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.