An escrow account is an account managed by a neutral third party, here one chosen by Bond and Amoco.  The neutral third party, "the escrow," will be required to manage and disburse the funds in the account pursuant to escrow instructions provided to it by Bond and Amoco that are consistent with the agreement between Bond and Amoco.  By vesting management and control of the funds in an escrow, Bond and Amoco alleviate the risk either might feel if management and control were left to one of them.