or matter in the proceeding. Section 2-418 of the MGCL generally permits indemnification of any director or officer made or threatened to be made a party to any proceedings by reason of service as a director or officer unless it is established that (i) the act or omission of such person was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty; (ii) such person actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding, such person had reasonable cause to believe that the act or omission was unlawful. The indemnity may include judgments, penalties, fines, settlements and reasonable expenses actually incurred by the director or officer in connection with the proceeding. However, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation. The termination of any proceeding by conviction or upon a plea of nolo contendere or its equivalent or an entry of an order of probation prior to judgment creates a rebuttable presumption that the director or officer did not meet the requisite standard of conduct required for permitted indemnification. The termination of any proceeding by judgment, order or settlement, however, does not create a presumption that the director or officer failed to meet the requisite standard of conduct for permitted indemnification.
The MGCL permits a corporation to advance expenses prior to the final disposition of a proceeding upon obtaining: (i) a written affirmation by the director or officer of the director’s good faith belief that the director has met the standard of conduct necessary for indemnification by such corporation as authorized by the MGCL and (ii) a written statement by or on the director’s behalf to repay the amount paid or reimbursed by such corporation if it shall ultimately be determined that the standard of conduct was not met. Because our charter and bylaws do not obligate us to advance expenses, expenses can be advanced upon approval of our board, pursuant to a provision in a contract with the director or officer, or upon an amendment of our bylaws approved by the board.
The following applies to the additional guarantor registrants organized as Delaware limited liability companies.
The limited liability company agreements of certain of the additional guarantor registrants organized in Delaware generally provide for the indemnification of each respective registrant’s members, officers, directors, employees and agents to the fullest extent permissible under Delaware law. These registrants include NHI-REIT of Colorado, LLC, NHI-REIT of Minnesota, LLC, NHI Selah Properties, LLC, NHI-REIT of Northeast, LLC, NHI-REIT of Washington, LLC, NHI/Anderson, LLC, NHI/Laurens, LLC, NHI-REIT of Florida, LLC, NHI-Bickford RE, LLC, and NHI-REIT of DSL PropCo, LLC.
The limited liability company agreements of certain of the other additional guarantor registrants organized in Delaware generally provide for the indemnification of each respective registrant’s members, officers, directors and stockholders provided that such indemnified party meets a requisite standard of care for indemnification. These registrants include NHI-Discovery I TRS, LLC, NHI-Merrill I TRS, LLC, NHI PropCo Member LLC, and NHI-REIT of DSL PropCo II, LLC.
The limited liability company agreements of certain of the other additional guarantor registrants organized in Delaware do not contain any provision regarding indemnification. These registrants include Florida Holdings IV, LLC, NHI-REIT of Oregon, LLC, NHI-REIT of Wisconsin, LLC, NHI-REIT of Ohio, LLC, NHI-REIT of Maryland, LLC, NHI-REIT of Seaside, LLC, NHI-REIT of Next House, LLC, NHI-REIT of Axel, LLC, NHI-REIT of Michigan, LLC, NHI-REIT of Bickford, LLC, NHI-REIT of North Carolina, LLC, NHI-REIT of TX-IL, LLC, NHI-SS TRS, LLC, NHI-REIT of Indiana, LLC, and NHI-REIT of Oklahoma, LLC.
Section 18-303(a) of the Delaware Limited Liability Company Act (the “DLLCA”) provides that, except as otherwise provided by the DLLCA, the debts, obligations and liabilities of a limited liability company shall be solely the limited liability company’s, and no member or manager of a limited liability company shall be obligated personally for any such debt, obligation or liability solely by reason of being a member or acting as a manager of the limited liability company. Section 18-108 of the DLLCA provides that, subject to such standards and restrictions, if any, as set forth in its limited liability company agreement, a limited liability company has the power to indemnify and hold harmless any member or manager or other person from and against any and all claims and demands whatsoever.
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