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The Equity Commitment Letter is a fundamental document in Danish investment and M&A transactions, typically used when one party needs to provide formal assurance of their ability and intention to contribute equity capital. This document becomes particularly important in leveraged buyouts, project financing, or large-scale investments where other stakeholders (such as lenders or sellers) require certainty about the availability of equity funding. The letter, governed by Danish law, typically includes specific details about the commitment amount, funding conditions, and timing of the investment. It serves as a legally binding commitment that can be enforced under Danish jurisdiction, providing security to transaction participants and often serving as a prerequisite for debt financing or transaction closing. The document needs to comply with Danish corporate and contract law requirements while following established market practices in the Danish financial sector.

1. Parties: Identification of the commitment provider and the recipient/beneficiary of the commitment

2. Background: Brief context of the underlying transaction requiring the equity commitment

3. Commitment Amount: Clear statement of the equity commitment amount and currency

4. Purpose: Specific purpose for which the equity commitment is being provided

5. Funding Conditions: Key conditions that must be satisfied before the commitment provider is obligated to fund

6. Termination: Circumstances under which the commitment expires or may be terminated

7. Governing Law: Confirmation of Danish law as governing law and jurisdiction provisions