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

• Category: Corporations - Public - Agreements - Underwriting
• State: Multi-State
• Control #: US-EG-9397
• Format: Word; Rich Text

Description

Underwriting Agreement between Telaxis Communications Corporation and Credit Suisse First Boston Corporation regarding the issuance and sale of shares of common stock dated 00/00. 25 pages. Title: Understanding the Delaware Underwriting Agreement: Tel axis Communications Corp. & Credit Suisse First Boston Corp. Keywords: Delaware Underwriting Agreement, Tel axis Communications Corp., Credit Suisse First Boston Corp., issuance of common stock, sale of common stock Introduction: The Delaware Underwriting Agreement plays a pivotal role in facilitating the issuance and sale of shares of common stock between Tel axis Communications Corp. and Credit Suisse First Boston Corp. This detailed description aims to shed light on the various aspects and types of underwriting agreements executed between these entities. 1. Overview of Delaware Underwriting Agreement: The Delaware Underwriting Agreement acts as a legally binding contract between Tel axis Communications Corp., a prominent communication solutions provider, and Credit Suisse First Boston Corp., a renowned financial institution. This agreement governs the process of issuing and selling shares of common stock, aiming to provide maximum value to both parties involved. 2. Issuance of Shares: Under the Delaware Underwriting Agreement, Tel axis Communications Corp. intends to issue new shares of common stock to raise capital. This issuance typically occurs when the company requires funds for expansion, research and development, debt reduction, or other corporate purposes. The agreement outlines the terms, conditions, and pricing of the newly issued shares. 3. Sale of Shares: Credit Suisse First Boston Corp., acting as the underwriter, takes on the responsibility of purchasing the issued shares from Tel axis Communications Corp. Under the agreement, the underwriter assumes the risk of selling the shares to investors at a slightly higher price in the secondary market, thereby ensuring the successful sale of the shares on behalf of the issuing company. 4. Types of Delaware Underwriting Agreements: a. Firm Commitment Underwriting Agreement: In this agreement, the underwriter commits to purchasing the entire lot of shares from Tel axis Communications Corp., ensuring complete underwriting. The underwriter assumes the risk of any unsold shares, safeguarding the issuing company from potential financial liabilities. b. The Best Efforts Underwriting Agreement: Unlike the firm commitment agreement, the underwriter agrees to put forth their best efforts to sell the issued shares, but with no guarantee of complete underwriting. The underwriter does not bear the risk of unsold shares. This type of agreement is opted for when market conditions are uncertain, reducing the underwriter's exposure. 5. Terms and Conditions: The Delaware Underwriting Agreement includes various vital components, including but not limited to: a. Offering price and number of shares. b. Underwriter's compensation, including discounts, commissions, or other fees. c. Representations and warranties made by the issuing company. d. Lock-up periods, restricting the sale of shares by certain parties, typically insiders. e. Termination rights for both parties, outlining conditions where the agreement can be terminated. Conclusion: The Delaware Underwriting Agreement between Tel axis Communications Corp. and Credit Suisse First Boston Corp. regarding the issuance and sale of shares of common stock serves as a crucial document, establishing the terms and conditions governing the underwriting process. With firm commitment and best efforts agreements, this agreement ensures a secure and successful stock issuance, benefiting both the issuing company and the underwriter.

Title: Understanding the Delaware Underwriting Agreement: Tel axis Communications Corp. & Credit Suisse First Boston Corp. Keywords: Delaware Underwriting Agreement, Tel axis Communications Corp., Credit Suisse First Boston Corp., issuance of common stock, sale of common stock Introduction: The Delaware Underwriting Agreement plays a pivotal role in facilitating the issuance and sale of shares of common stock between Tel axis Communications Corp. and Credit Suisse First Boston Corp. This detailed description aims to shed light on the various aspects and types of underwriting agreements executed between these entities. 1. Overview of Delaware Underwriting Agreement: The Delaware Underwriting Agreement acts as a legally binding contract between Tel axis Communications Corp., a prominent communication solutions provider, and Credit Suisse First Boston Corp., a renowned financial institution. This agreement governs the process of issuing and selling shares of common stock, aiming to provide maximum value to both parties involved. 2. Issuance of Shares: Under the Delaware Underwriting Agreement, Tel axis Communications Corp. intends to issue new shares of common stock to raise capital. This issuance typically occurs when the company requires funds for expansion, research and development, debt reduction, or other corporate purposes. The agreement outlines the terms, conditions, and pricing of the newly issued shares. 3. Sale of Shares: Credit Suisse First Boston Corp., acting as the underwriter, takes on the responsibility of purchasing the issued shares from Tel axis Communications Corp. Under the agreement, the underwriter assumes the risk of selling the shares to investors at a slightly higher price in the secondary market, thereby ensuring the successful sale of the shares on behalf of the issuing company. 4. Types of Delaware Underwriting Agreements: a. Firm Commitment Underwriting Agreement: In this agreement, the underwriter commits to purchasing the entire lot of shares from Tel axis Communications Corp., ensuring complete underwriting. The underwriter assumes the risk of any unsold shares, safeguarding the issuing company from potential financial liabilities. b. The Best Efforts Underwriting Agreement: Unlike the firm commitment agreement, the underwriter agrees to put forth their best efforts to sell the issued shares, but with no guarantee of complete underwriting. The underwriter does not bear the risk of unsold shares. This type of agreement is opted for when market conditions are uncertain, reducing the underwriter's exposure. 5. Terms and Conditions: The Delaware Underwriting Agreement includes various vital components, including but not limited to: a. Offering price and number of shares. b. Underwriter's compensation, including discounts, commissions, or other fees. c. Representations and warranties made by the issuing company. d. Lock-up periods, restricting the sale of shares by certain parties, typically insiders. e. Termination rights for both parties, outlining conditions where the agreement can be terminated. Conclusion: The Delaware Underwriting Agreement between Tel axis Communications Corp. and Credit Suisse First Boston Corp. regarding the issuance and sale of shares of common stock serves as a crucial document, establishing the terms and conditions governing the underwriting process. With firm commitment and best efforts agreements, this agreement ensures a secure and successful stock issuance, benefiting both the issuing company and the underwriter.