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Form of Director Indemnification Agreement SEC Gov

Form of Director Indemnification Agreement SEC Gov

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You recently purchased stock and you are becoming more and more involved in the actions of the board of directors in the various corporations which you hold stock. And you are hearing terms like indemnification and hold harmless with respect to what the board of directors are doing and it doesn't make any sense to you. Hello I'm Robert Todd and I'm here to answer the question what is indemnification. Well in the context of the board of directors of a corporation, indemnification has to do with the corporation agreeing to indemnify the board of directors for the actions that they engage in on behalf of the corporation. In other words if the board of directors engage in activities that give rise to lawsuits being filed against them and alleged damages the corporations says, they are going to indemnify the board of directors. That is they are going to either provide for the legal fees, and the legal costs that are incurred by the board of directors in defending the

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