Common use of Settlement in Bulk Clause in Contracts

Settlement in Bulk. If Customer has an Adviser, Customer authorizes Prime Broker to commingle its prime brokerage transactions with those of other accounts of its Adviser (“sub-accounts”) for order placement and clearance in bulk in accordance with the instructions of its Adviser. Customer understands that no part of any transaction may be allocated to any sub-account where such sub-account’s net equity is below the Minimum Net Equity and that should such a net equity deficiency occur in any such sub-account, Prime Broker will disaffirm the entire transaction. Customer agrees that, should such an event occur, Adviser may resubmit the bulk trade to the Executing Broker so as to exclude those securities which were originally allocated to the affected sub-account or, if permissible, reallocate the entire prime brokerage transaction to other sub-accounts. Customer understands that such reallocation must be communicated to Prime Broker within any required deadlines.