The Town of Dewey Beach shall indemnify, from the general funds of the
Town's treasury, to the extent not otherwise covered by appropriate insurance,
any person who is a party to, or is threatened to be made a party to, any
threatened, pending or completed action, suit or proceedings, whether civil,
criminal, administrative or investigative (other than an action by or in the
right of the Town of Dewey Beach itself) by reason of the fact that he or
she is or was a Town Commissioner, Mayor, or other duly elected or appointed
Town official of the Town of Dewey Beach, or arising out of actions taken
by each or any of them in connection with the performance of their official
duties, against expenses (including attorney's fees), judgments, fines,
and amounts paid in settlement, actually and reasonably incurred by him or
her in connection with such action, suit or proceeding if he or she acted
in good faith and in a manner he or she reasonably believed to be in or not
opposed to the best interests of the Town, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his or her conduct
was unlawful. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its equivalent
shall not, of itself, create a presumption that the person did not act in
good faith and in a manner which he or she reasonably believed to be in or
not opposed to the best interests of the Town of Dewey Beach and with respect
to any criminal action or proceeding had reasonable cause to believe that
his conduct was unlawful.
In the event of a monetary settlement, the Town Commissioners shall
first approve the amount and terms of the settlement before the right to indemnification
shall vest.
Indemnification as provided in this chapter shall be made by the Town
only as authorized in the specific case upon a determination that indemnification
of the Town Commissioners, Mayor, and/or Town officials is proper in the circumstances
because he or she met the applicable standards of conduct set forth above.
Such determination shall be made:
A. By a majority vote of a quorum of the Town Commissioners
consisting of Commissioners who were not parties to such action, suit or proceeding;
or
B. If such a quorum is not obtainable, by
independent legal counsel in a written option.