LD 1539
pg. 31
Page 30 of 101 An Act To Amend the Laws Relating to Corporations, Limited Partnerships, Limite... Page 32 of 101
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LR 1942
Item 1

 
A. The individual's conduct was in good faith and the
individual reasonably believed following criteria are met:

 
(1) In the case of conduct in the individual's
capacity as director, that the The individual's conduct
was in the best interests of the corporation good
faith;

 
(2) In all other cases, that the individual's conduct
was at least not opposed to the best interests of the
corporation; and The individual reasonably believed:

 
(a)__In the case of conduct in the individual's
official capacity, that the individual's conduct
was in the best interests of the corporation; and

 
(b)__In all other cases, that the individual's
conduct was at least not opposed to the best
interests of the corporation; and

 
(3) In the case of any criminal proceeding, the
individual had no reasonable cause to believe the
individual's conduct was unlawful; or

 
B. The individual engaged in conduct for which broader
indemnification has been made permissible or obligatory
under a provision of the corporation's articles of
incorporation as authorized by section 202, subsection 2,
paragraph E.

 
2. Employee benefit plan. The conduct of a director with
respect to an employee benefit plan for a purpose the director
reasonably believed to be in the interests of the participants
in, and the beneficiaries of, the plan is conduct that satisfies
the requirement of subsection 1, paragraph A, subparagraph (2),
division (b).

 
3. Termination of proceeding. The termination of a
proceeding by judgment, order, settlement or conviction or upon a
plea of nolo contendere or its equivalent is not of itself
determinative that the director did not meet the relevant
standard of conduct described in this section.

 
4. Limits. Unless ordered by a court under section 855,
subsection 1, paragraph C, a corporation may not indemnify one of
its the corporation's directors:

 
A. In connection with a proceeding by or in the right of the
corporation, except for reasonable expenses incurred in
connection with the proceeding if it is determined that the


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