Text extracted via OCR from the original document. May contain errors from the scanning process.
6.
6.1
As amended and supplemented by this Addendum, the Agreement is the swap trading relationship
documentation between the parties for purposes of the CFTC Regulations.
6.2
Acknowlethements/Confimutions.
(a)
DB hereby notifies Client that it has the right to request in writing that DB furnish it with
a draft acknowledgement specifying all the applicable terms of a proposed swap
transaction, other than price and any other term to be agreed at the time of execution,
prior to the execution of such swap and Client agrees that the act of entering into a swap
without having made such a written request to DB shall constitute a waiver of Client's
right to receive a draft acknowledgement in respect of such swap; and
(b)
The provisions of this Section 6.2 do not apply to any swap that is either (A) executed on
or pursuant to the rules of a designated contract market or swap execution facility, the
rules of which provide that confirmation of all terms of the swap take place at the time of
execution or (B) submitted to a derivatives clearing organization for clearing, the rules of
which provide that confirmation of all terms of the swap occurs at the same time the swap
is accepted for clearing.
6.3
Portfolio Reconciliation. Client acknowledges that in respect of uncleared swaps (which term,
for these purposes, shall be construed to refer to each "OTC derivative" and "OTC derivative
contract," each as defined in Article 2(7) of EMIR. between the parties that is subject to the
Portfolio Reconciliation Risk Mitigation Techniques), Client will be required to engage in
portfolio reconciliation with DB in accordance with the reconciliation procedures set out in Part 8
of the Swaps Protocol.
6.4
Portfolio Compression.
(a)
DB hereby notifies Client that Client has the right to ask DB to engage in portfolio
compression exercises for uncleared swaps and Client agrees and acknowledges that
Client will engage in periodic portfolio compression exercises if so requested by DB.
(b)
DB and Client consent to the termination of fully offsetting swaps as a consequence of
the portfolio compression exercises undertaken pursuant to (a) above.
7.
VALUATIONS.
7.1
At end of each business day, DB will calculate the Valuation Amount for each swap between DB
and Client as of the end of such business day and DB will calculate such Valuation Amounts
acting in good faith and using commercially reasonable procedures in order to produce a
commercially reasonable result.
7.2
DB will, upon written request of Client, notify Client of Valuation Amounts calculated pursuant
to Section 7.1 by the end of the first business day following the date on which such Valuation
Amount was calculated. Client agrees that DB may provide notice of any such Valuation Amount
by sending it to the email address provided in the Swap Addendum Annex or by posting it on a
website as provided in Section 9.3. Unless otherwise agreed by both parties, DB shall not be
obliged to disclose to Client any confidential, proprietary information regarding any model used
by DB to value a swap.
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PART B - PAGE 7
CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e)
DB-SDNY-0093367
CONFIDENTIAL
SDNY GM_00239551
EFTA01389091