If the proceeding is one by or in the right of the town to procure a judgment in the town’s favor, the person shall be indemnified against his or her expenses, including attorney’s fees, but excluding judgments and fines and, except as hereinafter set forth, amounts paid in settlement, actually and reasonably incurred by him or her in connection with the defense or settlement of the proceeding if he or she acted, or failed to act, 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.
(1991 Code, § 2-6-6)