Fanatics Markets FCM Arbitration Agreement

This Fanatics Markets FCM Arbitration Agreement ("Arbitration Agreement") will be deemed a part of and incorporated into the Fanatics Markets FCM Customer Agreement between you ("You," "Your," or "user") and Morton St. Trading Investments, LLC ("Fanatics Markets FCM," "we," "us," or "our"). You are advised that if you seek reparations under Section 14 of the Commodity Exchange Act and Part 12 of the regulations promulgated thereunder, and the CFTC declines to institute reparation proceedings, claims or grievances may be subject to this Arbitration Agreement.

A. Initial Dispute Resolution Procedure.

You and Fanatics Markets FCM (each a "party" and collectively, the "parties") agree that good-faith informal efforts to resolve disputes often can result in a prompt, low-cost, and mutually beneficial outcome. The parties therefore agree that, before either party demands arbitration against the other, we will individually and personally meet and confer, by telephone or videoconference, in a good-faith effort to resolve informally any claim covered by this Arbitration Agreement. Multiple individuals with disputes cannot participate in the same informal telephonic dispute resolution conference. If You are represented by counsel (which such representation will be at Your sole cost and expense), Your counsel may participate in the conference, but You shall also fully participate in the conference. The party initiating the claim must give notice to the other party in writing of their intent to initiate an informal dispute resolution conference, which shall occur within 30 days after the other party receives such notice, unless an extension is mutually agreed upon by the parties.

To notify Fanatics Markets FCM that You intend to initiate an informal dispute resolution conference, write to Fanatics Markets FCM, 61 9th Ave, New York, NY 10011, ATTN: Fanatics Markets Legal Department, providing Your name, the telephone number(s) associated with Your Account, the email address(es) associated with Your Account, and a description of Your claim.

The parties shall use their best efforts to settle any dispute, claim, question, or disagreement and engage in good faith negotiations which shall be a condition to either party initiating an arbitration claim as provided in this Arbitration Agreement. If the parties do not reach an agreed upon solution within a period of 45 days from the time informal dispute resolution begins, then either party may initiate binding arbitration as the sole means to resolve claims, subject to the terms set forth below. The aforementioned informal dispute resolution process is a prerequisite and condition precedent to commencing any formal dispute resolution proceeding. The parties agree that any relevant limitations period and filing fees or other deadlines will be tolled while the parties engage in this informal dispute resolution process.

B. Agreement to Arbitrate.

As a condition of using the Services, You and we agree that except as expressly provided in Section C below, any and all past, pending, or future disputes, claims and causes of action (collectively, "Claims") arising out of or connected with the Services or the Agreements (including any dispute concerning the breach, enforcement, construction, validity, interpretation, enforceability, or arbitrability of these Terms) shall be resolved exclusively by binding arbitration administered by National Arbitration and Mediation ("NAM") and before a single arbitrator, except as set forth below. If NAM is not available to arbitrate, the parties will mutually agree upon an alternative arbitration provider within sixty (60) days. Except as modified by this Arbitration Agreement, NAM will administer the arbitration in accordance with the NAM Comprehensive Dispute Resolution Rules and Procedures, Fees For Disputes When One of the Parties is a Consumer, and the Mass Filing Dispute Resolution Rules and Procedures in effect at the time any demand for arbitration is filed with NAM, excluding any rules or procedures governing or permitting class or representative actions. The applicable NAM rules and procedures are available at www.namadr.com or by emailing National Arbitration and Mediation's Commercial Dept at [email protected]. In the event of any dispute concerning the scope or applicability of the Arbitration Provisions of these Terms, You and Fanatics Markets FCM agree that the arbitrator exclusively shall have the power to rule on his or her own jurisdiction over the Claim, including any objections with respect to the existence, scope or validity of the arbitration agreement or to the arbitrability of the claims or counterclaims presented as part of the Claim.

This Arbitration Agreement is governed by the Federal Arbitration Act ("FAA") in all respects and evidences a transaction involving interstate commerce. You and Fanatics Markets FCM expressly agree that the FAA shall exclusively govern the interpretation and enforcement of this Arbitration Agreement. If for whatever reason the rules and procedures of the FAA cannot apply, the state law governing arbitration agreements in the state in which You reside shall apply. The alleged invalidity of the Terms shall have no effect upon the validity of our mutual agreement to arbitrate any Claims under this Section. In addition, if any portion of this Section is determined by a court to be inapplicable or invalid, You agree that the remainder shall still be given full force and effect.

You and Fanatics Markets FCM shall maintain the confidential nature of the arbitration proceedings and the arbitration award, including the arbitration hearing, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary in connection with a court application for a preliminary remedy, a judicial challenge to an award or its enforcement, or unless otherwise required by law or judicial decision.

Although court review of an arbitration award may be limited, an arbitrator is empowered to award the same damages and relief as a court, including injunctive relief or statutory damages. Notwithstanding the foregoing, either party may seek temporary or emergency equitable relief to enforce its rights in any court of competent jurisdiction.

C. Exceptions to Arbitration.

Notwithstanding the parties' decision to resolve all Claims through arbitration, each party retains the right to (i) elect to have any Claims resolved in small claims court on an individual basis for Claims and actions within the scope of such court's jurisdiction, regardless of what forum the filing party initially chose; (ii) bring an action in state or federal court to protect its intellectual property rights ("intellectual property rights" in this context means patents, copyrights, moral rights, trademarks, and trade secrets and other confidential or proprietary information, but not privacy or publicity rights); and (iii) seek a declaratory judgment, injunction, or other equitable relief in a court of competent jurisdiction regarding whether a party's claims are time-barred or may be brought in small claims court. Seeking such relief shall not waive a party's right to arbitration under these Terms, and any filed arbitrations related to any action filed pursuant to this paragraph shall automatically be stayed pending the outcome of such action.

D. Class Action Waiver.

If there is a final judicial determination that Applicable Law precludes enforcement of this Section's limitations as to a particular remedy, then that remedy (and only that remedy) must be severed from the arbitration and may be sought in court. The parties agree, however, that any adjudication of remedies not subject to arbitration shall be stayed pending the outcome of any arbitrable claims and remedies.

If there is a final judicial determination that either the class arbitration action and collective relief waiver or the provisions in this Section 19 are not enforceable as to a particular claim or request for relief, then the parties agree that that particular claim or request for relief may proceed in court but shall be severed and stayed pending arbitration of the remaining claims. This provision does not prevent You or Fanatics Markets FCM from participating in a class-wide settlement of claims.

E. 30-DAY RIGHT TO OPT OUT.

F. Initiating Arbitration.

Following the conclusion of the initial dispute resolution process required by this Arbitration Agreement, You may seek arbitration of a Claim by contacting [email protected]. By signing the demand for arbitration, counsel certifies to the best of counsel's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances, that (i) the demand for arbitration is not being presented for any improper purpose, such as to harass, cause unnecessary delay, or needlessly increase the cost of dispute resolution; (ii) the claims and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing law or for establishing new law; and (iii) the factual contentions have evidentiary support or, if specifically so identified, will likely have evidentiary support after a reasonable opportunity for further investigation or discovery. The Arbitrator shall be authorized to afford any relief or impose any sanctions available under Federal Rule of Civil Procedure 11 or any applicable state law for either party's violation of this requirement.

The arbitration may be conducted via telephone, written submissions or in person in a mutually agreed location. If the parties cannot mutually agree to a location for in person hearings or proceedings, such proceedings shall take place within the State of New York at a location specified by the arbitrator. You are responsible for Your own attorneys' fees unless the arbitration rules and/or Applicable Law provide otherwise. The parties agree that NAM has discretion to reduce the amount or modify the timing of any administrative or arbitration fees due under NAM's Rules where it deems appropriate (including as specified in this Arbitration Agreement), provided that such modification does not increase the costs to You, and You further agree that You waive any objection to such fee modification. The parties also agree that a good-faith challenge by either party to the fees imposed by NAM does not constitute a default, waiver, or breach of this Arbitration Agreement while such challenge remains pending before NAM, the arbitrator, and/or a court of competent jurisdiction, and that any and all due dates for those fees shall be tolled during the pendency of any such challenge. You and we further agree that an award and any judgment confirming it only apply to the arbitration in which the award was awarded and cannot be used in any other proceeding except to enforce the award itself and any post-arbitration action seeking to enforce an arbitration award or action seeking equitable or injunctive relief shall be brought exclusively in the courts of the State of New York, or the United States District Court for New York.

G. Batch Arbitration.

To increase the efficiency of administration and resolution of arbitrations, if 100 or more similar arbitration demands (those asserting the same or substantially similar facts or claims, and seeking the same or substantially similar relief) presented by or with the assistance or coordination of the same law firm(s) or organization(s) are submitted to NAM (or another arbitration provider selected in accordance with Section 19(B) if NAM is unavailable) against Fanatics Markets FCM within reasonably close proximity ("Mass Filing"), the parties agree (i) to administer the Mass Filing in batches of 100 demands per batch (to the extent there are fewer than 100 arbitration demands left over after the batching described above, a final batch will consist of the remaining demands) with only one batch filed, processed, and adjudicated at a time; (ii) to designate one arbitrator for each batch; (iii) to accept applicable fees, including any related fee reduction determined by NAM (or another arbitration provider selected in accordance with Section B above if NAM is unavailable) in its discretion; (iv) that no other demands for arbitration that are part of the Mass Filing may be filed, processed, or adjudicated until the prior batch of 100 is filed, processed, and adjudicated; (v) that fees associated with a demand for arbitration included in a Mass Filing, including fees owed by Fanatics Markets FCM and the claimants, shall only be due after Your demand for arbitration is included in a set of batch proceedings and that batch is properly designated for filing, processing, and adjudication; and (vi) that the staged process of batched proceedings, with each set including 100 demands, shall continue until each demand (including Your demand) is adjudicated or otherwise resolved. Arbitrator selection for each batch shall be conducted to the greatest extent possible in accordance with the applicable NAM rules and procedures for such selection, and the arbitrator will determine the location where the proceedings will be conducted.

You agree to cooperate in good faith with Fanatics Markets FCM and the arbitration provider to implement such a "batch approach" or other similar approach to provide for an efficient resolution of claims, including the payment of combined reduced fees, set by NAM in its discretion, for each batch of claims. The parties further agree to cooperate with each other and the arbitration provider or arbitrator to establish any other processes or procedures that the arbitration provider or arbitrator believe will provide for an efficient resolution of claims. Any disagreement between the parties as to whether this provision applies or as to the process or procedure for batching shall be resolved by a procedural arbitrator appointed by NAM. This "Batch Arbitration" provision shall in no way be interpreted as increasing the number of claims necessary to trigger the applicability of NAM's Mass Filing Supplemental Dispute Resolution Rules and Procedures or authorizing class arbitration of any kind. Unless Fanatics Markets FCM otherwise consents in writing, Fanatics Markets FCM does not agree or consent to class arbitration, private attorney general arbitration, or arbitration involving joint or consolidated claims under any circumstances, except as set forth in Section B above and this Section G. If Your demand for arbitration is included in the Mass Filing, Your claims will remain tolled until Your demand for arbitration is decided, withdrawn, or is settled.

H. Changes to this Arbitration Agreement

Fanatics Markets FCM will provide 30 days' notice of any changes to this Arbitration Agreement. Changes will become effective on the 30th day and apply to all claims not yet filed. If You continue to use the site after the 30th day, You agree that any unfiled claims of which Fanatics Markets FCM does not have actual notice are subject to the revised clause.

If You reject any such changes by opting out of the Arbitration Agreement, You may exercise Your right to a trial by jury or judge, as permitted by Applicable Law, but any prior existing agreement to arbitrate Claims under a prior version of the Arbitration Agreement will not apply to claims not yet filed. If Fanatics Markets FCM changes this Arbitration Agreement after the date You first accepted these Terms (or accepted any subsequent changes to these Terms), You agree that Your continued use of the Platform or other Services 30 days after such change will be deemed acceptance of those changes.