An agreement between a brokerage and a purchasing member with a seat on the NYSE. With the approval of the NYSE the agreement states that the employee of the firm has to:
A) Transfer the seat to another employee of the brokerage.
B) Retain the seat and purchase another for a person selected by the brokerage.
C) Sell the seat and tranfer any proceeds to the firm.
These agreements are used to protect companies so that if an employee holding the seat no longer works at the firm, it does not negatively impact the firm's ability to trade on the NYSE.