Software Escrow Agreements


VENTURE CAPITAL COLLATERAL PROTECTION AGREEMENTS

Escrow Associates' technology as collateral escrow services are bound by an escrow agreement. The final contract terms dictate the services provided by Escrow Associates, LLC and the potential release process of the escrowed materials. Since these types of transactions are often unique, Escrow Associates, LLC offers the flexibility of tailoring these agreements to best suit the needs of the parties. As your escrow agent, we offer a variety of service levels to directly match the clients' needs for escrow protection:

Standard Three-Party Technology Collateral Escrow Agreement

The three-party technology as collateral escrow agreement is used by lenders that require the highest level of protection. Lenders investing substantial funds or with unique escrow requirements choose the three-party technology collateral escrow agreement. All parties negotiate and sign the contract and a specific set of materials are deposited to support the arrangement.

Request sample three party escrow agreement.



Master Two-Party Technology Collateral Escrow Agreement

In scenarios where technology has been pledged as collateral to multiple funding sources, a two-party escrow agreement is an effective solution. The contract allows numerous beneficiaries and technology products to be protected under a single escrow contract with a single set of escrow conditions. Future additions and changes to this escrow arrangement can be made under the discretion of the client.

Request sample two party escrow agreement.


Beneficiaries can be added through either of the following scenarios:

Standard Beneficiary - provides the beneficiary with escrow service according to standard terms at a modest fee.

Registered Beneficiary - reserved for those scenarios where default escrow terms are not an exact match. This measure allows the software company to leverage existing contracts while providing a particular beneficiary with specific contract terms. In the end, this feature alone will save both parties hundreds if not thousands of dollars over negotiating and establishing separate agreements for each escrow relationship.

This combination of Standard Beneficiaries and Registered Beneficiaries provides a technology company a level of corporate escrow services that is unmatched in the industry. This master escrow agreement satisfies all escrow requirements without having to manage multiple escrow agreements.

As with all escrow agreements, Escrow Associates, LLC encourages our clients to work with their attorneys and to modify our contact templates as necessary to sit specific transaction requirements. We encourage clients to closely scrutinize these agreements to ensure each party's interests are carefully considered. Customized agreements may also be used if they are considered more suitable for a particular transaction. Whether you use our contract templates or your own, you will never be charged a custom agreement fee at Escrow Associates, LLC.

No matter which way you decide to structure your technology escrow, Escrow Associates stands behind each offering by providing:

  • Same-day contract review, in most cases
  • Online access to account information
  • Electronic depositing
  • Media vaulting facility, exceeding industry security standards
  • Toll-free support line
  • Full-service customer service department

 

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