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Form #1345Escrow of stock to secure purchases
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Escrow of stock to secure purchases
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Escrow of stock to
secure purchases.
To: _________ National Bank, Escrow Agent
1. _________ Corporation (called "debtor")
is indebted to _________ and _________(together called "sellers"
and, individually, "seller") under a purchase agreement dated
_________. _________, a Delaware corporation (called "Delaware") may
become indebted to the sellers under bonds that may be delivered pursuant to
the purchase agreement. You need not concern yourself with the terms of the
purchase agreement or the bonds.
2. Debtor is delivering _________ shares of stock of
ABC Corporation (called "collateral") issued in the name of debtor,
together with a blank stock power signed by debtor assigning the collateral.
You will hold these as escrow agent and will not cause the collateral to be
transferred into any other name except in accordance with your instructions.
3. Upon receipt of an affidavit of the sellers that
debtor is in default in making a payment under the purchase agreement or that
Delaware is in default in making a payment under the bonds and describing the
default in reasonable detail, you will promptly deliver to debtor or Delaware
(whichever corporation is alleged to have defaulted) a photostat of the
affidavit.
(a). If you do not receive, within 30 days after
delivery of the photostat to the defaulting corporation, an affidavit of the
president or chief financial officer of the corporation that the described
default has not occurred, you will deliver the collateral and the stock power
to sellers.
(b). If, within 30 days after delivery of the
photostat to the defaulting corporation, you receive an affidavit of the
president or chief financial officer of the corporation, that the described
default has not occurred, you will continue to hold the collateral and the
stock power pending:
(i) The receipt by you of a joint order of either
debtor or Delaware and any one seller relating to the disposition of the
collateral; or
(ii) The receipt by you of a certified copy of a final
order of a court relating to the disposition of the collateral, and the
affidavit of sellers or an officer of Delaware that no appeal has been taken
from the order and that the time for an appeal has expired. You will deliver a
photostat of the order and affidavit to the other party or parties within 24
hours after receipt by you.
4. Upon receipt of an affidavit of the president or
chief financial officer of debtor or Delaware that debtor and Delaware are no
longer indebted to the sellers, you will deliver to sellers a photostat of the
affidavit.
(a). If you do not receive, within 30 days after
delivery of the photostat to sellers, an affidavit from sellers that debtor or
Delaware are still indebted to sellers under the purchase agreement or bonds,
and describing the indebtedness in reasonable detail, you will deliver the
collateral and stock power to debtor.
(b). If, within 30 days after delivery of the
photostat to sellers, you receive an affidavit of sellers that debtor or
Delaware are still indebted to sellers under the purchase agreement or bonds,
and describing the indebtedness in reasonable detail, you will continue to hold
the collateral and the stock power pending:
(i) The receipt by you of a joint order of either
debtor or Delaware and any one seller relating to the disposition of the
collateral; or
(ii) The receipt by you of a certified copy of a final
order of a court relating to the disposition of the collateral, and the
affidavit of sellers or an officer of Delaware that no appeal has been taken
from that order and that the time for an appeal has expired. You will deliver a
photostat of the order and affidavit to the other party or parties within 24
hours after receipt by you.
5. At any
time within two years from this date debtor and/or Delaware may deliver to you
(i) an affidavit of its president or chief financial officer that ABC
Corporation has been liquidated and its assets and business transferred to
debtor, (ii) certificates representing all of the shares of stock of debtor,
and (iii) a blank stock power signed by
Delaware assigning the shares. Upon receipt you will
(i) send a photostat of the affidavit to sellers, and (ii) deliver the
collateral and stock power assigning the collateral to debtor. These shares of
debtor will then become the collateral.
6. No provision of these instructions shall be deemed
to modify or supersede the terms of the pledge agreement dated _________
between debtor, Delaware and sellers.
7. Debtor will pay your fees and costs prior to the
time that control over the collateral passes to sellers, after which time
sellers will pay your fees and costs.
8. All notices shall be in writing. Notices and
deliveries to the parties may be directed to them at their addresses set forth
beneath their signatures below. Any party may change the address to which
notice may be sent to him or her by notice to all other parties. All notices
and deliveries shall be effective when sent by registered or certified mail,
addressed as stated above.
9. The rights and liabilities of the present parties
shall bind and inure to the benefit of their respective successors, executors,
administrators, heirs and assigns. No change or division of the rights of any
seller, however accomplished, shall be binding upon you or upon debtor until
receipt by you and by debtor of notice signed by seller or seller's duly
qualified personal representative and all assigns of seller, stating the nature
of the change or division and designating one person and one address to which
all future notices and deliveries may be directed. This person shall be the
only person to whom notices, affidavits and deliveries need be made, and shall
be the only person who may give affidavits and notices on behalf of the seller.
In witness, etc.
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Submissions to this site, including any legal or business forms, posts, responses
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These downloadable forms are only for personal use. Retransmission, redistribution,
or any other commercial use is prohibited. This includes reposting forms from this
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Please note that the donator may have included different usage terms regarding this
form, and you agree to abide by these terms. It is highly recommended that you have
a licensed attorney review any legal documents for which you are searching in order
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Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
for any damage you might incur from your use of any submissions contained on this
site. If you do not agree to the above terms, please do not proceed.
These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
these forms. The Forms are not a substitute for legal advice YourFreeLegalForms.com
is not engaged in recommending or referring members on the site or making claims
about the competence, character or qualifications of its participating members.
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Keywords: Escrow,stock,secure,purchases
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