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Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock

State:
Multi-State
Control #:
US-EG-9397
Format:
Word; 
Rich Text
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Definition and meaning

An underwriting agreement is a legally binding contract between a company and underwriters, which are typically financial institutions like banks. In the context of the underwriting agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp., the agreement facilitates the issuance and sale of shares of common stock. This type of contract ensures that underwriters assume the risk of buying the securities from the company and then reselling them to investors. It outlines the responsibilities, obligations, and rights of both parties involved in the transaction.

How to complete a form

To complete the underwriting agreement form, follow these steps:

  1. Begin by reading the entire agreement thoroughly to understand your obligations.
  2. Fill in the necessary information, such as the amount of shares being issued, the offering price per share, and any optional shares if applicable.
  3. Ensure that both parties' details, including the names and contact information of representatives, are correctly entered.
  4. Review any conditions regarding regulatory approvals and other legal requirements which may need to be met.
  5. Lastly, both parties must sign the document to make it effective, which may also involve notarization or another form of legal witnessing.

Key components of the form

The underwriting agreement generally includes the following key components:

  • Identification of Parties: Clearly indicates the company and underwriters involved.
  • Description of Securities: Details of the shares being offered, including par value and total number of shares.
  • Pricing Details: Specifies the public offering price and any conditions around pricing adjustments.
  • Closing Date: States the anticipated date for the closing of the sale.
  • Legal and Compliance Provisions: Outlines the necessary agreements regarding regulatory compliance and state securities laws.

Who should use this form

This underwriting agreement is ideally suited for:

  • Corporations: Especially those planning to publicly offer their stock to raise capital.
  • Investment Banks: Institutions acting as underwriters for the issuance of shares.
  • Legal Professionals: Attorneys who assist companies in preparing and reviewing securities offerings.

Legal use and context

This form is crucial in the financial and legal context of securities offerings. It ensures compliance with regulations set forth by entities such as the Securities and Exchange Commission (SEC). The agreement protects all parties involved by clearly defining expectations, liabilities, and legal obligations through its terms, which must be adhered to during the issuance process of common stock.

Common mistakes to avoid when using this form

When completing the underwriting agreement, be mindful of the following common mistakes:

  • Incorrect Information: Always double-check that the company’s and underwriters’ details are accurate and consistent.
  • Failure to Understand Terms: Be sure to comprehend every part of the agreement, as misunderstandings can lead to disputes.
  • Not Following Legal Procedures: Ensure regulations for approval and filing finance documents are strictly followed to avoid legal repercussions.
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  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock
  • Preview Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock

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FAQ

An underwriter is a financial expert who takes a look at your finances and assesses how much risk a lender will take on if they decide to give you a loan. More specifically, underwriters evaluate your credit history, assets, the size of the loan you request and how well they anticipate that you can pay back your loan.

Firm Underwriting. Firm underwriting is an underwriting agreement in which underwriter takes up a certain number of securities of firm himself. Sub-Underwriting. Joint Underwriting. Syndicate Underwriting. Complete Underwriting. Partial Underwriting.

In the securities market, underwriting involves determining the risk and price of a particular security. It is a process seen most commonly during initial public offerings, wherein investment banks first buy or underwrite the securities of the issuing entity and then sell them in the market.

For example, an underwriter for a health insurance company will review medical details, while a loan underwriter will assess factors like credit history. An underwriter's job is complex. They have to determine an acceptable level of risk and what's eligible for approval based on their risk assessment.

Best efforts is a term for a commitment from an underwriter to make their best effort to sell as much as possible of a securities offering.The opposite is a firm commitment or bought deal, in which the underwriter buys all shares or debt and has to sell it all to make money.

Key Takeaways. An underwriter is any party that evaluates and assumes another party's risk for a fee. Underwriters play a critical in many industries in the financial world, including the mortgage industry, insurance industry, equity markets, and some common types of debt security trading.

Insurance underwriters establish pricing for accepted insurable risks. The term underwriting means receiving remuneration for the willingness to pay a potential risk. Underwriters use specialized software and actuarial data to determine the likelihood and magnitude of a risk.

Underwriting simply means that your lender verifies your income, assets, debt and property details in order to issue final approval for your loan. An underwriter is a financial expert who takes a look at your finances and assesses how much risk a lender will take on if they decide to give you a loan.

As outlined above, there are basically three different types of underwriting: loans, insurance, and securities.

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Underwriting Agreement between Telaxis Communications Corp. and Credit Suisse First Boston Corp. regarding issuance and sale of shares of common stock