New Mexico 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 New Mexico Indemnification Agreement establishing Escrow Reserve is a legal document that outlines the terms and conditions for creating an escrow reserve to indemnify against any potential liabilities or risks in a business transaction. This agreement serves as a safeguard for the parties involved by providing a financial buffer in case unforeseen events occur. The purpose of the New Mexico Indemnification Agreement is to protect both the buyer and the seller in a transaction by establishing a reserve fund that can be used to cover any potential losses, damages, or claims that may arise. This escrow reserve acts as a security measure, offering peace of mind for all parties involved. The agreement typically includes provisions such as the amount of funds to be set aside in the escrow reserve, the duration for which the reserve will be maintained, and the circumstances under which the funds can be accessed. It is important for the agreement to clearly specify the events triggering indemnification and the procedures for making claims against the escrow reserve. In the context of New Mexico Indemnification Agreement establishing Escrow Reserve, there can be different types based on various business transactions. Some common types include: 1. Real Estate Escrow Reserve Agreement: This type of agreement is applicable in real estate transactions, where a portion of the purchase price is set aside in an escrow reserve to cover any potential contingencies, such as repairs, liens, or title issues. 2. Mergers and Acquisitions Escrow Reserve Agreement: In mergers and acquisitions, an escrow reserve may be established to cover potential breaches of representations and warranties made by the parties. These funds may be used to compensate the buyer for any damages resulting from misrepresentation or omitted information. 3. Construction Escrow Reserve Agreement: Construction projects often utilize an escrow reserve to secure the completion of work and address any potential claims that may arise during or after the project. This agreement ensures that funds are available to compensate for any defects, delays, or payment disputes. 4. Commercial Lease Escrow Reserve Agreement: Commercial leases may require a tenant to establish an escrow reserve to cover expenses such as repairs, unpaid rent, or damages caused during the lease term. This agreement safeguards the landlord against potential losses. It is worth noting that these are just a few examples, and New Mexico Indemnification Agreement establishing Escrow Reserve can be customized and tailored to the specific needs and requirements of each transaction.

New Mexico Indemnification Agreement establishing Escrow Reserve is a legal document that outlines the terms and conditions for creating an escrow reserve to indemnify against any potential liabilities or risks in a business transaction. This agreement serves as a safeguard for the parties involved by providing a financial buffer in case unforeseen events occur. The purpose of the New Mexico Indemnification Agreement is to protect both the buyer and the seller in a transaction by establishing a reserve fund that can be used to cover any potential losses, damages, or claims that may arise. This escrow reserve acts as a security measure, offering peace of mind for all parties involved. The agreement typically includes provisions such as the amount of funds to be set aside in the escrow reserve, the duration for which the reserve will be maintained, and the circumstances under which the funds can be accessed. It is important for the agreement to clearly specify the events triggering indemnification and the procedures for making claims against the escrow reserve. In the context of New Mexico Indemnification Agreement establishing Escrow Reserve, there can be different types based on various business transactions. Some common types include: 1. Real Estate Escrow Reserve Agreement: This type of agreement is applicable in real estate transactions, where a portion of the purchase price is set aside in an escrow reserve to cover any potential contingencies, such as repairs, liens, or title issues. 2. Mergers and Acquisitions Escrow Reserve Agreement: In mergers and acquisitions, an escrow reserve may be established to cover potential breaches of representations and warranties made by the parties. These funds may be used to compensate the buyer for any damages resulting from misrepresentation or omitted information. 3. Construction Escrow Reserve Agreement: Construction projects often utilize an escrow reserve to secure the completion of work and address any potential claims that may arise during or after the project. This agreement ensures that funds are available to compensate for any defects, delays, or payment disputes. 4. Commercial Lease Escrow Reserve Agreement: Commercial leases may require a tenant to establish an escrow reserve to cover expenses such as repairs, unpaid rent, or damages caused during the lease term. This agreement safeguards the landlord against potential losses. It is worth noting that these are just a few examples, and New Mexico Indemnification Agreement establishing Escrow Reserve can be customized and tailored to the specific needs and requirements of each transaction.