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

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

Inde mnific ation & Insuranc e : Why Yo u Sho uld Be Co nc e rne d F o 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 • 2

ine Of De fe nse : I nde mnific a tio n F irst L 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? 3

Inde mnific ation Agre e me nts: K e y T e rms 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 o ng e r o n the • Bo a rd? 4

Inde mnific ation And D&O Insuranc e : A Diffic ult Re la tio nship 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? 5

Is Inde mnific ation: A Co nditio n Pre c e de nt T o Co ve ra g e ? 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 6

Inde mnific ation: Spe c ia l Co nside ra tio ns F o r Priva te E q uity And Ve nture Ca pita l I nve sto rs 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) 7

D&O Insuranc e : Hidde n Ga ps I n Pro te c tio n 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 • 8

D&O Insuranc e : Wha t Que stio ns Sho uld Yo u Be Asking ? T hre e L ists: • – I PO – M&A – Re ne wa l 9

PE & VC Insuranc e : Wha t Que stio ns Sho uld Yo u Be Asking ? 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 10

Que stio ns? 11

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