1---2name: director-indemnification-agreement3description: Drafts U.S. director indemnification agreements maximizing protection under state corporate law, with advancement of expenses and determination procedures. Use when drafting or updating a director indemnification agreement, onboarding directors, strengthening governance beyond bylaws, or coordinating with D&O coverage. Triggers: indemnification agreement, director advancement, corporate governance, D&O, DGCL 145.4license: Apache-2.05---67# Director Indemnification Agreement89Drafts an enforceable director indemnification agreement under the state of incorporation with clear advancement and determination procedures.1011## Quick Start1213Gather before drafting:14151. State of incorporation and governing statute162. Charter and bylaws (indemnification/advancement provisions)173. Board authorization status or resolutions184. Director name, titles, start date, covered capacities (subsidiaries, affiliates, benefit plans)195. D&O insurance policies and coordination preferences206. Prior indemnification agreements or house style template2122## Intake Checklist2324- [ ] Governing law matches state of incorporation25- [ ] Coverage scope: director only, or also officer/employee roles26- [ ] Retroactive to prior service or prospective only27- [ ] Advancement timing (default: 30 days from request)28- [ ] Determination method order and deadlines29- [ ] Presumption in favor of indemnification: yes/no30- [ ] Fee shifting on enforcement actions: yes/no31- [ ] Insurance priority: company primary (default) or insurance primary32- [ ] Term and post-service survival period3334## Required Definitions3536| Term | Notes |37|---|---|38| Proceeding | Threatened, pending, or completed civil, criminal, administrative, investigative, arbitration, or ADR matter |39| Expenses | All fees, costs, disbursements: attorneys, experts, witnesses, travel, transcripts, settlements where permitted |40| Indemnifiable Event | Made party or participant by reason of service to Company or at Company's request |41| Independent Counsel | Disinterested counsel meeting independence criteria |4243## Agreement Structure4445```461. Definitions472. Indemnification483. Advancement of Expenses494. Procedure for Advancement Requests505. Procedure for Indemnification Determinations516. Presumptions and Burdens527. Enforcement; Fee Shifting538. Notice of Proceedings; Defense and Settlement549. Non-Exclusivity; Subrogation; Survival5510. Insurance5611. Contribution; Partial Indemnification5712. Term; Successors5813. Governing Law; Forum5914. Severability; Amendment; Notices; Counterparts60```6162## Core Clauses6364| Section | Required Content |65|---|---|66| Recitals | Authority to indemnify to fullest extent permitted; director reliance to serve |67| Indemnification Grant | Maximum extent permitted by law; statutory conduct standard; derivative action settlement limits if required |68| Advancement | Prompt advancement on written request; fixed payment deadline; undertaking to repay after final non-appealable denial; not conditioned on initial conduct determination |69| Determination | Ordered decision makers; Company pays independent counsel; deadline for decision; presumption favoring indemnification; deemed approval if no timely determination |70| Enforcement | Judicial determination right; fee shifting on successful enforcement; Company bears clear-and-convincing burden when contesting |71| Notice and Defense | Prompt written notice; no forfeiture absent material prejudice; Company may assume defense with director consent to counsel; separate counsel at Company expense for conflicts; settlement consent with unconditional-release carveout |72| Non-Exclusivity/Survival | Additive to charter, bylaws, other agreements; survives for heirs/estates; no retroactive impairment |73| Insurance | Company obligation primary, not conditioned on insurance; equal coverage with other directors; notice of material policy changes |74| Contribution | Equitable contribution if indemnity unavailable; prioritize Expenses over judgments/settlements |75| General | Governing law of incorporation state; forum selection; successors assume obligations; severability; written amendment only; counterparts and e-signatures |7677## Decision Defaults7879| Issue | Default | Range |80|---|---|---|81| Advancement deadline | 30 days | 15-45 days |82| Determination deadline | 60 days | 30-90 days |83| Presumption | Director favored | No presumption (higher risk) |84| Insurance priority | Company primary | Insurance primary (rare) |8586## Pitfalls8788- Verify state statute terminology for conduct standards and limits; flag uncertain citations with `[VERIFY]` (e.g., DGCL 145 `[VERIFY]`)89- Never promise indemnification for acts prohibited by law, bad faith, or improper personal benefit90- Align with charter/bylaws — do not conflict with exculpation or indemnification limitations91- Keep advancement independent from ultimate entitlement determination92- Include explicit retroactivity rule if covering past service93- For public or regulated companies, add required board/committee approvals and securities law constraints94- Avoid cooperation clauses that undermine defense strategy or waive privilege
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