Virginia 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. Keyword: Virginia Indemnity Agreement, corporation, directors, officers Description: A Virginia Indemnity Agreement is a legal contract between a corporation and its directors and/or officers that provides protection and financial indemnification against legal claims or liabilities arising from their roles and responsibilities within the corporation. This agreement is designed to safeguard directors and officers from personal financial loss incurred as a result of their actions or decisions made in good faith while serving the corporation's best interests. There are different types of Virginia Indemnity Agreements that can be entered into between a corporation and its directors and/or officers. Let's explore some of them: 1. Standard Virginia Indemnity Agreement: This is the most common and basic type of agreement that outlines the corporation's obligation to indemnify directors and officers for costs, expenses, judgments, and settlements incurred in connection with their duties. It typically covers legal fees, damages, and settlement amounts arising from claims against the directors and officers. 2. Broad-form Virginia Indemnity Agreement: This agreement offers expanded protection by including coverage for a wider range of legal claims and liabilities. It may include indemnification for expenses incurred in investigating and defending actions, derivative lawsuits, and even advancements of defense costs, meaning the corporation will cover legal fees as they are incurred rather than after a final judgment or settlement. 3. Special Situations Virginia Indemnity Agreement: Some corporations may require additional protections tailored to specific situations. These agreements may be used for directors or officers who are serving on special board committees, engaging in certain transactions, or assuming greater risks due to the nature of their role. These agreements generally define unique terms and conditions specific to the circumstances at hand. 4. D&O Side Agreement: In addition to the Indemnity Agreement, a corporation may choose to enter into a separate Side Agreement with directors and officers, often referred to as a Directors and Officers Liability Insurance (D&O) agreement. This insurance policy helps protect directors and officers from personal financial liability by providing coverage for legal expenses and damages not covered by the Indemnity Agreement. Virginia Indemnity Agreements play a crucial role in attracting qualified individuals to serve as directors and officers within a corporation. By offering financial protection against potential legal claims or liabilities, these agreements provide reassurance and mitigate personal risk for those entrusted with corporate decision-making responsibilities. It is important to seek legal counsel to ensure the appropriate agreement type and terms are established based on the corporation's specific needs and requirements.

Keyword: Virginia Indemnity Agreement, corporation, directors, officers Description: A Virginia Indemnity Agreement is a legal contract between a corporation and its directors and/or officers that provides protection and financial indemnification against legal claims or liabilities arising from their roles and responsibilities within the corporation. This agreement is designed to safeguard directors and officers from personal financial loss incurred as a result of their actions or decisions made in good faith while serving the corporation's best interests. There are different types of Virginia Indemnity Agreements that can be entered into between a corporation and its directors and/or officers. Let's explore some of them: 1. Standard Virginia Indemnity Agreement: This is the most common and basic type of agreement that outlines the corporation's obligation to indemnify directors and officers for costs, expenses, judgments, and settlements incurred in connection with their duties. It typically covers legal fees, damages, and settlement amounts arising from claims against the directors and officers. 2. Broad-form Virginia Indemnity Agreement: This agreement offers expanded protection by including coverage for a wider range of legal claims and liabilities. It may include indemnification for expenses incurred in investigating and defending actions, derivative lawsuits, and even advancements of defense costs, meaning the corporation will cover legal fees as they are incurred rather than after a final judgment or settlement. 3. Special Situations Virginia Indemnity Agreement: Some corporations may require additional protections tailored to specific situations. These agreements may be used for directors or officers who are serving on special board committees, engaging in certain transactions, or assuming greater risks due to the nature of their role. These agreements generally define unique terms and conditions specific to the circumstances at hand. 4. D&O Side Agreement: In addition to the Indemnity Agreement, a corporation may choose to enter into a separate Side Agreement with directors and officers, often referred to as a Directors and Officers Liability Insurance (D&O) agreement. This insurance policy helps protect directors and officers from personal financial liability by providing coverage for legal expenses and damages not covered by the Indemnity Agreement. Virginia Indemnity Agreements play a crucial role in attracting qualified individuals to serve as directors and officers within a corporation. By offering financial protection against potential legal claims or liabilities, these agreements provide reassurance and mitigate personal risk for those entrusted with corporate decision-making responsibilities. It is important to seek legal counsel to ensure the appropriate agreement type and terms are established based on the corporation's specific needs and requirements.