What is a clawback provision in discovery?

A clawback agreement enables the parties in a case to agree – in advance – that if privileged documents are inadvertently produced during discovery, privilege on those documents won’t be waived.

What are clawback shares?

Clawback Shares means the number of Shares equal to (A) the number of Shares that were issued to you under this Agreement on the Date of Issuance minus (B) the number of shares of common stock of the Company that would have been issuable to you on the Date of Issuance as determined based on the Amended Adjusted ROA and …

What is a clawback provision in private equity?

Clawback provisions in private investment fund agreements are designed to require the general partner to return any excess distributions of carried interest if such distributions exceed the share of profits agreed upon among the investors and the general partner at the fund’s outset.

Are clawback provisions enforceable?

In both states, the law is clear that penalty provisions in contracts are not enforceable. The problem with clawback provisions is that, by definition, they do not select an agreed-upon amount that is a prediction of the actual damages likely to be caused by a breach of contract.

Is there a clawback provision in a contract?

But given the right conditions, clawback provisions can often provide benefits for both the distributor and the recipient of the funds. Since clawback provisions are usually part of a contract, both the distributor and the recipient will have mutually agreed to the clawback provision in advance.

When do you get your shares back from a clawback?

A clawback provision would allow the employees to get their shares back in the event that the shares are resold at a higher price within a certain timeframe. Employees can sell their shares to anyone as long as the sale is legal and conflict with the company’s interests. How are clawbacks worded?

What are the SEC’s proposed rules for clawback?

Recovery would be required without regard to fault. The proposed rules would also require disclosure of listed companies’ recovery policies, and their actions under those policies. “These listing standards will require executive officers to return incentive-based compensation that was not earned,” said SEC Chair Mary Jo White.

How does clawback work in a life insurance policy?

Mortgage lending: Most banks use clawback provisions to recover money from unprofitable home loans. Life insurance: In case of cancellation of a policy, a provision of clawback might require the benefits and payments previously received to be repaid.