The words 'on behalf of itself and each of the other defendants' in a deed of settlement do not create a joint and several liability on the part of individual officer defendants to pay the settlement sum; they merely acknowledge that the corporate defendant's payment discharges the officers' liabilities. Where a D&O policy defines 'Loss' as including an amount determined by settlement, the insured must still establish that the settlement was reasonable and bona fide where the insurer has not consented to the settlement and has not wrongfully repudiated liability. Defence costs incurred on behalf of insured officers are fully recoverable even where uninsured corporate co-defendants also benefit from those costs.
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