New Jersey § 15a:3-4

§ 15a:3-4.

a. As used in this section: (1) “ Corporate agent ” means any person who is or was a trustee, officer, employee or agent of the indemnifying

corporation or of any constituent corporation absorbed by the indemnifying corporation

in a consolidation or merger and any person who is or was a trustee, officer, employee

or agent of any other enterprise, serving as such at the request of the indemnifying

corporation, or of the constituent corporation, or the legal representative of the

trustee, officer, employee or agent; (2) “ Other enterprise ” means any domestic corporation, foreign corporation, or corporate business entity,

other than the indemnifying corporation or any employee benefit plan or trust; (3) “ Expenses ” means reasonable costs, disbursements and counsel fees; (4) “ Liabilities ” means amounts paid or incurred in satisfaction of settlements, judgments, fines

and penalties; and (5) “ Proceeding ” means any pending, threatened or completed civil, criminal, administrative or arbitrative

action, suit or proceeding, and any appeal therein and any inquiry or investigation

which could lead to the action, suit or proceeding. b. Any corporation may indemnify a corporate agent against the agent's expenses and

liabilities in connection with any proceeding involving the corporate agent because

the agent is or was a corporate agent, other than a proceeding by or in the right

of the corporation, if: (1) the corporate agent acted in good faith and in a manner which the agent reasonably

believed to be in or not opposed to the best interests of the corporation; and (2) with respect to any criminal proceeding, the corporate agent had no reasonable

cause to believe the conduct was unlawful. The termination of any proceeding by judgment, order, settlement, conviction or

upon a plea of nolo contendere or its equivalent, shall not of itself create a presumption

that the corporate agent did not meet the applicable standards of conduct set forth

in paragraphs (1) and (2) of subsection b. of this section. c. Any corporation may indemnify a corporate agent against the agent's expenses in

connection with any proceeding by or in the right of the corporation to procure a

judgment in its favor which involves the corporate agent by reason of being or having

been the corporate agent, if the agent acted in good faith and in a manner which the

agent reasonably believed to be in or not opposed to the best interests of the corporation. However, in the proceeding no indemnification shall be provided in respect of any

claim, issue or matter as to which the corporate agent was liable to the corporation , unless and only to the extent that the Superior Court or the court in which the

proceeding was brought shall determine upon application that despite the adjudication

of liability, but in view of all circumstances of the case, the corporate agent is

fairly and reasonably entitled to indemnity for those expenses as the Superior Court

or the other court shall deem proper. d. Any corporation shall indemnify a corporate agent against expenses to the extent

that the corporate agent has been successful on the merits or otherwise in any proceeding

referred to in subsections b. and c. of this section or in defense of any claim, issue

or matter therein. e. Any indemnification under subsection b. of this section and, unless ordered by

a court, under subsection c. of this section, may be made by the corporation only

as authorized in a specific case upon a determination that indemnification is proper

in the circumstances because the corporate agent met the applicable standard of conduct

set forth in subsection b. or c. Unless otherwise provided in the certificate of incorporation or bylaws, the determination

shall be made: (1) By the board of trustees or a committee thereof at a meeting at which is present

a quorum determined without including trustees who were parties to or otherwise involved

in the proceeding, acting by a majority vote of trustees who were not parties to or

otherwise involved in the proceeding; (2) If the quorum is not obtainable, or, even if obtainable and the quorum of the

boards of trustees or committee by a majority vote of the disinterested trustees directs,

by independent legal counsel, in a written opinion, the counsel to be designated by

the board of trustees; or (3) By the members, if the corporation has members and if the certificate of incorporation

or bylaws or a resolution of the board of trustees directs. f. Expenses incurred by a corporate agent in connection with the proceeding may be

paid by the corporation in advance of the final disposition of the proceeding as authorized by the board of trustees upon receipt of an undertaking by or on behalf of the corporate agent to repay the

amount unless it shall ultimately be determined that the agent is entitled to be indemnified

as provided in this section. g. (1) If a corporation upon application of a corporate agent has failed or refused

to provide indemnification as required under subsection d. of this section or permitted

under subsections b., c. and f. of this section, a corporate agent may apply to a

court for an award of indemnification by the corporation, and the court: (a) may award indemnification to the extent authorized under subsections b. and c.

of this section and shall award indemnification to the extent required under subsection

d. of this section, notwithstanding any contrary determination which may have been

made under subsection e. of this section; and (b) may allow reasonable expenses to the extent authorized by, and subject to the

provisions of, subsection f. of this section, if the court shall find that the corporate

agent has by the agent's pleadings or during the course of the proceeding raised genuine

issues of fact or law. (2) Application for indemnification may be made: (a) in the civil action in which the expenses were or are to be incurred or other

amounts were or are to be paid; or (b) to the Superior Court in a separate proceeding. (3) If the application is for indemnification arising out of a civil action, it shall

set forth reasonable cause for the failure to make application for the relief in the

action or proceeding in which the expenses were or are to be incurred or other amounts

were or are to be paid. The application shall set forth the disposition of any previous application for

indemnification and shall be made in the manner and form as may be required by the

applicable rules of the court or, in the absence thereof, by direction of the court

to which it is made. The application shall be upon notice to the corporation. The court may also direct that notice shall be given at the expense of the corporation

to the members, if any, and all other persons as it may designate in the manner as

it may require. h. The indemnification and advancement of expenses provided by or granted pursuant to the other subsections of this section shall not exclude any other rights to which a corporate agent may be entitled

under a certificate of incorporation, bylaw, agreement, or otherwise ; provided that no indemnification shall be made to or on behalf of a corporate agent

if a judgment or other final adjudication adverse to the corporate agent establishes

that his acts or omissions (1) were in breach of his duty of loyalty to the corporation

or its members, (2) were not in good faith or involved a knowing violation of law,

or (3) resulted in receipt by the corporate agent of an improper personal benefit. i. Any corporation shall have the power to purchase and maintain insurance on behalf

of any corporate agent against any expense incurred in any proceeding and any liabilities

asserted by reason of the agent's being or having been a corporate agent, whether

or not the corporation would have the power to indemnify the agent against those expenses

and liabilities under the provisions of this section. j. The powers granted by this section may be exercised by the corporation notwithstanding

the absence of any provision in its certificate of incorporation or bylaws authorizing

the exercise of these powers. k. Except as required by subsection d. of this section, no indemnification shall be

made or expenses advanced by a corporation under this section, and none shall be ordered

by a court, if that action would be inconsistent with a provision of the certificate

of incorporation, a bylaw, a resolution of the board or of the members, an agreement

or other proper corporate action in effect at the time of the accrual of the alleged

cause of action asserted in the proceeding, which prohibits, limits or otherwise conditions

the exercise of indemnification powers by the corporation or the rights of indemnification

to which a corporate agent may be entitled. l . This section does not limit a corporation's power to pay or reimburse expenses incurred

by a corporate agent in connection with the corporate agent's appearance as a witness

in a proceeding at a time when the corporate agent has not been made a party to the

proceeding.