The Reciprocal Indemnity Agreement is essential in complex commercial relationships where parties seek to establish clear risk allocation mechanisms under UAE law. It is particularly useful in projects or operations where multiple parties face similar risks and wish to establish mutual protections. The document addresses the requirements of UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial legislation, providing a framework for mutual risk protection. Typically used in joint ventures, construction projects, or operational partnerships, this agreement details indemnification triggers, claim procedures, and protection scope. It includes specific provisions for compliance with UAE legal requirements regarding liability limitations and enforcement mechanisms, making it suitable for both mainland UAE and free zone operations.
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1. Parties: Identification of the parties entering into the agreement, including their full legal names, addresses, and registration details
2. Background: Context of the agreement, relationship between the parties, and the purpose of the reciprocal indemnification
3. Definitions: Key terms used throughout the agreement, including 'Indemnified Parties', 'Claims', 'Losses', and other relevant definitions
4. Interpretation: Rules for interpreting the agreement, including construction of terms and resolution of conflicts
5. Mutual Indemnification Obligations: Core section detailing the reciprocal indemnification commitments of each party
6. Scope of Indemnification: Specific description of what is covered under the indemnification, including types of losses and claims
7. Exclusions: Events, circumstances, or losses explicitly excluded from the indemnification obligations
8. Claims Procedure: Process for making and handling indemnification claims, including notification requirements and timeframes
9. Duration: Term of the agreement and survival of obligations
10. Insurance Requirements: Mandatory insurance coverage each party must maintain
11. Governing Law and Jurisdiction: Specification of UAE law as governing law and determination of jurisdiction for disputes
12. General Provisions: Standard contractual provisions including notices, amendments, and severability
1. Confidentiality: Obligations regarding confidential information - include when parties will share sensitive information
2. Third Party Rights: Rights of third parties under the agreement - include when third parties might benefit from indemnification
3. Parent Company Guarantee: Guarantee from parent companies - include when additional financial security is required
4. Currency and Payment Terms: Specify currency and payment details - include when monetary aspects need clarification
5. Force Majeure: Protection against unforeseen events - include when specific force majeure risks need addressing
6. Step-in Rights: Rights to step in and remedy defaults - include in complex commercial relationships
7. Alternative Dispute Resolution: Mediation or arbitration procedures - include when parties prefer alternative to court proceedings
1. Schedule 1 - Specified Risks: Detailed list of risks covered by the indemnification
2. Schedule 2 - Claim Notice Requirements: Format and content requirements for claim notices
3. Schedule 3 - Insurance Requirements: Detailed insurance requirements including types and minimum coverage
4. Schedule 4 - Excluded Claims: Detailed list of specifically excluded claims or circumstances
5. Appendix A - Form of Claim Notice: Template for submitting indemnification claims
6. Appendix B - Contact Details: Contact information for notices and claim submissions
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