17-158 17-158 . . . Indemnification Agreement between corporation and its directors and/or officers including future directors and officers containing detailed provisions relating to method for determining whether standards for indemnification or reimbursement have been met and making corporation responsible for all costs of determining whether a person is entitled to indemnification or reimbursement regardless of whether person is ultimately found to be entitled to indemnification
The North Carolina Indemnification Agreement is a legal document that outlines the terms and conditions for indemnifying the directors of a corporation in the state of North Carolina. This agreement provides important protection to the corporation's directors in the event of a legal action or lawsuit against them. The agreement sets forth the method for determining whether the standards for indemnification have been met. It establishes a clear process that must be followed before indemnification can be granted. This includes a thorough review of the director's actions and decisions regarding their role within the corporation. Keywords: North Carolina, Indemnification Agreement, corporation, directors, method, determining, standards, indemnification, legal action, lawsuit, protection, terms, conditions, review, actions, decisions, role. There are two main types of North Carolina Indemnification Agreements commonly used between corporations and their directors: 1. Indemnification Agreement — Non-Exculpatory Clause: This type of agreement provides indemnification to the directors, but it does not include an exculpatory clause. An exculpatory clause would absolve the directors of liability for certain actions or decisions. In this agreement, the determination of whether the standards for indemnification have been met is done by evaluating the director's actions and decisions, taking into consideration the appropriate standards, laws, and regulations. 2. Indemnification Agreement — Exculpatory Clause: In this type of agreement, an exculpatory clause is included, which provides broader protection to the directors. The exculpatory clause limits the liability of the directors for any actions or decisions made in good faith and within the scope of their duties. Under this agreement, the determination of whether the standards for indemnification have been met is similar to the non-exculpatory clause, considering the director's actions and decisions in compliance with relevant standards, laws, and regulations. Both types of agreements aim to safeguard the directors and ensure they are protected from personal financial burdens resulting from legal actions. The determination of whether the standards for indemnification have been met in both types is crucial for the corporation to honor its obligations and provide appropriate indemnification to the directors.
The North Carolina Indemnification Agreement is a legal document that outlines the terms and conditions for indemnifying the directors of a corporation in the state of North Carolina. This agreement provides important protection to the corporation's directors in the event of a legal action or lawsuit against them. The agreement sets forth the method for determining whether the standards for indemnification have been met. It establishes a clear process that must be followed before indemnification can be granted. This includes a thorough review of the director's actions and decisions regarding their role within the corporation. Keywords: North Carolina, Indemnification Agreement, corporation, directors, method, determining, standards, indemnification, legal action, lawsuit, protection, terms, conditions, review, actions, decisions, role. There are two main types of North Carolina Indemnification Agreements commonly used between corporations and their directors: 1. Indemnification Agreement — Non-Exculpatory Clause: This type of agreement provides indemnification to the directors, but it does not include an exculpatory clause. An exculpatory clause would absolve the directors of liability for certain actions or decisions. In this agreement, the determination of whether the standards for indemnification have been met is done by evaluating the director's actions and decisions, taking into consideration the appropriate standards, laws, and regulations. 2. Indemnification Agreement — Exculpatory Clause: In this type of agreement, an exculpatory clause is included, which provides broader protection to the directors. The exculpatory clause limits the liability of the directors for any actions or decisions made in good faith and within the scope of their duties. Under this agreement, the determination of whether the standards for indemnification have been met is similar to the non-exculpatory clause, considering the director's actions and decisions in compliance with relevant standards, laws, and regulations. Both types of agreements aim to safeguard the directors and ensure they are protected from personal financial burdens resulting from legal actions. The determination of whether the standards for indemnification have been met in both types is crucial for the corporation to honor its obligations and provide appropriate indemnification to the directors.