Section 8.102 - General Scope of Permissive Indemnification(a) Subject to Subsection (b), an enterprise may indemnify a governing person, former governing person, or delegate against:(2) expenses, other than a judgment, that are reasonable and actually incurred by the person in connection with a proceeding.(b) Indemnification under this subchapter of a person who is found liable to the enterprise or is found liable because the person improperly received a personal benefit: (1) is limited to reasonable expenses actually incurred by the person in connection with the proceeding;(2) does not include a judgment, a penalty, a fine, and an excise or similar tax, including an excise tax assessed against the person with respect to an employee benefit plan; and(3) may not be made in relation to a proceeding in which the person has been found liable for: (A) wilful or intentional misconduct in the performance of the person's duty to the enterprise;(B) breach of the person's duty of loyalty owed to the enterprise; or(C) an act or omission not committed in good faith that constitutes a breach of a duty owed by the person to the enterprise.(c) A governing person, former governing person, or delegate is considered to have been found liable in relation to a claim, issue, or matter only if the liability is established by an order, including a judgment or decree of a court, and all appeals of the order are exhausted or foreclosed by law.Tex. Bus. Org. Code § 8.102
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. 1/1/2006.