Some boards require shareholders making renovations to sign indemnification agreements, before the work begins, to protect the co-op against the costs of repairing damages.

Alternatively, the group could be asked to sign an indemnification agreement, especially if the facility includes such high-risk amenities as a swimming pool.

"Most of my buildings allow shareholders to have small parties, provided they sign an indemnification agreement with the co-op and obey all the rules," Mr. Weinstein said.

While the indemnification agreement eliminates an important practical obstacle, it is still not clear whether there would be enough passenger demand for high-speed train service to make it economically feasible.

- notably, however, this self-serving statement overlooks the holding-company structure of Berkshire Hathaway, auxiliary indemnification agreements with Buffett, and the fact that the individual operating companies may still purchase such insurance.

Next, he said, any permission granted to the owners of the adjacent building should be put in writing and include an indemnification agreement providing that the co-op will be held harmless for any liability that could arise.

Most equipment makers are too small to produce a reliable indemnification agreement.

Countrywide will pay $20 million of the $67.5 million penalty because of an indemnification agreement that was part of Mozillo's employment contract.

Fardell then advised that Paragon and Siemer would need to sign an indemnification agreement before Stiassny would relinquish the company assets.

The 1988 proxy statement asked shareholders to approve an indemnification agreement that would have protected directors against lawsuits.