Below is an example of an ESCROW agreement between parties to fund asset holders’ assets with TOKENS. This contract is made between the asset holders and the Asset Backed Tokens Platform, which prepares, configures, and markets the tokens.
Depending on the nature of the asset to be tokenized, more than 100% of the assets (e.g., 10-50%) are recorded in Escrow. Within these records, the profit margins that the investors are committed to giving according to maturities, such as 3-6-12-24-36 months or returns based on the market values of the assets, as well as bonuses and extra gifts to be paid, are determined.
ESCROW AGREEMENT FOR TOKENIZATION
This Trust Agreement (“Agreement”) is made and concluded on [Date] between:
1. PARTIES
Party A: [Escrow Company / Name of the Company’s Representative / Title], with its legal address at [Address].
Party B: [Name of the Asset Owner Company / Name of the Company’s Representative / Title], with its legal address at [Address].
Party C: [On behalf of Token Issuer-Registrar-Lister-Sales offering partners Asset Basket Tokens Platform], on behalf of Token Issuer-Registrar-Lister-Sales offering partners [Name].
2.BACKGROUND
The parties (Party A, Party B, and Party C) have entered into this agreement to register the assets, which serve as the guarantee for the asset-based tokens, in Escrow, to protect the investors.
Asset Information:
1. Entity/Sector Name:
2. Sectoral Product Code of the Asset: [Code]
3. Asset Location: [Address]
4. Amount of Assets to be Tokenized: [Amount]
5. Market Price of the Asset: [Price]
6. Excess Asset Value (e.g., 10-50%): [Amount]
7. Provision for Excess Asset Financing (e.g., 10-50%): [Amount]
8. Total Tokenized Asset Value: [Total Value]
Owner-seller of the asset:
If Real Estate;
1. Property Name/Type:
2. Property Address:
3. Deed records of the real estate;
4. Real Estate Land Area total m2:
5. Closed Real Estate Area m2:
6. Open Area m2:
7. Status of the property (completed-under construction, etc.):
8. Expert Real Estate USD Value:
9. Token USD amount to be prepared:
10. Excess amount of real estate for collateral (10-50%):
11. Owner-seller of the real estate:
III. ESCROW CONDITIONS
1. Escrow Account: For the purposes of this Agreement, an “Escrow Account” will be established with [Escrow Agent].
2. Assets Entrusted: Party B shall deposit the excess amount of the asset to be tokenized (between 10-50%, depending on the nature of the asset) in the Escrow Account with a US dollar value according to the current market conditions of the asset. These assets will remain in escrow until the release conditions set forth in this Agreement are met.
3. Token Development: Party C, in collaboration with Token Issuers and Asset-Backed Tokens Platform partners running the Tokenize program, will develop and prepare asset-backed tokens, including related contracts and documents, in accordance with the agreed-upon agreement.
4. Party A: It is the institution that will protect the assets of the asset owners for the purpose of guarantee and collateral.
5. Asset Collateral: It refers to all assets such as goods/services/real estate/financial assets and royalties, etc., given to the Escrow Company as collateral for the preparation of tokens for Party B’s assets.
6. Settlement of Disputes: When the principal is not paid to the investors at the end of the maturity, together with the profit margins promised to the token investors, it is declared in the contract that the assets registered in escrow can be sold to banks or investors when necessary. Any dispute arising out of or relating to this Agreement will be settled by arbitration in accordance with the rules of the [Arbitration Board] or by litigation in the [Jurisdiction] court system.
7. Applicable Law: This Agreement will be governed and interpreted in accordance with the laws of [Judicial Jurisdiction].
RELEASE OF ENCUMBERED ASSETS
Assets in the Escrow Account will be released as follows:
1. After the asset-backed tokens are completed, listed, and offered for sale by Party C, investors will notify the escrow agent of the amount and value of the asset-backed tokens sold.
2. The Escrow Agent will seek approval from Parties C and B to release all or part of the assets held in escrow in exchange for the financing amount from the sale of tokens and related profits to investors.
V- PAYMENT DECLARATION
Once the targeted token sales are completed, Party A shall inform the Escrow company about the rate at which payments are completed in accordance with the principal and profit margin payment schedule promised to the investors.
VI- ASSET TRANSFER
Upon completion of the repayments of the financing promised to the investors, the assets registered to Party B, the owner of the assets, will be transferred either in a single transaction or in stages, as specified in the contract.
VII- PROFIT DISTRIBUTION
1- The profit margin promised to the Investors by the Asset Owner, Party B, will be determined according to the following options:
A. 6-Month Financing Provision: [Percent]
B. 12-Month Financing Provision: [Percent]
C. 24-Month Financing Provision: [Percent]
D. Monthly Financial Provision: [Percent]
Token profit margins will be calculated based on these maturities.
2- Party B, as the asset owner, will determine the profit margin on the assets based on the following criteria:
- The profit margin is calculated based on the market value of the assets at maturity.
- The difference between the current market price of the asset and the market price on the day the asset was tokenized and sold is a gain for investors. Token holders can also receive bonuses and gifts at certain rates.
The profit margin is added to the market value at the end of the maturity determined for the assets. The current market price of the asset -/ + the market price of the asset at the time of registration + the promised profit margin/bonus is calculated online by algorithms, and investors are paid instantly.
3- Fee for services related to tokenization of assets, technical operations, sale of tokens, and conversion to finance:
A service fee of …..% is paid to Asset Basket Global Platform on behalf of the service providers, based on the financing amount of the asset price registered in Escrow.
VIII- FULL AGREEMENT
1- This Agreement constitutes the entire agreement between the Parties and supersedes all prior oral or written agreements, understandings, and negotiations.
2- This Agreement may be signed in more than one copy, each of which shall be deemed to be original, but together constitute one and the same document.
3- The Parties, WHO HAVE APPROVED THESE MATTERS, have signed this Escrow Agreement as of the first date written above.
4- This agreement will be valid in conjunction with the Asset Owner’s Asset-Based Global Token Platform Application Form and Consultancy Agreement. Date:….
IX- SİGNATURES:
Asset Owner’s Name:
Mobile Phone Number: …………………………………………………
Email: ………………………………………….
Company Name:
Business Telephone number: ………………………..
Email:
Asset Based Global Token Platform Authorized Name:
Mobile Phone Number: …………………………………………………
Email: ………………………………………….
Company Name:
Business Telephone number: ………………………..
Email:
Name of Escrow Company Officer:
Mobile Phone Number: …………………………………………………
Email: ………………………………………….
Company Name:
Business Telephone number: ………………………..
Email:
Party A: [Signature]
[On behalf of the Legal Entity of the Blockchain Platform]
Party B: [Signature]
[On behalf of the Legal Entity of the Asset Owner]
Party C: [Signature]
[On behalf of the Legal Entity of Escrow Company]