L ia bility. Are You Cove re d? Proba bly Not. Sa n Anto nio (1/ - - PowerPoint PPT Presentation

Mintz L e vin. Not your sta nda rd pra c tic e .

L ia bility. Are You Cove re d? Proba bly Not.

Sa n Anto nio (1/ 12/ 2015) Austin (1/ 13/ 2015) Ho usto n (1/ 14/ 2015) Da lla s (1/ 15/ 2015)

Inde mnific ation & Insuranc e :

Why Yo u Sho uld Be Co nc e rne d

2

• F
• c us o n I

ndividua ls is o n the Rise

• Go ve rnme nt is T

a rg e ting I ndividua ls

• Pla intiffs a re T

a rg e ting I ndividua ls

• De la wa re Co urts ha ve a n I

nc re a sing Numb e r o f Ca se s fo r Adva nc e me nt o f De fe nse Co sts

• D&O I

nsura nc e is No t Wha t it Use d to Be

F irst L ine Of De fe nse : I

nde mnific a tio n

3

• Myths Ab o ut By-L

a ws

• Why Ha ve a Se pa ra te I

nde mnific a tio n Ag re e me nt?

Inde mnific ation Agre e me nts: K

e y T e rms

4

• I

nde mnifie d in a Pro c e e ding ? I nve stig a tio n? As a Witne ss?

• I

s I nde mnific a tio n Pre sume d? Wha t is the Sta nda rd?

• Whe n do e s Adva nc e me nt o f De fe nse Co sts T

a ke Pla c e ?

• Ca n I

nde mnific a tio n b e De c ide d b y I nde pe nde nt Co unse l?

• Wha t Ha ppe ns in a n M&A T

ra nsa c tio n? Afte r Yo u a re No L

• ng e r o n the

Bo a rd?

Inde mnific ation And D&O Insuranc e : A Diffic ult Re la tio nship

5

• Pre sumptive I

nde mnific a tio n Cla use s in D&O I nsura nc e – Pre sume s I nde mnific a tio n – Pre sume s Adva nc e me nt – Re q uire s Go ing to Co urt?

Is Inde mnific ation: A Co nditio n

Pre c e de nt T

• Co ve ra g e ?

6

• Spe c ia l Co nside ra tio ns in Ba nkruptc y

– Prio rity Cla use tha t Dire c to rs a re Pa id F irst – E xpre ss Sta te me nt tha t Ba nkruptc y do e s No t Cha ng e Prio rity

Inde mnific ation: Spe c ia l Co nside ra tio ns F

• r

Priva te E q uity And Ve nture Ca pita l I nve sto rs

7

• L

e vy Ca se : Multiple So urc e s o f I nde mnific a tio n = No Pro te c tio n?

• Who is o n F

irst?

• Ho w do e s this I

mpa c t I nde mnific a tio n Ag re e me nts/ Pro visio ns?

• Ho w do e s this I

mpa c t PE / VC Co ve ra g e a nd Po rtfo lio Co mpa ny D&O Co ve ra g e ? (Hint: Co ve ra g e is Ba se d o n the Pre sumptio n tha t the Po rtfo lio Co mpa ny I nde mnifie d F irst)

D&O Insuranc e : Hidde n Ga ps I

n Pro te c tio n

8

• Wha t Ha t Am IWe a ring ?
• Go ve rnme nt I

nve stig a tio ns a nd the “Alle g ing a Wro ng ful Ac t” Re q uire me nt

• Cyb e r E

xpo sure s a nd Priva c y E xc lusio n

• I

nte rna tio na l

D&O Insuranc e : Wha t Que stio ns

Sho uld Yo u Be Asking ?

9

• T

hre e L ists: – I PO – M&A – Re ne wa l

PE & VC Insuranc e : Wha t Que stio ns Sho uld Yo u

Be Asking ?

10

• T

wo Artic le s o n PEa nd VC Co ve ra g e I ssue s – Co mmo n Ba sic Mista ke s – Sc o pe o f Pro fe ssio na l Se rvic e s – Pre - I nve stme nt/ T ra nsa c tio n – M&A E xc lusio ns – I nte ra c tio n with Po rtfo lio Co mpa ny I nsura nc e

Que stio ns?

11

T ha nk Yo u!

12

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• ma x

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