Sample Sa: Escrow Agreement

ESCROW AGREEMENT
THIS AGREEMENT (the Escrow Agreement) is made as of the ____ day of

______________, 20__, by and among:
_________________, having an office at ______________, New York (Seller); and
_________________, having an office at ______________, New York (Buyer); and
Whereas, the Seller and the Buyer are parties to an Assets Purchase Agreement, dated
_______________, 20__ (Purchase Agreement); and
e
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Whereas, the Purchase Agreement provides for the escrow of a portion

rtion off the purchase price;
and
Whereas, the parties wish to establish and maintain this escrow
ow in accordance with the terms
and provisions of this Escrow Agreement;
NOW, THEREFORE, the parties agree:
m
a
ent provides
provid
ides
es for the escrow of $__________
$_
$________ under the
1. Purpose. This Escrow Agreement
Purchase Agreement, as a source
claim by Buyer for
ce for payment
ayment in the event of a clai
n ___ of the Purchase
Purchase Agreement.
Subjec to the terms of this
indemnification under Section
Agreement Subject
arties establish
ablish this escro
esc w to insure the Se
Escrow Agreement, the parties
escrow
Sellers compliance with the
terms, provisions and
indemnification
agreement under the terms of the
d conditions of their indem
indemnif
fication
cation agree
ent.
Purchase Agreement.
blishment of Escrow Fund.

ablishment
Fund. Seller has deposited
dep
2. Establishment
with the Escrow Agent the sum of
_______,
_____, as set forth in Schedule A annexe
$___________,
annexed, on the date of this Escrow Agreement. This
onstitute
stitute and be referred to as the Escrow
Escro Fund.
shall constitute
eipt. The Escrow Agent sha
3. Receipt.
shall issue appropriate written acknowledgments of the receipt
w Fund.
of the Escrow
E
4. Dispositionn of the Escrow
Fund.
a. Release. The Escrow Agent shall hold the Escrow Fund until _____________, 20__
when the Escrow Agent shall release one-half of the Escrow Fund to the Seller. The balance of
the Escrow Fund shall be released by the Escrow Agent to the Seller on ______________, 20__.
b. Default. During the term of this Escrow Agreement, if the Seller defaults in the
payment of a claim for indemnification, the Escrow Agent shall transfer and pay over to the
Buyer from the Escrow Fund, up to the entire amount of the Escrow Fund, the total amount of
the claim. The nature, extent and validity of Buyers claim for indemnification shall be
determined under and governed by the terms, conditions and provisions of the Purchase
Agreement, which is incorporated in this Escrow Agreement by reference.
5. Investment of Escrow Fund. The Escrow Agent deposits the Escrow Fund in an interest
bearing trust account, determined by the Seller. During the term of the escrow all interest and/or
other increments to the Escrow Fund shall be credited to the Seller.
6. Written instructions to Escrow Agent. Notwithstanding anything herein to the contrary, the
Escrow Agent may act upon any written instructions given by the parties jointly.
7. Status of the Escrow Agent.
a. The Escrow Agent is to be considered and regarded as a depository only, and shall not
be responsible or liable (except for their failure to exercise due care) for the sufficiency or
correctness as to form, manner of execution, or validity of any instrument deposited as part of
son executing
exe
this Escrow Fund, nor as to the identity, authority, or rights of any person
the same.
ekeeping and investment of
The Escrow Agents duties hereunder shall be limited to the safekeeping
ent
nt and for their disbursement
dis
money, instruments, and securities received by it as Escrow Agent
in
crow Agreement.
accordance with the terms, provisions and conditions of this Escrow
e
l
le for the genuineness

nuineness off any certificate
ce
certifi
b. The Escrow Agent shall not be responsible
or
hall be protected
n
rotected when acting upon any notice,
signature and may rely conclusively upon and shall
k, orr otherr instrument believed by
b the Escro
affidavit, request, consent, instruction, check,
Escrow Agent
ed or presented
ed by the proper
proper person,
perso or duly authorized,
in good faith to be genuine or to be signed
nt shall have
except for the performance of
ave no responsibility ex
or properly made. The Escrow Agent
ies underr this Escrow
Escrow Agreement and
a
a no additional
the Escrow Agents express duties
duties shall
be inferred or implied.
m
a
ow Agentt shall not be responsible or liable for any act or omission in the
c. The Escrow
Ag
und
under this E
performance of the duties of the Escrow Agent
Escrow Agreement unless such act or
nstitutes bad faith, gross negligence
negligen or fraud.
fraud
omission constitutes
d. The Escrow Agent shall not be

b required
require to institute or defend any action involving any
eferred to in this Escrow Agreement
Agreeme
A
matters referred
or which affect the Escrow Agent or the duties or
A
th Escrow Agreement unless or until requested to do so
liabilities off the Escrow Agent
under this
Agreem and then only upon receiving full indemnity, in character
by any partyy to this Escrow Agreement
the Escrow
Escro Agen
satisfactory to the
Agent, against all claims, liabilities and expenses.
8. Disputes. Inn the eevent of any dispute among the parties with respect to the Escrow Agent
or the duties of the Escrow Agent:
a. the Escrow Agent may act or refrain from acting in respect of any matter referred to in
this Escrow Agreement in full reliance upon and by and with the advice of counsel and shall be
fully protected in so acting or in refraining from acting upon advice of counsel; or
b. the Escrow Agent may refrain from acting until required to do so by the order of a
court of final authority.
9. Fee of Escrow Agent. Buyer shall be liable for the fees of the Escrow Agent, which shall
not be chargeable against the Escrow Fund.
10. Non-waiver. No delay or failure by any party to exercise any right hereunder, and no
partial or single exercise of any such right, shall constitute a waiver of that or any other right
unless otherwise expressly provided herein.
11. Time of essence. Time is of essence of this Escrow Agreement.
12. Notices. All notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed to have been duly given if delivered or mailed, postage prepaid,
certified mail, return receipt requested or by overnight express mail (i.e. Federal Express):
(a) If to the Buyer, to:
________________________________________
___
________________________________________
_________
_____
________________________________________
with a copy to:
_____________________
_____________
________________________________________
___________________________
____________________
________________________________________
_________________________________
______________________
________________________________________
b) If to the Seller,
er, to:
(b)
_____________________________
_________________
________________________________________
______________________
__________
________________________________________
________________
____
________________________________________
with a copy to:
____
________________________________________
________________________________________
________________________________________
(c) if to the Escrow Agent, to:
________________________________________
________________________________________
________________________________________
The address may be changed by any party in a notice duly given as provided
herein.
13. Nonexclusive protection. The provisions of this Escrow Agreement are cumulative and not
exclusive of all other rights or remedies which Purchaser may have at law or equity, or under the
Purchase Agreement or other instrument or document.
14. Binding Effect. This Escrow Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors and assigns; provided that any permitted assignment of
either partys obligations or liabilities shall not relieve that party of any of its liabilities or
obligations under this Escrow Agreement.
e
l
deem to modify or
15. Titles. The titles are for convenience or reference and shall not be deemed
in as used in this Escrow
affect the interpretation of this Escrow Agreement. The term herein
ow Agreement.
Agreem
Agreement refers to this Escrow Agreement and any Exhibits to this Escrow
16. Modification. Neither this Escrow Agreement nor any of its provisions shall be m
modified,
ument in writing
ting signed by the pa
party against
changed, discharged, or terminated except by an instrument
nge, discharge
arge or termination is sought.
soug
whom the enforcement of any modification, change,
n with the transa
transacti
ons
contemplated by this Escrow
ns contempla
17. Further Assurances. In connection
transactions
ute any additional
dditional documents and papers and to perform and
Agreement, the parties agree to execute
prop to effectuate and
do any additional acts and thingss as mayy be reasonably necessary and proper
ntemplated by this Escrow Agreement.
Agreemen
carry out the transactions contemplated
m
a
ay or omission
ission on the part of any party
pparty in exercising
e
18. Delay. No delay
any right shall operate
at right orr any
any other right. A waiver
waive on any one occasion shall not be construed
as a waiver of that
as a bar to or waiver of any right on any future occasion.
overning Law.
Law. This Escrow Agreement
Ag
19. Governing
shall be governed by, construed and interpreted
ngg to the laws of the state of New York
Yo and the Purchase Agreement.
according
nterparts
parts.. This Escrow
E
Ag
20. Counterparts.
Agreement
may be executed in one or more counterparts, each
ll be deeme
deemed to be an original, but all of which together shall constitute the same
of which shall
y signature pa
Agreement. Any
page of any such counterpart, or any electronic facsimile thereof, may
pended to any other counterpart to complete a fully executed counterpart of this
be attached or appended
Agreement, and any telecopy or other facsimile transmission of any signature shall be deemed an
original and shall bind each Party.
IN WITNESS, the parties have executed this Escrow Agreement.
______________________________
______________________________

Sample Sa: Escrow Agreement

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What is the purpose of the escrow agreement?

What are the terms for releasing the escrow fund?

ESCROW AGREEMENT

THIS AGREEMENT (the Escrow Agreement) is made as of the ____ day of

Whereas, the Purchase Agreement provides for the escrow of a portion

NOW, THEREFORE, the parties agree:

blishment of Escrow Fund.

le for the genuineness

d. The Escrow Agent shall not be

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