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Investor Escrow is used where a financial investor
(person, bank or venture capitalist) of software development is in
need of collateral security, even if company stocks are
in his hands. That security must necessarily be the
ownership of the software product in form of the source
code, if a release ground occurs under the escrow
agreement.
The parties can make their amendments to the formal
escrow agreement which tailor the contract to the
combined needs of the investor and licensor.
When both the investor and licensor
have agreed on the escrow contract, they both sign and
send it to FGE for signature. If time is short ( like
often) signed copies of the escrow agreement can be
exchanged via fax, and originals can be sent later by
courier or post.
The licensor makes its deposits on a
regular basis during product development and couriers it
to FGE. We immediately fax or email a confirmation of
receipt notice to the parties.
The parties decide how often new
releases must be deposited under escrow.
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