Co-Investor Agreement

A co-investor should ensure that its ECL indicates that the co-investor is not required to contribute an amount that goes beyond its own funds obligation under the ECL and that its equity commitment is used exclusively for the purpose of financing the acquisition of the target, including related costs and expenses. The obligation for the co-investor to finance under the ECL should also depend on compliance with certain conditions. When signing a back-to-back ECL with the promoter, the co-investor should ensure that the terms of its ECL comply with the terms of the ECL that the promoter signs for the full audit of the promoter`s own funds. The promoter will then negotiate a separate ECL from each co-investor, the terms of which often correspond to those that the promoter has negotiated in its ECL for full control of the promoter`s own funds. . . .