Indemnification Clause Negotiation Tips

Summary

Indemnification clauses in CIO contracts are common to protect companies from liabilities due to executive actions. Its advisable to negotiate these clauses for mutual protection, clarity, and fairness. Consider defining terms like misconduct and negligent acts, limiting liability, and proposing mutual indemnification. Its normal for such clauses to survive contract termination. Lack of severance is negotiable; typical packages for a CIO at a small federal contractor include 6-12 months of salary, benefits continuation, and performance bonuses.

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Is this clause standard in a cio contract? Is it fair? Should it be negotiated?
- Standard: Indemnification clauses are common in executive contracts to protect the company from liabilities due to the executive’s actions.
- Fairness: It can be considered fair but depends on the context and specific risks involved.
- Negotiation: Yes, it's advisable to negotiate to ensure mutual protection and clarity on the scope of activities covered.
Would you like more details on how to approach the negotiation?
Yes,please
To approach the negotiation:
- Clarify Scope: Ensure the clause specifically defines "misconduct" and "negligent acts".
- Limit Liability: Negotiate to limit the scope of indemnification to only certain situations.
- Mutual Indemnification: Propose that the company also indemnifies the executive for liabilities arising from the company's actions.
Do you need any more specific tips on negotiating this clause?
Please. Also is it normal for these to survive termination? There are no severances included in the contract
Case Rating: *.
Yes, it's normal for indemnification clauses to survive the termination of an agreement. This ensures ongoing protection against claims arising after the termination but related to actions during the contract period.
- Severance: Lack of severance in a contract is not unusual but can be negotiated.
Would you like tips on negotiating severance terms?
Yes
For negotiating severance terms:
- Review Industry Standards: Research typical severance packages for similar roles.
- Determine Needs: Identify must-have elements like duration of severance pay, continuation of benefits, and any performance-based bonuses.
- Propose Terms: Clearly outline your severance requests during negotiations.
Would you like more guidance on specific severance elements or other contract terms?
What are standards severance for small business fed contractor (approx 15m/yr) - cio
To guide you on standard severance for a CIO at a small federal contractor (approx $15m/yr):
- Severance Pay: Typically *-12 months of salary.
- Benefits Continuation: Health, dental, and vision benefits for the severance period.
- Performance Bonuses: Prorated bonuses based on performance metrics.
- Outplacement Services: Assistance in finding new employment.
Would you like tips on negotiating these elements?