Contract between participating members of an investment banking SYNDICATE; sometimes called syndicate contract or purchase group agreement. It is distinguished from the underwriting agreement, which is signed by the company issuing the securities and the syndicate manager, acting as agent for the underwriting group. The agreement among underwriters, (1) appoints the originating investment banker as syndicate manager and agent; (2) appoints additional managers, if considered advisable; (3) defines the members' proportionate liability (usually limited to the amount of their participation) and agrees to pay each member's share on settlement date; (4) authorizes the manager to form and allocate units to a selling group, and agrees to abide by the rules of the selling group agreement; (5) states the life of the syndicate, usually running until 30 days after termination of the selling group, or ending earlier by mutual consent.