In Kansas, an Indemnification Agreement is a legally binding contract between a corporation and its current and future directors that ensures protection and support in the event of claims or lawsuits arising out of their board service. This agreement serves to indemnify directors and ensure they are not financially burdened due to legal actions taken against them in their capacity as board members. The Kansas Indemnification Agreement provides a comprehensive framework to cover directors' expenses, such as legal fees, court costs, and settlement payments, arising from claims related to their corporate duties. By entering into this agreement, corporations affirm their commitment to standing by their directors and providing them peace of mind to make difficult decisions without personal financial risk. The Kansas Indemnification Agreement generally includes the following key provisions: 1. Scope: The agreement stipulates the specific situations in which the corporation will provide indemnification to directors. It encompasses claims arising from actions or inaction taken in good faith while fulfilling their duties as board members. 2. Expenses Covered: The agreement identifies the expenses that the corporation will bear, including attorney fees, court fees, expert witness fees, travel expenses, and other reasonable costs incurred during legal proceedings. 3. Advancement of Expenses: It states that the corporation will advance reasonable expenses to directors promptly upon request, therefore ensuring directors have access to legal representation and resources during legal proceedings. 4. Standard of Conduct: It establishes the standard of conduct required for indemnification. Typically, the agreement outlines that directors must have acted in good faith, reasonably believed their actions were in the corporation's best interest, and not engaged in willful misconduct or fraud. 5. Procedure for Indemnification: The agreement specifies the process for directors to seek indemnification. This includes providing timely notice to the corporation about the claim, cooperating with the corporation's defense, and providing all necessary documentation. 6. Insurance: The agreement might require the corporation to maintain appropriate director and officer liability insurance coverage, providing an additional layer of protection for directors. 7. Whistleblower Protection: It may include provisions that protect directors from retaliation or adverse actions when they report potential corporate misconduct or act as whistleblowers. There may be several types of Kansas Indemnification Agreements, depending on the specific needs or circumstances of the corporation and its directors. Some variations might include: 1. Standard Indemnification Agreement: This is the most common form, providing general indemnification to directors in alignment with the statutory requirements of Kansas. 2. Enhanced Indemnification Agreement: This type of agreement offers broader protection, extending indemnification beyond what the law requires. It might include additional benefits or provisions to address specific concerns of directors. 3. Indemnification Agreement for Outside Directors: This agreement applies specifically to directors who are not officers or employees of the corporation. It may include additional provisions tailored to the unique risks and responsibilities faced by these directors. In conclusion, a Kansas Indemnification Agreement is a crucial legal instrument that safeguards the interests of directors and ensures their financial protection while serving on the board. By establishing the terms of indemnification, such an agreement contributes to a secure and conducive environment for directors to make informed decisions in the best interest of the corporation without fear of personal liability.
Kansas Indemnification Agreement between corporation and its current and future directors
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Indemnification of Employee. Employer shall indemnify Employee and hold him harmless for lawful acts or decisions made by him in good faith while performing his duties for Employer, its parent, subsidiaries and affiliates to the full extent allowed by law.
Indemnification: An LLC manager may have financial protection against expenses and liabilities that may be incurred in defending themselves against claims based on their conduct. This is known as indemnification and some state LLC statutes require or permit the company to provide reimbursement.
Section 145(b) empowers a corporation to indemnify its directors against expenses incurred in connection with the defense or settlement of an action brought by or in the right of the corporation, subject to the standard of conduct determination, and except that no indemnification may be made as to any claim to which ...
Indemnification Agreement to secure against loss or damage; to give security for the reimbursement of a person in case of an anticipated loss falling upon him. Also to make good; to compensate; to make reimbursement to one of a loss already incurred by him.
A legal term that means one party agrees to compensate another party for loss or damage that has already occurred, or guarantees, through a contractual agreement, to repay another party for loss or damage that occurs in the future. Indemnification clauses are common in corporations and LLCs.
A director and officer indemnification agreement is a contract that allows executives to protect themselves from claims made against them while performing job. Indemnification means that in the event a lawsuit is filed against a company, the indemnified party is "held harmless" from claims.
A legal term that means one party agrees to compensate another party for loss or damage that has already occurred, or guarantees, through a contractual agreement, to repay another party for loss or damage that occurs in the future. Indemnification clauses are common in corporations and LLCs.
Indemnity is a type of insurance compensation paid for damage or loss. When the term is used in the legal sense, it also may refer to an exemption from liability for damage. Indemnity is a contractual agreement between two parties in which one party agrees to pay for potential losses or damage caused by another party.