Provide methodology for reaching Energy Corporation and Oil Firm consensus on "indemnification buy-out" value.

Facilitated Energy Corporation and Oil Firm meeting and defined (agreed upon) future risk and mitigation input variables (cost & probability of occurrences).
Performed Statistical Simulations and determined "indemnification buy-out" value.

$3.3M "buy-out" value agreed upon.




Oil Firm indemnified assets it sold to Energy Corporation ($10MM cap) .
Oil Firm disputed Energy Corporation's first environmental claim based on Energy Corporation's selected remediation approach.
Energy Corporation proposed "indemnification buy-out" to avoid future legal disputes.


WIN-WIN -- Energy Corporation received more than expected -- Oil Firm paid less than they could have.
Buy-out negotiations were minimized because both parties reached prior consensus on statistical simulation approach and input variables, then let the program calculate the value.