Contract between participating members of an investment banking syndicate.

Also known as 'syndicate contract' or 'purchase group agreement.' This contract designates the originating investment bank as the lead underwriter, defines the members' proportionate liability and agrees to pay each members' share on the settlement date, authorizes the manager to allocate units to a selling group and establishes adherence to the rules of the selling group agreement, and states the term of the syndicate, which is usually 30 days after termination of the selling group but may be shorter if chosen by mutual consent.