Environmental indemnity: negotiated draft: share purchase agreement

An environmental indemnity for use in an acquisition of the shares of a company.

This environmental indemnity seeks to represent both parties' interests in a balanced manner. It may require less negotiation and be more straightforward to finalise than a strong seller-friendly, more lengthy draft. However, environmental indemnities are increasingly rare in practice. As environmental law has developed and the market's understanding of environmental liability and enforcement has become more sophisticated, environmental indemnities have become rarer as buyers tend to feel more comfortable in accepting and managing environmental risks and environmental insurance becomes more commonplace.

For a simple, short-form environmental indemnity, see Standard clause, Environmental indemnity in share purchase agreement: short form (balanced draft).

For more materials on share purchase agreements, see Private share acquisitions toolkit.