Derivative and Foreign Exchange (FX) /Commodity Transactions Regulated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") J.P. Morgan B. Agreement for Derivatives (not applicable to Exempt Transactions) The following provisions apply only to clients who enter Into Derivatives 1. The client acknowledges and agrees that In order to enter Into Derivatives, a separate account ('Derivatives Account') will be opened and linked to the client's existing brokerage account. The Dodd-Frank Act requires certain Derivatives to be cleared. The Derivatives Account will be governed by (a) to the extent that the client enters Into cleared Derivatives, the Cleared Trades Agreement, and (b) to the extent that the client enters Into uncleared Derivatives, the 'ISDA Documentation.- In the event of a conflict between the provisions of this Agreement and the provisions of the Cleared Trades Agreement or the ISDA Documentation (as applicable), the provisions of the Cleared Trades Agreement or the ISDA Documentation shall prevail. The client's Derivatives Account will be for the purposes of (Ctieck.‘04): xi-Speculation f, Hedging 2. The client acknowledges and agrees that collateral ('Margin") must be posted in connection with Derivatives transactions In accordance with the provisions of the Cleared Trades Agreement or ISDA Documentation, as applicable, as well as the policies of ).P. Morgan and the rules, regulations, customs and usages of any exchange, market, or DCO where a Derivatives transaction is cleared. Initial Margin for uncleared trades may be held by an independent third-party custodian upon the client's request. In the event that the client establishes a facility for the purpose of borrowing to provide Margin, such facility will be governed by agreements other than the Cleared Trades Agreement or the ISDA Documentation. In calculating Margin required for cleared Derivatives transactions, such transactions will be netted a