager that a group of different electricity derivatives relative price developments is more predictable than individual electricity derivatives. The fund manager may take positions3 with desired products and market risk through buying and selling electricity derivatives that are viewed to be under/over valued. With the support of systematic analysis and clearly defined management procedures, it is assumed that the fund manager is able to identify attractive positions that are consistent with the fund’s objectives. A well-structured portfolio with these positions offers an excellent expected risk adjusted return with a low correlation to other financial market returns. In this way, Elexir diverges from traditional funds that are principally dependent on the markets general development. The fund invests in standardized electricity derivatives comprised of electricity futures, forwards and options quoted on Nord Pool ASA (NP) as the exchange and Nord Pool Clearing (NPC) as the clearinghouse. Electricity derivatives are also traded on the OTC market. All transactions are cleared through NPC. THE FUND MANAGER Pär Söderlund (born 1962) Pär has been a portfolio manager and a trader in the power market since 2000. He has a solid background with 18 years of experience as a trader and portfolio manager in the power market and the Swedish domestic money market. Previous employments: 2000 - 2005 Vattenfall Head of MA Nordic VTS Proprietary Trading S&T Assistant chief dealer “Elbanken” 1996 – 2000 Prebon Yamane Dep CEO/Broker

Garban Sweden Dep CEO/Broker 1988 – 1996 Midland Bank Head of Interbank

Öhman FK Trader Transferator Trader Handelsbanken Trader

(NB. Elexir was managed by Henrik Wennberg from 2004-06-01 up to 2005-11-04) 3 Position is a general term in the financial markets. In this brochure this term means bought or sold standardized electricity derivatives or any combination of these.

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PORTFOLIO STRATEGIES The management of Elexir is based on several underlying portfolio strategies, which are consistent with the objectives of the fund. The yield and risk of the strategies are monitored separately. The yield of the portfolio strategies must not be expected to have perfect correlation with one another. For every portfolio strategy there must be a specific method, which takes the special characteristics of the different strategies into consideration. Potential portfolio strategies could be:

1. Spread Strategy. Positions where there is a simultaneous buy and sell of electricity derivatives. The combination is based on the fund manager’s basic fundamental view of the various derivatives relative value. The rationale of these positions is often a product specific analysis based on fundamental factors.

2. Trend Following Positions. Positions are based on an analysis of price movements, open interest, and volume turnover in the market. A number of mathematical models are used to secure, to the greatest possible extent, participation in every significant price movement.

3. Fundamental positions. Positions are based on an advanced fundamental analysis of the factors that drive the prices the market. The analysis results in long and short-term price forecasts that are used as a basis for the position.

Primarily the fund will take positions in those contracts that offer maximum liquidity. This will be assured since positions in the underlying strategies normally will be entered in one of the most liquid contracts. ANALYSIS The manager of Elexir will have access to the Markedskraft group research department. This includes complete research comprised of quantitative and technical analysis and continual monitoring of factors that influence the behavior of participants in the market. The quantitative analysis is comprised of a continuous fundamental analysis of the Nordic power market. The quantitative study applies hydrological analysis with the use of mathematic models to produce price forecasts with varying time horizons. The method requires proficiency in mathematics and genuine market specific knowledge. The technical analysis is used primarily to identify short and long-term price trends. In addition, several different technical tools are used to identify the support and resistance levels. The technical analysis is also used in connection with the fundamental forecasts where positions size may be adjusted depending on the correlation between the different analyses. The fund may also purchase the research of other specialized and independent participants in the market.

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RESTRICTIONS AND RISK CONTROL The fund statutes define investment restrictions. The fund’s risk exposure is measured with the help of Nordic SPAN®4 used by NPC. The Value-at-Risk element in the method is composed of Scenario risk which quantifies to what extent the fund’s open positions can change in value from the close of one trading day to the commencement of the next trading day within one risk interval. Adjustment of Scenario risk is carried out by Time spread. The Time spread establishes how much Scenario risk can be reduced in value based on the correlation between products with different delivery periods and different short/long combinations. The Nordic SPAN®5 model takes into account several parameters such as follows: Standard deviation Interval multipliers Correlation matrix Marginal value time spread High and low (implied) volatility Upper and lower limit for risk interval for futures contracts excluding CfDs Upper and lower limit for (implied) volatility Augmentation integers for CfDs Increase factors for CfDs Extreme scenario Coverage rate extreme scenario Price models options contracts Risk free interest Of the stated parameters, numbers 1 – 5 are particularly significant. The fact that parameters in the fund’s measurement methods are determined by an external entity, NPC, ensures objectivity and secures the risk analysis of the fund. All risk calculations in the fund can be independently controlled against NPC calculations. At the close of each trading day the fund is prohibited from having a Scenario risk, as defined in Nordic SPAN®6, see Clearing Rules for Financial Electricity Contracts and Certificate Contracts v.03 – Feb. 2004 paragraph 10.2.5 (see paragraph 10.2.6), greater than 30 percent of the value of the fund as measured in NOK. If this limit is exceeded the position must be reduced immediately the following trading day to meet the criteria stated in Scenario risk. 4 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity 5 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity 6 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity

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Until the time of the close of the following trading day, calculations of Scenario risk can be based on the parameters stated by NPC from the prior trading day. In the event of a change in currency used in the definition of Scenario risk at NPC, the fund holds the right to change the currency of corresponding definition. The fund management company reserves the right, without advance notice, to adjust or change the parameters in the risk system or alternatively change the risk system. This right is limited to the extent that it may only be allowed when NPC has made an identical change. COMPENSATION STRUCTURE The fund management company takes out a 1 percent per annum in administration fee. The fee is taken out monthly (1/12 percent) in the arrears and calculated on the value of the fund on the last banking day of every month. A monthly performance based compensation fee to the fund management company is taken out that equals 25 percent of the appreciation in value that exceeds the average one month Swedish deposit interest rate. This compensation is calculated on the appreciation in value after the deduction of management fees. If, within one calendar year, the unit shareholder realizes a return which is below the performance based threshold for any month, and the following months the return exceeds the threshold, there will be no performance-based fee paid within that calendar year until the prior months negative performance has been compensated. Transaction related costs such as commission, Exchange fees, and other related costs are paid on a continuous basis by the fund (appendix 4). SUBSCRIPTION AND REDEMPTION OF FUND UNITS Fund units can be subscribed for and redeemed with the fund management company on the last banking day of every month. Application forms are obtained from the fund management company (a new form for each month) and information can be obtained on the Internet www.markedskraft.com under the heading Markedskraft Fonder AB. The minimum subscription amount is SEK 50,000. Notification of subscription and redemption of units in the fund must be written and received by the fund management company by 12:00 mid-day at least five banking days before the end of the month. The subscription price to the unit shareholder is the value of the unit on the same banking day plus a maximum commission of 3 percent to the fund management company. The actual amount of the charge is clarified in the application form. No commission charges are associated with the redemption of units in the fund. INSTRUCTIONS FOR SUBSCRIPTION OF FUND UNITS

1. Order the fund statutes, fund prospectus, and subscription form (a new form for each month) from the fund management company via e-mail, on the company’s website (www.markedskraft.com) under the heading Markedskraft Fonder AB, per fax +46 8

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587 128 70 or per mail from Markedskraft Fonder AB, Vasagatan 15-17, S-111 20 Stockholm. Read the documents carefully in their entirety.

2. Send the subscription application to the fund management company via mail or fax in such a manner that the company receives it no later than 12:00 mid-day five banking days before the end of the moth. You will receive a confirmation that your application has been processed in time. The fund is not obligated to the subscription until the fund unit shareholder has possession of the confirmation.

3. Transfer the payment to the fund management company’s bank account at Nordea (see subscription form) or bank transfer service account (see subscription form) so that the money is accessible to the fund at the latest 12:00 mid-day on the last banking day of the month.

INSTRUCTIONS FOR REDEMPTION OF FUND UNITS

1. The fund management company must by 12:00 mid-day, five banking days before month-end, per fax or mail (see above), receive written instructions from the unit shareholder regarding the liquidation of units, stating how many units should be redeemed. The bank account, including clearing number, or bank transfer service account that the unit shareholder would like the money transferred to must be written on a special withdrawal form and signed by the unit shareholder. The forms are accessible in the same manner as subscription applications (see instructions for subscription of units above).

2. The fund management company will send written confirmation to the unit shareholder to verify the order. The shareholder is responsible to verify that the company has comprehended the order correctly.

The redemption price to the shareholder is the value of the fund unit on the last banking day of each month. The redemption of units is free of charge, and payment will be made no later than fifteen banking days after the actual transaction. Redemption will be made at a fixed value that is unknown when the request is made. The request for redemption may not be limited. The request may be revoked only if permitted by the fund management company. ACCOUNTING AND REPORTS The fund management company distributes the fund’s annual and semi-annual reports to all registered unit shareholders. Unit share value is made public monthly in daily press, and communicated in print each quarter to each shareholder. The fund management company informs the unit shareholders of the fund’s value development and other questions which may be of strategic significance for the management of the fund. This does not imply that the fund management company comments the individual positions or trading strategies. This information might damage shareholder interest since the fund operates in a market segment that is not price effective and with strategies that are not ordinarily known. The fund management company’s policy is to be as open and transparent as possible.

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TAX REGULATIONS This is only a summary and general description of a few of the tax rules, valid at the time of the prospectus, that pertain to the fund and it’s unit shareholders that are taxed as Swedish residents. Special tax rules apply to certain categories of tax liable individuals. It is recommended that all investors contact a tax advisor regarding the consequences an investment may have on taxation. TAX REGULATIONS FOR THE FUND An investment fund is tax liable to state income tax at a rate of 30 percent. The calculation for taxable income excludes capital gains and losses on equities and other similar financial instruments, so-called share rights (delägarrätter). The fund will claim standard revenue that equals 1.5 percent of the market value during the fiscal year on such share rights. Capital gains and respective losses on other instruments i.e. bonds, will be considered in full at the time of taxation. In addition, the fund is taxed for dividends and interest income. Deductions are made on interest costs, administration costs etc., as well as dividend payout during the fiscal year. Dividend deductions are prohibited from leading to a deficit. The Supreme Administrative Court has decided that power derivates in the fund must be taxed as other instruments at 30%. Standard taxation such as for share rights (delägarrätter) is not accepted. The fund will obtain a deduction for dividend payout to the shareholders. In order to reduce the tax costs in the fund, then capital gains will be paid out as dividend. TAX REGULATIONS FOR FUND UNIT SHAREHOLDERS Capital Gain Taxes: Private individuals: Redemption of fund units is treated as a sell of assets and may result in capital gain tax. Capital gains and losses are calculated as the difference between redemption price after costs and the average acquisition value of the units of the same class, based on acquisition costs and consideration for the changes in development of the holdings. Realized capital gains are fully taxable at a tax rate of 30 percent while losses are tax deductible up to 70 percent. A deficit incurred on taxable capital income reduces the taxes on income from employment and real estate. The tax reductions allows for 30 percent of the deficit up to 100,000 SEK and 21 percent of the deficit exceeding this amount. A deficit cannot be carried forward into subsequent years. Wealth taxation: Regarding wealth taxation then the perusal rules apply, this means that the taxable value of the fund constitutes of the fund’s individual shareholders’ taxable value. Legal Entities: In professional trading of securities the entire capital gains are taxable and the entire capital loss is deductible. Taxation is applicable on income generating business operations. Capital losses on units, regarded as a capital investment, are eligible to be offset in the same or

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subsequent years against capital gains on investment funds, equity shares, and similar financial instruments. OTHER INFORMATION FUND MANAGEMENT COMPANY Markedskraft Fonder AB Organization number: 556639-9340 Vasagatan 15-17, 111 20 Stockholm Telephone: +46 8 587 128 00 Facsimile: +46 8 587 128 70 E-mail address: mkfond@markedskraft.com Home web page (www.markedskraft.com) under heading Markedskraft Fonder AB Fund under management: Elexir Share capital: SEK 3,000,000. Markedskraft Fonder AB is a wholly owned subsidiary of the Markedskraft group, which is currently under the ownership of Arendals Fossekompani ASA at 63.3 percent and employees at 36.7 percent. The fund management company currently manages only the Elexir fund. The Swedish Financial Supervisory Authority granted permission to begin operations the 16th March 2004. The fund management company keeps records of all registered owners of units in the fund. THE BOARD OF DIRECTORS: Ordinary members: Sverre Valvik, Managing Director, Arendals Fossekompani (Chairman of the Board) Torkil Mogstad, President, Markedskraft AS Fredrik Lundström, Syntesen Invest AB Management Group: Mats Melin, CEO, Markedskraft Fonder AB Pär Söderlund, Fund Manager, Markedskraft Fonder AB

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THE FUND AND FUND UNITS LEGAL CLASSIFICATION The fund bearing the name Elexir is a hedge fund classified by § 3 of the law of investment funds (1990:1114) as a national fund. National funds may hold less restrictive investment rules than traditional funds. The fund’s assets are owned mutually by the unit shareholders and each fund unit carries the same weight and rights to ownership that are included in the fund. A fund management company, Markedskraft Fonder AB, listed under the supervision of the Swedish Financial Supervisory Authority, performs the management of the fund. Markedskraft Fonder AB precedes fund unit shareholders in all legal and economic questions that affect the fund since the fund is unable to acquire rights or assume liabilities. The fund is an independent taxable entity. The fund units are entitled to be collateral assets. In this event, the fund management company and custodial institute must be notified. DISCONTINUATION AND TRANSFER OF FUND OPERATIONS Should the fund management company discontinue the management of the fund, enter liquidation, continue in bankruptcy or if the Swedish Financial Supervisory Authority revokes the license, the fund management will be temporarily taken over by the custodial institute. In the event that the fund is not taken over by a fund management company appointed by the Swedish Financial Supervisory Authority, the fund will be dissolved through the disposal of its assets and the remaining net balance is distributed to the unit shareholders. Publication of this event must be made by mail and through the national press and remain accessible with the fund management company and custodial institute.

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APPENICES APPENDIX (1)

PERFORMANCE INDICATORS, RISK ADJUSTED RETURN The expressed objective of Elexir is to achieve a high risk adjusted return. The risk adjusted return is defined by the Sharpe-quote. Sharpe-quote The quotient between return above the risk-free interest and standard deviation is called the Sharpe-quote, and is a measure of excess return per risk interval. A high Sharpe-quote is an indication of a satisfactory interchange between return and risk. This measure assumes the return is evenly distributed. Downside Risk Downside risk disregards the volatility in positive returns, and measures only negative returns. The measure as opposed to the Sharpe-quote, does not assume an evenly distributed return. Periods of unusually high return are considered an indication of high risk only if they have corresponding periods with unusual low return. Downside risk is a logical measure for funds that have an absolute, not relative, return objective. A traditional equity fund often has, for example, investment rules which require them to be fully invested throughout lengthy and substantial market index declines. A fund with Elexir’s emphasis can close losing positions and minimize the total risk exposure in uncertain situations.

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APPENDIX (2)

SPAN-MODEL SPAN, an abbreviation for Standard Portfolio Analysis of Risk, is a system for risk control calculations developed by the Chicago Mercantile Exchange in the USA. SPAN was introduced in 1988 and is used by more than 30 exchanges and clearinghouses worldwide. Nordic SPAN®7 is adapted for the electricity market. The Value-at-Risk element in the methodology is composed of Scenario risk8. Scenario risk quantifies to what extent the fund’s open positions can change in value from the close of one trading day until the start of the following trading day within one risk interval. Adjustments of Scenario risk are carried out through Time spread. The Time spread establishes to what extent the Scenario risk is allowed to be reduced in value based on the correlation between products with different delivery periods and different short /long combinations. The Nordic SPAN®9 model takes into consideration several parameters such as: Standard deviation Interval multiplier Correlation matrix Marginal value time spread High and low (implied) volatility Upper and lower limit for risk interval for futures contracts excluding CfDs Upper and lower limit for (implied) volatility Augmentation integers for CfDs Extreme scenario Coverage rate extreme scenario Price models options contracts Risk free interest Of the parameters stated above numbers 1-5 are of particular significance. Nordic SPAN®10 parameters are regularly evaluated and updated by NPC every six weeks. Variable parameters, standard deviation and correlation, are calculated for the most recent and relevant calculable time horizon. NPC conducts an evaluation of these variables against existing observations and determines if an update is necessary. Important changes, divergences and/or incidents in the market will result in an adjustment of parameters. NPC does not act within exact limits in this context, but conducts a total continuous evaluation.

7 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity 8 Clearing Rules for Financial Contracts and Certificate Contracts v.03 – Feb. 2004 paragraph 10.2.5 (see paragraph 10.2.6) 9 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity 10 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity

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NPC monitors the market continuously and may, according to the regulatory framework, change parameters with short notice. As a rule, adjustments of Nordic SPAN®11 parameters will be made as a consequence of an extraordinary increase in volatility in the market. Further information is accessible on http://clearing.nordpool.com under the heading “Margin call calculation”

11 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity

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APPENDIX (3)

MANAGEMENT OF CURRENCY EXPOSURE The fund is quoted in SEK and subscription of units is made in SEK. Margin calls and settlement with NPC is conducted in NOK and EUR, and the fund owns the right to convert the fund’s assets to these currencies. If there is a change in listing currency at NP, or clearing currency with NPC, the fund owns the right to hold the fund’s assets in that currency. This implies that the fund may have full currency exposure in circumstances between NOK/EUR and SEK (or other currencies and SEK with change in listing currency with NP or clearing currency with NPC). Hedging of the currency forwards will happen in those cases where the fund company finds is appropriate or desirable. The value in NOK and EUR (or any other currency by a change of exchange currency at NP or clearing currency at NPC) is exchanged to SEK with the Swedish Central Bank’s (Sveriges Riksbanks) average exchange rate, or another by the Swedish Central Bank referred source, on the last banking day of each month.

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APPENDIX (4)

EXAMPLE OF FEE CALCULATIONS

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APPENDIX (5)

VALUATION PRINCIPAL, NAV - RATE CALCULATION NAV – rate calculation at month-end is based on the following valuation principal: Liquid capital in the fund + The value of existing derivative positions, valued “mark to market”. Future cash flow generated from forward positions is discounted at the time of valuation. The discount rate is corresponding to the rate offered by the bank responsible for discounting contracts (hereafter named discount bank). A change in the discount rate will occur if the fund management company’s terms with the discount bank changes. +/- Accruing interest - Accumulated transaction costs and similar costs - Accumulated fees = Fund Assets/NAV – rate The value in NOK and EUR will be converted into SEK with the Swedish Central Bank (Sveriges Riksbanken) average exchange rate, or another by the Swedish Central Bank referred source, the last banking day of each month. Currency hedging may be carried out in those cases where the fund company finds it appropriate or desirable.

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APPENDIX (6)

THE FUND STATUTES OF THE HEDGEFUND ELEXIR Fund statutes were accepted by Markedskraft Fonder AB’s board the 12th of February 2004 and approved by the Swedish Financial Supervisory Authority the 16th of March 2004. The fund is a Swedish national fund according to §3 of the law (1990:1114) of investment funds with exception of paragraph 1 and 2 of §19, sub section 3 of §30 and first sentence of sub section 1 of §32. The following are also exceptions: FFFS 1997: 11 chapter 5, sub section 1 second sentence of §4, chapter 6 first sentence of §2 and chapter 6, sub section 1 and 2 of §7. §1 NAME OF THE FUND The name of the fund is Elexir. §2 THE FUND OBJECTIVE The objective of the fund is to achieve an enduring high risk adjusted return adhering to a low systematic correlation to other investment instruments. §3 THE FUND MANAGEMENT COMPANY The fund is managed by Markedskraft Fonder AB, below referred to as the fund management company. The fund management company precedes fund unit shareholders in all questions that affect the fund. §4 CUSTODIAL INSTITUTE The fund’s custodial institute is Nordea Bank AB (publ), Smålandsgatan 26, SE – 105 71, Stockholm. §5 THE FUND INVESTMENT POLICY Markets: The Nordic financial electricity market with Nord Pool ASA (NP) as exchange and Nord Pool Clearing ASA (NPC) as clearing house. Geographical area: The Nordic countries. NP and NPC are both situated in Oslo, Norway.

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Strategies: The management of Elexir is based on several underlying portfolio strategies, which are consistent with the objectives of the fund. The yield and risk of the strategies are monitored separately. The yield of the portfolio strategies must not be expected to have perfect correlation with one another. For every portfolio strategy there must be a specific method, which takes the special characteristics of the different strategies into consideration. Potential portfolio strategies could be:

1. Spread Strategy. Positions where there is a simultaneous buy and sell of electricity derivatives. The combination is based on the fund manager’s basic fundamental view of the various derivatives relative value. The rationale of these positions is often a product specific analysis based on fundamental factors.

2. Trend Following Positions. Positions are based on an analysis of price movements, open interest, and volume turnover in the market. A number of mathematical models are used to secure, to the greatest possible extent, participation in every significant price movement.

3. Fundamental positions. Positions are based on an advanced fundamental analysis of the factors that drive the prices the market. The analysis results in long and short-term price forecasts that are used as a basis for the position.

Primarily the fund will take positions in those contracts that offer maximum liquidity. This will be assured since positions in the underlying strategies normally will be entered in one of the most liquid contracts. Assets: The means of the fund must be placed in: Standardized electricity derivatives including electricity futures and forwards and electricity options, which are registered at NP as exchange and NPC as clearing house. In addition to NP, it is also possible to trade the electricity derivatives at the OTC market. All trading must be cleared by NPC. The fund has the right to buy and sell (outgoing) futures and options without possessing the under lying financial instruments. The fund has the right to invest the part of the fund assets, which are not invested in electricity derivatives or for which they lie as security, in a NOK, EUR or SEK account at a bank which the portfolio manager finds appropriate or in short-dated government bonds in above mentioned currencies. Assets in foreign currencies are converted into SEK with the Swedish Central Bank’s (Sveriges Riksbanks) average exchange rate, or another by the Swedish Central Bank referred source, the last banking day of each month. By change of exchange currency at NP or clearing currency at NPC the fund has the right to keep the fund assets in that currency.

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Hedging of the currency futures is carried out in those cases where it seems appropriate or desirable. The fund must never let positions go into physical delivery. Risk limits: At the end of each trading day the fund must not have a Scenario risk as described in Nordic SPAN®12 see Clearing Rules for Financial Electricity Contracts and Certificate Contracts v.03 – Feb. 2004, paragraph 10.2.5 (see paragraph 10.2.6) which is larger than 30 per cent of the fund value in NOK. If this limit is exceeded, then on the following trading day the position must be reduced in a way so that the Scenario risk once again is within the limit. Until the end of the following trading day the calculation of the Scenario risk can be based upon the parameters of the last trading day as stipulated by NPC. In the event of a change in currency used in the definition of Scenario risk at NPC, the fund holds the right to change the currency of corresponding definition. The fund management company reserves the right, without advanced noticed, to adjust or change the parameters in the risk system or alternatively change the risk system. This right is limited to the extent that it may only be allowed when NPC has made an identical change. §6 CLOSEING OF THE FUND The fund can be closed if the accumulated managed capital exceeds SEK five hundred millions. In case the board of the fund management company decides to close the fund, it must be written on the subscription form for the first coming month. In this case it must be stated at which amount the fund is going to be closed. The subscription forms, which are sent in hereafter, will be handled in chronological order until the closing amount is reached. If more subscription forms are delivered at the same time as the closing amount is being exceeded, then they are written down proportionately according to size. Shareholders and other interested parties must be informed immediately after the board has decided to close the fund when it exceeds a given limit. Shareholders and other interested parties must be informed immediately after the actual end of the month, when the fund has been closed. §7 TERMINATION OF RISK POSITION In the event that the value of a fund unit has decreased by 90 percent as calculated from the start of the fiscal year, the fund’s existing positions will be liquidated to avoid further damages to the shareholder’s interests. The fund management company must send written

12 Nordic SPAN® is a registered trademark of the Chicago Mercantile Exchange, used by Nord Pool Clearing ASA under License from the Chicago Mercantile Exchange. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity

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notification to the shareholders no later than one banking day after the decrease in value has been ascertained. It is possible that the shareholder’s encountered loss exceeds the stated 90 percent, for example due to changes in the currency exchange rates. The management of the remaining fund capital will be resumed after the first coming month’s valuation of the fund and after the above-mentioned written notification has been sent. If the notification is sent out within two weeks and before the first coming monthly valuation then the resumption of the management and at the point of valuation will be postponed one more month in order for the shareholders to come to a decision about their future share in the fund at a point of valuation. §8 CALCULATION OF FUND UNIT VALUE The value of a fund unit is the fund’s value divided by the number of fund units outstanding. On the last banking day of the month, the fund unit value is calculated by the fund. The fund unit value on the last banking day is reported to the fund unit shareholders. The indicative value of the fund will be available every week. The fund’s value is the difference between the fund’s assets and liabilities where liabilities include accrued management fees, accrued performance based compensation and any deferred tax liabilities. The assets within the fund are presented at market value. Where actual market quotes are not available, assets are presented with the most recent quoted value, or if this is perceived to be misleading, to the estimated market value which the fund management company determines, objectively. §9 SUBSCRIPTION AND SUBSCRIPTION PRICE Fund units can be subscribed for with the fund management company on the last banking day of each month. Application for a new subscription are obtained with the fund management company, and must be written and received by the fund management company no later than 12:00 mid-day five banking days before the end of the month. Payment of the subscription must be deposited and accessible to the fund in the fund’s bank account or transfer service account no later than 12:00 mid-day the last banking day of the month. The minimum amount for subscription is fifty thousand SEK. The fund unit subscription price is the fund unit value according to § 8 at the close of the last banking day of month-end, plus a maximum subscription commission of three percent. The valid commission charge is clarified in the attached application form. Subscription price is not determined when the request is submitted to the fund management company. The number of units resulting from the subscription amount will be stated to the fund unit shareholders in a settlement confirmation. §10 REDEMPTION AND REDEMPTION PRICE

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Fund units are redeemed at month-end. No charges are associated with the redemption of units in the fund. Request for redemption of fund units must be completed on the fund management company’s designated withdrawal form, and received by the fund management company no later than 12:00 mid-day five banking days prior to month-end. The redemption price is the fund unit’s value according to § 8 at the close of the last banking day of the month, and is not determined when the request for redemption is submitted. The request for redemption may be revoked only when approved by the fund management company. It is not possible to limit orders for the redemption of fund units. Payment for redeemed fund units with reductions for preliminary taxes according to the law are paid no later than fifteen banking days after the transaction. If the liquidity from the redemption must be acquired through the sale of the fund’s assets, and this may result in considerable mistreatment of the other fund unit shareholders interests, the fund management company holds the right, after notifying the Swedish Financial Supervisory Authority, to postpone the sale until the transaction can occur without damage to the fund unit shareholders. §11 THE FUND COMPANY’S COMPENSATION FROM THE FUND The fund management company takes out an administration fee based on the fund’s value. The fee is defined as 1 percent per annum and covers the fund’s administration, accounting as well as compensation to the Swedish Financial Supervisory Authority and the custodial institute. The fee is paid monthly (1/12) in the arrears and calculated on the fund’s value the last banking day of each month. Transaction related costs such as commission, exchange fees and similar costs are paid on a continuous basis by the fund. In addition, the fund management company takes out a performance-based compensation of 25 percent of the appreciation in value that exceeds the average monthly Swedish deposit interest rate for the actual month. This payment is calculated on the appreciation in value after the deduction of administration fees. The calculations are defined as the Swedish Central Bank’s (Sveriges Riksbanks), or another by the Swedish Central Bank referred, most recent publication of the average monthly Swedish deposit interest rate for the specified month. If, within one calendar year, the unit shareholder realizes a return which is below the performance based threshold for any month, and the following months the return exceeds the threshold, there will be no performance-based fee paid within that calendar year until the prior months negative performance has been compensated. §12 DIVIDENDS The fund will consider transferring taxable income to the fund unit shareholders in the form of dividends on a yearly basis. The Board of Directors of the fund management company will determine this.

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The amount of dividend payment is calculated as the part of the fund’s taxable result according to the income statement for the fiscal year with the addition of taxable standard revenues. The dividend payment is based on the amount matching the profits available for distribution, which may be reduced by fund unit redemption accrued dividends. The dividend per fund unit will be rounded down to the nearest Swedish crown. The dividends are paid out no later than the month of April’s valuation date, the following fiscal year. The fund management company is entitled to a tax deduction on the dividend amount according to law that is in the form of withholdings on the fund unit shareholders. The distributed amount, with exception for dividends on fund unit redemption, is re-invested automatically into the fund at no charge. §13 FISCAL YEAR The fiscal year for the fund is equal to a calendar year. §14 SEMI-ANNUAL AND ANNUAL REPORT The fund management company must submit a semi-annual report for the fund within two months after the close of the first six months of the fiscal year. The fund management company must submit an annual report for the fund within three months after the close of the fiscal year. The semi-annual and annual reports for the fund must be disclosed to all registered unit shareholders and remain accessible with the fund management company and custodial institute. §15 FUND UNIT RECORDS The fund management company registers shareholders holdings of fund units. Any transfer must be reported immediately to the fund management company. §16 USE OF FUND UNITS AS COLLATERAL The pledge of fund units as collateral must be reported to the fund management company in writing. The report must include; a) receiver of collateral, b) number of fund units comprised in the pledge of collateral, c) owner of the fund units and d) any limitations to the extent of the collateral. The fund management company registers the mortgage in the unit shareholders records. Fund unit shareholders are advised in writing of the registration of the collateral. The owner of the collateral must inform the fund management company in writing when the mortgage has expired. §17 ALTERATIONS OF THE FUND STATUTES The fund management company’s Board of Directors determines any alterations in the fund’s statutes. Following the Swedish Financial Supervisory Authority approval of the changes, the funds altered statutes must remain accessible with the fund management company and

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custodial institute, as well as any potential announcement as indicated by the Swedish Financial Supervisory Authority. §18 LIMITATIONS OF LIABILITIES The fund management company and custodial institute are not held liable for damages as a result of a change in law, government action, event of war, strike, blockade, boycott, or lockout pursuant even if the fund management company initiates action or is the object of such conflict action. If obstacles exist which prevent the fund management company or custodial institute to take measure on the basis of the circumstances stated above, actions would be postponed until the obstacles have been removed.