Stock Escrow Agreement

Stock Escrow Agreement Template for India

Create a bespoke document in minutes, or upload and review your own.

4.6 / 5

4.8 / 5

Let's create your Stock Escrow Agreement

1. Select your governing law and document type:

2. Enter your key requirements:

3. Create your document to edit, review or download

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

"I need a Stock Escrow Agreement for a tech startup acquisition where 25% of shares will be held in escrow until January 2025, with specific release conditions tied to revenue milestones and key employee retention."

Document background

The Stock Escrow Agreement is a crucial document in Indian corporate transactions where shares need to be held in custody by a neutral third party pending the completion of certain conditions or obligations. This agreement type is commonly used in mergers and acquisitions, share purchase transactions, employee stock option programs, and other corporate restructuring activities. The document establishes the framework for the escrow arrangement, detailing how shares will be held, managed, and eventually released. It ensures compliance with Indian corporate law, particularly the Companies Act 2013, SEBI regulations, and relevant securities laws. The agreement is essential for protecting the interests of both transferors and transferees by providing a secure mechanism for share transfers and establishing clear conditions for release. It includes specific provisions for voting rights, dividend distribution, and corporate actions during the escrow period, making it a comprehensive document for securing share-based transactions in the Indian legal context.

Suggested Sections

1. Parties: Identification of the parties: Escrow Agent, Depositor(s), Beneficiary(ies), and Company whose shares are being escrowed

2. Background: Context of the transaction, relationship between parties, and purpose of the escrow arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment of Escrow Agent: Terms of appointment, acceptance, and general duties of the escrow agent

5. Deposit of Shares: Process and requirements for depositing shares into escrow, including timing and documentation

6. Escrow Period: Duration of the escrow arrangement and any extension provisions

7. Rights and Obligations of Escrow Agent: Detailed responsibilities, standard of care, and limitations of the escrow agent's duties

8. Release Conditions: Specific conditions that must be met for the release of shares from escrow

9. Release Mechanism: Process and procedures for releasing shares from escrow

10. Voting Rights: Provisions regarding voting rights during the escrow period

11. Fees and Expenses: Escrow agent's compensation and allocation of costs

12. Representations and Warranties: Standard representations by each party

13. Indemnification: Protection and indemnification of the escrow agent

14. Term and Termination: Duration of agreement and circumstances for termination

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

16. Notices: Process for giving notices under the agreement

17. Miscellaneous: Standard boilerplate provisions including amendments, assignment, severability

Optional Sections

1. Dividend Rights: Provisions regarding entitlement to dividends during escrow period - include when shares may receive dividends during escrow

2. Replacement of Escrow Agent: Process for replacing the escrow agent - include when dealing with institutional escrow agents

3. Digital Share Handling: Provisions for handling shares in dematerialized form - include when dealing with listed companies

4. Foreign Investment Compliance: Provisions ensuring compliance with FEMA and foreign investment rules - include when foreign parties are involved

5. Tax Provisions: Specific tax-related provisions and responsibilities - include when tax implications are significant

6. Force Majeure: Provisions for handling unforeseen circumstances - include in high-value transactions

7. Dispute Resolution: Detailed arbitration or mediation procedures - include when parties prefer alternative dispute resolution

Suggested Schedules

1. Schedule 1 - Share Details: Detailed description of shares being held in escrow, including share certificates numbers, distinctive numbers, and number of shares

2. Schedule 2 - Release Conditions and Timing: Detailed matrix of conditions and corresponding release timing

3. Schedule 3 - Release Notice Format: Template for release instruction to be issued by authorized parties

4. Schedule 4 - Fee Schedule: Detailed breakdown of escrow agent fees and payment terms

5. Schedule 5 - Authorized Signatories: List of authorized signatories for each party with specimen signatures

6. Schedule 6 - KYC Requirements: List of required KYC documents for all parties

7. Appendix A - Board Resolutions: Copy of relevant board resolutions authorizing the escrow arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Banking & Financial Services

Investment Banking

Corporate Services

Legal Services

Professional Services

Technology

Manufacturing

Real Estate

Healthcare

Retail

Energy

Telecommunications

Infrastructure

Education

Media & Entertainment

Relevant Teams

Legal

Corporate Secretarial

Finance

Compliance

Corporate Development

Mergers & Acquisitions

Investment Banking

Treasury

Risk Management

Corporate Governance

Relevant Roles

Chief Legal Officer

Legal Counsel

Corporate Lawyer

Company Secretary

Chief Financial Officer

M&A Director

Investment Banking Director

Corporate Finance Manager

Compliance Officer

Transaction Advisory Manager

Escrow Services Manager

Due Diligence Officer

Corporate Governance Officer

Risk Management Officer

Treasury Manager

Find the exact document you need

Simple Security Agreement

An Indian law-governed agreement creating security interests over assets in favor of a lender/security holder, establishing terms for security creation, maintenance, and enforcement.

��������Ƶ

How a Sales & Marketing Lead uses ��������Ƶ to reduce contract drafting time by 95%

Let's create your Stock Escrow Agreement

Authors

Alex Denne

Find the exact document you need

Simple Security Agreement

Alarm Monitoring Agreement

Motor Vehicle Security Agreement

Personal Information Confidentiality Agreement

Simple Security Deposit Agreement

Security Cheque Agreement

Security Deposit Agreement

Pledge Agreement

Penetration Testing Confidentiality Agreement

Data Privacy Contract

Collateral Substitution Agreement

Sale Of LLC Interest Agreement

Safe Deposit Box Rental Agreement

Purchase Money Security Agreement

Debenture Purchase Agreement

Purchase Security Agreement

Note And Security Agreement

Factoring And Security Agreement

Consumer Security Agreement

Data Protection Agreement

Commercial Pledge Agreement

Membership Interest Pledge Agreement

Membership Interest Agreement

Irrevocable Pledge Agreement

Lease Security Agreement

Guaranty And Security Agreement

Global Master Repurchase Agreement

Equipment Security Agreement

Auto Loan Security Agreement

Stock Escrow Agreement

Personal Security Agreement

Security Deposit Installment Agreement

Collateral Account Control Agreement

Collateral Account Agreement

Chattel Security Agreement

Business Security Agreement

Trademark Security Agreement

Retail Installment Contract And Security Agreement

Subordinated Creditors Security Agreement

Convertible Bond Subscription Agreement

Third Party Collateral Agreement

Credit And Security Agreement

Deposit Pledge Agreement

Security Control Agreement

Inventory Security Agreement

Debenture Subscription Agreement

Title Transfer Collateral Agreement

Third Party Pledge Agreement

Commercial Security Agreement

Security Account Control Agreement

Convertible Debenture Agreement

Collateral Security Agreement

Receivables Pledge Agreement

Master Security Agreement

Collateral Sharing Agreement

Share Security Agreement

Promissory Note And Security Agreement

Convertible Note Agreement

Third Party Security Agreement

Property Collateral Agreement

Pledge And Security Agreement

Security Purchase Agreement

Security Loan Agreement

Equity Pledge Agreement

Master Repurchase Agreement

Cross Collateral Agreement

Convertible Equity Agreement

Asset Pledge Agreement

Warrant Purchase Agreement

Intercreditor Agreement

Intellectual Property Security Agreement

Pledge Of Shares Agreement

Overnight Reverse Repurchase Agreement

Loan Collateral Agreement

��Ƶ

How a Sales & Marketing Lead uses ��Ƶ to reduce contract drafting time by 95%

�ұ�Ծ��’s Security Promise