This escrow holdback agreement template has 4 pages and is a MS Word file type listed under our human resources documents.
Sample of our escrow holdback agreement template:
ESCROW HOLDBACK AGREEMENT This Escrow Holdback Agreement (the "Agreement") is effective [DATE], BETWEEN: [SELLER NAME] (the "Seller"), an individual/entity with its principal place of residence/business located at: [YOUR COMPLETE ADDRESS] AND: [BUYER NAME] (the "Buyer"), an individual/entity with its principal place of residence/business located at: [COMPLETE ADDRESS] AND: [ESCROW AGENT NAME] (the "Escrow Agent"), an individual/entity with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Seller and the Buyer have entered into a purchase agreement dated [DATE] (the "Purchase Agreement"), pursuant to which the Buyer has agreed to purchase certain assets from the Seller (the "Transaction"); WHEREAS, the Purchase Agreement provides for a holdback of certain funds to be held in escrow by the Escrow Agent to cover potential claims, adjustments, or indemnifications under the Purchase Agreement; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: ESCROW DEPOSIT Deposit of Funds: The Buyer shall deposit the sum of [AMOUNT] (the "Escrow Funds") with the Escrow Agent upon the closing of the Transaction. Purpose of Holdback: The Escrow Funds shall be held by the Escrow Agent to satisfy any claims, adjustments, or indemnifications as specified in the Purchase Agreement, including but not limited to breaches of representations, warranties, or covenants by the Seller. DISBURSEMENT OF FUNDS 2.1 Claims against Escrow Funds: In the event that the Buyer makes a claim against the Escrow Funds, the Buyer shall provide written notice to the Escrow Agent and the Seller, detailing the nature and amount of the claim, including supporting documentation, if applicable. 2.2 Response to Claims: The Seller shall have [NUMBER OF DAYS] days to review and respond to the Buyer's claim. If the Seller disputes the claim, the Seller must provide written notice to the Buyer and the Escrow Agent detailing the basis for the dispute. 2.3 Release of Funds: The Escrow Agent shall release the Escrow Funds as follows: a) To the Buyer, in the amount necessary to satisfy any claims or adjustments that have been mutually agreed upon by the Parties or adjudicated by a court of competent jurisdiction. b) To the Seller, any remaining Escrow Funds after [NUMBER OF MONTHS] months from the date of the Transaction, provided no unresolved claims remain. 2.4 Dispute Resolution: In the event of a dispute regarding the disbursement of the Escrow Funds, the Escrow Agent shall retain the funds until the dispute is resolved by mutual agreement of the Parties, arbitration, or a final court order. ESCROW AGENT'S DUTIES AND RESPONSIBILITIES 3.1 Duties of Escrow Agent: The Escrow Agent agrees to hold, manage, and disburse the Escrow Funds in accordance with the terms of this Agreement and the Purchase Agreement. 3
