The companies also refused to advance the costs on the grounds that the remedy was not “due” to the person`s service to the company, particularly if the action was filed after the director or officer left the company. [10] The results of these cases have been mixed; Even if the director or officer ultimately manages to obtain compensation, the delay in increasing costs could affect the ability of the director or officer to conduct an aggressive legal defence in the underlying litigation. In order to prevent the seller from being compensated for the losses he suffered as a result of the agreement, the purchaser argued that the language of the communication contained a qualification, which would limit the period during which the seller could file a claim. In particular, the purchaser argued that the first clause of the declaration of debt, which imposes a time-limiting allowance and applies to credits, was limited by the second clause. The second clause of the provision provided for a period of time until the termination date or the survival period for claims related to insurance or guarantees. The purchaser attempted to argue that the second clause was not only charged with insurance or guarantees, but with all claims, including claims on letters of accredit. Apparently, the buyer did not dispute whether the seller had suffered any losses, as defined in the sales contract. On the contrary, the purchaser argued that the seller`s claims were prescribed by the “Notice of Claim” requirements in the sales contract. 7.

Officer and Director of Liability Insurance. The company must decide in good faith from time to time whether it is possible for the company to obtain and maintain an insurance policy or insurance policy from serious insurance companies that provide senior executives and directors of the company with coverage of losses resulting from wrongdoing, or to ensure that the company fulfills its obligations of compensation under this agreement. Among other things, the company will weigh the cost of disability of such insurance coverage against the coverage afforded by such insurance coverage.