The Investor Security Plan is used where a financial backer of software development requires collateral security in addition to company stock or debt instruments. That security is ownership of the software product if a major default occurs under the main lending agreement.

Download or view a copy of our ISP standard contract for review by you or your lawyer. We invite amendments that tailor the form to the combined needs of the Investor and Developer.

When both the Investor and Developer(s) have agreed on the form, they sign and send it to us for signature. If time is short signed copies of the escrow agreement are exchanged via fax, and originals are sent later by courier or post.

The trigger events that release software from escrow into the Investor's hands should be identical to the events in the main lending agreement that are a major default by the Developer and would allow the Investor to foreclose.

We deliver a supply of special containers to the Developer that are used to make deposits on a regular basis during product development. The Developer seals each deposit into a container, certifies as to the contents and couriers it to us. We immediately fax or email a confirmation of receipt notice to the Developer and Investor.

The Investor or his agent might wish to be present when the software is being sealed into the containers, and in that way the authenticity and completeness of the contents are verified.

When a new release is ready for escrow we send another container into which a consolidated set of the new software is placed under seal following the same procedures as above, and returned to us. As always, we fax a confirmation of receipt to both parties. We do not open the old containers and replace materials. The old containers are retained until we are directed to return them, which may be automatically after receiving new releases, or only after receiving written instructions from the parties. The parties also decide how often new releases must be deposited under escrow.

We are based in Toronto, Denver and Ottawa, and during the past quater of a century have served thousands of clients form all parts of the globe. Under normal circumstances, we use safety deposit boxes in bank vaults located near our offices, however we are able to store software in virtually any location if the parties so request.