Undertaking to Repay Advancement of Expenses

This is a form of undertaking by an indemnified party to repay expenses advanced by the indemnifying party. It is commonly required under an indemnification agreement between a company and its directors and officers, in which the company agrees to advance funds to the indemnified director or officer for expenses incurred by the director or officer as a result of certain legal proceedings, claims or investigations. In the undertaking, the indemnified party agrees to repay the funds to the company under certain conditions. This Standard Document has integrated notes with important explanations and drafting tips.

Practical Law Corporate & Securities with contributions from Michael D. Allen of Richards, Layton & Finger, P.A., our Delaware law experts


 

The full text of this resource is available by logging in or by requesting a trial. If you have any questions, please contact us or your Practical Law Account Executive.

Free trial

A free trial will give you:

Unlimited access to our online legal know-how services during the trial period
Full training and support
Four issues of Practical Law The Journal, the companion to Practical Law online
Weekly update e-mails on current legal developments in your practice area
 

Log in using Practical Law username

Only use this login if you have not set up OnePass for Practical Law

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247656398591", "objName" : "ACT_OWNED - READ_ONLY - 7-520-5639", "userID" : "2", "objUrl" : "http://us.practicallaw.com/cs/Satellite/us/resource/7-520-5639?null", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-40e00097:15b1608731c:737e", "analyticsSessionCookie" : "2-40e00097:15b1608731c:737f", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }