The Harris Texas Underwriting Agreement is a contractual document that lays out the terms and conditions between Advance Equipment Receivable Series LLC and Advance Bank Corporation. It is a vital agreement that governs the underwriting and issuance of securities by Advance Equipment Receivable Series LLC, with Advance Bank Corporation acting as the underwriter. Under this agreement, Advance Bank Corporation agrees to purchase the securities issued by Advance Equipment Receivable Series LLC, either on a firm commitment or the best efforts' basis. The specific terms of the agreement may vary depending on the type of underwriting arrangement chosen. There are primarily three types of Harris Texas Underwriting Agreements that exist between Advance Equipment Receivable Series LLC and Advance Bank Corporation: 1. Firm Commitment Underwriting Agreement: In this scenario, Advance Bank Corporation agrees to purchase the entire issue of securities at a predetermined price, thereby assuming the risk of any unsold securities. This type of agreement provides certainty to Advance Equipment Receivable Series LLC, as they are assured of receiving the funds necessary for their operations. 2. The Best Efforts Underwriting Agreement: With this agreement, Advance Bank Corporation commits to using its best efforts to sell the securities issued by Advance Equipment Receivable Series LLC. However, unlike the firm commitment agreement, Advance Bank Corporation does not bear the risk of unsold securities. Instead, they only earn a commission on the securities successfully sold. 3. Standby Underwriting Agreement: This agreement is commonly utilized when Advance Equipment Receivable Series LLC plans to issue rights or subscription offerings to its existing shareholders. In a standby underwriting agreement, Advance Bank Corporation agrees to purchase any unsubscribed shares at a predetermined price, ensuring support for the offering even if the existing shareholders do not fully subscribe. The primary objective of these underwriting agreements is to assist Advance Equipment Receivable Series LLC in raising capital by selling its securities to investors. Advance Bank Corporation plays a crucial role in this process by taking on the underwriting risk and facilitating the issuance of securities. In addition to defining the underwriting terms, Harris Texas Underwriting Agreement may include provisions regarding the underwriter's compensation, the obligations and responsibilities of both parties, the representations and warranties made by Advance Equipment Receivable Series LLC, termination conditions, and indemnification clauses. Overall, the Harris Texas Underwriting Agreement establishes a legally binding relationship between Advance Equipment Receivable Series LLC and Advance Bank Corporation, dictating the terms and conditions of their cooperation in the underwriting process.