District of Columbia Indemnification Agreement establishing Escrow Reserve

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-217
• Format: Word; Rich Text

Description

17-217 17-217 . . . Indemnification Agreement providing that (i) in event of change in control, corporation shall establish Escrow Reserve of $2,000,000 as security for its obligations under Indemnification Agreement and (ii) in event of any liquidation, merger, consolidation or reorganization in which corporation is not surviving entity, or sale of all or substantially all of corporation's assets, corporation shall ensure that Indemnification Agreement is assumed by surviving entity or otherwise provide for satisfaction of its obligations thereunder

Keywords: District of Columbia, Indemnification Agreement, Escrow Reserve, types Introduction: The District of Columbia Indemnification Agreement establishing Escrow Reserve is a legal document used to protect parties involved in various transactions within the District of Columbia. This agreement ensures that any potential damages, liabilities, or losses arising from specific events are covered by an escrow reserve, thereby providing financial security and reassurance. There are different types of District of Columbia Indemnification Agreement establishing Escrow Reserve, each catering to specific purposes and circumstances. 1. Real Estate Transaction Escrow Reserve Agreement: This type of Indemnification Agreement is commonly used in real estate transactions within the District of Columbia. It safeguards the interests of buyers, sellers, and other stakeholders involved in the purchase or sale of a property. The agreement establishes an escrow reserve wherein funds are held to cover any potential breach of contract, title issues, or other contingencies that may arise during the transaction. 2. Financial Services Escrow Reserve Agreement: In financial services, such as banking or investment activities, this Indemnification Agreement establishes an escrow reserve to protect clients and financial institutions. It ensures that any potential losses resulting from fraudulent actions, operational failures, or compliance breaches are compensated from the escrow reserve. 3. Construction Project Escrow Reserve Agreement: This type of Indemnification Agreement is prevalent in the construction industry within the District of Columbia. It establishes an escrow reserve to cover potential damages, delays, or disputes related to the construction project. The escrow reserve provides a safeguard for both the contractor and the client, ensuring financial compensation for any unforeseen circumstances. 4. Government Contracts Escrow Reserve Agreement: When the District of Columbia enters into contracts with businesses or individuals, this Indemnification Agreement establishes an escrow reserve to mitigate risks associated with the contract. It protects both the government and the contractor by ensuring funds are available to cover breaching of terms, non-performance, or financial losses resulting from the contract. Conclusion: The District of Columbia Indemnification Agreement establishing Escrow Reserve is a significant legal instrument that protects parties involved in various transactions within the District of Columbia. Whether its real estate, financial services, construction projects, or government contracts, the agreement ensures that potential damages, liabilities, or losses are covered by an escrow reserve. Understanding and implementing the suitable type of Indemnification Agreement is crucial for establishing financial security and minimizing risks for all parties involved.