Draft Pro-Buyer SPA Indemnification Section with Annotations
Generate a pro-buyer SPA indemnification section with caps, baskets, survival periods, and clause-by-clause annotations flagging market-standard vs aggressive positions.
The Prompt
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Preview prompt structure
— SPA Indemnification Section Generate the Indemnification section for a Stock Purchase Agreement. Deal parameters: - Purchase price: $[amount] - Target: [Company in industry] - Jurisdiction: [State] - Buyer stance: Pro-Buyer Include: 1. General indemnification cap at [X]% of purchase price ...
Variables (4)
| Variable | Description | Example |
|---|---|---|
| {{amount}} | Purchase Price (USD) | 75000000 |
| {{company_in_industry}} | Target Company and Industry | Acme Logistics Inc., a regional freight brokerage |
| {{state}} | Governing Law State | Delaware |
| {{general_cap_percent}} | General Indemnification Cap (%) | 10 |
Expected Output
A pro-buyer SPA indemnification section with general cap, fundamental rep carve-outs, de minimis, tipping basket, survival periods, and clause-by-clause annotations rating each provision as buyer-favorable, market-standard, or aggressive.
Usage Notes
Use this prompt when drafting the indemnification article of an SPA where the client is the buyer. Always validate market-standard percentages against the latest ABA Private Target M&A Deal Points Study before relying on the annotation. Have a senior associate review fundamental rep scope and any uncapped exposure. Anti-sandbagging provisions vary by state; confirm enforceability under Delaware or New York law.
Originally featured in: AI for M&A Lawyers: Due Diligence, LOI Drafting & Deal Room Automation (2026)
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