Common use of Mandatory Advance Clause in Contracts

Mandatory Advance. Any expenses (including attorneys' fees, court costs, judgments, fines, amounts paid in settlement and other payments) incurred or reasonably expected to be incurred by the Director in investigating, defending, settling or appealing any action, suit or proceeding described in SECTION 1, 2 or 3 hereof shall be paid by the Company in advance of the final disposition of such action, suit or proceeding. The Company shall promptly pay the amount of such expenses to the Director, but in no event later than ten (10) days following the Director's delivery to the Company of a written request for an advance pursuant to this SECTION 7, together with a reasonable accounting of such expenses (if already incurred) or a reasonable estimate of such expenses (if not yet incurred). If the Director shall receive from the Company an advance of expenses based on the Director's reasonable estimate of such expenses before such expenses are incurred, the Director shall promptly provide to the Company a reasonable accounting of such expenses following the actual incurrence of such expenses, but in no event later than ten (10) days after such incurrence. In the event that the amount advanced by the Company to the Director for such expenses exceeds the expenses actually incurred by the Director, the Director shall promptly pay the amount of such excess to the Company, but in no event later than ten (10) days following the Director's actual incurrence of such expenses. In the event that the actual expenses incurred by the Director exceed the estimated expenses, the Company shall promptly pay the amount of such excess expenses to the Director, but in no event later than ten (10) days following the Director's delivery to the Company of a reasonable accounting of such expenses.