A.   Defense And Indemnification: To the fullest extent permitted by the Constitution of the State of Illinois and applicable law including the Illinois Compiled Statutes, each of the following officers and employees of the Village: the Village President; each Village Trustee; the Village Clerk and Deputy Village Clerk; the Village Treasurer; the Village Collector; the Village Attorney; Village Administrative Adjudicator, Village Prosecutor and special counsel for the Village; the Director of each department of the Village; the Chief of Police; the Fire Chief, and each member of any board or commission of the Village established pursuant to applicable law or by ordinance of the Village, shall be indemnified, defended and held harmless by the Village from and against all liabilities for compensatory damages, expenses of investigation, judgments and amounts paid in settlement which may be imposed upon or reasonably incurred or paid by such officer or employee in connection with or resulting from any claim made against him, or any action, suit, proceeding or investigation in which he may be involved, by reason of his being or having been such officer or such employee of the Village and acting within the scope of his employment or officer duties, whether or not he continues to be such officer or employee at the time of such claim, action, suit, proceeding or investigation; provided, however, that the foregoing indemnity shall not extend to any of the following:
      1.   Any liability or cost when an officer or employee could be found to be guilty of bad faith, or actual malice, or willful and wanton misconduct in the performance of his duties as such officer or employee;
      2.   Any proceeding where the Village is prosecuting the action against the employee or officer;
      3.   Where the Village offers or otherwise indicates its willingness to provide a legal defense with respect to such claim, action, suit, proceeding or investigation and the officer or employee refuses to accept the legal defense. In such a case, the employee or officer shall not be entitled to indemnification for attorney fees. In addition, the Village Board will determine by a majority vote of the Board whether the officer or employee will be entitled to indemnification for any judgments entered against said officer or employee. (Ord. 2017-112, 5-15-2017)
   B.   Reservation Of Rights: The Village may elect to defend the employee or officer under a reservation of rights agreement. If the Village so elects and if the employee or officer enters into a reservation of rights agreement, the Village shall pay the judgment, compromise or settlement only if it is established that the injury arose out of an act or omission relating to the employee or officer's duties within the scope of the employee or officer's employment and was not wilful and wanton.
   C.   Effect Of Other Proceedings: The termination of any action, suit, or proceeding by judgment or settlement, conviction, or in a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that the act giving rise to the claim did not arise out of actions or omissions of such employee relating to his/her duties as an employee of the Village.
   D.   Good Faith: In all cases the employee or officer shall cooperate in good faith to determine whether the conduct or inaction which gave rise to the claim or cause of action: 1) was or was not wilful or wanton misconduct, and 2) was or was not intended to serve or benefit the interests of the Village.
   E.   Reimbursement: If the Village determines that a claim against an employee or officer comes within the provisions of this section, and if a court of competent jurisdiction later finds that such claim does not come within the provisions of this section, the Village may seek reimbursement for any payments made by the Village or on its behalf for part or all of any judgment and costs or fees incurred by or on behalf of the employee's or officer's defense as well as for that part or all of the costs or expenses incurred in obtaining the determination that such claim is not covered by this section.
   F.   Other Rights: The foregoing rights of indemnification shall be in addition to any other rights to which such officer or employee may otherwise be entitled as a matter of law.
   G.   Police Officers: Indemnification shall be provided by the Village to police officers as provided by applicable law and any applicable collective bargaining agreements. (Ord. 10-09, 2-16-2010)