[Adopted 8-16-2010 by Ord. No. 2010-3014 (Ch. 41, Art. III, of the 1996 Township Code)]
A. 
Notwithstanding terms of any collective bargaining agreement to the contrary, the governing body is hereby authorized to provide indemnification or defense for any person holding an office or employment under the jurisdiction of the Township of Middletown, whenever any action has been or shall be brought against any such person, arising from the acts or omissions of such person from their assigned duties.
B. 
In indemnifying and defending such persons, the Township shall incur all costs of defending such action, including reasonable counsel fees and expenses, together with the costs of appeal, if any, and shall hold harmless and protect such person for any financial loss resulting therefrom.
C. 
Subject to the terms of this article, the Township Attorney shall defend Township officers or employees. If the Township Attorney is conflicted or unable to participate in said defense, the governing body shall appoint special or conflict counsel.
D. 
In the event that any officer or employee or board member engages an attorney without the approval of the municipality and prior agreement as to the cost of services, all costs so incurred shall be the sole responsibility of that officer or employee.
E. 
Any officer or employee of the Township being indemnified by the Township and represented by counsel for the Township must cooperate fully with the Township's assigned counsel in their defense unless they wish to waive such representation; thereafter, all costs or liabilities so incurred shall be the sole responsibility of that officer or employee.
F. 
Notwithstanding anything to the contrary set forth above, the Township will not be responsible for indemnification under the following circumstances:
(1) 
Judgment or settlement of a civil cause of action relating to a claim based upon criminal activity, actual fraud, actual malice, or willful misconduct, or actions outside the scope of the officer or employees official duties.
(2) 
Judgments calling for punitive or exemplary damages, unless the Township Committee first determines the officer or employee's actions did not constitute actual fraud, actual malice, gross misconduct, or an intentional tort.
(3) 
Judgment with respect to which any insurance coverage is available for payment.
(4) 
Where any officer or employee is found to have acted in violation of the Local Government Ethics Law, N.J.S.A. 40A:9-22.1 et seq.