Agreement On Blockage Of Indemnification Payment

For example, older agreements often do not specifically contain provisions that may be useful outside the United States in regions where the right to promote attorneys` fees is less clear. Another provision that is often absent is a provision that prevents a company from applying to a court for a « bar order » in order to avoid changes in lawyers` fees. Independent directors sometimes purchase asset security policies that are personal policies designed to protect an independent director in the event of the unavailability of business indemnity and business insurance. New forms of compensation agreements generally have strong definitions of what constitutes substantive success. This definition of success can explicitly encompass everything from layoffs to comparisons to non-challenge actions. Given the very high price of defending D&O litigation, you want your company to keep its promise to pay your attorney`s fees as soon as they are incurred. But who is going to pay for this lawyer? Certainly not you personally if you have a compensation agreement that contains investigations as a trigger for coverage, whether formal or informal. Older indemnification agreements often lack clear coverage for informal investigations. Compensation issues can arise if you have an older form of indemnification agreement that states that it pays for nothing if an insurance has responded. This type of provision creates unnecessary confusion.