Rhode Island Indemnity Agreement between corporation and directors and / or officers

• Category: Corporations - Public - Indemnification
• State: Multi-State
• Control #: US-CC-17-171
• Format: Word; Rich Text

Description

This sample form, a detailed Indemnity Agreement, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats. Rhode Island Indemnity Agreement is a legally binding contract that protects directors and officers of a corporation from legal actions or liabilities that may arise during their service. It provides compensation for expenses incurred, such as legal fees and damages that result from lawsuits or claims against the directors or officers. In Rhode Island, there are various types of Indemnity Agreements offered to corporations and their directors/officers to ensure comprehensive protection. These agreements include: 1. Standard Indemnity Agreement: This is the most common type of agreement, wherein the corporation agrees to indemnify its directors and officers for any expenses or losses incurred in the course of their duties, as long as they have acted in good faith and in the best interest of the corporation. 2. Advancement of Expenses: This specific type of agreement allows the corporation to advance funds to its directors or officers to cover legal fees and other expenses before the final resolution of a legal proceeding. The advancement is contingent upon the individual's agreement to reimburse the funds if it is determined that they did not act in good faith. 3. Indemnification on a Case-by-Case Basis: Certain situations may call for an indemnification agreement that is determined on a case-by-case basis. This agreement is often utilized when the potential liability of the director or officer is uncertain or when the corporation's bylaws require individual board approval for indemnification. 4. Indemnification Agreement for Independent Directors: Since independent directors may face unique risks due to their role in overseeing corporate governance, this agreement provides specialized indemnification protection. It ensures that independent directors are protected from liability arising out of their actions or decisions related to the corporation's operations. 5. Indemnification Agreement with Termination Triggers: This type of agreement involves the inclusion of specific termination triggers that define the circumstances under which indemnification rights would be activated. For example, it might include language stating that indemnification applies only if the director or officer was found not liable for any wrongdoing or if a legal proceeding is settled without any admission of guilt. It is crucial for both corporations and their directors/officers in Rhode Island to understand the specific terms and provisions of the Indemnity Agreement they are entering into. Seeking legal advice and expertise is highly recommended ensuring compliance with state laws and to structure an agreement that best aligns with their particular circumstances.

Rhode Island Indemnity Agreement is a legally binding contract that protects directors and officers of a corporation from legal actions or liabilities that may arise during their service. It provides compensation for expenses incurred, such as legal fees and damages that result from lawsuits or claims against the directors or officers. In Rhode Island, there are various types of Indemnity Agreements offered to corporations and their directors/officers to ensure comprehensive protection. These agreements include: 1. Standard Indemnity Agreement: This is the most common type of agreement, wherein the corporation agrees to indemnify its directors and officers for any expenses or losses incurred in the course of their duties, as long as they have acted in good faith and in the best interest of the corporation. 2. Advancement of Expenses: This specific type of agreement allows the corporation to advance funds to its directors or officers to cover legal fees and other expenses before the final resolution of a legal proceeding. The advancement is contingent upon the individual's agreement to reimburse the funds if it is determined that they did not act in good faith. 3. Indemnification on a Case-by-Case Basis: Certain situations may call for an indemnification agreement that is determined on a case-by-case basis. This agreement is often utilized when the potential liability of the director or officer is uncertain or when the corporation's bylaws require individual board approval for indemnification. 4. Indemnification Agreement for Independent Directors: Since independent directors may face unique risks due to their role in overseeing corporate governance, this agreement provides specialized indemnification protection. It ensures that independent directors are protected from liability arising out of their actions or decisions related to the corporation's operations. 5. Indemnification Agreement with Termination Triggers: This type of agreement involves the inclusion of specific termination triggers that define the circumstances under which indemnification rights would be activated. For example, it might include language stating that indemnification applies only if the director or officer was found not liable for any wrongdoing or if a legal proceeding is settled without any admission of guilt. It is crucial for both corporations and their directors/officers in Rhode Island to understand the specific terms and provisions of the Indemnity Agreement they are entering into. Seeking legal advice and expertise is highly recommended ensuring compliance with state laws and to structure an agreement that best aligns with their particular circumstances.