Recently, The NASDAQ Stock Market LLC (Nasdaq) changed annual fees paid by companies listed on The NASDAQ Capital Market effective January 1, 2013.

The annual fee paid by companies that list securities, other than American Depositary Receipts (ADRs), will increase from $27,500 to $32,000. The fee increase, which is the first since January 1, 2007, is based on Nasdaq’s costs related to companies listed on the Nasdaq Capital Market and the value that such a listing provides to the companies. Nasdaq has noted it has continued to enhance the listing experience and invested in its regulatory and compliance program and that such initiatives are funded through listing fees, including the annual fee.

Additionally, the annual fee for Nasdaq companies that list ADRs will increase from $17,500 or $21,000, as applicable, to $25,000 effective January 1, 2013. Such fees will be raised to $32,000 for all issuers of ADRs effective January 1, 2014. Nasdaq has determined that companies that list

ADRs should be charged the same fee as companies that do not list ADRs, noting that other exchanges charge the same annual fee for ADRs as for other securities. Because such companies currently pay lower annual fees than companies that do not list ADRs, Nasdaq has proposed phasing in the increase over two years to reduce the impact of the change.

The rule change was effective on filing with the SEC on October 18, 2012.