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Michele introduces the term "indemnification" in the context of contracts, settlements, and business separations. To indemnify someone means to protect or cover them in instances where claims may arise against them related to a product or situation. This entails taking responsibility for any legal claims or issues that may occur. It is important for the terms of indemnification to be clearly defined, specifying what is covered and the circumstances under which indemnification applies. The concept emphasizes the significance of safeguarding individuals or entities in contractual and business transactions.