08-15-2019 Agreement for Cash Escrow{00457602 / 4 }2
AGREEMENT
NOW THEREFORE,in consideration of the following mutual covenants,
conditions and promises, the parties hereby agree as follows:
1.Escrow Agent for Cash Escrow. The Parties hereby designate Stewart
Title Guaranty Company (“Escrow Agent”) as their escrow agent to hold the cash
escrow, to disburse these funds to pay the Improvement Costs, and to make regular
reports to the Parties of disbursements and funds available for payment of the
Improvement Costs which the Parties have agreed to fund from the cash escrow. Escrow
Agent shall not receive any compensation for its services. In the event change orders or
cost increases for the Improvements occur, the Town shall be notified within ten (10)
working days and the cash escrow shall be increased, if necessary, to maintain an amount
equal to one hundred percent (100%) of the estimated costs of completion of the
Improvements as set forth on Exhibit 2, plus such cost increases.
The cash escrow account (the “Cash Escrow Account”) shall be deposited at
Stewart Title Guaranty Company. The Cash Escrow Account shall be maintained for the
sole purpose of funding the Improvements and no funds shall be withdrawn from such
account except as provided for in this Agreement or in the PIA. The funds in the Cash
Escrow Account shall not be comingled with any other funds or used in any manner
except as stated above.
2.Contingency Fund. In addition to the Estimated Improvement Costs to be
held by Escrow Agent in the Cash Escrow Account, Owner shall pay into the Cash
Escrow Account the sum of $112,020.02, representing the Contingency Fund. Escrow
Agent shall hold and oversee the Contingency Fund during the period of construction.
3.Completion of Work. Owner shall oversee the construction of the
Improvements as set forth in the PIA and all work shall be performed in accordance with
the Approved Plans. Owner shall utilize the services of Martin/Martin Consulting
Engineers as engineers and as the construction consultant to engineer, design, prepare
cost estimates and a final construction budget, bid and supervise all of the construction of
the Improvements, including recommendations and approval of all disbursements by
Escrow Agent. Owner, utilizing the services of Martin/Martin Consulting Engineers,
shall provide development reports on a regular basis to the Town. The general contractor
entering into a contract for construction of the Improvements shall be required to procure
and maintain insurance policies as described in Section 7 below.
Owner agrees that Construction Acceptance of the Improvements shall be a
condition to the issuance of a Certificate of Occupancy for any building on Owner’s
property to be served by the Improvements.
Escrow Agent shall issue a final report for the cash escrow to the Parties and
disburse the remaining amount in the Cash Escrow Account, less the amount described in