                                 CODE OF VIRGINIA

ADVANCE FOR EXPENSES (§ 13.1-699)

A. A corporation may, before final disposition of a proceeding, advance funds to
pay for or reimburse the expenses incurred in connection with the proceeding by
a director who is a party to a proceeding because the individual is a director
if the director delivers to the corporation a signed written undertaking to
repay any funds advanced if (i) the director is not entitled to mandatory
indemnification under &#xA7; 13.1-698 and (ii) it is ultimately determined under
&#xA7; 13.1-700.1 or 13.1-701 that the director is not entitled to
indemnification.

B. The undertaking required by subsection A shall be an unlimited general
obligation of the director but need not be secured and may be accepted without
reference to the financial ability of the director to make repayment.

C. Authorizations under this section shall be made by:

   1. The board of directors:
   				a. If there are two or more disinterested directors, by a majority vote of
   all the disinterested directors, a majority of whom shall for such purpose
   constitute a quorum, or by a majority of the members of a committee consisting
   solely of two or more disinterested directors appointed by such a vote; or
   				b. If there are fewer than two disinterested directors, by the vote
   necessary for action by the board of directors in accordance with subsection C
   of &#xA7; 13.1-688, in which authorization directors who do not qualify as
   disinterested directors may participate; or

   2. By the shareholders, but shares owned by or voted under the control of a
   director who at the time does not qualify as a disinterested director may not
   be voted on the authorization.

HISTORY: Code 1950, § 13.1-3.1; 1968, c. 570; 1975, c. 500; 1979, c. 99; 1985,
c. 522; 2005, c. 765; 2010, c. 782; 2015, c. 611; 2019, c. 734.