Hope Welty Public Library

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POLICY ON INDEMNIFICATION AND INSURANCE

              HOPE WELTY PUBLIC LIBRARY DISTRICT

                           POLICY ON

                 INDEMNIFICATION AND INSURANCE

1/15/2010

     Section 1.  The Hope Welty Public Library District shall indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal administrative or investigative (other than an action by or in the right of the Library) by reason of the fact that he or she is or was a trustee, officer, employee or agent of the Library, or who is or was serving at the request  of the Library as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, if such person acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Library, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or 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 person did not act in good faith and in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the Library, or, with respect to any criminal action or proceeding, that the person had reasonable cause to believe that his or her conduct was unlawful.

     Section 2.  The Library shall indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Library to procure a judgment in its favor by reason of the fact that such person is or was a trustee, officer, employee or agent of the Library, or is or was serving at the request of the Library as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settle­ment of such action or suit, if such person acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Library, provided that no indemnifi­cation shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his or her duty to the Library, unless, and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court shall deem proper.

     Section 3.  To the extent that a trustee, officer, employee or agent of the Library has been successful, on the merits or otherwise, in the defense of any action, suit or proceeding referred to in Sections (1) and (2) of this Policy, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

     Section 4.  Any indemnification under Sections (1) and (2) of this Policy or (unless ordered by a court) shall be made by the Library only as authorized in the specific case, upon a determina­tion that indemnification of the trustee, officer, employee or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in Sections (1) and (2) of this Policy.  Such determination shall be made (i) by the board of trustees by a majority vote of a quorum consisting of trustees who were not parties to such action, suit or proceeding, or (ii) if such a quorum is not obtainable, or, even if obtainable, a quorum of disinterested trustees so directs, by independent legal counsel in a written opinion.

     Section 5.  Expenses incurred in defending a civil or criminal action, suit or proceeding may be paid by the Library in advance of the final disposition of such action, suit or proceeding as authorized by the board of trustees in the specific case, upon receipt of an undertaking by or on behalf of the trustee, officer, employee or agent to repay such amount, unless it shall ultimately be determined that he or she is entitled to be indemnified by the Library as authorized in this Policy.

     Section 6.  The indemnification provided by this Policy shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any agreement, vote of disinterested trustees, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a trustee, officer, employee or agent, and shall inure to the benefit of the heirs, executors and administrators of such a person.

     Section 7.  The Library may purchase and maintain insurance on behalf of any person who is or was a trustee, officer, employee or agent of the Library, or who is or was serving at the request of the Library as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against any liability asserted against such person and incurred by such person in any such capacity, or arising out of his or her status as such, whether or not the Library would have the power to indemnify such person against such liability under the provi­sions of this Policy.

     Section 8.  For the purposes of this Policy, references to "the Library" shall include, in addition to the surviving Library, any merging Library (including any Library having merged with a merging Library) absorbed in a merger which, if the separate existence had continued, would have had the power and authority to indemnify its trustees, officers, employees or agents, so that any person who was a trustee, officer, employee or agent of such merging Library, or was serving at the request of such merging Library as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Policy with respect to the surviving Library as such person would have with respect to such merging Library if its separate existence had continued.