Prime Brokerage Agreements, Term Addendum

A prime brokerage agreement sets forth the terms and conditions purusant to which a prime broker will open and maintain accounts for margin, execution, clearing and settlement and custody for a client. Prime brokerage arrangements may also include securities financing. Some clients request a term commitment or margin lock-up from their prime broker which provides that the financing terms of the prime brokerage agreement cannot be amended by the prime broker without prior notice. Term commitments are typically between 30 and 120 days.