An Escrow Agreement is critical for companies relying on third-party software since it ensures business continuity, security, and protection under the law. The agreement creates an orderly process by which essential software assets such as source code, documentation, and proprietary information are securely stored by a neutral third party. In the event that a vendor collapses, becomes insolvent, or withdraws from supporting their software, the agreement enables businesses to retrieve and preserve their critical software, precluding costly interruptions. In addition, it reduces vendor lock-in risks, enhances regulatory compliance, and fosters trust between end users and software providers.

Through entering into an Escrow Agreement, companies secure their investments and guarantee the long-term viability of their software.