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(a) Subject to Subsection (b), an enterprise may indemnify a governing person, former governing person, or delegate against:
(1) a judgment; and
(2) expenses, other than a judgment, that are reasonable and actually incurred by the person in connection with a proceeding.
(b) Indemnification under this subchapter of a person who is found liable to the enterprise or is found liable because the person improperly received a personal benefit:
(1) is limited to reasonable expenses actually incurred by the person in connection with the proceeding;
(2) does not include a judgment, a penalty, a fine, and an excise or similar tax, including an excise tax assessed against the person with respect to an employee benefit plan; and
(3) may not be made in relation to a proceeding in which the person has been found liable for:
(A) wilful or intentional misconduct in the performance of the person's duty to the enterprise;
(B) breach of the person's duty of loyalty owed to the enterprise; or
(C) an act or omission not committed in good faith that constitutes a breach of a duty owed by the person to the enterprise.
(c) A governing person, former governing person, or delegate is considered to have been found liable in relation to a claim, issue, or matter only if the liability is established by an order, including a judgment or decree of a court, and all appeals of the order are exhausted or foreclosed by law.
Cite this article: FindLaw.com - Texas Business Organizations Code - BUS ORG § 8.102. General Scope of Permissive Indemnification - last updated April 14, 2021 | https://codes.findlaw.com/tx/business-organizations-code/bus-org-sect-8-102.html
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