← Back to workflows
Securities And Capital Markets

Lock-Up Agreement

Drafting lock-up agreements for IPOs and public offerings is time-intensive and detail-critical work. Securities attorneys spend hours customizing templates, ensuring compliance with underwriter requirements, and coordinating multiple securityholder agreements with consistent terms. Manual drafting risks inconsistencies across documents and delays in time-sensitive transactions.

Automation ROI

Time savings at a glance

Manual workflow2.5 hoursAverage time your team spends by hand
With CaseMark8 minutesDelivery time with CaseMark automation
EfficiencySave 18.8x time with CaseMark

The Problem

Drafting lock-up agreements for IPOs and public offerings is time-intensive and detail-critical work. Securities attorneys spend hours customizing templates, ensuring compliance with underwriter requirements, and coordinating multiple securityholder agreements with consistent terms. Manual drafting risks inconsistencies across documents and delays in time-sensitive transactions.

The CaseMark Solution

CaseMark automates lock-up agreement generation with intelligent templates that ensure consistency across all securityholders. Simply input your company details, underwriter information, and lock-up parameters, and receive fully drafted, customizable agreements in minutes. Focus on strategic deal work while CaseMark handles the repetitive drafting.

Key benefits

How CaseMark automations transform your workflow

Generate complete lock-up agreements in 8 minutes vs. 2.5+ hours manually

Ensure consistency across multiple securityholder agreements automatically

Customize lock-up periods, permitted transfers, and exceptions with ease

Reduce drafting errors with AI-powered template intelligence

Accelerate IPO and public offering timelines with faster document turnaround

What you'll receive

Header and Addressee Block
Preamble and Recitals
Lock-Up Covenant Provisions
Lock-Up Period Definition
Permitted Transfers and Exceptions
Representations and Authority
Stop Transfer Instructions
Governing Law Provisions
Signature Block

Document requirements

Required

  • Company Information
  • Underwriter Details
  • Securityholder Information

Optional

  • Underwriting Agreement
  • Offering Prospectus
  • Previous Lock-Up Agreements

Perfect for

Securities Attorney
Corporate Counsel
Capital Markets Lawyer
Transactional Associate
Corporate Paralegal
Investment Banking Legal Team

Also useful for

This workflow is applicable across multiple practice areas and use cases

Corporate Finance95% relevant

Lock-up agreements are essential in corporate finance transactions including private placements, PIPE deals, and secondary offerings where existing shareholders must agree not to sell shares during critical periods.

Corporate finance transactions routinely require lock-up agreements to stabilize share prices and protect investor interests, making this workflow directly applicable beyond just IPOs and public offerings.

VC and PE transactions often require lock-up agreements for founders, early investors, and management teams during exit events, acquisitions, or when portfolio companies go public.

Private equity and venture capital deals frequently involve lock-up provisions to prevent market flooding and maintain share value during liquidity events, making this workflow highly relevant for PE/VC counsel.

Lock-up agreements are used in M&A transactions where selling shareholders receive acquirer stock and must be restricted from immediate sale to protect deal value and prevent market disruption.

M&A deals involving stock consideration regularly require lock-up agreements for target company shareholders, making this workflow valuable for transaction attorneys handling such deals.

Corporate governance matters involving insider trading policies, executive compensation plans with equity components, and board-level restrictions on share transfers benefit from standardized lock-up agreement frameworks.

Corporate governance attorneys manage ongoing restrictions on executive and director share sales, requiring lock-up style agreements to ensure compliance with company policies and securities regulations.

Frequently asked questions

Q

What is a lock-up agreement and when is it needed?

A

A lock-up agreement restricts company insiders and early investors from selling their shares for a specified period after an IPO or public offering, typically 180 days. CaseMark generates customized lock-up agreements that comply with underwriter requirements and include all necessary provisions for permitted transfers and exceptions.

Q

How long does it take to draft a lock-up agreement manually?

A

Manual drafting typically takes 2-3 hours per agreement, including template customization, review of underwriter requirements, and coordination of terms. CaseMark reduces this to approximately 8 minutes by automating the drafting process while maintaining full customization capabilities.

Q

Can I customize the lock-up period and permitted transfers?

A

Yes, CaseMark allows full customization of lock-up periods, permitted transfer exceptions, and all other provisions. You can adjust the standard 180-day period, modify gift and family transfer provisions, and tailor the agreement to specific underwriter or transaction requirements.

Q

How does CaseMark ensure consistency across multiple securityholder agreements?

A

CaseMark uses your master inputs to generate consistent terms across all securityholder lock-up agreements automatically. This eliminates the risk of inconsistent lock-up periods, varying permitted transfers, or conflicting provisions that can occur when manually drafting multiple agreements.

Q

What information do I need to generate a lock-up agreement?

A

You'll need basic company information (name, stock details), underwriter details (name, address), securityholder information, and your preferred lock-up period and terms. CaseMark's guided interface prompts you for all necessary information and provides standard defaults that you can customize.

Q

Are the lock-up agreements compliant with SEC and underwriter requirements?

A

CaseMark's templates are based on market-standard lock-up provisions commonly required by underwriters and compliant with SEC regulations. All generated agreements are fully editable, allowing you to incorporate specific underwriter requirements or transaction-specific terms as needed.

Q

Can I use CaseMark for lock-up agreements in different states?

A

Yes, CaseMark allows you to specify the governing law jurisdiction for your lock-up agreement. The platform generates agreements that can be customized for any state's legal requirements while maintaining standard securities law provisions applicable across jurisdictions.