They would sign a compensation agreement with the skydiving company. With the signing, the compensation agreement protects the skydiving company from any legal action. In the case of public and private projects, contractors often need to obtain guarantees to guarantee their supply, payment and performance obligations under a construction contract. [1] Before obtaining security, debtors must sign a compensation agreement. This protects the warranty in the event of a right to loss or warranty. (Learn more about indemnification agreements) First of all, whether the taxable person must be a taxable person for compensation. If the bondholder is a company or entity, the owner of that entity or entity must be a holder of the compensation. .