Deal Point: Both parties to an acquisition have agreed to all terms of the merger other than the amount of the indemnity which will support the representation made by the seller to the buyer regarding tax matters. While the buyer requires a $10,000,000 specific indemnity to respond to breaches of the tax matters representation, the seller is willing to provide a $3,000,000 indemnity.

Transactional Insurance Solution: A Representations & Warranties Insurance policy insuring breaches of the tax matters representation is issued for $7,000,000 excess of the agreed upon $3,000,000 indemnity.