Phoenix Arizona 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
• City: Phoenix
• 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 Phoenix, Arizona Indemnification Agreement is a legal document entered into between a corporation and its directors, outlining the method for determining whether the standards for indemnification have been met. This agreement provides protection to directors by indemnifying them against certain legal claims, expenses, and liabilities they may face in connection with their role as directors. Under the Phoenix, Arizona Indemnification Agreement, there are different types that can be named, depending on the level of indemnification provided. These types include: 1. Standard Indemnification Agreement: This type of agreement specifies the standard level of indemnification available to directors. It typically covers legal expenses, judgments, settlements, and other costs incurred in the defense of claims arising from the director's actions within the scope of their duties. 2. Enhanced Indemnification Agreement: An enhanced indemnification agreement provides directors with a higher level of protection compared to the standard agreement. It may include broader coverage, such as indemnification for losses resulting from derivative suits, investigations, and other legal actions related to the director's corporate duties. 3. Advancement of Expenses Agreement: This agreement type allows directors to request the advancement of expenses related to defending against legal claims before the final determination of their right to indemnification. It ensures that directors have access to funds necessary to cover legal costs while awaiting a decision on indemnification. The Phoenix, Arizona Indemnification Agreement outlines the process for determining whether indemnification should be granted. It usually involves the following steps: 1. Notice and Request: When a director seeks indemnification, they must provide the corporation with a written notice, along with relevant documents outlining the nature of the claim, expenses incurred, and other necessary information. 2. Review and Determination: The corporation's board or a designated committee then evaluates the director's request for indemnification. They assess whether the director meets the standards for indemnification set forth in the agreement, including acting in good faith and in the best interests of the corporation. 3. Legal Counsel and Expertise: In some cases, the board may seek outside legal counsel or expert advice to assist in the determination process. This ensures an unbiased evaluation of the director's eligibility for indemnification. 4. Board Decision: After careful review, the board or designated committee makes a decision regarding indemnification. If they find that the director has met the required standards, they approve indemnification and specify the coverage and conditions. 5. Indemnification Process: Once the board approves indemnification, the corporation typically reimburses the director for the authorized expenses or provides the necessary funds for defense against the claims. The Phoenix, Arizona Indemnification Agreement serves as a crucial document in defining the responsibilities and protections available to directors. By clarifying the standards for indemnification and providing a well-defined process for determining eligibility, this agreement ensures that directors can perform their duties confidently, knowing they have legal support and financial protection.

Phoenix, Arizona Indemnification Agreement is a legal document entered into between a corporation and its directors, outlining the method for determining whether the standards for indemnification have been met. This agreement provides protection to directors by indemnifying them against certain legal claims, expenses, and liabilities they may face in connection with their role as directors. Under the Phoenix, Arizona Indemnification Agreement, there are different types that can be named, depending on the level of indemnification provided. These types include: 1. Standard Indemnification Agreement: This type of agreement specifies the standard level of indemnification available to directors. It typically covers legal expenses, judgments, settlements, and other costs incurred in the defense of claims arising from the director's actions within the scope of their duties. 2. Enhanced Indemnification Agreement: An enhanced indemnification agreement provides directors with a higher level of protection compared to the standard agreement. It may include broader coverage, such as indemnification for losses resulting from derivative suits, investigations, and other legal actions related to the director's corporate duties. 3. Advancement of Expenses Agreement: This agreement type allows directors to request the advancement of expenses related to defending against legal claims before the final determination of their right to indemnification. It ensures that directors have access to funds necessary to cover legal costs while awaiting a decision on indemnification. The Phoenix, Arizona Indemnification Agreement outlines the process for determining whether indemnification should be granted. It usually involves the following steps: 1. Notice and Request: When a director seeks indemnification, they must provide the corporation with a written notice, along with relevant documents outlining the nature of the claim, expenses incurred, and other necessary information. 2. Review and Determination: The corporation's board or a designated committee then evaluates the director's request for indemnification. They assess whether the director meets the standards for indemnification set forth in the agreement, including acting in good faith and in the best interests of the corporation. 3. Legal Counsel and Expertise: In some cases, the board may seek outside legal counsel or expert advice to assist in the determination process. This ensures an unbiased evaluation of the director's eligibility for indemnification. 4. Board Decision: After careful review, the board or designated committee makes a decision regarding indemnification. If they find that the director has met the required standards, they approve indemnification and specify the coverage and conditions. 5. Indemnification Process: Once the board approves indemnification, the corporation typically reimburses the director for the authorized expenses or provides the necessary funds for defense against the claims. The Phoenix, Arizona Indemnification Agreement serves as a crucial document in defining the responsibilities and protections available to directors. By clarifying the standards for indemnification and providing a well-defined process for determining eligibility, this agreement ensures that directors can perform their duties confidently, knowing they have legal support and financial protection.