New Jersey Indemnification Agreement between corporation and its directors regarding method for determining whether standards for indemnification have been met

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-158
• Format: Word; Rich Text

Description

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 A New Jersey indemnification agreement is a legally binding document that establishes the terms and conditions under which a corporation will indemnify its directors and officers for certain actions and liabilities taken in their official capacity. This agreement provides protection and financial security to directors and officers, promoting their willingness to serve in these roles. The purpose of the New Jersey indemnification agreement is to outline a method for determining whether the standards for indemnification have been met. These standards typically involve the director or officer acting in good faith and in a manner they reasonably believe to be in the best interest of the corporation. The agreement may also outline specific actions or circumstances that would disqualify the director or officer from receiving indemnification. There are two main types of New Jersey indemnification agreements commonly used between a corporation and its directors: 1. Indemnification Agreement for Advancement of Expenses: This agreement allows the corporation to advance expenses to the director or officer involved in legal proceedings or investigations arising from their official duties. The agreement specifies that the corporation will indemnify the director for these expenses if it is ultimately determined that they acted within the standards outlined in the agreement. 2. Indemnification Agreement for Indemnification Rights: This type of agreement provides for the corporation to indemnify the director or officer for any judgments, settlements, or expenses incurred in legal proceedings resulting from their official duties. The conditions for indemnification are described in detail, including the process for determining whether the director has met the required standards. Several keywords relevant to New Jersey indemnification agreements may include "indemnification," "corporation," "directors," "method," "standards," "determining," "liabilities," and "agreement." These keywords highlight the core components and purpose of such an agreement. In conclusion, a New Jersey indemnification agreement establishes the terms and conditions under which a corporation will provide indemnification to its directors and officers. By outlining the method for determining whether the standards for indemnification have been met, this agreement promotes directorial confidence and protects individuals from potential legal and financial risks.

A New Jersey indemnification agreement is a legally binding document that establishes the terms and conditions under which a corporation will indemnify its directors and officers for certain actions and liabilities taken in their official capacity. This agreement provides protection and financial security to directors and officers, promoting their willingness to serve in these roles. The purpose of the New Jersey indemnification agreement is to outline a method for determining whether the standards for indemnification have been met. These standards typically involve the director or officer acting in good faith and in a manner they reasonably believe to be in the best interest of the corporation. The agreement may also outline specific actions or circumstances that would disqualify the director or officer from receiving indemnification. There are two main types of New Jersey indemnification agreements commonly used between a corporation and its directors: 1. Indemnification Agreement for Advancement of Expenses: This agreement allows the corporation to advance expenses to the director or officer involved in legal proceedings or investigations arising from their official duties. The agreement specifies that the corporation will indemnify the director for these expenses if it is ultimately determined that they acted within the standards outlined in the agreement. 2. Indemnification Agreement for Indemnification Rights: This type of agreement provides for the corporation to indemnify the director or officer for any judgments, settlements, or expenses incurred in legal proceedings resulting from their official duties. The conditions for indemnification are described in detail, including the process for determining whether the director has met the required standards. Several keywords relevant to New Jersey indemnification agreements may include "indemnification," "corporation," "directors," "method," "standards," "determining," "liabilities," and "agreement." These keywords highlight the core components and purpose of such an agreement. In conclusion, a New Jersey indemnification agreement establishes the terms and conditions under which a corporation will provide indemnification to its directors and officers. By outlining the method for determining whether the standards for indemnification have been met, this agreement promotes directorial confidence and protects individuals from potential legal and financial risks.