Wake North Carolina 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
• County: Wake
• 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 Wake North Carolina Indemnification Agreement is a legal document that outlines the terms and conditions under which a corporation agrees to indemnify its directors for certain actions or decisions made on behalf of the corporation. The purpose of this agreement is to provide protection and financial security to the corporation's directors in the event they are faced with legal claims or liabilities arising from their roles and responsibilities within the corporation. It establishes the method for determining whether the standards for indemnification have been met, ensuring a fair and consistent process. The Wake North Carolina Indemnification Agreement typically includes the following key components: 1. Scope of Indemnification: The agreement defines the types of claims, legal actions, or liabilities for which the directors may be indemnified, such as lawsuits, regulatory actions, or shareholder disputes. 2. Standards for Indemnification: The agreement sets forth the standards or criteria that determine when the directors are eligible for indemnification. These may include a determination that the director acted in good faith, with reasonable belief, and in the best interest of the corporation. 3. Procedure for Seeking Indemnification: The agreement establishes the process the directors must follow when seeking indemnification from the corporation. This typically involves notifying the corporation in writing, providing necessary documentation, and cooperating in the defense of any legal proceedings. 4. Advancement of Expenses: The agreement may also include provisions for the advancement of expenses to the directors, such as legal fees and costs, to ensure they have the financial means to defend against claims. This provision helps alleviate the financial burden on directors during legal proceedings. 5. Limitations on Indemnification: The agreement may outline certain circumstances or scenarios in which the corporation may limit or withhold indemnification. For example, if the director is found guilty of intentional misconduct or gross negligence, the corporation may be exempt from indemnifying the director. Different types of Wake North Carolina Indemnification Agreements may exist depending on the specific needs and requirements of the corporation. Some possible variations include: 1. Standard Indemnification Agreement: This is the most common type of agreement that covers indemnification for directors in various situations such as legal proceedings, regulatory actions, or shareholder disputes. 2. Limited Indemnification Agreement: This agreement may provide indemnification for a specific type of liability or claim, limiting the corporation's liability to certain circumstances. 3. Enhanced Indemnification Agreement: This type of agreement may provide additional or broader indemnification to directors compared to a standard agreement, offering greater protection and security. In conclusion, a Wake North Carolina Indemnification Agreement is an essential document that outlines the terms and conditions for indemnifying directors against legal claims. It ensures a fair and consistent process for determining whether the standards for indemnification have been met while providing financial security to directors in their roles within the corporation.

A Wake North Carolina Indemnification Agreement is a legal document that outlines the terms and conditions under which a corporation agrees to indemnify its directors for certain actions or decisions made on behalf of the corporation. The purpose of this agreement is to provide protection and financial security to the corporation's directors in the event they are faced with legal claims or liabilities arising from their roles and responsibilities within the corporation. It establishes the method for determining whether the standards for indemnification have been met, ensuring a fair and consistent process. The Wake North Carolina Indemnification Agreement typically includes the following key components: 1. Scope of Indemnification: The agreement defines the types of claims, legal actions, or liabilities for which the directors may be indemnified, such as lawsuits, regulatory actions, or shareholder disputes. 2. Standards for Indemnification: The agreement sets forth the standards or criteria that determine when the directors are eligible for indemnification. These may include a determination that the director acted in good faith, with reasonable belief, and in the best interest of the corporation. 3. Procedure for Seeking Indemnification: The agreement establishes the process the directors must follow when seeking indemnification from the corporation. This typically involves notifying the corporation in writing, providing necessary documentation, and cooperating in the defense of any legal proceedings. 4. Advancement of Expenses: The agreement may also include provisions for the advancement of expenses to the directors, such as legal fees and costs, to ensure they have the financial means to defend against claims. This provision helps alleviate the financial burden on directors during legal proceedings. 5. Limitations on Indemnification: The agreement may outline certain circumstances or scenarios in which the corporation may limit or withhold indemnification. For example, if the director is found guilty of intentional misconduct or gross negligence, the corporation may be exempt from indemnifying the director. Different types of Wake North Carolina Indemnification Agreements may exist depending on the specific needs and requirements of the corporation. Some possible variations include: 1. Standard Indemnification Agreement: This is the most common type of agreement that covers indemnification for directors in various situations such as legal proceedings, regulatory actions, or shareholder disputes. 2. Limited Indemnification Agreement: This agreement may provide indemnification for a specific type of liability or claim, limiting the corporation's liability to certain circumstances. 3. Enhanced Indemnification Agreement: This type of agreement may provide additional or broader indemnification to directors compared to a standard agreement, offering greater protection and security. In conclusion, a Wake North Carolina Indemnification Agreement is an essential document that outlines the terms and conditions for indemnifying directors against legal claims. It ensures a fair and consistent process for determining whether the standards for indemnification have been met while providing financial security to directors in their roles within the corporation.