Common use of Indemnification and Contribution Clause in Contracts

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 6 contracts

Sources: Underwriting Agreement (South Carolina Electric & Gas Co), Underwriting Agreement (South Carolina Electric & Gas Co), Underwriting Agreement (South Carolina Electric & Gas Co)

Indemnification and Contribution. (a) The Company Seller and the Bank, jointly and severally, will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or such controlling person may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any Time of Sale Information, the Registration Statement, Prospectus or any amendment theretoor supplement thereto or any Form ABS-15G furnished to the Commission on ▇▇▇▇▇ with respect to the transactions contemplated by this Agreement (a “Furnished Form ABS-15G”), including any information deemed data provided by the Seller, the Bank, the Issuer or any of their affiliates to be a part thereof pursuant any Underwriter in order to Rule 430B under prepare the ActIntex CDI File, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each UnderwriterUnderwriter and each such officer, director, officer, agent, affiliate employee or controlling person for any legal or other expenses reasonably incurred by it each Underwriter and each such officer, director, employee or controlling person in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall Seller and the Bank will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereofInformation. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company Seller or the Bank may otherwise have. (b) Each Underwriter Underwriter, severally and not jointly jointly, will indemnify and hold harmless the Company, its directors, its officers who sign Seller and the Registration Statement Bank and each person, if any, who controls the Company Seller or the Bank within the meaning of either Section 15 of the Act or Section 20 of the Exchange ActAct and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities to which the Company, such director, officer Seller or controlling person the Bank may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) upon any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, the Preliminary Prospectus, the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Issuer, the Seller and the Bank by you, or by any such Underwriter through you, the Representatives specifically for use therein and (ii) with regard to any investor with whom an Underwriter enters into a Contract of Sale for the Notes prior to the filing of the final Prospectus, the failure upon the part of such Underwriter to convey (within the meaning of Rule 159 under the Act) the Preliminary Prospectus to such investor at or prior to the time of the contract of sale for such Notes; provided, however, that to the extent such Preliminary Prospectus or Prospectus, as the case may be, has been amended or supplemented, such indemnity shall not inure to the benefit of the Seller or the Bank unless such amendment or supplement shall have been delivered to such Underwriter in a reasonable period of time prior to the preparation thereof; and time of such contract of sale. Each Underwriter will reimburse the Company for any legal or other expenses reasonably incurred by the Company Seller or the Bank, as applicable, in connection with investigating or defending any of the losses, claims, damages, or liabilities (or actions in respect thereof) for which it has agreed to indemnify the Seller or the Bank, as applicable, in accordance with the foregoing. The Seller and the Bank agree with each Underwriter that the only written information furnished to the Issuer, the Seller and the Bank by the Underwriters specifically for use in the Registration Statement, the Preliminary Prospectus, the Prospectus, or any amendment or supplement thereto, or the Ratings Issuer Free Writing Prospectus is the information relating to the Underwriters and the underwriting of the Notes in the second sentence of the fourth paragraph and the sixth paragraph (except for the information relating to the Depositor in the last sentence thereof) under the heading “Underwriting” in the Preliminary Prospectus or the Prospectus (“Underwriter Information”). This indemnity agreement will be in addition to any liability that each Underwriter may otherwise have. (c) Each Underwriter, severally and not jointly, will indemnify and hold harmless the Seller and the Bank and each person, if any, who controls the Seller or the Bank within the meaning of the Act or the Exchange Act and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities to which the Seller or the Bank may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any Underwriter Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse any legal or other expenses reasonably incurred by the Issuer, the Seller or the Seller in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that no Underwriter will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission in any Underwriter Free Writing Prospectus (i) made in reliance upon and in conformity with any written information furnished to the related Underwriter by the Seller or the Bank expressly for use therein or (ii) as a result of any inaccurate information (including as a result of any omission therein) in the Time of Sale Information, the Prospectus or the Issuer Information which information was not corrected by information subsequently provided by the Seller or the Bank to the related Underwriter prior to the time of use of such Underwriter Free Writing Prospectus. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionclause (a), (b) or (c) of this Section 9, notify the indemnifying party in writing of the commencement thereof; but provided, that the failure to notify the indemnifying party shall not relieve the indemnifying party from any liability which it may have under this Section 9, except to the extent that it has been materially prejudiced by such failure and, provided further, that the omission and/or delay so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionclause (a), (b) or (c) of this Section 9. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall wishmay elect by written notice, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, andbe counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and the appointment of satisfactory counsel, including local counsel if applicable, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have If the right to employ its own counsel defendants in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by action include both the indemnified party has been authorized in writing by and the indemnifying party, (2) party and the indemnified party has shall have reasonably concluded that (based on advice of counseli) that there exists actual or potential conflicting interests between the indemnifying party and the indemnified parties, or (ii) there may be legal defenses available to it or and/or other indemnified parties that are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not or parties shall have the right to direct select separate counsel, including local counsel if applicable, to assert such legal defenses and to otherwise participate in the defense of such action on behalf of the such indemnified party) party or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be parties at the expense of the indemnifying party or parties. It is understood that party, subject to the approval of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted (such approval not to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent settlement (i) includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction and (ii) does not include a statement as to, action or proceedingadmission of, fault, culpability or a failure to act by or on behalf of any such indemnified party. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify any indemnified party from and against any loss or liability by reason of such settlement or judgment. (de) If the indemnification provided for in this Section 6 9 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinthis Section 9, then each party that would have been an such indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in this Section 9, (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) but also the relative fault of the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company Issuer or the Seller bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofrelevant Underwriter. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuer, the Seller or the Underwriters Bank or by any Underwriter and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection clause (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim which is the subject of this clause (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofe). Notwithstanding the provisions of this subsection clause (de), no Underwriter shall be required to contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by itit in connection with such Notes underwritten by it exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in obligation of each Underwriter under this subsection (dSection 9(e) to contribute are shall be several in proportion to their respective underwriting obligations and not joint. (ef) The obligations of the Company indemnifying party under this Section 6 9 shall be in addition to any liability which the Company indemnifying party may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company indemnified party within the meaning of the Act.

Appears in 5 contracts

Sources: Underwriting Agreement (Capital One Prime Auto Receivables Trust 2025-1), Underwriting Agreement (Capital One Prime Auto Receivables Trust 2024-1), Underwriting Agreement (Capital One Prime Auto Receivables Trust 2023-2)

Indemnification and Contribution. (a) The Company will Issuer agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Agent and each person, if any, person who controls any Underwriter such Agent within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, under the Act, the Exchange Act or other Federal or State statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, registration statement relating to the Registered Securities as originally filed or in any amendment thereto, including or in any information deemed to be a part thereof pursuant to Rule 430B under preliminary prospectus or the ActProspectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person Agent for any legal or other expenses reasonably incurred by it such Agent in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that (i) the Company shall Issuer will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by you, or Issuer by any Underwriter through you, Agent specifically for use in connection with the preparation thereof. The thereof and (ii) such indemnity agreement set forth in this Section 6(a) shall be in addition with respect to any liabilities that preliminary prospectus or the Company may otherwise have. Prospectus shall not inure to the benefit of any Agent (bor any person controlling such Agent) Each Underwriter severally and through which the person asserting any such loss, claim, damage or liability purchased the Securities which are the subject thereof if such person did not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 receive a copy of the Act Prospectus (or Section 20 the Prospectus as so amended or supplemented), excluding documents incorporated therein by reference, at or prior to the earlier of the Exchange Act, against confirmation of the sale of such Securities or the delivery of the Securities to such person in any losses, claims, damages or liabilities to which the Company, case where such director, officer or controlling person may become subject, under delivery is required by the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any and the untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus was corrected in the Prospectus (or the Prospectus as amended or supplemented prior to the confirmation of the sale of such Securities to such person). This indemnity agreement will be in addition to any liability which the Issuer may otherwise have. (b) Each Agent agrees to indemnify and hold harmless the Issuer, each of its directors, each of its officers who signed the Registration Statement or any amendment or supplement thereto), and each person who controls the Issuer within the meaning of either the Act or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinExchange Act, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Issuer to such Agent, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Agent furnished to the Company Issuer by you, or by any Underwriter through you, such Agent specifically for use in the preparation thereof; and will reimburse of the Company for any legal or other expenses reasonably incurred by documents referred to in the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each Underwriter liability which such Agent may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 7 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 7, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 7. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in andtherein, and to the extent that it shall wish, jointly with any other indemnifying may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, andhowever, after if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 7 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice shall have employed separate counsel in connection with the assertion of counsel) that there may be legal defenses available in accordance with the proviso to the next preceding sentence (it or other being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, approved by the Agents in the case of subparagraph (a), representing the indemnified parties that under subparagraph (a) who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and except that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 6 is unavailable under subsection paragraph (a) of this Section 7 is due in accordance with its terms but is for any reason held by a court to be unavailable from the Issuer on grounds of policy or (b) above otherwise, the Issuer and each Agent shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or and liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any including legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any same) to which the Issuer and such action or claim (which shall Agents may be limited as provided subject in subsection (csuch proportion so that each Agent is responsible for that portion represented by the percentage that the sum of aggregate commissions received by such Agent pursuant to Section 3(c) above if the Indemnifying Party has assumed the defense of any such action hereof in accordance connection with the provisions thereof). Notwithstanding sale of the provisions Securities to which such loss, claim, damage or liability relates to the aggregate principal amount of this subsection such Securities and the Issuer is responsible for the balance; provided, however, that (d), y) in no Underwriter case shall any Agent be required to contribute responsible for any amount in excess of the underwriting discounts commissions received by it. No it for such Securities to which such loss, claim, damage or liability relates, and (z) no person guilty of found liable for fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was found not guilty of liable for such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend7, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, person who controls any Underwriter Agent within the meaning of either the Act or the Exchange Act shall have the same rights to contribution as such Agent, and each person who controls the Issuer within the meaning of either the Act or the Exchange Act; and the obligations , each officer of the Underwriters under this Section 6 Issuer who shall be in addition to have signed the Registration Statement or any liability which the respective Underwriters may otherwise have amendment thereto, and shall extend, upon the same terms and conditions, to each director of the CompanyIssuer shall have the same rights to contribution as the Issuer, subject in each case to each officer clause (y) of this paragraph (d). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this paragraph (d), notify such party or parties from whom contribution may be sought, but the Company who has signed omission to notify such party or parties shall not relieve the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actparty or parties from whom contribution may be sought from any obligation it or they may have hereunder or otherwise than under this paragraph (d).

Appears in 5 contracts

Sources: Agency Agreement (International Business Machines Corp), Agency Agreement (International Business Machines Corp), Agency Agreement (Ibm Credit Corp)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or the are based upon an omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained fact, in any preliminary prospectus, light of the Disclosure Package or the Prospectus (or any amendment or supplement thereto)circumstances in which it was made, or the an omission or alleged omission therefrom of to state a material fact required to be stated or necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, in any Preliminary Prospectus, the Final Prospectus, or in any amendment or supplement thereto, or in any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Act, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveinclusion therein. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company documents referred to in connection with investigating or defending against any such loss, claim, damage, liability or actionSection 8(a) above. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that (i) the statement set forth on the cover page regarding delivery of the Securities and (ii) under the heading “Underwriting,” (A) the sentences related to concessions and reallowances and (B) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and does not include a statement as to, or admission of, fault, culpability or failure to act on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is for any reason held to a party that would have been be unenforceable by an indemnified party or is insufficient to hold harmless a party indemnified under subsection paragraph (a) or (b) above of this Section 8, although applicable in accordance with its terms (“Indemnified Party”including the requirements of Section 8(c) in respect of any above), the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder; provided, further, that each Underwriter’s obligation to contribute to Losses hereunder shall be several and not joint. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 5 contracts

Sources: Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each UnderwriterHolder of the Registrable Securities covered by a registration, its directors, officers, agents, affiliates and each other person, if any, who controls any Underwriter such Holder within the meaning of either the Securities Act, with respect to which such registration, qualification or compliance that has been effected pursuant to Section 15 2 hereof, and each underwriter, if any, and each person who controls any underwriter of the Act Registrable Securities held by or Section 20 of the Exchange Act issuable to such Holder from and against any all claims, losses, claimsexpenses, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or and liabilities (or actions in respect thereofthereto) arise arising out of or are based upon (i) any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany prospectus, offering circular or any amendment thereto, other document (including any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated registration statement, notification or the like) incident to any such registration, qualification or compliance, (ii) the omission (or alleged omission therefrom of omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement violation by the Company of any rule or alleged untrue statement of a material fact contained in any preliminary prospectus, regulation promulgated under the Disclosure Package or the Prospectus (Securities Act or any amendment state securities law applicable to the Company and relating to action or supplement thereto)inaction required by the Company in connection with any such registration, qualification or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingcompliance, and will reimburse each Underwritersuch Holder, directoreach of its officers, officerdirectors, agentmanager, affiliate or members and partners, and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any reasonable legal or and other expenses reasonably incurred by it in connection with investigating investigating, defending or defending against settling any such claim, loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 2.6 shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), and provided, further, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon the Company’s reliance on an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such Holder, any such underwriter or any such controlling person in writing specifically for use in such registration statement or prospectus and the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability (or action in respect thereof) arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statementsuch registration statement, any preliminary prospectus which untrue statement or the Prospectus alleged untrue statement or any such omission or alleged omission is completely corrected in an amendment or supplement, in reliance upon and in conformity with written information furnished supplement to the Company by youregistration statement and the undersigned indemnitees thereafter fail to deliver or cause to be delivered such registration statement as so amended or supplemented prior to or concurrently with the sale of the Registrable Securities to the person asserting such loss, claim, damage or by any Underwriter through you, specifically for use liability (or actions in the preparation respect thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that or expense after the Company may otherwise havehas furnished the undersigned with the same. (b) Each Underwriter Holder of Registrable Securities covered by a registration statement shall, severally and not jointly will jointly, indemnify and hold harmless the Company, each of its directorsdirectors and officers, its officers who sign the Registration Statement and each personunderwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, and each other such Holder, each of its officers, directors, managers, members and partners and each person controlling such other Holder, against any all claims, losses, claimsexpenses, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or and liabilities (or actions in respect thereof) arise arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany such registration statement, prospectus, offering circular or other document, or any amendment thereto, or the omission (or alleged omission therefrom of omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , and will reimburse the Company, such other Holders, such directors, officers, mangers, members, partners, persons or (ii) underwriters for any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (reasonable legal or any amendment other expenses incurred in connection with investigating, defending or supplement thereto)settling any such claim, loss, damage, liability or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingaction, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement statement) or omission (or alleged omission was omission) is made in the Registration Statementsuch registration statement, any preliminary prospectus prospectus, offering circular or the Prospectus or any such amendment or supplement, other document in reliance upon and in conformity with written information furnished to the Company by you, or an instrument duly executed by any Underwriter through you, such Holder specifically for use in therein; provided, however, the preparation thereof; and will reimburse the Company total amount for which any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in Holder shall be liable under this Section 6(b2.6(b) shall be not in addition to any liabilities that each Underwriter may otherwise haveevent exceed the aggregate proceeds received by such Holder from the sale of Registrable Securities held by such Holder in such registration. (c) Promptly Each party entitled to indemnification under Section 2.6 hereof (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement such Indemnified Party has actual knowledge of any action, such indemnified party shall, if a claim in respect thereof is as to which indemnity may be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified partysought, and it shall notify permit the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel Indemnifying Party to assume the defense of any such action within a reasonable time after receiving notice of the commencement of the actionclaim or any litigation resulting there from, in each of which cases the reasonable feesprovided, disbursements and other charges of that counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable feesIndemnifying Party, disbursements and other charges who shall conduct the defense of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party claim or parties. All such feeslitigation, disbursements and other charges will shall be reimbursed approved by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent Indemnified Party (which consent will whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense, and provided, further, that the failure of any Indemnified Party to give notice as provided herein, shall not relieve the Indemnifying Party of its obligations hereunder, unless such failure resulted in actual detriment to the Indemnifying Party. No indemnifying party Indemnifying Party, in the defense of any such claim or litigation, shall, without except with the prior written consent of each indemnified partyIndemnified Party, settle or compromise or consent to the entry of any judgment in or enter into any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or settlement which does not any indemnified party is a party thereto), unless such settlement, compromise or consent includes include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release of each indemnified party from all liability arising in respect to such claim or that may arise out of such claim, action or proceedinglitigation. (d) If In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Holder of Registrable Securities exercising rights under this Agreement, or any controlling person of any such holder, makes a claim for indemnification provided pursuant to Section 2.6 hereof but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that Section 2.6 hereof provides for indemnification in this Section 6 is unavailable under subsection (a) such case, or (bii) above to a party that would have been an indemnified party contribution under subsection (a) or (b) above (“Indemnified Party”) in respect the Securities Act may be required on the part of any such selling Holder or any such controlling person in circumstances for which indemnification is provided under Section 2.6 hereof; then, and in each such case, the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as so that such Holder is appropriate to reflect responsible for the relative benefits received portion represented by the Company on percentage that the one hand public offering price of its Registrable Securities offered by the registration statement bears to the public offering price of all securities offered by such registration statement, and the Underwriters on Company is responsible for the other from the offering of the Bonds. Ifremaining portion; provided, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwritersthat, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim case, (which shall be limited as provided in subsection (cA) above if the Indemnifying Party has assumed the defense of any no such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall Holder will be required to contribute any amount in excess of the underwriting discounts received public offering price of all such Registrable Securities offered by it. No it pursuant to such registration statement and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 5 contracts

Sources: Registration Rights Agreement (TK Star Design, Inc.), Registration Rights Agreement (Texas Rare Earth Resources Corp.), Registration Rights Agreement (Texas Rare Earth Resources Corp.)

Indemnification and Contribution. (a) The Company and Advanta, jointly and severally, will indemnify and hold harmless each Underwriter, its directorspartners, officers, agents, affiliates directors and officers and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Act, from and against (i) any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or any such controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (ix) any an untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, including or any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated preliminary prospectus, or (y) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, and will promptly reimburse each Underwriter, directortheir respective directors and officers and each person who controls the Underwriter within the meaning of Section 15 of the Act, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it any Underwriter and such other indemnified persons in connection with investigating investigating, preparing or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company and Advanta shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveUnderwriters' Information. (b) Each Underwriter will severally and not jointly will indemnify and hold harmless the CompanyCompany and Advanta, its directors, its their respective directors and officers who sign the Registration Statement and each person, if any, any who controls the Company or Advanta, as the case may be, within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against (i) any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, Advanta or such director, officer or controlling indemnified person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (ix) any an untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, or any related preliminary prospectus, or (y) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, in each case to the extent, but only to the extent, that that, with respect to the Underwriters, such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Underwriters' Information and will reimburse any legal or other expenses reasonably incurred by the Company by youand Advanta in connection with investigating or defending any such loss, claim, damage, liability or by any Underwriter through you, specifically for use in the preparation thereofaction as such expenses are incurred; and will reimburse the Company and Advanta, their respective directors and officers and each person who controls the Company or Advanta within the meaning of Section 15 of the Act, for any legal or other expenses reasonably incurred by the Company Company, Advanta and such other indemnified persons in connection with investigating investigating, preparing or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise haveaction as such expenses are incurred. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the claim or commencement thereof; but provided, however, that the omission so failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure; and provided further, however, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 8. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who may be counsel to the indemnifying party); provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party, and, after notice from and the indemnified party shall have been advised in writing (with a copy to the indemnifying party) by counsel that representation of such indemnified party and the indemnifying party is inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them, the indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party of its election so to assume the defense thereof, or parties. It is understood that the indemnifying party shall shall, in connection with any such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys together with appropriate local counsel at any time from all indemnified parties not having actual or potential differing interests with any other indemnified party. The indemnifying party will not be liable for any settlement entered into without its consent and will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or shall have employed separate counsel in addition to those available accordance with the proviso to the indemnifying partynext preceding sentence, (3ii) a conflict or potential conflict exists (based on advice of the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and provided that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and does not include a statement as to, action or proceedingan admission of, fault, culpability or failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 8 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and Advanta on the one hand and the Underwriters on the other from the offering of the BondsNotes. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (c) above, then each Indemnifying Party indemnifying party shall contribute to such amount paid or payable by such Indemnified Party indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and Advanta on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and Advanta on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes purchased under this Agreement (before deducting expenses) received by the Company and Advanta bear to the total underwriting discounts and commissions received by the UnderwritersUnderwriters with respect to the Notes purchased under this Agreement, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or Advanta on the one hand or the Underwriters on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Company, Advanta and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating investigating, preparing or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required obligated to contribute any amount in excess of the underwriting discounts received discount applicable to the Notes purchased by itsuch Underwriter under this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company and Advanta under this Section 6 8 shall be in addition to any liability which the Company and Advanta may otherwise have and shall extend, upon the same terms term and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 8 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company, to each officer of the Company or Advanta who has signed the Registration Statement and to each person, if any, who controls the Company or Advanta within the meaning of the Act.

Appears in 5 contracts

Sources: Underwriting Agreement (Advanta Business Receivables Corp), Underwriting Agreement (Advanta Business Receivables Corp), Underwriting Agreement (Advanta Business Receivables Corp)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each UnderwriterPurchaser, its each Holder, each underwriter, if any, who participates in an offering of Preference Registrable Securities, their respective affiliates, and their respective directors, officers, agentsemployees, affiliates agents and each personPerson, if any, who controls any Underwriter of such parties within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the any Preference Registration Statement, Statement (or any amendment thereto) pursuant to which Preference Registrable Securities were registered under the 1933 Act, including any information deemed to be a part thereof pursuant to Rule 430B under the Actall documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein therein, in the light of the circumstances under which they were made, not misleading; misleading or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), ) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and will reimburse expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever, in each Underwritercase, directorbased upon any such untrue statement or omission, officeror any such alleged untrue statement or omission; PROVIDED that (subject to Section 5(d) below) any such settlement is effected with the written consent of the Company; and (iii) against any and all expenses whatsoever, agentas incurred (including the reasonable fees and disbursements of one counsel chosen by MGPE), affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating investigating, preparing or defending against such lossany litigation, claimor any investigation or proceeding by any court or governmental agency or body, damagecommenced or threatened, liability or action; provided, however, that the Company shall not be liable in any claim whatsoever based upon any such case untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) of this Section 5(a); PROVIDED, HOWEVER, that this indemnity agreement does not apply to any loss, liability, claim, damage or liability arises expense to the extent (i) arising out of or is based upon an untrue statement or omission or alleged untrue statement or omission or alleged omission (A) made in the Registration Statement, any or omitted from a preliminary prospectus or the Prospectus or Preference Registration Statement and corrected or included in a subsequent Prospectus or Preference Registration Statement or any such amendment or supplement, supplement thereto made in reliance upon and in conformity with written information furnished to the Company by youthe Selling Holders of Preference Registrable Securities, any Purchaser, any Holder, or by any Underwriter through you, specifically underwriter expressly for use in the preparation thereof. The indemnity agreement set forth Preference Registration Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto) or (B) resulting from the use of the Prospectus during a period when the use of the Prospectus has been suspended for sales thereunder in this Section 6(a) shall be accordance with Sections 2.1(b), 2.1(c), 2.3, 2.4 or 2.6 hereof, PROVIDED, in addition to any liabilities each case, that the Company may otherwise haveHolders received prior notice of such suspension or other unavailability. (b) Each Underwriter In the case of any registration of Preference Registrable Securities, each Holder agrees, severally and not jointly will jointly, to indemnify and hold harmless the Company, its directorseach Purchaser, its officers each underwriter, if any, who sign participates in an offering of Preference Registrable Securities and the Registration Statement other Selling Holders and each personof their respective directors and officers (including each officer of the Company who signed the Preference Registration Statement) and each Person, if any, who controls the Company Company, any Purchaser, any underwriter or any other Selling Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any lossesand all loss, claimsliability, damages claim, damage and expense described in the indemnity contained in Section 5(a) hereof, as incurred, but only with respect to untrue statements or liabilities to which the Companyomissions, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement (or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, ) in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically such Holder expressly for use in the preparation thereofPreference Registration Statement (or any amendment thereto), or the Prospectus (or any amendment or supplement thereto); and will reimburse the Company PROVIDED, HOWEVER, that no such Holder shall be liable for any legal or other expenses reasonably incurred claims hereunder in excess of the amount of net proceeds received by such Holder from the Company in connection with investigating or defending against any sale of Preference Warrants and Preference Registrable Securities pursuant to such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havePreference Registration Statement. (c) Promptly after receipt by an indemnified party under subsection In case any action shall be commenced involving any Person in respect of which indemnity may be sought pursuant to either paragraph (a) or (b) above of notice of the commencement of any actionabove, such indemnified party shallPerson (the "INDEMNIFIED PARTY") shall give notice as promptly as reasonably practicable to each Person against whom such indemnity may be sought (the "indemnifying party"), if a claim in respect thereof is but failure to be made against the so notify an indemnifying party under shall not relieve such subsection, notify the indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in writing of the commencement thereof; but the omission so to notify the indemnifying party any event shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionon account of this indemnity agreement. In case any such action shall be brought against any indemnified party, and it shall notify the An indemnifying party of the commencement thereof, the indemnifying party shall be entitled to may participate at its own expense in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereofof such action; PROVIDED, with HOWEVER, that counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection (except with the defense thereof other than reasonable costs consent of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may also be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that In no event shall the indemnifying party or parties shall not, be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any proceeding one action or separate but similar or related proceedings actions in the same jurisdiction, be liable for jurisdiction arising out of the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party same general allegations or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)circumstances. No indemnifying party shall, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending litigation, or threatened claim, action any investigation or proceeding relating to the matters contemplated by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 5 (whether or not any the indemnified party is a party theretoparties are actual or potential parties thereof), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimlitigation, action investigation, proceeding or proceedingclaim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 5(a)(ii) hereof effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification provided for in any of the indemnity provisions set forth in this Section 6 5 is for any reason unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, liabilities, claims, damages or liabilities (or actions in respect thereof) expenses referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the aggregate amount paid or payable by such Indemnified Party as a result of such losses, liabilities, claims, damages or liabilities (or actions in respect thereof) and expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative benefits received by the Company fault of such indemnifying party or parties on the one hand hand, and the Underwriters such indemnified party or parties on the other from the offering of the Bonds. Ifhand, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or liabilities (or actions in respect thereof)expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company fault of such indemnifying party or parties on the one hand hand, and the Underwriters such indemnified party or parties on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault hand shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company such indemnifying party or the Underwriters parties or such indemnified party or parties and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Company, the Purchaser and the Underwriters Holders of the Preference Registrable Securities agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 5 were determined by pro rata allocation (even if the Underwriters Selling Holders of Preference Registrable Securities were treated as one entity entity, and the Holders were treated as one entity, for such purpose) or by any other another method of allocation which does not take account of the equitable considerations referred to above in this subsection (d)Section 5. The aggregate amount paid or payable by an Indemnified Party as a result of the losses, liabilities, claims, damages or liabilities (or actions in respect thereof) and expenses incurred by an indemnified party and referred to above in this subsection (d) Section 5 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by an governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such action untrue or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by italleged untrue statement or omission or alleged omission. No person Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend5, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each personPerson, if any, who controls any Underwriter a Purchaser or Holder within the meaning of the Act; and the obligations this Section 15 of the Underwriters under this Securities Act or Section 6 20 of the Exchange Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Purchaser or Holder, and conditions, to each director of the Company, to each officer of the Company who has signed the Preference Registration Statement Statement, and to each personPerson, if any, who controls the Company within the meaning of Section 15 of the ActSecurities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Company.

Appears in 5 contracts

Sources: Preference Warrant Registration Rights Agreement (Chase Cheryl A), Preference Warrant Registration Rights Agreement (Chase Arnold L), Preference Warrant Registration Rights Agreement (Darland Trust)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriterthe Agent, its the directors, officers, agents, affiliates employees and agents of the Agent and each person, if any, person who controls any Underwriter the Agent within the meaning of either Section 15 of the Act or Section 20 of 1933 Act, the Exchange Act from and or the 1940 Act against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the 1933 Act, the Exchange Act, the 1940 Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Prospectus, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel Agent specifically for inclusion therein. This indemnity agreement will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have have. Any indemnification by the Company pursuant to this Agreement shall be subject to the requirements and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate limitations of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning Section 17(i) of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act1▇▇▇ ▇▇▇.

Appears in 4 contracts

Sources: Equity Distribution Agreement (Prospect Capital Corp), Equity Distribution Agreement (Prospect Capital Corp), Equity Distribution Agreement (Prospect Capital Corp)

Indemnification and Contribution. (a) The Company Seller and the Bank, jointly and severally, will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or such controlling person may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any Time of Sale Information, the Registration Statement, Prospectus or any amendment theretoor supplement thereto or any Form ABS-15G furnished to the Commission on ▇▇▇▇▇ with respect to the transactions contemplated by this Agreement (a “Furnished Form ABS-15G”), including any information deemed data provided by the Seller, the Bank the Issuer or any of their affiliates to be a part thereof pursuant any Underwriter in order to Rule 430B under prepare the ActIntex CDI File, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each UnderwriterUnderwriter and each such officer, director, officer, agent, affiliate employee or controlling person for any legal or other expenses reasonably incurred by it each Underwriter and each such officer, director, employee or controlling person in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall Seller and the Bank will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereofInformation. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company Seller or the Bank may otherwise have. (b) Each Underwriter Underwriter, severally and not jointly jointly, will indemnify and hold harmless the Company, its directors, its officers who sign Seller and the Registration Statement Bank and each person, if any, who controls the Company Seller or the Bank within the meaning of either Section 15 of the Act or Section 20 of the Exchange ActAct and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities to which the Company, such director, officer Seller or controlling person the Bank may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) upon any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, the Preliminary Prospectus, the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Issuer, the Seller and the Bank by you, or by any such Underwriter through you, the Representatives specifically for use therein and (ii) with regard to any investor with whom an Underwriter enters into a Contract of Sale for the Notes prior to the filing of the final Prospectus, the failure upon the part of such Underwriter to convey (within the meaning of Rule 159 under the Act) the Preliminary Prospectus to such investor at or prior to the time of the contract of sale for such Notes; provided, however, that to the extent such Preliminary Prospectus or Prospectus, as the case may be, has been amended or supplemented, such indemnity shall not inure to the benefit of the Seller or the Bank unless such amendment or supplement shall have been delivered to such Underwriter in a reasonable period of time prior to the preparation thereof; and time of such contract of sale. Each Underwriter will reimburse the Company for any legal or other expenses reasonably incurred by the Company Seller or the Bank, as applicable, in connection with investigating or defending any of the losses, claims, damages, or liabilities (or actions in respect thereof) for which it has agreed to indemnify the Seller or the Bank, as applicable, in accordance with the foregoing. The Seller and the Bank agree with each Underwriter that the only written information furnished to the Issuer, the Seller and the Bank by the Underwriters specifically for use in the Registration Statement, the Preliminary Prospectus, the Prospectus, or any amendment or supplement thereto, or the Ratings Issuer Free Writing Prospectus is the information relating to the Underwriters and the underwriting of the Notes in the second sentence of the fourth paragraph and the sixth paragraph (except for the information relating to the Depositor in the last sentence thereof) under the heading “Underwriting” in the Preliminary Prospectus or the Prospectus (“Underwriter Information”). This indemnity agreement will be in addition to any liability that each Underwriter may otherwise have. (c) Each Underwriter, severally and not jointly, will indemnify and hold harmless the Seller and the Bank and each person, if any, who controls the Seller or the Bank within the meaning of the Act or the Exchange Act and the respective officers, directors, agents and employees of each such person, against any losses, claims, damages or liabilities to which the Seller or the Bank may become subject, under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any Underwriter Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse any legal or other expenses reasonably incurred by the Issuer, the Seller or the Seller in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that no Underwriter will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission in any Underwriter Free Writing Prospectus (i) made in reliance upon and in conformity with any written information furnished to the related Underwriter by the Seller or the Bank expressly for use therein or (ii) as a result of any inaccurate information (including as a result of any omission therein) in the Time of Sale Information, the Prospectus or the Issuer Information which information was not corrected by information subsequently provided by the Seller or the Bank to the related Underwriter prior to the time of use of such Underwriter Free Writing Prospectus. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionclause (a), (b) or (c) of this Section 9, notify the indemnifying party in writing of the commencement thereof; but provided, that the failure to notify the indemnifying party shall not relieve the indemnifying party from any liability which it may have under this Section 9, except to the extent that it has been materially prejudiced by such failure and, provided further, that the omission and/or delay so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionclause (a), (b) or (c) of this Section 9. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall wishmay elect by written notice, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, andbe counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and the appointment of satisfactory counsel, including local counsel if applicable, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have If the right to employ its own counsel defendants in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by action include both the indemnified party has been authorized in writing by and the indemnifying party, (2) party and the indemnified party has shall have reasonably concluded that (based on advice of counseli) that there exists actual or potential conflicting interests between the indemnifying party and the indemnified parties, or (ii) there may be legal defenses available to it or and/or other indemnified parties that are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not or parties shall have the right to direct select separate counsel, including local counsel if applicable, to assert such legal defenses and to otherwise participate in the defense of such action on behalf of the such indemnified party) party or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be parties at the expense of the indemnifying party or parties. It is understood that party, subject to the approval of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted (such approval not to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent settlement (i) includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction and (ii) does not include a statement as to, action or proceedingadmission of, fault, culpability or a failure to act by or on behalf of any such indemnified party. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify any indemnified party from and against any loss or liability by reason of such settlement or judgment. (de) If the indemnification provided for in this Section 6 9 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinthis Section 9, then each party that would have been an such indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in this Section 9, (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) but also the relative fault of the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Seller and the Bank on the one hand and the Underwriters relevant Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company Issuer or the Seller bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofrelevant Underwriter. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuer, the Seller or the Underwriters Bank or by any Underwriter and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection clause (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim which is the subject of this clause (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofe). Notwithstanding the provisions of this subsection clause (de), no Underwriter shall be required to contribute any amount in excess of the amount by which the total underwriting discounts and commissions received by itit in connection with such Notes underwritten by it exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in obligation of each Underwriter under this subsection (dSection 9(e) to contribute are shall be several in proportion to their respective underwriting obligations and not joint. (ef) The obligations of the Company indemnifying party under this Section 6 9 shall be in addition to any liability which the Company indemnifying party may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company indemnified party within the meaning of the Act.

Appears in 4 contracts

Sources: Underwriting Agreement (Capital One Prime Auto Receivables Trust 2021-1), Underwriting Agreement (Capital One Prime Auto Receivables Trust 2020-1), Underwriting Agreement (Capital One Prime Auto Receivables Trust 2019-2)

Indemnification and Contribution. (a) The Regardless of whether any _____________ are sold, the Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates each of their respective officers and directors and each person, if any, person who controls any each Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange Act from and 1934 Act, against any and all losses, claims, damages damages, or liabilitiesliabilities (including the cost of any investigation, legal and other expenses incurred in connection with and amounts paid in settlement of any action, suit, proceeding or claim asserted), joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person they may become subject, under the 1933 Act, the 1934 Act or other federal or state law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained (i) in the Registration Statement, or any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein therein, not misleading; misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package Basic Prospectus or the Prospectus (Supplement or any amendment thereto or supplement thereto), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person such indemnified party for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information relating to the Underwriter furnished to the Company by you, or by any such Underwriter through you, specifically for use in connection with the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter Regardless of whether any Certificates are sold, each Underwriter, severally and not jointly jointly, will indemnify and hold harmless the Company, its directors, each of its officers who sign the Registration Statement and directors and each person, if any, who controls the Company within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange Act, 1934 Act against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may they become subject, subject under the 1933 Act, the 1934 Act or other federal or state law or regulation, at common law or otherwise, to the same extent as the foregoing indemnity, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in (i) the Registration Statement, or any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or in (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus the Prospectus or the Prospectus (Supplement or any amendment thereto or supplement thereto), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information relating to the Underwriter furnished to the Company by you, or by any such Underwriter through you, specifically for use in the preparation thereof; thereof and so acknowledged in writing, and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to paragraphs a) or (b) above , b and c of notice of the commencement of any actionthis Section 5, such person (hereinafter called the indemnified party shall, if a claim in respect thereof is to party) shall promptly notify the person against whom such indemnity may be made against sought (hereinafter called the indemnifying party under such subsection, notify the indemnifying party party) in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it such indemnifying party from any liability which it may have to any indemnified party otherwise than under such subsectionParagraph. In case any such action shall be brought against any The indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and it shall notify any others the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of the commencement thereof, the indemnifying such counsel related to such proceeding. In any such proceeding any indemnified party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ retain its own counsel in any such actioncounsel, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1i) the employment of counsel by indemnifying party and the indemnified party has been authorized in writing by part shall have mutually agreed to the retention of such counsel, or (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between and the indemnified party and representation of both parties by the indemnifying party (in which case the indemnifying party will not have the right same counsel would be inappropriate due to direct the defense of such action on behalf of the indemnified party) actual or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or partiespotential differing interests between them. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted (in addition to practice in such jurisdiction at any one time local counsel) for all such indemnified party or parties. All , and that all such fees, disbursements fees and other charges will expenses shall be reimbursed by the indemnifying party promptly as they are incurred. An Such firm shall be designated in writing by the Underwriters in the case of parties indemnified pursuant to paragraph a of this Section 5 and by the Company in the case of parties indemnified pursuant to paragraphs b and e of this Section 5. The indemnifying party will shall not be liable for any settlement of any action proceeding effected without its written consent, but if settled with such consent or claim if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated above, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (which consent will i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not be unreasonably withheld)have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claim, action or proceeding. (d) If Each Underwriter agrees, severally and not jointly, to provide the indemnification provided for in this Section 6 Company no later than the date on which the Prospectus Supplement is unavailable under subsection required to be filed pursuant to Rule 424 (aor such other time as is necessary to permit timely filing as required by the Securities Exchange Commission and its rules) or (b) above to with a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect copy of any Derived Information (defined below) for filing with the Commission on Form 8-K. (e) Each Underwriter agrees, jointly and not severally, assuming all Company-Provided Information (defined below) is accurate and complete in all material respects, to indemnify and hold harmless the Company, its respective officers and directors and each person who controls the Company within the meaning of the Securities Act or the Exchange Act against any and all losses, claims, damages or liabilities (liabilities, joint or actions in respect thereof) referred several, to thereinwhich they may become subject under the Securities Act or the Exchange Act or otherwise, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party insofar as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering arise out of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as are based upon any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact contained in the Derived Information provided by such Underwriter, or arise out of or are based upon the omission or alleged omission to state therein a material fact relates required to information supplied by be stated therein or necessary to make the Company or statements therein, in the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account light of the equitable considerations referred circumstances under which they were made, not misleading, and agrees to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include reimburse each such indemnified party for any legal or other expenses reasonably incurred by such Indemnified Party him, her or it in connection with investigating or defending or preparing to defend any such loss, claim, damage, liability or action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentationexpenses are incurred. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company each Underwriter under this Section 6 5(e) shall be in addition to any liability which the Company each Underwriter may otherwise have and have. The procedures set forth in Section 5(c) shall extendbe equally applicable to this Section 5(e). (f) For purposes of this Section 5, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each personterm "Derived Information" means such portion, if any, who controls any Underwriter within the meaning of the Actinformation delivered to the Companies pursuant to Section 5(d) for filing with the Commission on Form 8-K as: (i) is not contained in the Prospectus without taking into account information incorporated therein by reference; and the obligations of (ii) does not constitute Company-Provided Information. "Company-Provided Information" means any computer tape furnished to the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of by the Company who has signed concerning the Registration Statement and to each person, if any, who controls assets comprising the Company within the meaning of the ActTrust.

Appears in 4 contracts

Sources: Underwriting Agreement (Prudential Securities Secured Financing Corp), Underwriting Agreement (Prudential Securities Secured Financing Corp), Underwriting Agreement (Prudential Securities Secured Financing Corp)

Indemnification and Contribution. (a) The Company will Depositor and HMFC shall, jointly and severally, indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter or such controlling person may become subject under the Securities Act or otherwise, to the extent such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement made by the Depositor or HMFC in Section 2 hereof, (ii) any untrue statement or alleged untrue statement of any material fact contained or incorporated in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto, or (iii) the omission or alleged omission to state in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto a material fact required to be stated therein or necessary to make the statements therein, not misleading, and will reimburse, as incurred, each such indemnified party for any legal or other costs or expenses reasonably incurred by it in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, that the Depositor and HMFC will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto in the Underwriters’ Information; provided, further, that the Depositor and HMFC shall not be liable to any Underwriter or any of the directors, officers, employees and agents of an Underwriter and each person, if any, who controls an Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, with respect to any loss, claim, damage or liability that results from the fact that the Underwriter sold Notes to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, if delivery thereof was required, a copy of the Prospectus or the Prospectus as then amended or supplemented, whichever is most recent, if the Depositor has previously furnished copies thereof to such Underwriter within a reasonable time period prior to such confirmation. The indemnity provided for in this Section 10 shall be in addition to any liability which the Depositor and HMFC may otherwise have. The Depositor and HMFC will not, without the prior written consent of the Representative, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not the Representative or any person who controls the Representative is a party to such claim, action, suit or proceeding), unless such settlement, compromise or consent (i) includes an unconditional release of all of the Underwriters and such controlling persons from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or admission of, fault, culpability or a failure to act by or on behalf of any Underwriter or controlling person. (b) Each Underwriter, severally and not jointly, will indemnify and hold harmless each of the Depositor and HMFC, each of its directors and officers and each person, if any, who controls the Depositor or HMFC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Depositor, HMFC or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, ) or (ii) the omission or the alleged omission therefrom of to state in the Preliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto) a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by youUnderwriters’ Information, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company Depositor, HMFC or any such director, officer or controlling person in connection with investigating or investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or actionany action in respect thereof. The indemnity agreement set forth remedies provided for in this Section 6(b) 10 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition available to any liabilities that each Underwriter may otherwise haveindemnified party at law or in equity. (c) Promptly after receipt by an indemnified party under subsection In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to paragraph (a) or (b) above of this Section 10, such person (for purposes of this paragraph (c), the “indemnified party”) shall, promptly after receipt by such party of notice of the commencement of any such action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the person against whom such indemnity may be sought (for purposes of this paragraph (c), the “indemnifying party in writing of the commencement thereof; party”), but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 10. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (which may be counsel to such indemnifying party if otherwise reasonably acceptable to the indemnified party); provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, and, after the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof any such action and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 10 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The thereof, unless (i) the indemnified party will shall have the right to employ its own employed separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel in each applicable local jurisdiction) in any one action or separate but substantially similar actions arising out of the same general allegations or circumstances, designated in writing by the Representative in the case of paragraph (a) of this Section 10, representing the indemnified parties under such actionparagraph (a) who are parties to such action or actions), but (ii) the fees, expenses and other charges indemnifying party has authorized the employment of such counsel will be for the indemnified party at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2iii) the use of counsel chosen by the indemnifying party to represent the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) would present such counsel with a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) interest or (4iv) the indemnifying party has not in fact employed counsel elected to assume the defense of such action proceeding but has failed within a reasonable time after receiving notice of to retain counsel reasonably satisfactory to the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its written the consent (which consent will not be unreasonably withheld)of the indemnifying party. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement (x) includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and (y) does not include any statement as to or any admission of fault, action culpability or proceedinga failure to act by or on behalf of any indemnified party. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 10 is unavailable under subsection (a) or (b) above insufficient, for any reason, to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Depositor and HMFC on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes (before deducting expenses) received by the Company Depositor and HMFC (including for such purpose, the value of the Certificates) bear to the total underwriting discounts and commissions received by the Underwriters, in each case Underwriters (the “Spread”) as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Depositor, HMFC or the Underwriters and Underwriters, the parties’ relative intentintents, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Depositor, HMFC and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter shall be obligated to make contributions hereunder that in the aggregate exceed the amount by which the Spread received by it in the initial offering of such Notes, less the aggregate amount of any damages that such Underwriter has otherwise been required to contribute any amount pay in excess respect of the underwriting discounts received by it. No same or any substantially similar claim, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11 (f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute hereunder are several in proportion to their respective underwriting obligations principal amount of Notes they have purchased hereunder, and not joint. . For purposes of this paragraph (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extendd), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Securities Act or Section 6 20 of the Exchange Act, and each director, officer, employee and agent of an Underwriter shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the CompanyDepositor and HMFC, to each officer of the Company who has signed the Registration Statement Depositor and to HMFC and each person, if any, who controls the Company Depositor and HMFC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Depositor and HMFC.

Appears in 4 contracts

Sources: Underwriting Agreement (Hyundai Abs Funding Corp), Underwriting Agreement (Hyundai Auto Receivables Trust 2006-B), Underwriting Agreement (Hyundai Auto Receivables Trust 2006-A)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subjectsubject (including in its capacity as an Underwriter or as a "qualified independent underwriter" within the meaning of Schedule E of the Bylaws of the NASD), under the Act, the Exchange Act or otherwise, insofar as such specifically including losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of the Company herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus, the Disclosure Package Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, such Preliminary Prospectus or the Prospectus, or any such amendment or supplement thereto, in reliance upon, and in conformity with, written information relating to any Underwriter furnished to the Company by such Underwriter, directly or through you, specifically for use in the preparation thereof and, provided further that the indemnity agreement provided in this Section 8(a) with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any losses, claims, damages, liabilities or actions based upon any untrue statement or alleged untrue statement of material fact or omission or alleged omission to state therein a material fact purchased Shares, if a copy of the Prospectus (or any amendment or supplement thereto, to the extent available at the time) in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected had not been sent or given to such person within the time required by the Act and the Rules and Regulations, unless such failure is the result of noncompliance by the Company with Section 4(d) hereof. The indemnity agreement in this Section 8(a) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that the Company may otherwise have. (b) Subject to Section 8(f), each Selling Stockholder, severally and not jointly, agrees to indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject (including in its capacity as an Underwriter) under the Act, the Exchange Act or otherwise, specifically including losses, claims, damages or liabilities (or actions in respect thereof) arising out of or based upon (i) any breach of any representation, warranty, agreement or covenant of such Selling Stockholder herein contained, (ii) any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement or any amendment or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any untrue statement or alleged untrue statement of any material fact contained in any Preliminary Prospectus or the Prospectus or any amendment or supplement thereto, or the omission or alleged omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of subparagraphs (ii) and (iii) of this Section 8(b) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company or such Underwriter by such Selling Stockholder, directly or through such Selling Stockholder's representatives, specifically for use in the preparation thereof, and agrees to reimburse each Underwriter for any legal or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that: (i) any payment obligation of the Selling Stockholders under this Section 8(b) shall be limited to the amount of losses, claims, damages and liabilities that are not paid by the Company pursuant to Section 8(a), and any payment by the Selling Stockholders under this Section 8(b) shall not be required until after (A) compliance with the provisions of Section 8(d) with respect to the obligations of the Company under Section 8(a) and (B) demand for payment has been made by the Underwriters first upon the Company and such payment has not made by the Company within fifteen days of such demand, provided, however, that this clause (i) shall not apply with respect to any Selling Stockholder in the event and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus Preliminary Prospectus or the Prospectus Prospectus, or any such amendment or supplementsupplement thereto, in reliance upon upon, and in conformity with with, written information relating to such Selling Stockholder furnished to the Company by you, or by any Underwriter through you, such Selling Stockholder specifically for use in the preparation thereof; and (ii) the indemnity agreement provided in this Section 8(b) with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any losses, claims, damages, liabilities or actions based upon any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state therein a material fact purchased Shares, if a copy of the Prospectus in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected had not been sent or given to such person within the time required by the Act and the Rules and Regulations, unless such failure is the result of noncompliance by the Company with Section 4(d) hereof. The indemnity agreement set forth in this Section 6(a8(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that the Company such Selling Stockholder otherwise may otherwise have. (bc) Each Underwriter Underwriter, severally and not jointly will jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement Company and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, Selling Stockholder against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, Company or such director, officer or controlling person Selling Stockholder may become subject, subject under the Act or otherwise, insofar as such specifically including losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of such Underwriter herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each the case of subparagraphs (ii) and (iii) of this Section 8(c) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by yousuch Underwriter, directly or by any Underwriter through you, specifically for use in the preparation thereof; , and will agrees to reimburse the Company and each such Selling Stockholder for any legal or other expenses reasonably incurred by the Company and each such Selling Stockholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b8(c) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer of the Company who signed the Registration Statement and each director of the Company, each Selling Stockholder and each person, if any, who controls the Company or either Selling Stockholder within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that each Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the any indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; thereof but the omission so to notify the indemnifying party shall will not relieve it from any liability which that it may have to any indemnified party otherwise than under such subsectionthis Section 8. In case any such action shall be is brought against any indemnified party, and it shall notify notified the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its the indemnifying party's election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with appropriate local counsel) that there may be legal defenses available to it or other approved by the indemnifying party representing all the indemnified parties that under Section 8(a), 8(b) or 8(c) hereof who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or parties. It is understood party; provided that in no event shall the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party for any legal fees or partiesexpenses in excess of reasonable legal fees and expenses. All such fees, disbursements and other charges will be reimbursed by the In no event shall any indemnifying party promptly as they are incurred. An indemnifying party will not be liable for in respect of any amounts paid in settlement of any action or claim effected without its written unless the indemnifying party shall have approved the terms of such settlement; provided that such consent (which consent will shall not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on all claims that may arise out are the subject matter of such claim, action or proceeding. (de) If the In order to provide for just and equitable contribution in any action in which a claim for indemnification provided for in is made pursuant to this Section 6 8 but it is unavailable under subsection judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) or (b) above that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8 provides for indemnification in such case, all the parties hereto shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. Ifso that, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case except as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a8(f) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied Underwriters severally and not jointly are responsible pro rata for the portion represented by the Company or percentage that the Underwriters underwriting discount bears to the initial public offering price, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree Selling Stockholders are responsible for the remaining portion, provided, however, that it would not be just and equitable if contribution pursuant to this subsection (di) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the underwriting discounts received discount applicable to the Shares purchased by it. No such Underwriter exceeds the amount of damages that such Underwriter has otherwise required to pay and (ii) no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations contribution agreement in this subsection (dSection 8(e) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, extend upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriterconditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter Underwriter, the Company or either Selling Stockholder within the meaning of the Act; Act or the Exchange Act and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and each director of the Company. (f) The liability of each Selling Stockholder under the indemnity and contribution agreements contained in the provisions of this Section 8 shall be limited to each personan amount equal to the initial public offering price of any Option Shares sold by such Selling Stockholder to the Underwriters minus the amount of the underwriting discounts and commissions paid thereon to the Underwriters by such Selling Stockholder. Without limiting the foregoing, if anyno Option Shares are sold by the Selling Stockholders to the Underwriters, who controls the Selling Stockholders, as such, shall have no liability under this Section 8. The Company within and such Selling Stockholders may agree, as among themselves and without limiting the meaning rights of the ActUnderwriters under this Agreement, as to the respective amounts of such liability for which they each shall be responsible. (g) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including the provisions of this Section 8, an

Appears in 4 contracts

Sources: Underwriting Agreement (Value America Inc /Va), Underwriting Agreement (Value America Inc /Va), Underwriting Agreement (Value America Inc /Va)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or the are based upon an omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained fact, in any preliminary prospectus, light of the Disclosure Package or the Prospectus (or any amendment or supplement thereto)circumstances in which it was made, or the an omission or alleged omission therefrom of to state a material fact required to be stated or necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, in any Preliminary Prospectus, the Final Prospectus, or in any amendment or supplement thereto, or in any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d), and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveinclusion therein. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of such Underwriter through the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings Representatives specifically for inclusion in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act documents referred to in Section 2(a8(a) hereofabove. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall This indemnity agreement will be in addition to any liability which the Company any Underwriter may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.have. The

Appears in 4 contracts

Sources: Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co)

Indemnification and Contribution. (a) A. The Company will Depositor agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 12 of the Exchange Act from and against any lossesand all loss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Offered Certificates), to which such Underwriter, director, officer, agent, affiliate Underwriter or any such controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or (ii) the omission or alleged omission therefrom of to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading; or , (iiiii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusthe Prospectus, the Disclosure Package or the Prospectus (or any amendment thereof or supplement thereto), or (iv) the omission or alleged omission therefrom of to state in the Prospectus a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, misleading and will shall reimburse such Underwriter and each Underwriter, director, officer, agent, affiliate or such controlling person promptly upon demand for any legal or other expenses reasonably incurred by it such Underwriter or such controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company Depositor shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Prospectus, or any amendment thereof or supplement thereto, or the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment thereof or supplementsupplement thereto, in reliance upon and in conformity with written information furnished to the Company Depositor by you, or by any on behalf of such Underwriter through you, specifically for use inclusion therein (except to the extent that any untrue statement or alleged untrue statement or omission or alleged omission is a result of Seller Provided Information which is not accurate and complete in the preparation thereofall material respects). The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company Depositor may otherwise havehave to any Underwriter or any controlling person of any of such Underwriter. (b) B. Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the CompanyDepositor, each of its directors, each of its officers who sign signed the Registration Statement Statement, and each person, if any, who controls the Company Depositor within the meaning of either Section 15 of the Securities Act or Section 20 12 of the Exchange Act, Act against any lossesand all loss, claimsclaim, damages damage or liabilities liability, or any action in respect thereof, to which the Company, Depositor or any such director, officer or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementProspectus, or any amendment thereof or supplement thereto, or (ii) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto)Prospectus, or when considered in conjunction with the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, and in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Depositor by you, or by any on behalf of such Underwriter through you, specifically for use in the preparation thereof; inclusion therein, and will shall reimburse the Company Depositor and any such director, officer or controlling person for any legal or other expenses reasonably incurred by the Company Depositor or any director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred, provided, however, that no Underwriter shall be liable to the extent that such untrue statements or alleged untrue statement or omission or alleged omission is a result of Seller Provided Information that is not accurate and complete in all material respects. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each liability which any Underwriter may otherwise havehave to the Depositor or any such director, officer or controlling person. (c) C. Promptly after receipt by an any indemnified party under subsection (a) or (b) above this Section VIII of notice of any claim or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the any indemnifying party under such subsectionthis Section VIII, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section VIII except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section VIII. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, except to the extent provided in the next following paragraph, the indemnifying party shall not be liable to such the indemnified party under such subsection this Section VIII for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The Any indemnified party will shall have the right to employ its own separate counsel in any such actionaction and to participate in the defense thereof, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless unless: (1i) the employment of counsel by the indemnified party thereof has been specifically authorized in writing by the indemnifying party, party in writing; (2ii) the such indemnified party has reasonably concluded (based on advice of counsel) shall have been advised by such counsel that there may be one or more legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel; or (3iii) a conflict or potential conflict exists (based on advice the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party) between the , in which case, if such indemnified party and notifies the indemnifying party (in which case writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party will shall not have the right to direct assume the defense of such action on behalf of the such indemnified party) or (4) , it being understood, however, the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding one such action or separate but substantially similar or related proceedings actions in the same jurisdictionjurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted of attorneys (in addition to practice in such jurisdiction one local counsel per jurisdiction) at any one time for all such indemnified party parties, which firm shall be designated in writing by the related Underwriter, if the indemnified parties under this Section VIII consist of one or partiesmore Underwriters or any of its or their controlling persons, or the Depositor, if the indemnified parties under this Section VIII consist of the Depositor or any of the Depositor's directors, officers or controlling persons. All such feesEach indemnified party, disbursements as a condition of the indemnity agreements contained in Section VIII(A) and other charges will be reimbursed by (B), shall use its best efforts to cooperate with the indemnifying party promptly as they are incurredin the defense of any such action or claim. An No indemnifying party will not shall be liable for any settlement of any such action or claim effected without its written consent (which consent will shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing paragraph, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 3 contracts

Sources: Underwriting Agreement (Amresco Residential Securities Corp Mortgage Loan Tr 1997-2), Underwriting Agreement (Amresco Residential Securities Corp Mortgage Loan Tr 1998-2), Underwriting Agreement (Amresco Residential Securities Corp Mort Loan Trust 1998-1)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or the are based upon an omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained fact, in any preliminary prospectus, light of the Disclosure Package or the Prospectus (or any amendment or supplement thereto)circumstances in which it was made, or the an omission or alleged omission therefrom of to state a material fact required to be stated or necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, in any Preliminary Prospectus, the Final Prospectus, or in any amendment or supplement thereto, or in any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Act, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveinclusion therein. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company documents referred to in connection with investigating or defending against any such loss, claim, damage, liability or actionSection 8(a) above. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that (i) the statement set forth on the cover page regarding delivery of the Securities and (ii) under the heading “Underwriting,” (A) the sentences related to concessions and reallowances and (B) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and does not include a statement as to, or admission of, fault, culpability or failure to act on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in paragraph (a), (b) or (c) of this Section 6 8 is unavailable for any reason held to be unenforceable by an indemnified party or is insufficient to hold harmless a party indemnified under subsection paragraph (a) or (b) above of this Section 8, although applicable in accordance with its terms (including the requirements of Section 8(c) above), the Company and the Underwriters severally agree to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder; provided, further, that each Underwriter’s obligation to contribute to Losses hereunder shall be several and not joint. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 3 contracts

Sources: Underwriting Agreement (Exelon Generation Co LLC), Underwriting Agreement (Exelon Generation Co LLC), Underwriting Agreement (Exelon Corp)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, as incurred, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage or liabilities liability (or actions action in respect thereof) arise arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained made by the Company in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleadingSection 1 hereof; or (ii) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, any preliminary prospectusPre-Effective Prospectus, the Disclosure Package Effective Prospectus, or the Final Prospectus (or any amendment or supplement thereto, or (B) in any blue sky application or other document executed by the Company specifically for that purpose or based upon written information furnished by the Company filed in any state or other jurisdiction in order to qualify any or all of the Shares under the securities laws thereof (any such application, documents or information being hereinafter called a “Blue Sky Application”); or (iii) the omission or alleged omission to state in the Registration Statement or any amendment thereto a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or the omission or alleged omission therefrom of to state in any Pre-Effective Prospectus, the Effective Prospectus, the Final Prospectus or any supplement thereto or in any Blue Sky Application a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, ; and will shall reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, except that the Company shall not be liable in any such case to the extent extent, but only to the extent, that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company through the Representative by you, or by on behalf of any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to of the Registration Statement, any liabilities that Pre-Effective Prospectus, the Company may otherwise haveEffective Prospectus, the Final Prospectus or any amendment or supplement thereto, or any Blue Sky Application. (b) Each Underwriter severally and severally, but not jointly will jointly, shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, as incurred, to which the Company, such director, officer or controlling person Company may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage or liabilities liability (or actions action in respect thereof) arise arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration StatementStatement any Pre-Effective Prospectus, the Effective Prospectus, the Final Prospectus or any amendment or supplement thereto, or (B) in any Blue Sky Application, or (ii) the omission or alleged omission therefrom of to state in the Registration Statement or any amendment thereto a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances under which they were made, not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state in any Pre-Effective Prospectus, the Effective Prospectus, Final Prospectus or any supplement thereto or in any Blue Sky Application a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, ; except that such indemnification shall be available in each such case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company through the Representative by you, or by any on behalf of such Underwriter through you, specifically for use in the preparation thereof; , and will shall reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection sub-section (a) or (b) above of notice of any claim or the commencement of any action, such action the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsection. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; except that the Representative shall have the right to employ its own counsel to represent the Representative and those other Underwriters who may be subject to liability arising out of any claim in any such action, but the fees, expenses and other charges respect of such counsel will which indemnity may be at the expense of such indemnified party unless (1) the employment of counsel sought by the indemnified party has been authorized Underwriters against the Company under such subsection if, in writing by the indemnifying partyRepresentative reasonable judgment, (2) based upon the indemnified party has reasonably concluded (based on advice of counsel) , it is advisable for the Representative and those Underwriters to be represented by separate counsel, and in that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to event the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party fees and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense expenses of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed separate counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will shall be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed paid by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceedingCompany. (d) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a) or actions in respect thereof(b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Shares or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Shares (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative fault of the Company on the one hand and the Underwriters on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue or alleged untrue statement or omission or alleged omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in the first sentence of this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending against any such action or claim (which shall be limited as provided in is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofd). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. Each party entitled to contribution agrees that upon the service of a summons or other initial legal process upon it in any action instituted against it in respect of which contribution may be sought, it shall promptly give written notice of such service to the party or parties from whom contribution may be sought, but the omission so to notify such party or parties of any such service shall not relieve the party from whom contribution may be sought from any obligation it may have hereunder or otherwise (except as specifically provided in subsection (c) hereof). (e) The obligations of the Company under this Section 6 7 shall be in addition to any liability which the Company may otherwise have have, and shall extend, upon the same terms and conditions, to each director, officer, agent officer and affiliate director of an Underwriter, each Underwriter and to each person, if any, who controls any Underwriter or the QIU within the meaning of the Securities Act; and the obligations of the Underwriters under this Section 6 7 shall be in addition to any liability which that the respective Underwriters may otherwise have have, and shall extend, upon the same terms and conditions, to each director of the Company (including any person who, with his consent, is named in the Registration Statement as about to become a director of the Company), to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Securities Act, in either case, whether or not such person is a party to any action or proceeding. (f) Without limitation of and in addition to its obligations under the other paragraphs of this Section 7, the Company agrees to indemnify and hold harmless the QIU, its partners, members, directors, officers, affiliates and each person, if any, who controls the QIU within the meaning of Section 15 of the Act from and against any and all losses, claims, damages or liabilities, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of Shares) to which the QIU, director, officer, employee or controlling person may become subject, under the Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, the QIU’s acting as such “qualified independent underwriter” in connection with the offering contemplated by this Agreement; and agrees to reimburse each such indemnified party promptly upon demand for any legal or other expenses reasonably incurred by them in connection with investigating or defending or preparing to defend any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that it is determined in a final judgment by a court of competent jurisdiction that such loss, claim, damage, liability or action resulted directly from the gross negligence or willful misconduct of the QIU. The relative benefits received by the QIU with respect to the offering contemplated by this Agreement will, for purposes of Section 7(d), be deemed to be equal to the compensation received by the QIU for acting in such capacity. In addition, notwithstanding the provisions of Section 7(d), the QIU will not be required to contribute any amount in excess of the compensation received by the QIU for acting in such capacity.

Appears in 3 contracts

Sources: Underwriting Agreement (Wilson Holdings, Inc.), Underwriting Agreement (Wilson Holdings, Inc.), Underwriting Agreement (Wilson Holdings, Inc.)

Indemnification and Contribution. (a) The Company will Issuer and Consumers agree, to the extent permitted by law, to indemnify and hold harmless each Underwriterof the Underwriters, its directors, officers, agents, affiliates their officers and directors and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and Act, against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Securities Act, Exchange Act or otherwise, and to reimburse the Underwriters and such controlling person or persons, if any, for any legal or other expenses incurred by them in connection with defending any action, suit or proceeding (including governmental investigations) as provided in Section 11(c) hereof, insofar as such losses, claims, damages damages, liabilities or liabilities actions, suits or proceedings (or actions in respect thereofincluding governmental investigations) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Pricing Prospectus, the Pricing Package or the Final Prospectus, or if the Final Prospectus shall be amended or supplemented, in the Final Prospectus as so amended or supplemented (if such Final Prospectus or such Final Prospectus as amended or supplemented is used after the period of time referred to in Sections 8(a)(iv) and 8(b)(iii) hereof, it shall contain or be used with such amendments or supplements as the Issuer and Consumers deem necessary to comply with Section 10(a) of the Securities Act), the information contained in the Term Sheets, any other Issuer Free Writing Prospectus or any amendment thereto, including any issuer information deemed (within the meaning of Rule 433 under the Securities Act) filed or required to be a part thereof filed pursuant to Rule 430B 433(d) under the Act, Securities Act or the arise out of or are based upon any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , except insofar as such losses, claims, damages, liabilities or actions, suits or proceedings (iiincluding governmental investigations) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises arise out of or is are based upon an any such untrue statement or alleged untrue statement or omission or alleged omission that was made in the such Registration Statement, the Pricing Package, Final Prospectus, the Term Sheets or any preliminary prospectus or the other Issuer Free Writing Prospectus or any such amendment issuer information (within the meaning of Rule 433 under the Securities Act) filed or supplement, required to be filed pursuant to Rule 433(d) under the Securities Act in reliance upon and in conformity with written information furnished in writing to the Company by you, or by Issuer and Consumers through the Representatives on behalf of any Underwriter through you, specifically Underwriters expressly for use therein. Notwithstanding the foregoing, the indemnity agreement contained in this Section 11(a) with respect to any untrue statement in or omission from the preparation thereofPricing Prospectus shall not inure to the benefit of the Underwriters (or any other party described in this Section 11(a)) to the extent that the sale of the Bonds to the person or entity asserting any such loss, claim, damage or liability was an initial resale by the Underwriters and any such loss, claim, damage or liability with respect to the Underwriters results from the fact that both (i) copies of the Preliminary Term Sheet or Pricing Term Sheet were not conveyed to such person or entity at or prior to the written confirmation of the sale of such Bonds to such person or entity and (ii) the untrue statement in or omission from the Pricing Prospectus was corrected in such Preliminary Term Sheet or Pricing Term Sheet. The indemnity agreement set forth contained in this Section 6(a11(a), and the covenants, representations and warranties of the Issuer and Consumers contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of any person, and shall survive the delivery of and payment for the Bonds hereunder, and the indemnity agreement contained in this Section 11 shall survive any termination of this Agreement. The liabilities of the Issuer or Consumers in this Section 11(a) shall be are in addition to any other liabilities that of the Company may otherwise haveIssuer or Consumers under this Agreement or otherwise. (b) Each Underwriter agrees, severally and not jointly will indemnify and jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse the CompanyIssuer and Consumers, its directors, its each of the Issuer’s and Consumers’ managers and directors and such of the officers who sign of the Issuer and Consumers as shall have signed the Registration Statement and each person, if any, who controls the Company Issuer or Consumers within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under same extent and upon the Act or otherwise, insofar same terms as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light indemnity agreement of the circumstances under which they were made, not misleading, Issuer and Consumers as set forth in each case to the extentSection 11(a) hereof, but only with respect to the extent, that such untrue statement or alleged untrue statement statements or omission or alleged omission was omissions made in the Registration Statement, any preliminary prospectus the Pricing Package, the Final Prospectus, as amended or supplemented (if applicable), the Prospectus Term Sheets or any such amendment or supplement, other Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished in writing to the Company by you, or by any Issuer and the Consumers through the Representatives on behalf of such Underwriter through you, specifically expressly for use therein. The Issuer and Consumers acknowledge that the only such information furnished in writing to the preparation thereof; Issuer and will reimburse Consumers as of the Company for any legal or other expenses reasonably incurred by date hereof is set forth in Schedule IV hereto (the Company in connection with investigating or defending against any such loss, claim, damage, liability or action“Underwriter Information”). The indemnity agreement set forth on the part of each Underwriter contained in this Section 6(b11(b) and the covenants, representations and warranties of such Underwriter contained in this Underwriting Agreement shall be remain in full force and effect regardless of any investigation made by or on behalf of the Issuer, Consumers or any other person, and shall survive the delivery of and payment for the Bonds hereunder, and the indemnity agreement contained in this Section 11 shall survive any termination of this Agreement. The liabilities of each Underwriter in this Section 11(b) are in addition to any other liabilities that each of such Underwriter may otherwise haveunder this Agreement or otherwise. (c) Promptly If a claim is made or an action, suit or proceeding (including governmental investigation) is commenced or threatened against any person as to which indemnity may be sought under Section 11(a) hereof or Section 11(b) hereof, such person (the “Indemnified Person”) shall notify the person against whom such indemnity may be sought (the “Indemnifying Person”) promptly after receipt by any assertion of such claim, promptly after any threat is made to institute an indemnified party under subsection (a) action, suit or (b) above of notice proceeding or, if such an action, suit or proceeding is commenced against such Indemnified Person, promptly after such Indemnified Person shall have been served with a summons or other first legal process, giving information as to the nature and basis of the commencement of any action, such indemnified party shall, if a claim in respect thereof is claim. Failure to be made against the indemnifying party under such subsection, so notify the indemnifying party in writing of Indemnifying Person shall not, however, relieve the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it Indemnifying Person from any liability which that it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party on account of the commencement thereofindemnity under Section 11(a) hereof or Section 11(b) hereof if the Indemnifying Person has not been prejudiced in any material respect by such failure. Subject to the immediately succeeding sentence, the indemnifying party Indemnifying Person shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereofof any such litigation or proceeding, including the employment of counsel and the payment of all expenses, with such counsel satisfactory being designated, subject to such the immediately succeeding sentence, in writing by the Representatives in the case of parties indemnified party, and, after notice from pursuant to Section 11(b) hereof and by the indemnifying party Issuer or Consumers in the case of parties indemnified pursuant to such indemnified party of its election so to assume the defense thereof, the indemnifying party Section 11(a) hereof. Any Indemnified Person shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ participate in such litigation or proceeding and to retain its own counsel in any such actioncounsel, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party Indemnified Person unless (1i) the employment Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel by the indemnified party has been authorized in writing by the indemnifying party, or (2ii) the indemnified party has reasonably concluded named parties to any such proceeding (based on advice of counselincluding any impleaded parties) that there may be legal defenses available to it or other indemnified parties that are different from or include (x) the Indemnifying Person and (y) the Indemnified Person and, in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice written opinion of counsel to such Indemnified Person, representation of both parties by the indemnified party) same counsel would be inappropriate due to actual or likely conflicts of interest between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the actionthem, in each either of which cases the reasonable fees, disbursements fees and other charges expenses of counsel will (including disbursements) for such Indemnified Person shall be at reimbursed by the expense Indemnifying Person to the Indemnified Person. If there is a conflict as described in clause (ii) above, and the Indemnified Person(s) have participated in the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person and the Indemnified Person(s), or any of them, are found in a final judicial determination to be liable, such Indemnified Person(s) shall repay to the indemnifying party or partiesIndemnifying Person such fees and expenses of such separate counsel as the Indemnifying Person shall have reimbursed. It is understood that the indemnifying party or parties Indemnifying Person shall not, in connection with any litigation or proceeding or related litigation or proceedings in the same jurisdictionjurisdiction as to which the Indemnified Person(s) are entitled to such separate representation, be liable under this Agreement for the reasonable fees, disbursements fees and other charges out-of-pocket expenses of more than one separate firm admitted to practice in such jurisdiction at any (together with not more than one time appropriate local counsel) for all such indemnified party or partiesIndemnified Persons. All Subject to the next paragraph, all such fees, disbursements fees and other charges will expenses shall be reimbursed by payment to the indemnifying party Indemnified Person(s) of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Person(s). In furtherance of the requirement above that fees and expenses of any separate counsel for the Indemnified Person(s) shall be reasonable, the Underwriters, the Issuer and Consumers agree that the Indemnifying Person’s obligations to pay such fees and expenses shall be conditioned upon the following: (1) in case separate counsel is proposed to be retained by the Indemnified Person(s) pursuant to clause (ii) of the preceding paragraph, the Indemnified Person(s) shall in good faith fully consult with the Indemnifying Person in advance as they are incurredto the selection of such counsel; (2) reimbursable fees and expenses of such separate counsel shall be detailed and supported in a manner reasonably acceptable to the Indemnifying Person (but nothing herein shall be deemed to require the furnishing to the Indemnifying Person of any information, including, without limitation, computer print-outs of lawyers’ daily time entries, to the extent that, in the judgment of such counsel, furnishing such information might reasonably be expected to result in a waiver of any attorney-client privilege); and (3) the Issuer, Consumers and the Representatives shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Person(s) for which the Indemnifying Person is liable hereunder, and the Indemnified Person(s) shall use reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. An indemnifying party will The Indemnifying Person shall not be liable for any settlement of any action litigation or claim proceeding effected without its the written consent (which of the Indemnifying Person, but, if settled with such consent will not or if there be unreasonably withheld)a final judgment for the plaintiff, the Indemnifying Person agrees, subject to the provisions of this Section 11, to indemnify the Indemnified Person from and against any loss, damage, liability or expense by reason of such settlement or judgment. No indemnifying party shallThe Indemnifying Person shall not, without the prior written consent of each indemnified partythe Indemnified Person(s), settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claimlitigation, action proceeding or proceeding relating to claim in respect of which indemnity has been properly sought by the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto)Indemnified Person(s) hereunder, unless such settlement, compromise or consent settlement includes an unconditional release by the claimant of each indemnified party all Indemnified Persons from all liability arising or with respect to claims that may arise out are the subject matter of such claimlitigation, action proceeding or proceedingclaim and does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Indemnified Person. (d) If the indemnification provided for above in this Section 6 11 is unavailable to or insufficient to hold harmless an Indemnified Person under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) such Section 11 in respect of any losses, claims, damages or liabilities (or actions actions, suits or proceedings (including governmental investigations) in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, Person under this Section 11 shall contribute to the amount paid or payable by such Indemnified Party Person as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company Indemnifying Person on the one hand and the Underwriters Indemnified Person on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party Person shall contribute to such amount paid or payable by such Indemnified Party Person in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company each Indemnifying Person, if any, on the one hand and the Underwriters Indemnified Person on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions actions, suits or proceedings (including governmental investigations) in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Issuer and Consumers on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to Issuer and the total underwriting discounts and or commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant Final Prospectus, bear to Rule 424 under the Act referred to in Section 2(a) hereofaggregate public offering price of the Bonds. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuer and Consumers on the one hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Issuer, Consumers and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 11 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d)Section 11. The amount paid or payable by an Indemnified Party Person as a result of the losses, claims, damages or liabilities (or actions actions, suits or proceedings (including governmental proceedings) in respect thereof) referred to above in this subsection (d) Section 11 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party Person in connection with investigating or defending any such action actions, suits or claim proceedings (which shall be limited as including governmental proceedings) or claims, provided that the provisions of this Section 11 have been complied with (in subsection (call material respects) above if the Indemnifying Party has assumed the defense in respect of any separate counsel for such action in accordance with the provisions thereof)Indemnified Person. Notwithstanding the provisions of this subsection (d)Section 11, no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received purchase discount or commission applicable to the Bonds purchased by itsuch Underwriter hereunder. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) Section 11 to contribute are several in proportion to their respective underwriting obligations and not joint. (e) . The obligations of the Company under agreement with respect to contribution contained in this Section 6 11(d) shall be remain in addition to full force and effect regardless of any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.investigation

Appears in 3 contracts

Sources: Underwriting Agreement (Consumers Energy Co), Underwriting Agreement (Consumers 2014 Securitization Funding LLC), Underwriting Agreement (Consumers 2014 Securitization Funding LLC)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or the are based upon an omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained fact, in any preliminary prospectus, light of the Disclosure Package or the Prospectus (or any amendment or supplement thereto)circumstances in which it was made, or the an omission or alleged omission therefrom of to state a material fact required to be stated or necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, in any Preliminary Prospectus, the Final Prospectus, or in any amendment or supplement thereto, or in any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d), and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveinclusion therein. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company documents referred to in connection with investigating or defending against any such loss, claim, damage, liability or actionSection 8(a) above. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that (i) the statement set forth on the cover page regarding delivery of the Securities and (ii) under the heading “Underwriting,” (A) the sentences related to concessions and reallowances and (B) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and does not include a statement as to, or admission of, fault, culpability or failure to act on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is for any reason held to a party that would have been be unenforceable by an indemnified party or is insufficient to hold harmless a party indemnified under subsection paragraph (a) or (b) above of this Section 8, although applicable in accordance with its terms (“Indemnified Party”including the requirements of Section 8(c) in respect of any above), the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder; provided, further, that each Underwriter’s obligation to contribute to Losses hereunder shall be several and not joint. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 3 contracts

Sources: Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co), Underwriting Agreement (Baltimore Gas & Electric Co)

Indemnification and Contribution. (a) The Subject to the conditions set forth below, the Company will agrees to indemnify and hold harmless each Underwriterthe Placement Agent, its directorsmanagers, officers, agentsdirectors, affiliates employees, agents and counsel, and each person, if any, who controls any Underwriter the Placement Agent within the meaning of either Section 15 of the Act or Section 20 20(a) of the Exchange Act from and Act, against any lossesand all loss, claimsliability, damages claim, damage and expense whatsoever (which shall include, for all purposes of this Section 8, but not be limited to, attorneys' fees and any and all expense whatsoever incurred in investigating, preparing or liabilitiesdefending against any litigation, joint commenced or severalthreatened, to which such Underwriteror any claim whatsoever and any and all amounts paid in settlement of any claim or litigation) as and when incurred arising out of, directorbased upon, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon connection with: (i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, or the Prospectus, or any amendment or supplement thereto, including or (B) in any applications or other documents or communications (collectively, the "Other Documents") executed by or on behalf of the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify any of the Units under the Act, blue sky or state securities laws thereof or filed with the Commission; (ii) any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against unless such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company with respect to the Placement Agent by youthe Placement Agent expressly for inclusion in the Registration Statement or the Prospectus, or by any Underwriter through youamendment or supplement thereto, specifically for use or in any Other Documents, as the preparation thereofcase may be; or (iii) any breach of any representation, warranty, covenant or agreement of the Company contained in this Agreement. The indemnity foregoing agreement set forth in this Section 6(a) to indemnify shall be in addition to any liabilities that liability the Company may otherwise have, including liabilities arising under this Agreement. (b) Each Underwriter severally and not jointly will The Placement Agent agrees to indemnify and hold harmless the Company, its managers, officers, directors, its officers who sign the Registration Statement employees, agents and counsel, and each other person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 20(a) of the Exchange Act, against any lossesto the same extent as the foregoing indemnity from the Company to the Placement Agent as set forth in Section 8(a) of this Agreement, claimsbut only with respect to statements or omissions, damages or liabilities to which the Companyif any, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained made in the Registration Statement, or any amendment thereto, Statement or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (Prospectus, or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, Other Documents in reliance upon and in conformity with written information furnished to the Company with respect to the Placement Agent by youthe Placement Agent expressly for inclusion in the Registration Statement or the Prospectus, or by any Underwriter through youamendment or supplement thereto, specifically for use or in any Other Documents, as the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter case may otherwise havebe. (c) Promptly after receipt by an indemnified party under subsection (aIf any action is brought against any person or entity in respect of which indemnity may be sought pursuant to Sections 8(a) or (b8(b) above of notice of the commencement of any actionthis Agreement, such indemnified party shall, if a claim in respect thereof is to be made against person or entity (the indemnifying party under such subsection, "Indemnified Party") shall promptly notify the indemnifying party against whom indemnity may be sought (the "Indemnifying Party") in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any institution of such action and the Indemnifying Party shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to promptly assume the defense thereofof such action, with including the employment of counsel (reasonably satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party Indemnified Party) and payment of its election so to assume the defense thereof, the indemnifying party expenses. Such Indemnified Party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party Indemnified Party unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying party, (2) Indemnifying Party in connection with the indemnified party has defense of such action or the Indemnifying Party shall not have promptly employed counsel satisfactory to such Indemnified Party to have charge of the defense of such action or such Indemnified Party shall have reasonably concluded (based on advice of counsel) that there may be one or more legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying partyIndemnifying Party, (3) a conflict or potential conflict exists (based on advice in any of counsel to which events such fees and expenses shall be borne by the indemnified party) between the indemnified party Indemnifying Party and the indemnifying party (in which case the indemnifying party will Indemnifying Party shall not have the right to direct the defense of such action on behalf of the indemnified party) or (4) Indemnified Party. Anything in this paragraph to the indemnifying party has not in fact employed counsel to assume contrary notwithstanding, the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties Indemnifying Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any such claim or action or claim effected without its written consent (which consent will not be unreasonably withheld)consent. No indemnifying party shallThe Indemnifying Party shall not, without the prior written consent of each indemnified partyIndemnified Party that is not released as described in this sentence, settle or compromise any action, or permit a default or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened claimaction, action or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnity may be sought hereunder (whether or not any indemnified party Indemnified Party is a party thereto), unless such settlement, compromise compromise, consent, or consent termination includes an unconditional release of each indemnified party Indemnified Party from all liability arising or that may arise out in respect of such claim, action or proceedingaction. (d) If The Company and the Placement Agent agree to provide for just and equitable contribution if (i) an Indemnified Party makes a claim for indemnification provided for in this Section 6 is unavailable under subsection (apursuant to Sections 8(a) or 8(b) of this Agreement (bsubject to the limitations thereof) above but it is found in a final judicial determination, not subject to a party further appeal, that would have been an indemnified party under subsection (a) such indemnification may not be enforced in such case, even though this Agreement expressly provides for indemnification in such case, or (bii) above (“any Indemnified Party”) in respect of any Party or Indemnifying Party seeks contribution under the Act, the Exchange Act, or otherwise, then the Company and the Placement Agent shall contribute to the losses, liabilities, claims, damages or liabilities (or actions in respect thereof) referred and expenses whatsoever to thereinwhich either of them may be subject, then each party so that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute the Placement Agent is responsible for the proportion thereof equal to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect percentage which the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed commission to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as paid per Unit set forth in the table on the cover page of the Prospectus represents of the initial public offering price per Unit set forth on the cover page of the Prospectus and the Company is responsible for the remaining portion; provided, however, if applicable law does not permit such allocation, then other relevant equitable considerations such as the relative fault of the Company and the Placement Agent, in connection with the facts which is filed pursuant to Rule 424 under the Act referred to resulted in Section 2(a) hereofsuch losses, liabilities, claims, damages and expenses shall also be considered. The relative fault fault, in the case of an untrue statement, alleged untrue statement, omission or alleged omission, shall be determined by reference toby, among other things, whether the untrue or such statement, alleged untrue statement of a material fact statement, omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters Placement Agent, and the parties' relative intent, knowledge, access to information information, and opportunity to correct or prevent such statement statement, alleged statement, omission, or alleged omission. The Company and the Underwriters Placement Agent agree that it would not be just unjust and equitable inequitable if the respective obligations of the Company and the Placement Agent for contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if of the Underwriters were treated as one entity for such purpose) aggregate losses, liabilities, claims, damages, and expenses or by any other method of allocation which that does not take account of reflect the equitable considerations referred to above in this subsection (dSection 8(d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend8(d), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter the Placement Agent within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20(a) of the Exchange Act and each manager, officer, director, partner, employee, agent and counsel of the Placement Agent shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as the Placement Agent, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, and each manager, officer, director, partner, employee, agent and counsel of the Company shall have the same rights to contribution as the Company, subject in each case to the provisions of this Section 8(d). Anything in this Section 8(d) to the contrary notwithstanding, no party shall be liable for contribution with respect to the settlement of any claim or action effected without its written consent. This Section 8(d) is intended to supersede any right to contribution under the Act, the Exchange Act or otherwise.

Appears in 3 contracts

Sources: Placement Agreement (Usa Capital First Trust Deed Fund LLC), Placement Agreement (Usa Capital First Trust Deed Fund LLC), Placement Agreement (Usa Capital First Trust Deed Fund LLC)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates agents and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate agent or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate agent or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, officer and agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 3 contracts

Sources: Underwriting Agreement (South Carolina Electric & Gas Co), Underwriting Agreement (South Carolina Electric & Gas Co), Underwriting Agreement (South Carolina Electric & Gas Co)

Indemnification and Contribution. (a) The Company will indemnify and the Operating Partnership, jointly and severally, agree to indemnify, defend and hold harmless each UnderwriterAgent and its affiliates, its and their directors, officers, agents, affiliates employees and each person, if any, agents and any person who controls any Underwriter such Agent within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Act, and the successors and assigns of all of the foregoing persons, from and against any lossesloss, claimsdamage, damages expense, liability or liabilitiesclaim (including the reasonable cost of investigation), joint as incurred, which, jointly or severalseverally, to which such Underwriter, director, officer, agent, affiliate Agent or controlling any such person may become subject, incur under the Act Act, the Exchange Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or in the Registration Statement as amended by any post effective amendment thereto, including thereof by the Company) or arises out of or is based upon any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; , except insofar as any such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information concerning any Agent furnished in writing by or on behalf of such Agent to the Company expressly for use in, the Registration Statement or arises out of or is based upon any omission or alleged omission to state a material fact in the Registration Statement in connection with such information, which material fact was not contained in such information and which material fact was required to be stated in such Registration Statement or was necessary to make such information not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained included in any preliminary prospectus, the Disclosure Package or the Prospectus (the term Prospectus for the purpose of this Section 7 being deemed to include any Basic Prospectus, any Prospectus Supplement, any Prospectus and any amendments or any amendment or supplement theretosupplements to the foregoing), in any Permitted Free Writing Prospectus, in any “issuer information” (as defined in Rule 433 under the Act) of the Company or in any Prospectus together with any combination of one or more of the Permitted Free Writing Prospectuses, if any, or arises out of or is based upon any omission or alleged omission therefrom of to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriterexcept, directorwith respect to such Prospectus or Permitted Free Writing Prospectus, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that insofar as any such loss, claimdamage, damage expense, liability or liability claim arises out of or is based upon an any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information concerning any Agent furnished in writing by or on behalf of such Agent to the Company expressly for use in, such Prospectus or Permitted Free Writing Prospectus or arises out of or is based upon any omission or alleged omission made to state a material fact in such Prospectus or Permitted Free Writing Prospectus in connection with such information, which material fact was not contained in such information and which material fact was necessary in order to make the statements in such information, in the Registration Statementlight of the circumstances under which they were made, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise havenot misleading. (b) Each Underwriter Agent, severally and not jointly will indemnify jointly, agrees to indemnify, defend and hold harmless the CompanyCompany and the Operating Partnership, its directorstheir directors and officers, its officers who sign the Registration Statement and each person, if any, any person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons from and against any lossesloss, claimsdamage, damages expense, liability or liabilities to which claim (including the reasonable cost of investigation) which, jointly or severally, the Company, the Operating Partnership or any such director, officer or controlling person may become subject, incur under the Act Act, the Exchange Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information concerning any Agent furnished in writing by or on behalf of such Agent to the Company or the Operating Partnership expressly for use in, the Registration Statement (or in the Registration StatementStatement as amended by any post effective amendment thereof by the Company), or arises out of or is based upon any amendment thereto, or the omission or alleged omission therefrom of to state a material fact in such Registration Statement in connection with such information, which material fact was not contained in such information and which material fact was required to be stated therein in such Registration Statement or was necessary to make the statements therein such information not misleading; misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information concerning any preliminary prospectus Agent furnished in writing by or on behalf of such Agent to the Company or the Operating Partnership expressly for use in, the Prospectus (Supplement or any amendment or supplement thereto)a Permitted Free Writing Prospectus, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact in the Prospectus Supplement or a Permitted Free Writing Prospectus in connection with such information, which material fact was not contained in such information and which material fact was necessary in order to make the statements thereinin such information, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by If any action, suit or proceeding (each, a “Proceeding”) is brought against a person (an indemnified party under party”) in respect of which indemnity may be sought against the Company, the Operating Partnership or any Agent (as applicable, the “indemnifying party”) pursuant to subsection (a) or (b) above ), respectively, of notice of the commencement of any actionthis Section, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under shall promptly notify such subsection, notify the indemnifying party in writing of the commencement thereofinstitution of such Proceeding and such indemnifying party shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to such indemnified party and payment of all fees and expenses; but provided, however, that the omission to so to notify the such indemnifying party shall not relieve it such indemnifying party from any liability which it such indemnifying party may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigationotherwise. The indemnified party will or parties shall have the right to employ its or their own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party or parties unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying partyparty in connection with the defense of such Proceeding or the indemnifying party shall not have, (2) within a reasonable period of time in light of the circumstances, employed counsel to defend such Proceeding or such indemnified party has or parties shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that them which are different from from, additional to or in addition to conflict with those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the such indemnifying party (in which case the such indemnifying party will shall not have the right to direct the defense of such action Proceeding on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the ), in any of which events such fees and expenses shall be borne by such indemnifying party or parties and paid as incurred (it being understood, however, that such indemnifying party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, not be liable for the reasonable fees, disbursements and other charges expenses of more than one separate firm admitted counsel (in addition to practice any local counsel) in such jurisdiction at any one time for all Proceeding or series of related Proceedings in the same jurisdiction representing the indemnified parties who are parties to such indemnified party or partiesProceeding). All such fees, disbursements and other charges will be reimbursed by the The indemnifying party promptly as they are incurred. An indemnifying party will shall not be liable for any settlement of any action or claim Proceeding effected without its written consent but, if settled with its written consent, such indemnifying party agrees to indemnify and hold harmless the indemnified party or parties from and against any loss or liability, as incurred, by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second sentence of this Section 7(c), then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (which consent will i) such settlement is entered into more than 60 business days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall not be unreasonably withheld)have fully reimbursed the indemnified party in accordance with such request prior to the date of such settlement and (iii) such indemnified party shall have given the indemnifying party at least 30 days’ prior notice of its intention to settle. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not Proceeding in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claim, action Proceeding and does not include an admission of fault or proceedingculpability or a failure to act by or on behalf of such indemnified party. (d) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection subsections (a) or and (b) above (“Indemnified Party”) of this Section 7 or insufficient to hold an indemnified party harmless in respect of any losses, claimsdamages, damages expenses, liabilities or liabilities (or actions in respect thereof) claims referred to therein, then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claimsdamages, damages expenses, liabilities or liabilities claims (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Operating Partnership on the one hand hand, and the Underwriters Agents, on the other hand, from the offering of the Bonds. If, however, Shares or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Operating Partnership, on the one hand hand, and of the Underwriters relevant Agent(s), on the other other, in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities or claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Operating Partnership, on the one hand hand, and the Underwriters relevant Agents, on the other other, shall be deemed to be in the same proportion respective proportions as the total net proceeds from the offering (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to and the Operating Partnership, and the total underwriting discounts and commissions received by the Underwritersrelevant Agent, in each case as set forth in bear to the table on the cover page aggregate public offering price of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofShares. The relative fault of the Company and the Operating Partnership, on the one hand, and of the relevant Agent, on the other, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company and the Operating Partnership or by the Underwriters relevant Agent and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to in this subsection shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or defending any Proceeding. (e) The Company, the Underwriters Operating Partnership and each of the Agents agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 7 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection (d)Section 7, no Underwriter Agent shall be required to contribute any amount in excess of the underwriting discounts commissions received by itit under this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (ef) The obligations Company and the Operating Partnership, and each of the Agents agree promptly to notify each other of the commencement of any Proceeding against it and, in the case of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to Operating Partnership, against any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer ’s officers or directors in connection with the issuance and sale of the Company who has signed Shares, or in connection with the Registration Statement and to each personStatement, if anythe Basic Prospectus, who controls the Company within the meaning of the ActProspectus or any Permitted Free Writing Prospectus.

Appears in 3 contracts

Sources: Equity Distribution Agreement (Global Net Lease, Inc.), Equity Distribution Agreement (Global Net Lease, Inc.), Equity Distribution Agreement (Global Net Lease, Inc.)

Indemnification and Contribution. (a) The Company will indemnify agrees to indemnify, defend and hold harmless each Underwriter, its directorsaffiliates, officersdirectors and officers and employees, agents, affiliates and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act Act, from and against any losses, claims, damages or liabilities, joint or several, liabilities to which the Underwriter or such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Securities Act or otherwiseotherwise (including in settlement of any litigation if such settlement is effected with the written consent of the Company), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any the information deemed to be a part thereof of the Registration Statement at the time of effectiveness and, if applicable, at any subsequent time pursuant to Rule Rules 430A and 430B under of the ActRules and Regulations, or arise out of or are based upon the omission from the Registration Statement, or alleged omission therefrom of to state therein, a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) any an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectusthe Time of Sale Disclosure Package, the Disclosure Package or the Prospectus (Prospectus, or any amendment or supplement theretothereto (including any documents filed under the Exchange Act and deemed to be incorporated by reference into the Registration Statement or the Prospectus), any Issuer Free Writing Prospectus or the Marketing Materials or in any other materials used in connection with the offering of the Shares, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person the Underwriters for any legal or other expenses reasonably incurred by it them in connection with evaluating, investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus Time of Sale Disclosure Package, the Prospectus, or any such amendment or supplementsupplement thereto or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth , which written information is described in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have7(f). (b) Each Underwriter will, severally and not jointly will indemnify jointly, indemnify, defend and hold harmless the Company, its affiliates, directors, its officers who sign the Registration Statement and employees, and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Securities Act or otherwiseotherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Underwriter), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus, or any amendment theretoor supplement thereto or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus Time of Sale Disclosure Package, the Prospectus, or any such amendment or supplement, supplement thereto or any Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, the Representatives specifically for use in the preparation thereof; , and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so failure to notify the indemnifying party shall not relieve it the indemnifying party from any liability which that it may have to any indemnified party otherwise than under except to the extent such subsectionindemnifying party has been materially prejudiced by such failure. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in in, and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, and after notice from the indemnifying party to such indemnified party of its the indemnifying party’s election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof; provided, but the feeshowever, expenses and other charges of such counsel will be at the expense of such indemnified party unless that if (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3ii) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) ), or (4iii) the indemnifying party has not in fact employed counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, the indemnified party shall have the right to employ a single counsel to represent it in each any claim in respect of which cases indemnity may be sought under subsection (a) or (b) of this Section 7, in which event the reasonable fees, disbursements fees and other charges expenses of such separate counsel will shall be at the expense of the indemnifying party or parties. It is understood that borne by the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in and reimbursed to the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesas incurred. All such fees, disbursements and other charges will be reimbursed by the The indemnifying party promptly as they are incurred. An indemnifying party will under this Section 7 shall not be liable for any settlement of any action or claim proceeding effected without its written consent, but if settled with such consent (which consent will not or if there be unreasonably withheld)a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or effect any settlement, compromise or consent to the entry of any judgment in any pending or threatened claimaction, action suit or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is a party thereto)or could be named and indemnity was or would be sought hereunder by such indemnified party, unless such settlement, compromise or consent (a) includes an unconditional release of each such indemnified party from all liability arising or for claims that may arise out are the subject matter of such claimaction, action suit or proceedingproceeding and (b) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a) or actions in respect thereof(b) above, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering and sale of the Bonds. If, however, Shares or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative relevant intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in the first sentence of this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending against any such action or claim (which shall be limited as provided in that is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofd). Notwithstanding the provisions of this subsection (d), no Underwriter the Underwriters shall not be required to contribute any amount in excess of the underwriting discounts amount of the Underwriters’ commissions referenced in Section 4(a) actually received by itsuch Underwriter pursuant to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute pursuant to this Section 7 are several several, and not joint, in proportion to their respective underwriting obligations commitments as set forth opposite their respective names on Schedule I. For purposes of this Section 7, each officer and not jointemployee of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company with the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company. (e) The obligations of the Company under this Section 6 7 shall be in addition to any liability which that the Company may otherwise have and the benefits of such obligations shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter the Underwriters within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; and the obligations of the Underwriters under this Section 6 7 shall be in addition to any liability which that the respective Underwriters may otherwise have and the benefits of such obligations shall extend, upon the same terms and conditions, to each director of the Company, to and its officers, directors and each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act. (f) For purposes of this Agreement, the Representatives confirm, and the Company acknowledges, that there is no information concerning the Underwriters furnished in writing to the Company by the Representatives specifically for preparation of or inclusion in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus, other than the statements set forth in the last paragraph on the cover page of the Prospectus and the statements set forth in the “Underwriting” section of the Prospectus and Time of Sale Disclosure Package, only insofar as such statements relate to the amount of selling concession and re-allowance or to over-allotment and related activities that may be undertaken by the Underwriters. (g) If, on any Closing Date, any one or more of the several Underwriters shall fail or refuse to purchase Shares that it or they have agreed to purchase hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase does not exceed 10% of the aggregate number of the Shares to be purchased on such date, the Representatives may make arrangements satisfactory to the Company for the purchase of such Shares by other persons, including any of the Underwriters, but if no such arrangements are made by such Closing Date, the other Underwriters shall be obligated, severally and not jointly, in the proportions that the number of Underwritten Shares set forth opposite their respective names on Schedule I bears to the aggregate number of Underwritten Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as may be specified by the Representatives with the consent of the non-defaulting Underwriters, to purchase the Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date. If, on any Closing Date, any one or more of the Underwriters shall fail or refuse to purchase Shares and the aggregate number of Shares with respect to which such default occurs exceeds 10% of the aggregate number of Shares to be purchased on such date, and arrangements satisfactory to the Representatives and the Company for the purchase of such Shares are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party except that the provisions of Section 5(a)(vii) and Section 7 shall at all times be effective and shall survive such termination. In any such case either the Representatives or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days in order that the required changes, if any, to the Registration Statement and the Prospectus or any other documents or arrangements may be effected.

Appears in 3 contracts

Sources: Underwriting Agreement (UniTek Global Services, Inc.), Underwriting Agreement (UniTek Global Services, Inc.), Underwriting Agreement (UniTek Global Services, Inc.)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any each Underwriter within the meaning of either Section 15 of the Act or Section 20 of and the Exchange Act from and Act, against any lossesand all loss, claimsliability, damages claim, damage and expense whatsoever, including, but not limited to, any and all reasonable expenses incurred in investigating, preparing or liabilitiesdefending against any litigation, joint commenced or severalthreatened, to which such Underwriteror any claim whatsoever or in connection with any investigation or inquiry of, directoror action or proceeding that may be brought against, officerthe respective indemnified parties, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of the representations and warranties of the Company made in this Agreement or any untrue statement statements or alleged untrue statement statements of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Disclosure Package or the Prospectus, any application or other document filed in any jurisdiction in order to qualify all or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B of the Shares under the Actsecurities laws thereof or filed with the SEC or FINRA (in this Section 10 collectively called “application”), or the omission or alleged omission therefrom from any of the foregoing of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under in which they were are made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company foregoing indemnity shall not be liable apply in respect of any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically expressly for use in any Preliminary Prospectus, the preparation thereofRegistration Statement or Prospectus, or any amendment or supplement thereto, or in any application or in any communication to the SEC, as the case may be and provided further that the foregoing indemnification with respect to any Preliminary Prospectus shall not inure to the benefit of such Underwriter if a copy of the Prospectus (as then amended and supplemented) was not sent or given by or on behalf of such Underwriter to the person asserting any losses, claims, damages or liabilities, and if the Prospectus (as amended and supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities. The indemnity agreement set forth in obligations of the Company under this Section 6(a10(a) shall will be in addition to any liabilities that liability the Company may otherwise have. The indemnification obligations of the Company and the Selling Shareholders shall be several and not joint. (b) Each Underwriter severally and not jointly will Selling Shareholder shall indemnify and hold harmless the Companyeach Underwriter, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company each Underwriter within the meaning of either Section 15 of the Act or Section 20 of and the Exchange Act, Act against any lossesand all loss, claimsliability, damages claim, damage and expense whatsoever, including, but not limited to, any and all reasonable expenses incurred in investigating, preparing or liabilities to which defending against any litigation, commenced or threatened, or any claim whatsoever or in connection with any investigation or inquiry of, or action or proceeding that may be brought against, the Companyrespective indemnified parties, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of the representations and warranties of such Selling Shareholder made in this Agreement or any untrue statement statements or alleged untrue statement statements of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Disclosure Package or the Prospectus, any application or other document filed in any jurisdiction in order to qualify all or any amendment theretopart of the Shares under the securities laws thereof or filed with the SEC or FINRA (in this Section 10 collectively called “application”), or the omission or alleged omission therefrom from any of the foregoing of a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances in which they are made, not misleading; , but only with respect to any and all loss, liability, claim, damage or (ii) any untrue statement expense resulting from statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, if any, made in any preliminary prospectus Preliminary Prospectus, the Disclosure Package, the Registration Statement or the Prospectus (or any amendment or supplement thereto), thereof or the omission any application or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case any communication to the extentSEC in reliance upon, but only and in conformity with written information furnished to each Underwriter by such Selling Shareholder expressly for use in any Preliminary Prospectus, the extentDisclosure Package, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplementsupplement thereof, or any application or in any communication to the SEC, as the case may be and provided further that the foregoing indemnification with respect to any Preliminary Prospectus shall not inure to the benefit of the Underwriter if a copy of the Prospectus (as then amended and supplemented) was not sent or given by or on behalf of the Underwriter to the person asserting any losses, claims, damages or liabilities, and if the Prospectus (as amended and supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities. The obligations of each Selling Shareholder under this Section 10(b) will be in addition to any liability such Selling Shareholder may otherwise have. The indemnification obligations of the Company and each Selling Shareholder shall be several and not joint. (c) Each Underwriter severally and not jointly shall indemnify and hold harmless the Company, each Selling Shareholder, each of the directors of the Company, each of the officers of the Company who shall have signed the Registration Statement, and each other person, if any, who controls the Company or such Selling Shareholder within the meaning of the Act and the Exchange Act, to the same extent as the foregoing indemnities from the Company and each Selling Shareholder to the Underwriters, but only with respect to any and all loss, liability, claim, damage or expense resulting from statements or omissions, or alleged statements or omissions, if any, made in any Preliminary Prospectus, the Disclosure Package, the Registration Statement or the Prospectus or any amendment or supplement thereof or any application or in any communication to the SEC in reliance upon upon, and in conformity with written information furnished to the Company by you, or and Selling Shareholders by any Underwriter through you, specifically the Representative expressly for use in any Preliminary Prospectus, the preparation Disclosure Package, the Registration Statement or the Prospectus or any amendment or supplement thereof; and will reimburse , or any application or in any communication to the Company for any legal or other expenses reasonably incurred by SEC, as the Company in connection with investigating or defending against any such loss, claim, damage, liability or actioncase may be. The indemnity agreement set forth in obligations of each Underwriter under this Section 6(b10(c) shall will be in addition to any liabilities that each liability which such Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection If any action, inquiry, investigation or proceeding is brought against any person in respect of which indemnification may be sought pursuant to Section 10(a), (ab) or (bc) above hereof, such person (hereinafter called the “indemnified party”) shall, promptly after notification of, or receipt of notice service of the commencement of any process for, such action, such indemnified inquiry, investigation or proceeding, notify in writing the party shall, if a claim in respect thereof or parties against whom indemnification is to be made against sought (hereinafter called the “indemnifying party”) of the institution of such action, inquiry, investigation or proceeding. The indemnifying party, upon the request of the indemnified party, shall assume the defense of such action, inquiry, investigation or proceeding, including, without limitation, the employment of counsel (reasonably satisfactory to such indemnified party) and payment of expenses. No indemnification provided for in this Section 10 shall be available to any indemnified party who shall fail to give such notice if the indemnifying party under does not have knowledge of such subsectionaction, notify inquiry, investigation or proceeding to the extent that such indemnifying party in writing of has been materially prejudiced by the commencement thereof; failure to give such notice, but the omission to so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified the indemnifying party otherwise than under such subsectionthis Section 10. In case any such action shall be brought against any Such indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its or their own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying party in connection with the defense of such action or if the indemnifying party shall not have, within a reasonable period of time in light of the circumstances, employed counsel reasonably satisfactory to the indemnified party, (2) to have charge of the defense of such action, inquiry, investigation or proceeding or if such indemnified party or parties shall have been advised by counsel that there may be a conflict between the positions of the indemnifying party or parties and of the indemnified party has reasonably concluded (based on advice of counsel) or parties or that there may be legal defenses available to it such indemnified party or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that , in any of which events the indemnifying indemnified party or parties shall not, in connection with any proceeding or related proceedings in be entitled to select counsel to conduct the same jurisdiction, defense to the extent determined by such counsel to be liable for necessary to protect the reasonable fees, disbursements and other charges interests of more than one separate firm admitted to practice in such jurisdiction at any one time for all such the indemnified party or parties. All , and the reasonable fees and expenses of such fees, disbursements and other charges will counsel shall be reimbursed borne by the indemnifying party promptly as they are incurredparty. An The indemnifying party will not shall be liable responsible for any settlement the fees and disbursements of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without only one such counsel so engaged by the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is or parties as a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If group. Expenses covered by the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.this

Appears in 3 contracts

Sources: Underwriting Agreement (Gas Natural Inc.), Underwriting Agreement (Gas Natural Inc.), Underwriting Agreement (Gas Natural Inc.)

Indemnification and Contribution. For purposes of this Section 7, “Prospectus Supplement” shall include any prospectus supplement relating to the Units filed with the Commission pursuant to Rule 424(b) of the Rules. (a) The Company Partnership will indemnify and hold harmless each Underwriter, the Manager and its directors, officers, agents, respective affiliates and each person, if any, who controls any Underwriter the Manager within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, as follows: (i) against any lossesand all loss, claimsliability, damages or liabilitiesclaim, joint or severaldamage and expense whatsoever (including the reasonable cost of investigation), to which the Manager or any such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereofA) arise arising out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement theretoto such documents), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (B) resulting from the use of any issuer free writing prospectus (as defined in Rule 433 of the Rules) or prospectus, other than the Prospectus, relating to the Units, whether or not filed by the Partnership or on its behalf; provided, however, that this indemnity does not apply to the extent any such issuer free writing prospectus or prospectus is also used by the Manager; (ii) against any and will reimburse each Underwriterall loss, directorliability, officerclaim, agentdamage and expense whatsoever, affiliate as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or controlling person for any legal investigation or other expenses proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 7(d) below) any such settlement is effected with the written consent of the Partnership; and (iii) against any and all expense whatsoever, as incurred (including, subject to Section 7(c) hereof, the fees and disbursements of counsel chosen by the Manager), reasonably incurred by it in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such lossuntrue statement or omission, claimor any such alleged untrue statement or omission, damage, liability to the extent that any such expense is not paid under clause (i) or action(ii) above; provided, however, that the Company indemnity set forth in this Section 7(a) shall not be liable in apply to any such case to the extent that any such loss, liability, claim, damage or liability arises expense to the extent arising out of or is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made contained in the Registration Statement, any preliminary prospectus or the Prospectus Statement or any such Prospectus (or any amendment or supplement, supplement thereto) in reliance upon and in conformity with written information furnished to the Company Partnership by you, or by any Underwriter through you, specifically on behalf of the Manager expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition Registration Statement or any Prospectus (or any amendment or supplement to any liabilities that the Company may otherwise havesuch documents). (b) Each Underwriter severally and not jointly will The Manager agrees to indemnify and hold harmless the Partnership, the General Partner, the Company, its directorsthe directors of the General Partner and the Company, its the officers of the Company who sign signed the Registration Statement Statement, and each person, if any, who controls the Partnership, the General Partner or the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesand all loss, claimsliability, damages or liabilities claim, damage and expense described in the indemnity contained in Section 7(a) (provided that with respect to which indemnification of the Companynature contemplated by Section 7(a)(ii), such directorindemnification by the Manager for a settlement of any such loss, officer or controlling person may become subjectliability, under claim, damage and expense must be effected with the Act or otherwisewritten consent of the Manager), insofar as such lossesincurred, claims, damages or liabilities (or actions in but only with respect thereof) arise out of or are based upon (i) to any untrue statement statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement theretoto such documents), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Partnership by you, or by any Underwriter through you, specifically on behalf of the Manager expressly for use in the preparation thereof; and will reimburse Registration Statement, the Company for Base Prospectus or any legal Prospectus (or other expenses reasonably incurred by the Company in connection with investigating any amendment or defending against any supplement to such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havedocuments). (c) Promptly after receipt by an Each indemnified party under subsection (a) or (b) above of shall give written notice of the commencement as promptly as reasonably practicable to each indemnifying party of any action, such indemnified party shall, if a claim action commenced against it in respect thereof is of which indemnity may be sought hereunder, but failure to be made against the so notify an indemnifying party under shall not relieve such subsection, notify the indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in writing of the commencement thereof; but the omission so to notify the indemnifying party any event shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionon account of this indemnity agreement. In the case any such action of parties indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be brought against any selected by the Manager, and, in the case of parties indemnified partypursuant to Section 7(b) above, and it shall notify counsel to the indemnifying party of the commencement thereof, the indemnifying party indemnified parties shall be entitled to participate in andselected by the Partnership, to the extent provided that if it shall wishso elects within a reasonable time after receipt of such notice, an indemnifying party, jointly with any other indemnifying partyparties receiving such notice, similarly notified, to may assume the defense thereof, of such action with counsel satisfactory to such chosen by it and approved by the indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party parties defendant in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of unless such indemnified party unless (1) parties reasonably object to such assumption on the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) ground that there may be legal defenses available to it or other indemnified parties that them which are different from or in addition to those available to such indemnifying party. If an indemnifying party assumes the defense of such action, the indemnifying partyparties shall not be liable for any fees and expenses of counsel for the indemnified parties incurred thereafter in connection with such action; provided, however, that the indemnifying party shall pay the fees and expenses of separate counsel for the indemnified party if (3i) the indemnifying party has agreed to pay such fees and expenses or (ii) counsel for the indemnified party reasonably determines that representation of both the indemnifying party and the indemnified party by the same counsel would create a conflict or potential conflict exists of interest. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (based on advice except with the consent of the indemnified party) also be counsel to the indemnified party) between the indemnified party and . In no event shall the indemnifying party parties be liable for fees and expenses of more than one counsel (in which case the indemnifying party will not have the right addition to direct the defense of such action on behalf of the any local counsel) separate from their own counsel for all indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding one action or separate but similar or related proceedings in actions arising out of the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party general allegations or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)circumstances. No indemnifying party shall, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending litigation, or threatened claim, action any investigation or proceeding relating to the matters contemplated by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 7 (whether or not any the indemnified party is a party parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimlitigation, action investigation, proceeding or proceedingclaim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 7(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, an indemnifying party shall not be liable for any settlement of the nature contemplated by Section 7(a)(ii) effected without its consent if such indemnifying party (i) reimburses such indemnified party in accordance with such request to the extent it considers such request to be reasonable and (ii) provides written notice to the indemnified party substantiating the unpaid balance as unreasonable, in each case prior to the date of such settlement. (e) If the indemnification provided for in this Section 6 7 is for any reason unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, liabilities, claims, damages or liabilities (or actions in respect thereof) expenses referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the aggregate amount paid or payable by such Indemnified Party as a result of such losses, liabilities, claims, damages or liabilities and expenses incurred by such indemnified party, as incurred, (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Partnership, on the one hand hand, and the Underwriters Manager, on the other hand, from the offering of the Bonds. If, however, Units pursuant to this Agreement or (ii) if the allocation provided by the immediately preceding sentence clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Partnership, on the one hand hand, and of the Underwriters Manager, on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or liabilities (or actions in respect thereof)expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company Partnership, on the one hand hand, and the Underwriters Manager, on the other hand, in connection with the offering of the Units pursuant to this Agreement shall be deemed to be in the same proportion respective proportions as the total net proceeds Net Proceeds from the offering (before deducting expenses) of the Units pursuant to this Agreement received by the Company bear to Partnership, and the total underwriting discounts and commissions compensation received by the UnderwritersManager, in each case as set forth provided in Section 3(a)(iv), bear to the table on the cover page gross sales price of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined Units sold by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.through the

Appears in 3 contracts

Sources: Equity Distribution Agreement (Kinder Morgan Energy Partners L P), Equity Distribution Agreement (Kinder Morgan Energy Partners L P), Equity Distribution Agreement (Kinder Morgan Energy Partners L P)

Indemnification and Contribution. (a) The In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, the Company will indemnify and hold harmless the seller of such Registrable Shares, each Underwriter, of its directors, partners, and officers, agentseach underwriter of such Registrable Shares, affiliates and each other person, if any, who controls any Underwriter such seller or underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriterseller, director, officer, agent, affiliate underwriter or controlling person may become subject, subject under the Act Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any Registration Statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statement, or any amendment thereto, including any information deemed or supplement to be a part thereof pursuant to Rule 430B under the Actsuch Registration Statement, or arise out of or are based upon the omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, and the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and Company will reimburse such seller, underwriter and each Underwriter, director, officer, agent, affiliate or such controlling person for any legal or any other expenses reasonably incurred by it such seller, underwriter or controlling person in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged any untrue statement or omission or alleged omission made in the such Registration Statement, any preliminary prospectus or the Prospectus prospectus, or any such amendment or supplement, in reliance upon and in strict conformity with written information regarding such seller, underwriter or controlling person furnished to the Company Company, in writing, by youor on behalf of such seller, underwriter or by any Underwriter through youcontrolling person, respectively, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition thereof or to the extent that such loss, claim, damage or liability arises out of such seller's failure to deliver a copy of the preliminary or final prospectus or any liabilities that the Company may otherwise haveamendment or supplement thereto. (b) Each Underwriter In the event of any registration of any of the Registrable Shares under the Securities Act pursuant to this Agreement, each seller of Registrable Shares, severally and not jointly jointly, will indemnify and hold harmless the Company, each of its directors, its directors and officers who sign the Registration Statement and each underwriter (if any) and each person, if any, who controls the Company or any such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such directordirectors and officers, officer underwriter or controlling person may become subject, subject under the Act Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any Registration Statement under which such Registrable Shares were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statement, or any amendment theretoor supplement to the Registration Statement, or the arise out of or are based upon any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or , if the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in strict conformity with written information relating to such seller furnished in writing to the Company by you, or by any Underwriter through you, on behalf of such seller specifically for use in connection with the preparation thereofof such Registration Statement, prospectus, amendment or supplement; and will reimburse provided, however, that the Company for any legal or other expenses reasonably incurred by obligations of a Stockholder hereunder shall be limited to an amount equal to the Company net proceeds to such Stockholder of Registrable Shares sold in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise haveregistration. (c) Promptly Each party entitled to indemnification under this Section (the "Indemnified Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement such Indemnified Party has actual knowledge of any action, such indemnified party shall, if a claim in respect thereof is as to which indemnity may be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified partysought, and it shall notify permit the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel Indemnifying Party to assume the defense of any such action within a reasonable time after receiving notice of the commencement of the actionclaim or any litigation resulting therefrom; provided, in each of which cases the reasonable fees, disbursements and other charges of that counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable feesIndemnifying Party, disbursements and other charges who shall conduct the defense of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party claim or parties. All such feeslitigation, disbursements and other charges will shall be reimbursed approved by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent Indemnified Party (which consent will whose approval shall not be unreasonably withheld); and, provided, further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section except to the extent that the Indemnifying Party is adversely affected by such failure. The Indemnified Party may participate in such defense at such party's expense; provided, however, that the Indemnifying Party shall pay such expense if representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnified Party and any other party represented by such counsel in such proceeding; provided further that in no event shall the Indemnifying Party be required to pay the expenses of more than one law firm per jurisdiction as counsel for the Indemnified Party. The Indemnifying Party also shall be responsible for the expenses of such defense if the Indemnifying Party does not elect to assume such defense. No indemnifying party Indemnifying Party, in the defense of any such claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation, and no Indemnified Party shall consent to entry of any judgment or settle such claim or litigation without the prior written consent of each indemnified partythe Indemnifying Party, settle or compromise or which consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or shall not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceedingbe unreasonably withheld. (d) If In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 6 2.5 is due in accordance with its terms but for any reason is held to be unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) Party in respect of to any losses, claims, damages or and liabilities (or actions in respect thereof) referred to thereinherein, then each party that would have been an indemnifying party thereunder (“the Indemnifying Party”) Party shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) to which such party may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters Stockholders on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by fault of the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault Stockholders shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates related to information supplied by the Company or the Underwriters Stockholders and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters Stockholders agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 2.5 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph of Section 2.5, (d), a) in no Underwriter case shall any one Stockholder be required to contribute liable or responsible for any amount in excess of the underwriting discounts net proceeds received by it. No such Stockholder from the offering of Registrable Shares and (b) the Company shall be liable and responsible for any amount in excess of such proceeds; provided, however, that no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations respect of the Company which a claim for contribution may be made against another party or parties under this Section 6 2.5, notify such party or parties from whom contribution may be sought, but the omission so to notify such party or parties from whom contribution may be sought shall not relieve such party from any other obligation it or they may have thereunder or otherwise under this Section. No party shall be in addition liable for contribution with respect to any liability action, suit, proceeding or claim settled without its prior written consent, which the Company may otherwise have and consent shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall not be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actunreasonably withheld.

Appears in 3 contracts

Sources: Investor Rights Agreement, Investor Rights Agreement (A123 Systems, Inc.), Investor Rights Agreement (A123 Systems Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates the Sales Manager and each person, if any, who controls any Underwriter the Sales Manager within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any lossesAct, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package prospectus or the Prospectus (or any amendment or supplement thereto), ) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and will reimburse each Underwriterexpense whatsoever, directoras incurred, officerto the extent of the aggregate amount paid in settlement of any litigation, agentor any investigation or proceeding by any governmental agency or body, affiliate commenced or controlling person for threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Company; and (iii) against any and all expense whatsoever, as incurred (including, subject to Section 5.1(c) below, the reasonable fees and disbursements of legal or other expenses counsel chosen by the Sales Manager), reasonably incurred by it in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such lossuntrue statement or omission, claimor any such alleged untrue statement or omission, damage, liability to the extent that any such expense is not paid under (i) or action(ii) above; provided, however, that the Company this indemnity agreement shall not be liable in apply to any such case to the extent that any such loss, liability, claim, damage or liability arises expense to the extent arising out of or is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically the Sales Manager expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(aRegistration Statement (or any amendment thereto) shall be in addition to or any liabilities that preliminary prospectus or the Company may otherwise haveProspectus (or any amendment or supplement thereto). (b) Each Underwriter severally and not jointly will The Sales Manager agrees to indemnify and hold harmless the Company, Company and its directors, its officers directors and each officer of the Company who sign signed the Registration Statement Statement, and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, Act against any lossesand all loss, claimsliability, damages claim, damage and expense described in the indemnity contained in Section 5.1(a) above, as incurred, but only with respect to untrue statements or liabilities to which the Companyomissions, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement (or any amendment amendments thereto, ) or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, ) in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically the Sales Manager expressly for use in the preparation thereof; and will reimburse Registration Statement (or any amendment thereto) or such preliminary prospectus or the Company for Prospectus (or any legal amendment or other expenses reasonably incurred supplement thereto). The total liability of the Sales Manager under this Section 5.1(b) shall not exceed the total actual sales price of Stock sold by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities Sales Manager that each Underwriter may otherwise haveis the subject of the dispute. (c) Promptly Any indemnified party that proposes to assert the right to be indemnified under this Article V will, promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, action against such indemnified party shall, if in respect of which a claim in respect thereof is to be made against the an indemnifying party or parties under such subsectionthis Article V, notify the each such indemnifying party in writing of the commencement thereof; of such action, enclosing a copy of all papers served, but the omission so to notify such indemnifying party will not relieve the indemnifying party shall not relieve it from any liability which that it may might have to any indemnified party otherwise than under such subsectionto the extent it is not materially prejudiced as a result thereof. In case If any such action shall be is brought against any indemnified party, party and it shall notify notifies the indemnifying party of the commencement thereofits commencement, the indemnifying party shall will be entitled to participate in and, to the extent that it shall wishelects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party, party similarly notified, to assume the defense thereofof the action, with legal counsel reasonably satisfactory to such the indemnified party, and, and after notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofdefense, the indemnifying party shall will not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigationexcept as provided below. The indemnified party will have the right to employ its own legal counsel in any such action, but the fees, expenses and other charges of such legal counsel will be at the expense of such indemnified party unless (1) the employment of legal counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on the written advice of legal counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on the written advice of legal counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed legal counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of legal counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 6 Article V is applicable in accordance with its terms but for any reason is held to be unavailable under subsection (a) from the Company or (b) above the Sales Manager, the Company and the Sales Manager will contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the total losses, claims, liabilities, expenses and damages or liabilities (or actions including any investigative, legal and other expenses reasonably incurred in respect thereof) referred to thereinconnection with, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the and any amount paid in settlement of, any action, suit or payable proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Sales Manager, such Indemnified Party as a result persons who control the Company within the meaning of such lossesthe Act, claimsofficers of the Company who signed the Registration Statement and directors of the Company, damages or liabilities (or actions in respect thereofwho also may be liable for contribution) to which the Company and the Sales Manager may be subject in such proportion as is shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters Sales Manager on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerationsother. The relative benefits received by the Company on the one hand and the Underwriters Sales Manager on the other hand shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions compensation (before deducting expenses) received by the Underwriters, in each case as set forth in Sales Manager from the table sale of Stock on the cover page behalf of the Prospectus which Company. If, but only if, the allocation provided by the foregoing sentence is filed pursuant not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to Rule 424 under reflect not only the Act relative benefits referred to in Section 2(a) hereofthe foregoing sentence but also the relative fault of the Company, on the one hand, and the Sales Manager, on the other, with respect to the statements or omission which resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. The Such relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters Sales Manager, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters Sales Manager agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 5.1(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation allocation, which does not take account of into account, the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages liability, expense or liabilities (damage, or actions action in respect thereof) , referred to above in this subsection (dSection 5.1(d) shall be deemed to include include, for the purpose of this Section 5.1(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the foregoing provisions of this subsection (dSection 5.1(d), no Underwriter the Sales Manager shall not be required to contribute any amount in excess of the underwriting discounts received amount by it. No which the total actual sales price at which Stock sold by the Sales Manager exceeds the amount of any damages that the Sales Manager has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations For purposes of this Section 5.1(d), any person who controls a party to this Agreement within the meaning of the Act will have the same rights to contribution as that party, and each officer and director of the Company who signed the Registration Statement will have the same rights to contribution as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this subsection Section 5.1(d), will notify any such party or parties from whom contribution may be sought, but the omission so to notify will not relieve that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 5.1(d). No party will be liable for contribution with respect to any action or claim settled without its written consent (d) to contribute are several in proportion to their respective underwriting obligations and which consent will not jointbe unreasonably withheld). (e) The obligations of indemnity and contribution provided by this Article V shall not relieve the Company under this Section 6 shall be in addition to and the Sales Manager from any liability which the Company and the Sales Manager may otherwise have and shall extend(including, upon the same terms and conditionswithout limitation, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters Sales Manager may otherwise have and shall extend, upon the same terms and conditions, to each director for a breach of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actits obligations under Article II above).

Appears in 3 contracts

Sources: Sales Agreement (Innkeepers Usa Trust/Fl), Sales Agreement (Windrose Medical Properties Trust), Sales Agreement (Capital Lease Funding Inc)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any each Underwriter within the meaning of either Section 15 of the Act or Section 20 of and the Exchange Act from and Act, against any lossesand all loss, claimsliability, damages claim, damage and expense whatsoever, including, but not limited to, any and all reasonable expenses incurred in investigating, preparing or liabilitiesdefending against any litigation, joint commenced or severalthreatened, to which such Underwriteror any claim whatsoever or in connection with any investigation or inquiry of, directoror action or proceeding that may be brought against, officerthe respective indemnified parties, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of the representations and warranties of the Company made in this Agreement or any untrue statement statements or alleged untrue statement statements of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Disclosure Package or the Prospectus, any application or other document filed in any jurisdiction in order to qualify all or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B of the Shares under the Actsecurities laws thereof or filed with the SEC or FINRA (in this Section 10 collectively called “application”), or the omission or alleged omission therefrom from any of the foregoing of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under in which they were are made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company foregoing indemnity shall not be liable apply in respect of any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically expressly for use in any Preliminary Prospectus, the preparation thereofRegistration Statement or Prospectus, or any amendment or supplement thereto, or in any application or in any communication to the SEC, as the case may be and provided further that the foregoing indemnification with respect to any Preliminary Prospectus shall not inure to the benefit of such Underwriter if a copy of the Prospectus (as then amended and supplemented) was not sent or given by or on behalf of such Underwriter to the person asserting any losses, claims, damages or liabilities, and if the Prospectus (as amended and supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities. The indemnity agreement set forth in obligations of the Company under this Section 6(a10(a) shall will be in addition to any liabilities that liability the Company may otherwise have. The indemnification obligations of the Company and the Selling Shareholder shall be several and not joint. (b) Each Underwriter severally and not jointly will The Selling Shareholder shall indemnify and hold harmless the Companyeach Underwriter, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company each Underwriter within the meaning of either Section 15 of the Act or Section 20 of and the Exchange Act, Act against any lossesand all loss, claimsliability, damages claim, damage and expense whatsoever, including, but not limited to, any and all reasonable expenses incurred in investigating, preparing or liabilities to which defending against any litigation, commenced or threatened, or any claim whatsoever or in connection with any investigation or inquiry of, or action or proceeding that may be brought against, the Companyrespective indemnified parties, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of the representations and warranties of the Selling Shareholder made in this Agreement or any untrue statement statements or alleged untrue statement statements of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Disclosure Package or the Prospectus, any application or other document filed in any jurisdiction in order to qualify all or any amendment theretopart of the Shares under the securities laws thereof or filed with the SEC or FINRA (in this Section 10 collectively called “application”), or the omission or alleged omission therefrom from any of the foregoing of a material fact required to be stated therein or necessary to make the statements therein therein, in light of the circumstances in which they are made, not misleading; , but only with respect to any and all loss, liability, claim, damage or (ii) any untrue statement expense resulting from statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, if any, made in any preliminary prospectus Preliminary Prospectus, the Disclosure Package, the Registration Statement or the Prospectus (or any amendment or supplement thereto), thereof or the omission any application or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case any communication to the extentSEC in reliance upon, but only and in conformity with written information furnished to each Underwriter by such Selling Shareholder expressly for use in any Preliminary Prospectus, the extentDisclosure Package, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplementsupplement thereof, or any application or in any communication to the SEC, as the case may be and provided further that the foregoing indemnification with respect to any Preliminary Prospectus shall not inure to the benefit of the Underwriter if a copy of the Prospectus (as then amended and supplemented) was not sent or given by or on behalf of the Underwriter to the person asserting any losses, claims, damages or liabilities, and if the Prospectus (as amended and supplemented) would have cured the defect giving rise to such losses, claims, damages or liabilities. The obligations of each Selling Shareholder under this Section 10(b) will be in addition to any liability such Selling Shareholder may otherwise have. The indemnification obligations of the Company and the Selling Shareholder shall be several and not joint. (c) Each Underwriter severally and not jointly shall indemnify and hold harmless the Company, the Selling Shareholder, each of the directors of the Company, each of the officers of the Company who shall have signed the Registration Statement, and each other person, if any, who controls the Company or the Selling Shareholder within the meaning of the Act and the Exchange Act, to the same extent as the foregoing indemnities from the Company and the Selling Shareholder to the Underwriters, but only with respect to any and all loss, liability, claim, damage or expense resulting from statements or omissions, or alleged statements or omissions, if any, made in any Preliminary Prospectus, the Disclosure Package, the Registration Statement or the Prospectus or any amendment or supplement thereof or any application or in any communication to the SEC in reliance upon upon, and in conformity with written information furnished to the Company by you, or and the Selling Shareholder by any Underwriter through you, specifically the Representative expressly for use in any Preliminary Prospectus, the preparation Disclosure Package, the Registration Statement or the Prospectus or any amendment or supplement thereof; and will reimburse , or any application or in any communication to the Company for any legal or other expenses reasonably incurred by SEC, as the Company in connection with investigating or defending against any such loss, claim, damage, liability or actioncase may be. The indemnity agreement set forth in obligations of each Underwriter under this Section 6(b10(c) shall will be in addition to any liabilities that each liability which such Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection If any action, inquiry, investigation or proceeding is brought against any person in respect of which indemnification may be sought pursuant to Section 10(a), (ab) or (bc) above hereof, such person (hereinafter called the “indemnified party”) shall, promptly after notification of, or receipt of notice service of the commencement of any process for, such action, such indemnified inquiry, investigation or proceeding, notify in writing the party shall, if a claim in respect thereof or parties against whom indemnification is to be made against sought (hereinafter called the “indemnifying party”) of the institution of such action, inquiry, investigation or proceeding. The indemnifying party, upon the request of the indemnified party, shall assume the defense of such action, inquiry, investigation or proceeding, including, without limitation, the employment of counsel (reasonably satisfactory to such indemnified party) and payment of expenses. No indemnification provided for in this Section 10 shall be available to any indemnified party who shall fail to give such notice if the indemnifying party under does not have knowledge of such subsectionaction, notify inquiry, investigation or proceeding to the extent that such indemnifying party in writing of has been materially prejudiced by the commencement thereof; failure to give such notice, but the omission to so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified the indemnifying party otherwise than under such subsectionthis Section 10. In case any such action shall be brought against any Such indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its or their own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying party in connection with the defense of such action or if the indemnifying party shall not have, within a reasonable period of time in light of the circumstances, employed counsel reasonably satisfactory to the indemnified party, (2) to have charge of the defense of such action, inquiry, investigation or proceeding or if such indemnified party or parties shall have been advised by counsel that there may be a conflict between the positions of the indemnifying party or parties and of the indemnified party has reasonably concluded (based on advice of counsel) or parties or that there may be legal defenses available to it such indemnified party or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that , in any of which events the indemnifying indemnified party or parties shall not, in connection with any proceeding or related proceedings in be entitled to select counsel to conduct the same jurisdiction, defense to the extent determined by such counsel to be liable for necessary to protect the reasonable fees, disbursements and other charges interests of more than one separate firm admitted to practice in such jurisdiction at any one time for all such the indemnified party or parties, and the reasonable fees and expenses of such counsel shall be borne by the indemnifying party. All The indemnifying party shall be responsible for the fees and disbursements of only one such fees, disbursements and other charges will counsel so engaged by the indemnified party or parties as a group. Expenses covered by the indemnification in this Section 10 shall be reimbursed paid by the indemnifying party promptly as they are incurredafter written request is submitted by the indemnified party. An indemnifying In the event that it is determined that the indemnified party will was not be liable entitled to receive payments for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)expenses pursuant to this Section 10, the indemnified party shall return all sums that have been paid pursuant hereto. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction. Anything in this Section 10 to the contrary notwithstanding an indemnifying party shall not be liable for any settlement of a claim affected without its written consent, action or proceedingwhich consent shall not be unreasonably withheld. (de) If the indemnification provided for in this Section 6 10 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection Section 10(a), (ab) or (bc) above (“Indemnified Party”) hereof in respect of any losses, liabilities, claims, damages or liabilities expenses (or actions actions, inquiries, investigations or proceedings in respect thereof) referred to therein, except by reason of the failure to give notice as required in Section 10(d) hereof (provided that the indemnifying party does not have knowledge of the action, inquiry, investigation or proceeding and to the extent such party has been materially prejudiced by the failure to give such notice), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, liabilities, claims, damages or liabilities expenses (or actions actions, inquiries, investigations or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on Company, the one hand Selling Shareholder, and the Underwriters on the other from the offering of the BondsShares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party indemnifying party shall contribute to such amount paid or payable by such Indemnified Party indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on Company, the one hand Selling Shareholder, and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claimsliabilities, damages claims or liabilities expenses (or actions actions, inquiries, investigations or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other Selling Shareholder shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by them, respectively, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Selling Shareholder, or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Company, the Selling Shareholder, and the Underwriters agree that it would not be just and equitable if contribution pursuant contributions to this subsection (dSection 10(e) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (dSection 10(e). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, liabilities, claims, damages or liabilities expenses (or actions actions, inquiries, investigations or proceedings in respect thereof) referred to above in this subsection (dSection 10(e) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 10(e), (i) no Underwriter shall not be required to contribute any amount in excess of the underwriting discounts received and commissions applicable to the Shares purchased by it. No such Underwriter, and (ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 3 contracts

Sources: Underwriting Agreement (Gas Natural Inc.), Underwriting Agreement (Gas Natural Inc.), Underwriting Agreement (Gas Natural Inc.)

Indemnification and Contribution. (a) The Company will Offerors jointly and severally agree to indemnify and hold harmless each Underwriter, Underwriter and each of its directorspartners, officers, agentsdirectors, affiliates and employees and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange 1934 Act from and against any losses, claims, damages or liabilities, and any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Capital Securities), joint or several, to which such Underwriterarises out of, directoror is based upon, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in (A) the Registration Statement, or any amendment or supplement thereto, including any information deemed to be a part thereof of the Registration Statement pursuant to Rule 430B 430A(b) of the 1933 Act Regulations, if applicable, (B) the Prospectus and any amendment or supplement thereto, or (C) any application or other document, any amendment or supplement thereto, executed by the Offerors or based upon information furnished by or on behalf of the Offerors filed in any jurisdiction in order to qualify the Capital Securities under the Actsecurities or blue sky laws thereof (each, an "Application") or (ii) the omission or alleged omission therefrom of to state in the Registration Statement, or any amendment or supplement thereto, the Prospectus or any amendment or supplement thereto, or any Application, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will shall reimburse as incurred each Underwriter, director, officer, agent, affiliate or Underwriter and each such controlling person for any legal or and other expenses reasonably incurred by it in investigating or defending or preparing to defend against or appearing as a third party witness in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that neither of the Company Offerors shall not be liable to any Underwriter in any such case to the extent that any such loss, claim, damage or liability arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration StatementProspectus, including any preliminary prospectus or the Prospectus or any such amendment or supplementsupplement thereto, in reliance upon and in conformity with written information furnished in writing to the Company Offerors by you, or by any on behalf of such Underwriter through you, specifically for use in the preparation thereof. The inclusion and actually included therein; and provided further that, as to any Prospectus that has been amended or supplemented as provided herein, this indemnity agreement set forth shall not inure to the benefit of any Underwriter, on account of any loss, claim, damage, liability or action arising out of the sale of Capital Securities to any person by such Underwriter if (A) such Underwriter failed to send or give a copy of the final Prospectus as so amended or supplemented to that person at or prior to the confirmation of the sale of such Capital Securities to such person in this Section 6(aany case where such delivery is required by the 1933 Act, and (B) shall the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact in any preliminary Prospectus was corrected in an amendment or supplement thereto (but only if the sale to such person occurred after the Offerors provided such Underwriter and the Underwriter received copies of such amendment or supplement for distribution). This indemnity agreement will be in addition to any liabilities that liability which the Company Offerors may otherwise have. (b) Each Underwriter Underwriter, severally and not jointly jointly, will indemnify and hold harmless the Company, its the Trust, the Trustees and each of the Company's directors, each of its officers who sign the Registration Statement and each person, if any, who controls the Company or the Trust within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange 1934 Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Offerors to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company Offerors by you, or by any such Underwriter through you, and specifically for use included in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionProspectus. The This indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each liability which such Underwriter may otherwise have. The Offerors acknowledge that the statements set forth in the last paragraph of the cover page (p. S-4) and under the heading "Underwriting" or "Plan of Distribution" in the Prospectus constitute the only information furnished in writing by the several Underwriters for inclusion in the Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 6 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the one or more indemnifying parties under this Section 6, notify such indemnifying party under such subsection, notify the indemnifying party in writing or parties of the commencement thereof; but the omission so to notify the indemnifying party shall or parties will not relieve it or them from any liability which it or they may have to any indemnified party otherwise than under subsection (a) or (b) of this Section 6 or to the extent that the indemnifying party was not adversely affected by such subsectionomission. In case any such action shall be is brought against any an indemnified party, party and it shall notify the notifies an indemnifying party or parties of the commencement thereof, the indemnifying party shall or parties against which a claim is to be made will be entitled to participate in therein and, to the extent that it shall or they may wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 6 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the lead Underwriter in the case of paragraph (3a) a conflict or potential conflict exists (based on advice of counsel to this Section 6, representing the indemnified partyparties under such paragraph (a) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right who are parties to direct the defense of such action on behalf of the indemnified party) or actions), or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that After such notice from the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such feesparty, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its written the consent (of the indemnifying party, which consent will not be unreasonably withheld). No indemnifying , unless such indemnified party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by waived its rights under this Section 6 (whether or not any in writing in which case the indemnified party is may effect such a party thereto), unless settlement without such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceedingconsent. (d) The Company agrees to indemnify the Trust against all losses, claims, damages or liabilities due from the Trust under Section 6(a) hereof. (e) If the indemnification provided for in the preceding paragraphs of this Section 6 is unavailable or insufficient to hold harmless an indemnified party under subsection paragraph (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, the Offerors or the Underwriters shall contribute to the amount paid or payable by such Indemnified Party as a result of such aggregate losses, claims, damages or and liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any including legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending same) to which the Offerors and one or more of the Underwriters may be subject in such proportion so that the Underwriters are responsible for that portion represented by the percentage that the total discounts and/or commissions received by the Underwriters bears to the sum of such discounts and/or commissions and the purchase price of the Capital Securities specified in Schedule B hereto and the Offerors are responsible for the balance; provided, however, that (y) in no case shall any such action or claim Underwriter (which shall except as may be limited as provided in subsection (cany agreement among Underwriters relating to the offering of the Capital Securities) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute responsible for any amount in excess of the underwriting total discounts and/or commissions received by it. No it with respect to the Capital Securities purchased by such Underwriter under this Agreement and (z) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act▇▇▇▇ ▇▇▇) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend6, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, person who controls any an Underwriter within the meaning of the Act; 1933 Act shall have the same rights to contribution as such Underwriter, and the obligations each person who controls either of the Underwriters under this Section 6 shall be in addition to any liability which Offerors within the respective Underwriters may otherwise have and shall extendmeaning of either the 1933 Act or the 1934 Exchange Act, upon the same terms and conditions, to each director officer or trustee of the Company, to each officer of the Company Offerors who has shall have signed the Registration Statement and to each person, if any, who controls the Company within the meaning director or trustee of the ActOfferors shall have the same rights to contribution as the Offerors, subject in each case to clause (y) of this paragraph (e). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this paragraph (e), notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this paragraph (e).

Appears in 3 contracts

Sources: Underwriting Agreement (Nb Capital Trust Iv), Underwriting Agreement (Nb Capital Trust Iii), Underwriting Agreement (Nb Capital Trust Ii)

Indemnification and Contribution. (a) The In the case of any offering registered pursuant to this Article III, the Company will agrees to indemnify and hold harmless each UnderwriterRegistering Stockholder, its directors, officers, agents, affiliates and each personunderwriter, if any, of the Subject Securities under such registration and each person who controls any Underwriter of the foregoing within the meaning of either Section 15 of the Act Securities Act, and any officer, employee or Section 20 partner of the Exchange Act from and foregoing, harmless against any and all losses, claims, damages damages, or liabilities, joint or several, liabilities (including reasonable legal fees and other reasonable expenses incurred in the investigation and defense thereof) to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Securities Act or otherwiseotherwise (collectively "Losses"), insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) Losses shall arise out of or are shall be based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or registration statement relating to the sale of such Subject Securities (as amended if the Company shall have filed with the SEC any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Actthereof), or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package prospectus relating to the sale of such Subject Securities (as amended or supplemented if the Prospectus (or Company shall have filed with the SEC any amendment thereof or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, provided that the Company indemnification contained in this Section 3.5 shall not be liable in any apply to such case to the extent that any such loss, claim, damage or liability arises Losses which shall arise primarily out of or is shall be based primarily upon an any such untrue statement or alleged untrue statement statement, or any such omission or alleged omission omission, which shall have been made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished in writing to the Company by youthe Registering Stockholders or any such underwriter, or by any Underwriter through youas the case may be, specifically for use in connection with the preparation thereof. The indemnity agreement set forth of the registration statement or prospectus contained in this Section 6(a) shall be in addition to the registration statement or any liabilities that the Company may otherwise havesuch amendment thereof or supplement therein. (b) Each Underwriter In the case of each offering registered pursuant to this Article III, the Registering Stockholders and each underwriter, if any, participating therein shall agree, substantially in the same manner and to the same extent as set forth in the preceding paragraph, severally and not jointly will to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement Company and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, against any losses, claims, damages or liabilities to which and the directors and executive officers of the Company, with respect to any statement in or omission from such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue registration statement or alleged untrue statement of a material fact prospectus contained in the Registration Statementsuch registration statement (as amended or as supplemented, if amended or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iisupplemented as aforesaid) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that if such untrue statement or alleged untrue statement or omission or alleged omission was shall have been made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished in writing to the Company by youthe Registering Stockholders or such underwriter, or by any Underwriter through youas the case may be, specifically for use in connection with the preparation thereof; and will reimburse the Company for any legal of such registration statement or other expenses reasonably incurred by the Company prospectus contained in connection with investigating such registration statement or defending against any such loss, claim, damage, liability amendment thereof or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havesupplement thereto. (c) Promptly Each party indemnified under this Section 3.5 shall, promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, claim ("Claim") against such indemnified party shall, if a claim in respect thereof is to of which indemnity may be made against the indemnifying party under such subsectionsought hereunder, notify the indemnifying party in writing of the commencement thereof; but the omission . The failure of any indemnified party to so to notify the an indemnifying party shall not relieve it the indemnifying party from any liability in respect of such Claim which it may have to such indemnified party on account of the indemnity contained in this Section 3.5, unless (and only in the event) the indemnifying party was materially prejudiced by such failure, and in no event shall such failure relieve the indemnifying party from any other liability which it may have to any such indemnified party otherwise than under such subsectionparty. In case any such action Claim in respect of which indemnification may be sought hereunder shall be brought against any indemnified party, party and it shall notify the an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishmay desire, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with thereof through counsel reasonably satisfactory to the indemnified party by notifying the indemnified party in writing of such election within 10 days after receipt of the indemnified party's initial notice of the Claim, and, and after such notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection this Section 3.5 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof thereof, other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of investigation (unless such indemnified party unless (1) reasonably objects to such assumption on the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) grounds that there may be legal defenses available to it or other indemnified parties that which are different from or in addition to those available to the such indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between party in which event the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredfor the reasonable expenses incurred in connection with retaining separate legal counsel). An If the indemnifying party will not be liable for undertakes to defend against such Claim within such 10-day period, the indemnifying party shall control the investigation, defense and settlement thereof; provided that (i) the indemnifying party shall use its reasonable efforts to defend and protect the interests of the indemnified party with respect to such Claim, (ii) the indemnified party, prior to or during the period in which the indemnifying party assumes control of such matter, may take such reasonable actions as the indemnified party deems necessary to preserve any and all rights with respect to such matter, without such actions being construed as a waiver of the indemnified party's rights to defense and indemnification pursuant to this Agreement, and (iii) the indemnifying party shall not, without the prior written consent of the indemnified party, consent to any settlement which (A) imposes any Liabilities on the indemnified party (other than those Liabilities which the indemnifying party agrees to promptly pay or discharge), and (B) with respect to any non- monetary provision of such settlement, would be likely, in the indemnified party's reasonable judgment, to have an adverse effect on the business operations, assets, properties or prospects of any action Stockholder (in the event that a Registering Stockholder or claim effected any of its Affiliates is the indemnified party), or the Company (in the event that the Company is an indemnified party), or such indemnified party. If the indemnifying party does not undertake within such 10-day period to defend against such Claim, then the indemnifying party shall have the right to participate in any such defense at its sole cost and expense, but the indemnified party shall control the investigation, defense and settlement thereof (provided that the indemnified party may not settle any such Claim without its obtaining the prior written consent of the indemnifying party (which consent will shall not be unreasonably withheldwithheld by the indemnifying party; provided that in the event that the indemnifying party is in material breach at such time of the provisions of this Section 3.5, then the indemnified party shall not be obligated to obtain such prior written consent of the indemnifying party) at the reasonable cost and expense of the indemnifying party (which shall be paid by the indemnifying party promptly upon presentation by the indemnified party of invoices or other documentation evidencing the amounts to be indemnified). No In addition to the foregoing, no indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to in respect of which the matters contemplated by this Section 6 (whether or not any indemnified party is could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or that may arise out of such claim, action claim or proceeding. (d) If the indemnification provided for in this Section 6 3.5 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) is insufficient to hold such indemnified party harmless from any Losses in respect of any losses, claims, damages or liabilities which this Section 3.5 would otherwise apply by its terms (or actions in respect thereof) referred to thereinother than by reason of exceptions provided herein), then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyindemnified party, shall have a joint and several obligation to contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesLosses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by and fault of the Company indemnifying party, on the one hand hand, and the Underwriters such indemnified party, on the other from the offering of the Bonds. Ifhand, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions offering to which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), contribution relates as well as any other relevant equitable considerations. The relative benefits benefit shall be determined by reference to, among other things, the amount of proceeds received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds each party from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofsuch contribution relates. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters each party's relative knowledge and the parties’ relative intent, knowledge, access to information concerning the matter with respect to which the claim was asserted, and the opportunity to correct or and prevent such any statement or omission. The Company and amount paid or payable by a party as a result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any investigation or proceeding, to the Underwriters extent such party would have been indemnified for such expenses if the indemnification provided for in this Section 3.5 was available to such party. (e) The parties hereto agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 3.5 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by itimmediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 3 contracts

Sources: Restructuring, Financing and Distribution Agreement (Lockheed Martin Corp), Stockholders Agreement (Loral Corp /Ny/), Stockholders Agreement (Lockheed Martin Corp)

Indemnification and Contribution. (a) The Company will Each Issuer, jointly and severally, agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and their agents and affiliates against any losses, claims, damages or liabilities, joint or several, liabilities to which any Underwriter or such controlling person, agent or affiliate may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto; (ii) the omission or alleged omission to state, in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, and will reimburse, as incurred, the Underwriters and each such controlling person, agent or affiliate for any legal or other expenses incurred by the Underwriters or such controlling person, agent or affiliate in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, the Issuers will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Underwriters furnished to the Issuers by the Underwriters through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of the Underwriters consists of the information as set forth in Section 12 hereof. The indemnity provided for in this Section 9 will be in addition to any liability that any Issuer may otherwise have to the indemnified parties. Nothing in this Section 9(a) shall be deemed to impose on the Underwriters any informational delivery obligations in addition to those arising under applicable law. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Issuers, their directors, their officers and each person, if any, who controls any Issuer within the meaning of Section 15 of the Securities Act against any losses, claims, damages or liabilities to which any Issuer or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of the Underwriters consists of the information as set forth in the preparation thereofSection 12 hereof; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company any Issuer or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The indemnity agreement set forth provided for in this Section 6(b) shall 9 will be in addition to any liabilities liability that each Underwriter the Underwriters may otherwise havehave to the indemnified parties. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the Representatives in the case of paragraph (3a) a conflict of this Section 9 or potential conflict exists the relevant Issuer(s) in the case of paragraph (based on advice b) of counsel to this Section 9, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparty. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its the prior written consent of the indemnifying party (which consent will shall not be unreasonably withheld), unless such indemnified party waived in writing its rights under this Section 9, in which case the indemnified party may effect such a settlement without such consent. Notwithstanding the foregoing, no indemnifying party shall be liable under this Section 9 for any settlement of any claim or action effected without its prior written consent. No indemnifying party shall, without the prior written consent of each the indemnified party, settle effect any settlement or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)party, or indemnity could have been sought hereunder by such party, unless such settlementsettlement does not include any statement as to or an admission of fault, compromise culpability or consent includes an unconditional release failure to act by or on behalf of each any indemnified party from all liability arising or that may arise out of such claim, action or proceedingparty. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Issuers on the one hand and the Underwriters any Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofsuch Underwriter. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuers, on the one hand, or such Underwriter, on the Underwriters and other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Issuers and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in the first sentence of this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Underwriter under this Agreement, less the aggregate amount of any damages that such Underwriter has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations ), each person, if any, who controls an Underwriter within the meaning of Section 15 of the Company under this Section 6 Securities Act shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, rights to each director, officer, agent and affiliate of an Underwritercontribution as the Underwriters, and to each director of any Issuer, each officer of any Issuer and each person, if any, who controls any Underwriter Issuer within the meaning of the Act; and the obligations Section 15 of the Underwriters under Securities Act shall have the same rights to contribution as such Issuer. The Underwriters’ obligations to contribute pursuant to this Section 6 shall be 9(d) are several in addition proportion to any liability which the their respective Underwriters may otherwise have purchase obligations and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actnot joint.

Appears in 2 contracts

Sources: Underwriting Agreement (Directv), Underwriting Agreement (Directv)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or in the Base Prospectus, any Preliminary Prospectus or any other preliminary prospectus supplement relating to the Securities, the Final Prospectus, or any Issuer Free Writing Prospectus or the information contained in the final term sheet required to be prepared and filed pursuant to Section 5(b) hereto, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, and with respect to such prospectuses in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereofinclusion therein. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign signed the Registration Statement Statement, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with respect to any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse documents referred to in the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that the statements set forth (i) in the last paragraph of the cover page regarding delivery of the Securities and, under the heading “Underwriting”, (ii) the list of Underwriters and their respective participation in the sale of the Securities, (iii) the sentences related to concessions and reallowances, (iv) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus and (v) the paragraph with respect to compliance with NASD Rule 2720 of the Financial Industry Regulatory Authority, Inc. constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise have knowledge of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with of any such action and appoint counsel satisfactory to such indemnified party, and, after notice from (including local counsel) of the indemnifying party party’s choice at the indemnifying party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel reasonably satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a), (b) or (bc) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending any loss, claim, damage, liability or action) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the ActAct or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Wyndham Worldwide Corp), Underwriting Agreement (Wyndham Worldwide Corp)

Indemnification and Contribution. (a) written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Shares under the securities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each, an "Application"), or (iii) the omission or alleged omission to state in any Preliminary Prospectus, the Registration Statement or the Prospectus or any amendment or supplement to the Registration Statement or the Prospectus or any Application a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse, as incurred, each Underwriter and each such other person for any legal or other expenses reasonably incurred by such Underwriter or such other person in connection with investigating defending or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability based solely upon an untrue statement or omission or alleged untrue statement or omission in any of such documents made in reliance upon and in conformity with information relating to any Underwriter furnished in writing to the Company by the Representative on behalf of any Underwriter expressly for inclusion therein; Provided, further, that such indemnity with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter (or any such other person) from whom the person asserting any such loss, claim, damage, liability or action purchased Shares which are the subject thereof to the extent that any such loss, claim, damage or liability (i) results from the fact that such Underwriter failed to send or give a copy of the Prospectus (as amended or supplemented) to such person at or prior to the confirmation of the sale of such Shares to such person in any case where such delivery is required by the Act and (ii) arises out of or is based upon an untrue statement or omission of a material fact contained in such Preliminary Prospectus that was corrected in the Prospectus (or any amendment or supplement thereto), unless such failure to deliver the Prospectus (as amended or supplemented) was the result of noncompliance by the Company with Section 4(g). This indemnity agreement will be in addition to any liability that the Company might otherwise have. The Company will indemnify and hold harmless not, without the prior written consent of each Underwriter, its directorssettle or compromise or consent to the entry of any judgment in any pending or threatened claim, officersaction, agents, affiliates and each person, if any, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not such Underwriter or any person who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act is a party to each claim, action, suit or proceeding), unless such settlement, compromise or consent includes an unconditional release of each Underwriter and each such other person from all liability arising out of such claim, action, suit or proceeding. (b) Each Underwriter will indemnify and hold harmless the Company, and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, each director of the Company and each officer of the Company who signed the Registration Statement against any losses, claims, damages or liabilities, joint liabilities (or several, actions in respect thereof) to which the Company and any such Underwriter, director, officer, agent, affiliate officer or controlling person may become subject, subject under the Act or other federal, state or Commonwealth of Puerto Rico statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement or 24 24 the Prospectus or any amendment or supplement to the Registration Statement or the Prospectus or any Application, or material fact required to be stated therein or (ii) the omission or the alleged omission to state in the Registration Statement, any Preliminary Prospectus or the Prospectus or any amendment thereto, including any information deemed or supplement to be a part thereof pursuant to Rule 430B under the ActRegistration Statement or the Prospectus, or the omission or alleged omission therefrom of any Application, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically the Representative expressly for use in therein; and, subject to the preparation thereof; and limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company and any such director, officer or controlling person in connection with investigating or defending against any such loss, claim, damage, liability or actionany action in respect thereof. The Company acknowledges that, for all purposes under this Agreement, the statements set forth under the heading "Underwriting" constitute the only information relating to any Underwriter furnished in writing to the Company by the Representative on behalf of the Underwriters expressly for inclusion in the Registration Statement, any Preliminary Prospectus or the Prospectus. This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter may might otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 7 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the an indemnifying party or parties under such subsectionthis Section 7, notify the such indemnifying party in writing or parties of the commencement thereof; , but the omission so to notify the indemnifying party shall or parties will not relieve it or them from any liability which it or they may have to any indemnified party under the foregoing provisions of this Section 7 or otherwise than under unless, and only to the extent that, such subsectionomission results in the forfeiture of substantive rights or defenses by the indemnifying party. In case If any such action shall be is brought against any an indemnified party, party and it shall notify the notifies an indemnifying party or parties of the commencement thereofits commencement, the indemnifying party shall or parties against which a claim is made will be entitled to participate in therein and, to the extent that it shall or they may wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 7 for any legal or other expenses other than reasonable costs of investigation subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that in connection with such action the 25 25 indemnifying party shall not be liable for the reasonable fees and expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to the indemnifying partyfees and expenses of local counsel necessary in connection with any such proceedings) in any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances, designated by the Representative in the case of paragraph (3a) a conflict or potential conflict exists (based on advice of counsel to this Section 7, representing the indemnified partyparties under paragraph (a) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right who are parties to direct the defense of such action on behalf of the indemnified party) or actions), or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that After such notice from the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such feesparty, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying by such indemnified party shall, without the prior written consent of each indemnified the indemnifying party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that waived its rights under this Section 7 in which case the indemnified party may arise out of effect such claim, action or proceedinga settlement without such consent. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d7(d), no Underwriter shall be required to contribute any amount in excess of the total underwriting discounts received by itit with respect to the Shares purchased by such Underwriter under this Agreement, less the aggregate amount of any damages that such Underwriter has otherwise been required to pay in respect of the same or any substantially similar claim. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations to contribute as provided in this subsection (dSection 7(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations . For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend7(d), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 shall be in addition to any liability which 20 of the respective Underwriters may otherwise Exchange Act will have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, will have the same rights to contribution as the Company, subject in each case to the provisions of this paragraph (d). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made under this Section 7(d), notify any such party or parties from whom contribution may be sought, but the omission so to notify will not relieve the party or parties from whom contribution may be sought from any other obligation(s) it or they may have hereunder or otherwise than under this paragraph (d) or to the extent that such party or parties were not adversely affected by such omission. The contribution agreement set forth above shall be in addition to any liabilities which any indemnifying party may otherwise have. No party will be liable for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably withheld). (e) The indemnity and contribution agreements contained in this Section 7 and the representations and warranties of the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of the Underwriters, (ii) acceptance of any of the Shares and payment therefor or (iii) any termination of this Agreement.

Appears in 2 contracts

Sources: Underwriting Agreement (First Bancorp /Pr/), Underwriting Agreement (First Bancorp /Pr/)

Indemnification and Contribution. (a) The Company will Seller and UACC shall, jointly and severally, indemnify and hold harmless each the Underwriter, its the directors, officers, agents, affiliates employees and agents of the Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which the Underwriter or such controlling person may become subject under the Securities Act or otherwise, to the extent such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement made by the Seller or UACC in Section 2 hereof, (ii) any untrue statement or alleged untrue statement of any material fact contained or incorporated in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto, or (iii) the omission or alleged omission to state in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto a material fact required to be stated therein or necessary to make the statements therein, not misleading, and will reimburse, as incurred, each such indemnified party for any legal or other costs or expenses reasonably incurred by it in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, that the Seller and UACC will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto in the Underwriter’s Information; provided, further, that the Seller and UACC shall not be liable to the Underwriter or any of the directors, officers, employees and agents of the Underwriter and each person, if any, who controls the Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, with respect to any loss, claim, damage or liability that results from the fact that the Underwriter sold Notes to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, if delivery thereof was required, a copy of the Prospectus or the Prospectus as then amended or supplemented, whichever is most recent, if the Seller has previously furnished copies thereof to the Underwriter within a reasonable time period prior to such confirmation. The indemnity provided for in this Section 10 shall be in addition to any liability which the Seller and UACC may otherwise have. The Seller and UACC will not, without the prior written consent of the Underwriter, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not the Underwriter or any person who controls the Underwriter is a party to such claim, action, suit or proceeding), unless such settlement, compromise or consent (i) includes an unconditional release of the Underwriter and such controlling persons from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or admission of, fault, culpability or a failure to act by or on behalf of any Underwriter or controlling person. (b) The Underwriter will indemnify and hold harmless each of the Seller and UACC, each of its directors and officers and each person, if any, who controls the Seller or UACC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Seller, UACC or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, ) or (ii) the omission or the alleged omission therefrom of to state in the Preliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto) a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by youUnderwriter’s Information, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company Seller, UACC or any such director, officer or controlling person in connection with investigating or investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or actionany action in respect thereof. The indemnity agreement set forth remedies provided for in this Section 6(b) 10 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition available to any liabilities that each Underwriter may otherwise haveindemnified party at law or in equity. (c) Promptly after receipt by an indemnified party under subsection In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to paragraph (a) or (b) above of this Section 10, such person (for purposes of this paragraph (c), the “indemnified party”) shall, promptly after receipt by such party of notice of the commencement of any such action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the person against whom such indemnity may be sought (for purposes of this paragraph (c), the “indemnifying party in writing of the commencement thereof; party”), but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 10. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (which may be counsel to such indemnifying party if otherwise reasonably acceptable to the indemnified party); provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, and, after the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof any such action and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 10 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The thereof, unless (i) the indemnified party will shall have the right to employ its own employed separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel in each applicable local jurisdiction) in any one action or separate but substantially similar actions arising out of the same general allegations or circumstances, designated in writing by the Underwriter in the case of paragraph (a) of this Section 10, representing the indemnified parties under such actionparagraph (a) who are parties to such action or actions), but (ii) the fees, expenses and other charges indemnifying party has authorized the employment of such counsel will be for the indemnified party at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2iii) the use of counsel chosen by the indemnifying party to represent the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) would present such counsel with a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) interest or (4iv) the indemnifying party has not in fact employed counsel elected to assume the defense of such action proceeding but has failed within a reasonable time after receiving notice of to retain counsel reasonably satisfactory to the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its written the consent (which consent will not be unreasonably withheld)of the indemnifying party. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement (x) includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and (y) does not include any statement as to or any admission of fault, action culpability or proceedinga failure to act by or on behalf of any indemnified party. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 10 is unavailable under subsection (a) or (b) above insufficient, for any reason, to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Seller and UACC on the one hand and the Underwriters Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes (before deducting expenses) received by the Company Seller and UACC (including for such purpose, the value of the Certificates) bear to the total underwriting discounts and commissions received by the Underwriters, in each case Underwriter (the “Spread”) as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Seller, UACC or the Underwriters and Underwriter, the parties’ relative intentintents, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Seller, UACC and the Underwriters Underwriter agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no the Underwriter shall not be obligated to make contributions hereunder that in the aggregate exceed the amount by which the Spread received by it in the initial offering of such Notes, less the aggregate amount of any damages that the Underwriter has otherwise been required to contribute any amount pay in excess respect of the underwriting discounts received by it. No same or any substantially similar claim, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11 (f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Securities Act or Section 6 20 of the Exchange Act, and each director, officer, employee and agent of the Underwriter shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as the Underwriter, and conditions, to each director of the CompanySeller and UACC, to each officer of the Company who has signed the Registration Statement Seller and to UACC and each person, if any, who controls the Company Seller and UACC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Seller and UACC.

Appears in 2 contracts

Sources: Underwriting Agreement (UPFC Auto Receivables Trust 2006-A), Underwriting Agreement (UPFC Auto Receivables Trust 2006-B)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each UnderwriterHolder of the Registrable Securities covered by a registration, its directors, officers, agents, affiliates and each other person, if any, who controls any Underwriter such Holder within the meaning of either the Securities Act, with respect to which such registration, qualification or compliance that has been effected pursuant to Section 15 2 hereof, and each underwriter, if any, and each person who controls any underwriter of the Act Registrable Securities held by or Section 20 of the Exchange Act issuable to such Holder from and against any all claims, losses, claimsexpenses, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or and liabilities (or actions in respect thereofthereto) arise arising out of or are based upon (i) any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany prospectus, offering circular or any amendment thereto, other document (including any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated registration statement, notification or the like) incident to any such registration, qualification or compliance, (ii) the omission (or alleged omission therefrom of omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement violation by the Company of any rule or alleged untrue statement of a material fact contained in any preliminary prospectus, regulation promulgated under the Disclosure Package or the Prospectus (Securities Act or any amendment state securities law applicable to the Company and relating to action or supplement thereto)inaction required by the Company in connection with any such registration, qualification or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingcompliance, and will reimburse each Underwritersuch Holder, directoreach of its officers, officerdirectors, agentmanager, affiliate or members and partners, and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any reasonable legal or and other expenses reasonably incurred by it in connection with investigating investigating, defending or defending against settling any such claim, loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 2.5 shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), and provided, further, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon the Company?s reliance on an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such Holder, any such underwriter or any such controlling person in writing specifically for use in such registration statement or prospectus and the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability (or action in respect thereof) arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statementsuch registration statement, any preliminary prospectus which untrue statement or the Prospectus alleged untrue statement or any such omission or alleged omission is completely corrected in an amendment or supplement, in reliance upon and in conformity with written information furnished supplement to the Company by youregistration statement and the undersigned indemnitees thereafter fail to deliver or cause to be delivered such registration statement as so amended or supplemented prior to or concurrently with the sale of the Registrable Securities to the person asserting such loss, claim, damage or by any Underwriter through you, specifically for use liability (or actions in the preparation respect thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that or expense after the Company may otherwise havehas furnished the undersigned with the same. (b) Each Underwriter Holder of Registrable Securities covered by a registration statement shall, severally and not jointly will jointly, indemnify and hold harmless the Company, each of its directorsdirectors and officers, its officers who sign the Registration Statement and each personunderwriter, if any, of the Company?s securities covered by such a registration statement, each person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, and each other such Holder, each of its officers, directors, managers, members and partners and each person controlling such other Holder, against any all claims, losses, claimsexpenses, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or and liabilities (or actions in respect thereof) arise arising out of or are based upon (i) on any untrue statement (or alleged untrue statement statement) of a material fact contained in the Registration Statementany such registration statement, prospectus, offering circular or other document, or any amendment thereto, or the omission (or alleged omission therefrom of omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , and will reimburse the Company, such other Holders, such directors, officers, mangers, members, partners, persons or (ii) underwriters for any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (reasonable legal or any amendment other expenses incurred in connection with investigating, defending or supplement thereto)settling any such claim, loss, damage, liability or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingaction, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement statement) or omission (or alleged omission was omission) is made in the Registration Statementsuch registration statement, any preliminary prospectus prospectus, offering circular or the Prospectus or any such amendment or supplement, other document in reliance upon and in conformity with written information furnished to the Company by you, or an instrument duly executed by any Underwriter through you, such Holder specifically for use in therein; provided, however, the preparation thereof; and will reimburse the Company total amount for which any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in Holder shall be liable under this Section 6(b2.5(b) shall be not in addition to any liabilities that each Underwriter may otherwise haveevent exceed the aggregate proceeds received by such Holder from the sale of Registrable Securities held by such Holder in such registration. (c) Promptly Each party entitled to indemnification under Section 2.5 hereof (the ?Indemnified Party?) shall give notice to the party required to provide indemnification (the ?Indemnifying Party?) promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement such Indemnified Party has actual knowledge of any action, such indemnified party shall, if a claim in respect thereof is as to which indemnity may be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified partysought, and it shall notify permit the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel Indemnifying Party to assume the defense of any such action within a reasonable time after receiving notice of the commencement of the actionclaim or any litigation resulting there from, in each of which cases the reasonable feesprovided, disbursements and other charges of that counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable feesIndemnifying Party, disbursements and other charges who shall conduct the defense of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party claim or parties. All such feeslitigation, disbursements and other charges will shall be reimbursed approved by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent Indemnified Party (which consent will whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party?s expense, and provided, further, that the failure of any Indemnified Party to give notice as provided herein, shall not relieve the Indemnifying Party of its obligations hereunder, unless such failure resulted in actual detriment to the Indemnifying Party. No indemnifying party Indemnifying Party, in the defense of any such claim or litigation, shall, without except with the prior written consent of each indemnified partyIndemnified Party, settle or compromise or consent to the entry of any judgment in or enter into any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or settlement which does not any indemnified party is a party thereto), unless such settlement, compromise or consent includes include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release of each indemnified party from all liability arising in respect to such claim or that may arise out of such claim, action or proceedinglitigation. (d) If In order to provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any Holder of Registrable Securities exercising rights under this Agreement, or any controlling person of any such holder, makes a claim for indemnification provided pursuant to Section 2.5 hereof but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that Section 2.5 hereof provides for indemnification in this Section 6 is unavailable under subsection (a) such case, or (bii) above to a party that would have been an indemnified party contribution under subsection (a) or (b) above (“Indemnified Party”) in respect the Securities Act may be required on the part of any such selling Holder or any such controlling person in circumstances for which indemnification is provided under Section 2.5 hereof; then, and in each such case, the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as so that such Holder is appropriate to reflect responsible for the relative benefits received portion represented by the Company on percentage that the one hand public offering price of its Registrable Securities offered by the registration statement bears to the public offering price of all securities offered by such registration statement, and the Underwriters on Company is responsible for the other from the offering of the Bonds. Ifremaining portion; provided, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwritersthat, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim case, (which shall be limited as provided in subsection (cA) above if the Indemnifying Party has assumed the defense of any no such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall Holder will be required to contribute any amount in excess of the underwriting discounts received public offering price of all such Registrable Securities offered by it. No it pursuant to such registration statement and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Registration Rights Agreement (AMBER Ready, Inc), Registration Rights Agreement (AMBER Ready, Inc)

Indemnification and Contribution. (a) The In the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, Company will shall indemnify and hold harmless each Underwriterthe holder of such Registrable Securities, its directors, such holder's directors and officers, agents, affiliates and each other person (including each underwriter) who participated in the offering of such Registrable Securities and each other person, if any, who controls any Underwriter such holder or such participating person within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate holder or any such director or officer or participating person or controlling person may become subject, subject under the Securities Act or otherwiseany other statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained, on the effective date thereof, in any Registration Statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statementtherein, or any amendment or supplement thereto, including or (ii) any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will shall reimburse each Underwriter, such holder or such director, officer, agent, affiliate officer or participating person or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating holder or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.or participating person or controlling person in

Appears in 2 contracts

Sources: Registration Rights Agreement (Level 8 Systems Inc), Purchase Agreement (Level 8 Systems Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or in the Base Prospectus, any Preliminary Prospectus or any other preliminary prospectus supplement relating to the Securities, the Final Prospectus, or any Issuer Free Writing Prospectus or the information contained in the final term sheet required to be prepared and filed pursuant to Section 5(b) hereto, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, and with respect to such prospectuses in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereofinclusion therein. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign signed the Registration Statement Statement, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with respect to any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse documents referred to in the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that the statements set forth (i) in the last paragraph of the cover page regarding delivery of the Securities and, under the heading “Underwriting”, (ii) the list of Underwriters and their respective participation in the sale of the Securities, (iii) the sentences related to concessions and reallowances, (iv) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus and (v) the paragraph, under the heading “Conflicts of interest”, with respect to compliance with Financial Industry Regulatory Authority, Inc. Rule 5121 constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise have knowledge of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with of any such action and appoint counsel satisfactory to such indemnified party, and, after notice from (including local counsel) of the indemnifying party party’s choice at the indemnifying party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel reasonably satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a), (b) or (bc) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending any loss, claim, damage, liability or action) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the ActAct or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Wyndham Worldwide Corp), Underwriting Agreement (Wyndham Worldwide Corp)

Indemnification and Contribution. (a) The Company will and the Subsidiaries, jointly and severally, shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates officers and employees and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of Shares), to which such that Underwriter, director, officer, agent, affiliate employee or controlling person may become subject, under the Act Securities Act, the Canadian Securities Laws or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration StatementStatement or the Prospectus, or in any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, or in any amendment or supplement thereto, any material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (iii) any act or failure to act or any alleged act or failure to act by any Underwriter in connection with, or relating in any manner to, the Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon matters covered by clause (i) or (ii) above (provided that the Company and the Subsidiaries shall not be liable in the case of any untrue statement matter covered by this clause (iii) to the extent that it is determined in a final judgment by a court of competent jurisdiction that such loss, claim, damage, liability or alleged untrue statement action resulted directly from any such act or failure to act undertaken or omitted to be taken by such Underwriter through its gross negligence, contravention of a material fact contained in any preliminary prospectus, the Disclosure Package law or the Prospectus (or any amendment or supplement theretowillful misconduct), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will shall reimburse each Underwriter, director, Underwriter and each such officer, agent, affiliate or employee and controlling person promptly upon demand for any legal or other expenses reasonably incurred by it that Underwriter, officer, employee or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company and the Subsidiaries shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, the Prospectus, or in any preliminary prospectus such amendment or the Prospectus supplement thereto, or in any such amendment or supplement, in reliance upon and in conformity with the written information concerning such Underwriter furnished to the Company by you, or by any Underwriter through you, specifically for use inclusion therein, which information consists solely of the information specified in the preparation thereofSection 8(e). The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company or any Subsidiary may otherwise havehave to any Underwriter or to any officer, employee or controlling person of that Underwriter. (b) Each Underwriter Underwriter, severally and not jointly will jointly, shall indemnify and hold harmless the Company, its officers and employees, each of its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, or any action in respect thereof, to which the Company, Company or any such director, officer or controlling person may become subject, under the Act Securities Act, the Canadian Securities Laws, or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement, the Prospectus, or in any amendment thereto, or supplement thereto or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement or the Prospectus, or in any amendment or supplement thereto, any material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company through the Underwriters by you, or by any on behalf of that Underwriter through you, specifically for use inclusion therein and described in the preparation thereof; Section 8(e), and will shall reimburse the Company and any such director, officer or controlling person for any legal or other expenses reasonably incurred by the Company or any such director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each liability which any Underwriter may otherwise havehave to the Company or any such director, officer, employee or controlling person. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsectionthis Section 8. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; provided, however, that the Underwriters shall have the right to employ its own counsel to represent jointly the Underwriters and their respective officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Underwriters against the Company or any Subsidiary under this Section 8 if, in the reasonable judgment of the Underwriters, it is advisable for the Underwriters to be represented by separate counsel, and in that event the fees and expenses of such separate counsel shall be paid by the Company or the Subsidiaries. Any indemnified party shall have the right to employ separate counsel in any such action, action and to participate in the defense thereof but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1i) the employment of counsel by the indemnified party thereof has been specifically authorized in writing by the indemnifying partyparty in writing, (2ii) the such indemnified party has reasonably concluded (based on advice of counsel) shall have been advised by such counsel that there may be one or more legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel or (3iii) a conflict or potential conflict exists (based on advice the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party) between the , in which case, if such indemnified party and notifies the indemnifying party (in which case writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party will shall not have the right to direct assume the defense of such action on behalf of such indemnified party (but for clarification, will continue to have the indemnified party) or (4) the indemnifying party has not in fact employed right to employ counsel to assume the defense of for such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable feeson its own behalf), disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood it being understood, however, that the indemnifying party or parties shall not, in connection with any proceeding one such action or separate but substantially similar or related proceedings actions in the same jurisdictionjurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted to practice in such jurisdiction of attorneys at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will which firm shall be reimbursed designated in writing by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement Underwriters, if the indemnified parties under this Section 8 consist of any action Underwriter or claim effected without its written consent (which consent will not be unreasonably withheld)any of their respective officers, employees or controlling persons, or by the Company, if the indemnified parties under this Section 8 consist of the Company or any of the Company’s directors, officers, employees or controlling persons. No indemnifying party shall, shall (i) without the prior written consent of each the indemnified partyparties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceeding, or (ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with the written consent of the indemnifying party or if there be a final judgment of the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. (d) If the indemnification provided for in this Section 6 is 8 shall for any reason be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (aSection 8(a) or (b) above (“Indemnified Party”8(b) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company and the Subsidiaries on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Shares or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Subsidiaries on the one hand and the Underwriters on the other in connection with respect to the statements or omissions which resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Subsidiaries on the one hand and the Underwriters on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Shares purchased under this Agreement (before deducting expenses) received by the Company bear to and the Subsidiaries, on the one hand, and the total underwriting discounts and commissions received by the UnderwritersUnderwriters with respect to the Shares purchased under this Agreement, on the other hand, bear to the total gross proceeds from the offering of the Shares under this Agreement, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Subsidiaries or the Underwriters Underwriters, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. For purposes of the preceding two sentences, the net proceeds deemed to be received by the Company shall be deemed to be also for the benefit of the Subsidiaries and information supplied by the Company shall also be deemed to have been supplied by the Subsidiaries. The Company Company, the Subsidiaries and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(d) shall be deemed to include include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 8(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the Shares underwritten by it and distributed to the public was offered to the public exceeds the amount of any damages which such Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f8(e) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute as provided in this subsection (dSection 8(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations Underwriters severally confirm and the Company acknowledges that the statements with respect to the public offering of the Company Shares by the Underwriters set forth on the cover page of, the legend concerning over-allotments on the inside front cover page of and the concession and reallowance figures appearing under this Section 6 shall be the caption “Underwriting” in addition the Prospectus are correct and constitute the only information concerning such Underwriters furnished in writing to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations by or on behalf of the Underwriters under this Section 6 shall be specifically for inclusion in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each personStatement, if anythe Prospectus, who controls the Company within the meaning of the Actor in any amendment or supplement thereto.

Appears in 2 contracts

Sources: Underwriting Agreement (Sierra Wireless Inc), Underwriting Agreement (Sierra Wireless Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates officers and Affiliates of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other U.S. federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any preliminary prospectus or the Prospectus, or in any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will (subject to the limitations set forth in the proviso to this sentence) agree to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus Prospectus, or in any such amendment or supplementsupplement thereto, in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Managers specifically for use inclusion therein; provided further that with respect to any untrue statement or omission of material fact made in the preparation thereof. The any preliminary prospectus, the indemnity agreement set forth contained in this Section 6(a8(a) shall not inure to the benefit of any Underwriter from whom such person asserting such loss, claim, damage or liability purchased the Shares concerned, to the extent that any such loss, claim, damage or liability of such Underwriter occurs under the circumstance where (i) the Company had previously furnished copies of the Prospectus on a timely basis to the Managers, (ii) the untrue statement or omission of a material fact contained in any preliminary prospectus was corrected in the Prospectus and (iii) there was not sent or given to such person, at or prior to the written confirmation of the sale of such Shares to such person, a copy of the Prospectus. This indemnity agreement will be in addition to any liabilities liability that the Company may otherwise have. The Company shall not be liable under this Section 8 to any indemnified party regarding any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by the Company, which consent shall not be unreasonably withheld. (b) Each Underwriter severally severally, and not jointly will jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and Affiliates, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesto the same extent as the foregoing indemnity from the Company to each Underwriter, claims, damages but only with reference to written information relating to such Underwriter furnished to the Company by or liabilities to which on behalf of such Underwriter through the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained Managers specifically for inclusion in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or in any amendment or supplement thereto). This indemnity agreement will be in addition to any liability that any Underwriter may otherwise have. The Company acknowledges that, under the heading "Underwriting," the table after the first paragraph, the third paragraph, the seventh paragraph and the twelfth paragraph in any preliminary prospectus and the Prospectus constitute the only information furnished in writing by or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light on behalf of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made Underwriters for inclusion in the Registration Statement, any preliminary prospectus or the Prospectus or in any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havesupplement thereto. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel (including local counsel) of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from 's choice at the indemnifying party party's expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party's election to appoint counsel (including local counsel) to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by would present such counsel with a conflict of interest (based on the indemnifying party, advise of counsel to the indemnified person); (2ii) such action includes both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice the advise of counselcounsel to the indemnified person) that there may be legal defenses available to it or and/or other indemnified parties that are different from or in addition additional to those available to the indemnifying party, ; (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel reasonably satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action; or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or partiesparty. It is understood and agreed that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings proceeding in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted (in addition to practice in such jurisdiction at any one time local counsel) for all such indemnified party or parties. All Any such feesseparate firm for any Underwriter, disbursements its directors, officers and other charges will Affiliates and any control person shall be reimbursed designated in writing by the indemnifying party promptly as they are incurredManagers and any such separate firm for any of the Company, its directors, officers and Affiliates and any control person shall be designated in writing by the Company. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and does not include any statement as to, or any admission of, fault, culpability or failure to act by or on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending any loss, claim, damage, liability or action) referred (collectively, "LOSSES") to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfShares; provided, however, that in no case shall any Underwriter be responsible for any amount in excess of the purchase discount or commission applicable to the Shares purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)Losses, as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by them, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting purchase discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofcommissions. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omissionomission and any other equitable considerations appropriate in the circumstance. The Company and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection (d) to contribute pursuant to this Section 8 are several in proportion to their respective underwriting obligations and not joint. (e) The obligations . For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee, Affiliate and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the ActAct or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Dresser-Rand Group Inc.), Underwriting Agreement (Dresser-Rand Group Inc.)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Securities Exchange Act from and of 1934, as amended (the "EXCHANGE ACT"), against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or such controlling person may become subject, subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon upon: (i) any untrue statement made by the Company in Section 2 of this Agreement or any certificate provided by the Company to the Representatives or Underwriters pursuant to the terms of this Agreement; (ii) any untrue statement or alleged untrue statement of a any material fact contained in (A) the Registration Statement, Statement or any amendment thereto, including any Preliminary Prospectus or the Prospectus or any amendment or supplement thereto or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify the Securities under the Act, securities or Blue Sky laws thereof or filed with the Commission or any securities association or securities exchange (each a "COMPANY APPLICATION"); or (iii) the omission or alleged omission therefrom of to state in such Registration Statement or any amendment thereto, any Preliminary Prospectus or the Prospectus or any amendment or supplement thereto, or any Company Application a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse reimburse, as incurred, each Underwriter, director, officer, agent, affiliate or Underwriter and each such controlling person for any legal or other expenses reasonably incurred by it such Underwriter or such controlling person in connection with investigating or investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; providedPROVIDED, howeverHOWEVER, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statementsuch registration statement or any amendment thereto, any preliminary prospectus Preliminary Prospectus or the Prospectus or any such amendment or supplementsupplement thereto, or any Company Application in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities therein; and PROVIDED, FURTHER, that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal Underwriter or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of controlling such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) Underwriter with respect to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Underwriting Agreement (Jenkon International Inc), Underwriting Agreement (Jenkon International Inc)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, subject under the Act 1933 Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any breach of any warranty or covenant of the Company herein contained, (iii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in (A) any Preliminary Prospectus, the Registration Statement, or the Prospectus, or any amendment or supplement thereto, including or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify the Securities under the Actsecurities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), or (iii) arise out of or are based upon the omission or alleged omission therefrom of to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, or any amendment or supplement thereto, or any Application a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, any preliminary prospectus or the Prospectus Prospectus, or any such amendment or supplement, or in any Application, in reliance upon and in conformity with written information furnished to the Company by youany Underwriter expressly for use therein; and provided further, however, that with respect to any Preliminary Prospectus or any amendment or supplement thereto, the foregoing indemnity shall not inure to the benefit of any Underwriter from whom the person asserting any loss, claim, damage or liability purchased Securities, if copies of the Prospectus were timely delivered to the Underwriter, a copy of the Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Underwriters to such person, if required by law so as to have been delivered, at or prior to the written confirmation of the sale of the Securities to such person, and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage, liability or expense. In addition to its other obligations under this Section 6(a), the Company agrees that as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or by any Underwriter through youalleged statement or omission, specifically for use in the preparation thereof. The indemnity agreement set forth described in this Section 6(a), it will reimburse the Underwriters on a quarterly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of the Company's obligation to reimburse the Underwriters for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to an Underwriter within 30 days of a request for reimbursement shall bear interest at the prime rate (or reference rate or other commercial lending rate for borrowers of the highest credit standing) published from time to time by The Wall Street Journal (the "Prime Rate") from the date of such request. This indemnity agreement shall be in addition to any liabilities that the Company may otherwise have. . The Company will not, without the prior written consent of each Underwriter, settle or compromise or consent to the entry of any judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (bwhether or not such Underwriter is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of such Underwriter from all liability arising out of such action or claim (or related cause of action or portion thereof). The indemnity agreement in this Section 6(a) Each Underwriter severally shall extend upon the same terms and not jointly will indemnify conditions to, and hold harmless shall inure to the Companybenefit of, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of to the Exchange Actsame extent as such agreement applies to the Underwriters. (b) Each Underwriter, severally but not jointly, will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Act 1933 Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any breach of any warranty or covenant by such Underwriter herein contained or any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement or the Prospectus, or any amendment theretoor supplement thereto or in any Application, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Preliminary Prospectus, the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplement, supplement thereto or in any Application in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically expressly for use in the preparation thereoftherein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, claim damage, liability or action. The indemnity agreement set forth In addition to its other obligations under this Section 6(b), the Underwriters agree that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or any alleged statement or omission, described in this Section 6(b) ), they will reimburse the Company on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of their obligation to reimburse the Company for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to the Company within 30 days of a request for reimbursement shall bear interest at the Prime Rate from the date of such request. This indemnity agreement shall be in addition to any liabilities that each Underwriter the Underwriters may otherwise have. No Underwriter will, without the prior written consent of the Company, settle or compromise or consent to the entry of judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (whether or not the Company is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of the Company from all liability arising out of such action or claim (or related cause of action or portion thereof). The indemnity agreement in this Section 6(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer and director of the Company and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act to the same extent as such agreement applies to the Company. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; no indemnification provided for in subsection (a) or (b) shall be available to any party who shall fail to give notice as provided in this subsection (c) if the party to whom notice was not given was unaware of the proceeding to which such notice would have related and was prejudiced by the failure to give such notice, but the omission so to notify the indemnifying party shall will not relieve it the indemnifying party from any liability which that it may have to any indemnified party otherwise than under such subsectionSection 6. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party, party and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by except that if the indemnified party has been authorized advised by counsel in writing by the indemnifying party, (2) that there are one or more defenses available to the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between then the indemnified party and the indemnifying party (in which case the indemnifying party will not shall have the right to direct employ separate counsel and in that event the defense reasonable fees and expenses of such action on behalf separate counsel for the indemnified party shall be paid by the indemnifying party; provided, however, that if the indemnifying party is the Company, the Company shall only be obligated to pay the reasonable fees and expenses of a single law firm (and any reasonably necessary local counsel) employed by all of the indemnified party) or (4) the parties. The indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim proceeding effected without its written consent, but if settled with such consent (which consent will not or if there be unreasonably withheld). No a final judgment for the plaintiff, the indemnifying party shall, without agrees to indemnify the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all and against any loss or liability arising or that may arise out by reason of such claim, action settlement or proceedingjudgment. (d) If In order to provide for just and equitable contribution in circumstances under which the indemnification indemnity provided for in this Section 6 is unavailable under subsection for any reason judicially determined (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the right of appeal) to be unenforceable by the indemnified parties although applicable in accordance with its terms, the Company, on the one hand and the Underwriters on the other from shall contribute to the offering aggregate losses, liabilities, claims, damages and expenses of the Bonds. Ifnature contemplated by such indemnity incurred by the Company, and one or more of the Underwriters, as incurred, in such proportions that (a) the Underwriters are responsible pro rata for that portion represented by the percentage that the underwriting discount appearing on the cover page of the Prospectus bears to the public offering price (before deducting expenses) appearing thereon, and (b) the Company is responsible for the balance, provided, however, that no person guilty of fraudulent misrepresentations (within the meaning of Section 11(f) of the ▇▇▇▇ ▇▇▇) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation; provided, further, that if the allocation provided by the immediately preceding sentence above is not permitted by applicable law or if law, the Indemnified Party failed to give Company, on the notice required under subsection (c) aboveone hand, then each Indemnifying Party and the Underwriters on the other shall contribute to such amount paid or payable by such Indemnified Party the aggregate losses in such proportion as is appropriate to reflect not only such the relative benefits referred to above but also the relative fault of the Company Company, on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged the omission to state a material fact relates to information supplied by the Company Company, on the one hand or by the Underwriters on the other hand and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 6(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (dSection 6(d). The amount paid or payable by an Indemnified Party a party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other fees or expenses reasonably incurred by such Indemnified Party party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 6(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by it. No person guilty which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled any damages which such Underwriter has otherwise been required to contribution from any person who was not guilty pay by reason of such fraudulent misrepresentationuntrue or alleged untrue statement or omission or alleged omission. The Underwriters' obligations in this subsection (dSection 6(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations . For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend6(d), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Section 6 1933 Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the Company, to each or officer of the Company who has signed the Registration Statement Statement, and to each person, if any, who controls the Company within the meaning of Section 15 of the Act1933 Act shall have the same rights to contribution as the Company.

Appears in 2 contracts

Sources: Underwriting Agreement (Compudyne Corp), Underwriting Agreement (Compudyne Corp)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each UnderwriterAgent, its affiliates, its selling agents, its and their directors, officers, agents, affiliates and employees, and each person, if any, who controls any Underwriter Agent within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, (1) against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person parties may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, any preliminary prospectus supplement, the Registration Statement, the Prospectus, the Prospectus as amended or supplemented, or any amendment or supplement thereto, including any information deemed Issuer Free Writing Prospectus or any “issuer information” filed or required to be a part thereof filed pursuant to Rule 430B 433(d) under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person such party for any legal or other expenses reasonably incurred by it in connection with investigating investigating, preparing or defending any such action or claim as such expenses are incurred and (2) against any losses, claims, damages or liabilities, to which such lossparties may become subject to the extent of the aggregate amount paid in settlement of any litigation, claimor any investigation or proceeding by any governmental agency or body, damagecommenced or threatened, liability or actionof any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 8(d) below) any such settlement is effected with the written consent of the Company; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, any preliminary prospectus supplement, the Registration Statement, any preliminary prospectus or the Prospectus, the Prospectus as amended or supplemented, or any such amendment or supplementsupplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically such Agent expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise havetherein. (b) Each Underwriter severally and not jointly Agent will indemnify and hold harmless the Company, its directorsdirectors and officers, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person parties may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, any preliminary prospectus supplement, the Registration Statement, the Prospectus, the Prospectus as amended or supplemented or any other prospectus relating to the Securities, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Preliminary Prospectus, any preliminary prospectus supplement, the Registration Statement, any preliminary prospectus or the Prospectus, the Prospectus as amended or supplemented or any other prospectus relating to the Securities, or any such amendment or supplementsupplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically such Agent expressly for use in the preparation thereoftherein; and will reimburse the Company such parties for any legal or other expenses reasonably incurred by the Company them in connection with investigating investigating, preparing or defending against any such loss, claim, damage, liability action or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise haveclaim as such expenses are incurred. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of this Section 8 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses expenses, in each case subsequently incurred by such indemnified party party, in connection with the defense thereof other than reasonable costs of investigation. The indemnified In no event shall the indemnifying party will have the right be liable for fees and expenses of more than one counsel (in addition to employ any local counsel) separate from its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other for all indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding one action or separate but similar or related proceedings actions in the same jurisdiction, be liable for jurisdiction arising out of the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party same general allegations or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)circumstances. No indemnifying party shall, without the prior written consent of each the indemnified party, settle effect the settlement or compromise of, or consent to the entry of any judgment in with respect to, any pending or threatened claim, action or proceeding relating to the matters contemplated by claim in respect of which indemnification or contribution may be sought under this Section 6 8 (whether or not any the indemnified party is a an actual or potential party thereto), to such action or claim) unless such settlement, compromise or consent judgment (i) includes an unconditional release of each the indemnified party from all liability arising or that may arise out of such claim, action or proceedingclaim and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 8(a)(2) hereof effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. (e) If the indemnification provided for in this Section 6 8 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) of this Section 8 in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters each Agent on the other from the offering of the BondsSecurities to which such loss, claim, damage or liability (or action in respect thereof) relates. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (c) aboveof this Section 8, then each Indemnifying Party indemnifying party shall contribute to such amount paid or payable by such Indemnified Party indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters each Agent on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters each Agent on the other shall be deemed to be in the same proportion as the total net proceeds from the offering sale of Securities (before deducting expenses) received by the Company bear to the total underwriting commissions or discounts and commissions received by such Agent from the Underwriters, Company in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofrespect thereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or by any Agent on the Underwriters other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters each Agent agree that it would not be just and equitable if contribution pursuant to this subsection (de) were determined by pro rata allocation (even if the Underwriters all Agents were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (de). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (de), no Underwriter an Agent shall not be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total public offering price at which the Securities purchased by or through it were sold exceeds the amount of any damages which such Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8(e), each person, if any, who controls an Agent within the meaning of Section 15 of the Act or Section 20 of the Exchange Act and each Agent’s affiliates shall have the same rights to contribution as such Agent, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Company. The Underwriters’ obligations in of each of the Agents under this subsection (de) to contribute are several in proportion to their the respective underwriting obligations purchases made by or through it to which such loss, claim, damage or liability (or action in respect thereof) relates and are not joint. (ef) The obligations of the Company under this Section 6 8 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter Agent within the meaning of the ActAct and each broker-dealer affiliate of any Agent; and the obligations of the Underwriters each Agent under this Section 6 8 shall be in addition to any liability which the respective Underwriters such Agent may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Distribution Agreement (Nomura Holdings Inc), Distribution Agreement (Nomura Holdings Inc)

Indemnification and Contribution. For purposes of this Section 7, “Prospectus Supplement” shall include any prospectus supplement relating to the Units filed with the Commission pursuant to Rule 424(b) of the Rules. (a) The Company Partnership will indemnify and hold harmless each Underwriter, the Manager and its directors, officers, agents, respective affiliates and each person, if any, who controls any Underwriter the Manager within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, as follows: (i) against any lossesand all loss, claimsliability, damages or liabilitiesclaim, joint or severaldamage and expense whatsoever (including the reasonable cost of investigation), to which the Manager or any such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereofA) arise arising out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement theretoto such documents), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (B) resulting from the use of any issuer free writing prospectus (as defined in Rule 433 of the Rules) or prospectus, other than the Prospectus, relating to the Units, whether or not filed by the Partnership or on its behalf; provided, however, that this indemnity does not apply to the extent any such issuer free writing prospectus or prospectus is also used by the Manager; (ii) against any and will reimburse each Underwriterall loss, directorliability, officerclaim, agentdamage and expense whatsoever, affiliate as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or controlling person for any legal investigation or other expenses proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 7(d) below) any such settlement is effected with the written consent of the Partnership; and (iii) against any and all expense whatsoever, as incurred (including, subject to Section 7(c) hereof, the fees and disbursements of counsel chosen by the Manager), reasonably incurred by it in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such lossuntrue statement or omission, claimor any such alleged untrue statement or omission, damage, liability to the extent that any such expense is not paid under clause (i) or action(ii) above; provided, however, that the Company indemnity set forth in this Section 7(a) shall not be liable in apply to any such case to the extent that any such loss, liability, claim, damage or liability arises expense to the extent arising out of or is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made contained in the Registration Statement, any preliminary prospectus or the Prospectus Statement or any such Prospectus (or any amendment or supplement, supplement thereto) in reliance upon and in conformity with written information furnished to the Company Partnership by you, or by any Underwriter through you, specifically on behalf of the Manager expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition Registration Statement or any Prospectus (or any amendment or supplement to any liabilities that the Company may otherwise havesuch documents). (b) Each Underwriter severally and not jointly will The Manager agrees to indemnify and hold harmless the Partnership, the General Partner, the Company, its directorsthe directors of the General Partner and the Company, its the officers of the Company who sign signed the Registration Statement Statement, and each person, if any, who controls the Partnership, the General Partner or the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesand all loss, claimsliability, damages or liabilities claim, damage and expense described in the indemnity contained in Section 7(a) (provided that with respect to which indemnification of the Companynature contemplated by Section 7(a)(ii), such directorindemnification by the Manager for a settlement of any such loss, officer or controlling person may become subjectliability, under claim, damage and expense must be effected with the Act or otherwisewritten consent of the Manager), insofar as such lossesincurred, claims, damages or liabilities (or actions in but only with respect thereof) arise out of or are based upon (i) to any untrue statement statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement theretoto such documents), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Partnership by you, or by any Underwriter through you, specifically on behalf of the Manager expressly for use in the preparation thereof; and will reimburse Registration Statement, the Company for Base Prospectus or any legal Prospectus (or other expenses reasonably incurred by the Company in connection with investigating any amendment or defending against any supplement to such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havedocuments). (c) Promptly after receipt by an Each indemnified party under subsection (a) or (b) above of shall give written notice of the commencement as promptly as reasonably practicable to each indemnifying party of any action, such indemnified party shall, if a claim action commenced against it in respect thereof is of which indemnity may be sought hereunder, but failure to be made against the so notify an indemnifying party under shall not relieve such subsection, notify the indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in writing of the commencement thereof; but the omission so to notify the indemnifying party any event shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionon account of this indemnity agreement. In the case any such action of parties indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be brought against any selected by the Manager, and, in the case of parties indemnified partypursuant to Section 7(b) above, and it shall notify counsel to the indemnifying party of the commencement thereof, the indemnifying party indemnified parties shall be entitled to participate in andselected by the Partnership, to the extent provided that if it shall wishso elects within a reasonable time after receipt of such notice, an indemnifying party, jointly with any other indemnifying partyparties receiving such notice, similarly notified, to may assume the defense thereof, of such action with counsel satisfactory to such chosen by it and approved by the indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party parties defendant in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of unless such indemnified party unless (1) parties reasonably object to such assumption on the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) ground that there may be legal defenses available to it or other indemnified parties that them which are different from or in addition to those available to such indemnifying party. If an indemnifying party assumes the defense of such action, the indemnifying partyparties shall not be liable for any fees and expenses of counsel for the indemnified parties incurred thereafter in connection with such action; provided, however, that the indemnifying party shall pay the fees and expenses of separate counsel for the indemnified party if (3i) the indemnifying party has agreed to pay such fees and expenses or (ii) counsel for the indemnified party reasonably determines that representation of both the indemnifying party and the indemnified party by the same counsel would create a conflict or potential conflict exists of interest. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (based on advice except with the consent of the indemnified party) also be counsel to the indemnified party) between the indemnified party and . In no event shall the indemnifying party parties be liable for fees and expenses of more than one counsel (in which case the indemnifying party will not have the right addition to direct the defense of such action on behalf of the any local counsel) separate from their own counsel for all indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding one action or separate but similar or related proceedings in actions arising out of the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party general allegations or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)circumstances. No indemnifying party shall, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending litigation, or threatened claim, action any investigation or proceeding relating to the matters contemplated by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 7 (whether or not any the indemnified party is a party parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimlitigation, action investigation, proceeding or proceedingclaim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 7(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, an indemnifying party shall not be liable for any settlement of the nature contemplated by Section 7(a)(ii) effected without its consent if such indemnifying party (i) reimburses such indemnified party in accordance with such request to the extent it considers such request to be reasonable and (ii) provides written notice to the indemnified party substantiating the unpaid balance as unreasonable, in each case prior to the date of such settlement. (e) If the indemnification provided for in this Section 6 7 is for any reason unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, liabilities, claims, damages or liabilities (or actions in respect thereof) expenses referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the aggregate amount paid or payable by such Indemnified Party as a result of such losses, liabilities, claims, damages or liabilities and expenses incurred by such indemnified party, as incurred, (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Partnership, on the one hand hand, and the Underwriters Manager, on the other hand, from the offering of the Bonds. If, however, Units pursuant to this Agreement or (ii) if the allocation provided by the immediately preceding sentence clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Partnership, on the one hand hand, and of the Underwriters Manager, on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or liabilities (or actions in respect thereof)expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company Partnership, on the one hand hand, and the Underwriters Manager, on the other hand, in connection with the offering of the Units pursuant to this Agreement shall be deemed to be in the same proportion respective proportions as the total net proceeds Net Proceeds from the offering (before deducting expenses) of the Units pursuant to this Agreement received by the Company bear to Partnership, and the total underwriting discounts and commissions compensation received by the UnderwritersManager, in each case as set forth provided in Section 3(a)(iv), bear to the table on the cover page gross sales price of the Prospectus which is filed pursuant to Rule 424 under Units sold by or through the Act referred to in Section 2(a) hereofManager. The relative fault of the Partnership, on the one hand, and the Manager, on the other hand, shall be determined by reference to, among other things, whether the any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Partnership or by the Underwriters Manager and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Partnership and the Underwriters Manager agree that it would not be just and equitable if contribution pursuant to this subsection (dSection 7(e) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (dSection 7(e). The aggregate amount paid or payable by an Indemnified Party as a result of the losses, liabilities, claims, damages or liabilities (or actions in respect thereof) and expenses incurred by an indemnified party and referred to above in this subsection (dSection 7(e) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such action untrue or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this subsection (dSection 7(e), no Underwriter the Manager shall not be required to contribute any amount in excess of the underwriting discounts compensation received by itit pursuant to this Agreement, as determined in accordance with Section 3(a)(iv). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection (d) Section 7(e), each affiliate of the Manager and each person, if any, who controls the Manager within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribute are several in proportion contribution as the Manager; each director of the General Partner and the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Partnership, the General Partner or the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to their respective underwriting obligations contribution as the Partnership, the General Partner and not joint. (e) the Company. The obligations of the Company Partnership under this Section 6 7(e) shall be in addition to any liability which the Company Partnership may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Acthave.

Appears in 2 contracts

Sources: Equity Distribution Agreement (Kinder Morgan Energy Partners L P), Equity Distribution Agreement (Kinder Morgan Energy Partners L P)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriterthe Underwriters, its affiliates, directors, officers, agents, affiliates officers and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange Act 1934 Act, from and against any and all losses, damages, claims, damages expenses or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person the Underwriters may become subject, under the 1933 Act or otherwise, insofar as such losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement or any amendment thereto, including or any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus or the Prospectus or in any blue sky application or other document executed by the Company or based on any information deemed furnished in writing by the Company, filed in any state or other jurisdiction in order to qualify any or all of the Notes under the securities laws thereof (the “Blue Sky Application”), or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or an untrue statement or alleged untrue statement of a part thereof pursuant material fact contained in any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus, the Prospectus or any other prospectus relating to Rule 430B under the Act, Notes or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating investigating, preparing, pursuing or defending against any such loss, claim, damage, liability or actionaction or claim, including, without limitation, any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and expenses of counsel to the indemnified party, as such expenses are incurred (including such losses, damages, liabilities or expenses to the extent of the aggregate amount paid in settlement of any such action or claim, provided that (subject to Section 7(d) hereof) any such settlement is effected with the written consent of the Company); provided, however, that the Company shall not be liable in any such case to the extent extent, but only to the extent, that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus, the Registration Statement, any preliminary prospectus or the Prospectus or any other prospectus relating to the Notes, or any such amendment or supplement, in reliance upon and in conformity with written information relating to the Underwriters furnished to the Company by youthe Representatives, or by any Underwriter through you, specifically expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally severally, and not jointly will jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who sign signed the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange 1934 Act, from and against any and all losses, damages, claims, damages expenses or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the 1933 Act or otherwise, insofar as such losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus, the Registration Statement, the Prospectus or any other prospectus relating to the Notes, or any amendment or supplement thereto, or any Blue Sky Application, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus, the Registration Statement, any preliminary prospectus or the Prospectus or any other prospectus relating to the Notes, or any such amendment or supplement, or any Blue Sky Application, in reliance upon and in conformity with written information relating to the Underwriters furnished to the Company by youthe Representatives, or by any Underwriter through you, specifically expressly for use in the preparation thereof; , and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such lossaction or claim as such expenses are incurred (including such losses, damages, liabilities or expenses to the extent of the aggregate amount paid in settlement of any such action or claim, damage, liability or action. The indemnity agreement set forth in this provided that (subject to Section 6(b7(d) shall be in addition to hereof) any liabilities that each Underwriter may otherwise havesuch settlement is effected with the written consent of the Underwriters. (c) Promptly after receipt by an indemnified party under subsection (aSection 7(a) or (b7(b) above hereof of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the an indemnifying party under such subsectionSection 7(a) or 7(b) hereof, notify the each such indemnifying party in writing of the commencement thereof; , but the omission failure so to notify the such indemnifying party shall not relieve it such indemnifying party from any liability which except to the extent that it has been prejudiced in any material respect by such failure or from any liability that it may have to any such indemnified party otherwise than under such subsectionSection 7(a) or 7(b) hereof. In case any such action shall be brought against any such indemnified party, party and it shall notify the each indemnifying party of the commencement thereof, the each such indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party under Section 7(a) or 7(b) hereof similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the such indemnifying party to such indemnified party of its election so to assume the defense thereof, the such indemnifying party shall not be liable to such indemnified party under such subsection Section 7(a) or 7(b) hereof for any legal expenses of other counsel or any other expenses expenses, in each case subsequently incurred by such indemnified party party, in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own counsel in any such action, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1i) the employment of counsel by such indemnified party at the indemnified expense of the indemnifying party has been authorized in writing by the indemnifying party, (2ii) the indemnified party has reasonably concluded (based on advice of counsel) shall have been advised by such counsel that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to a conflict of interest between the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between party and the indemnified party and in the indemnifying party conduct of the defense, or certain aspects of the defense, of such action (in which case the indemnifying party will shall not have the right to direct the defense of such action with respect to those matters or aspects of the defense on which a conflict exists or may exist on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel reasonably satisfactory to such indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each any of which cases events such fees and expenses to the reasonable feesextent applicable shall be borne, disbursements and other charges of counsel will shall be at the expense of paid as incurred, by the indemnifying party or partiesparty. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction If at any one time for all such indemnified party or parties. All shall have requested such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An under Section 7(a) or 7(b) hereof to reimburse such indemnified party for fees and expenses of counsel, such indemnifying party will not agrees that it shall be liable for any settlement of any action the nature contemplated by Section 7(a) or claim 7(b) hereof effected without its written consent if (which consent will i) such settlement is entered into more than 45 days after receipt by such indemnifying party of such request for reimbursement, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not be unreasonably withheld)have reimbursed such indemnified party in accordance with such request for reimbursement prior to the date of such settlement. No such indemnifying party shall, without the prior written consent of each such indemnified party, settle effect the settlement or compromise of, or consent to the entry of any judgment in with respect to, any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 claim in respect of which indemnification or contribution may be sought hereunder (whether or not any such indemnified party is a an actual or potential party thereto), to such action or claim) unless such settlement, compromise or consent judgment (A) includes an unconditional release of each such indemnified party from all liability arising or that may arise out of such claim, action or proceedingclaim and (B) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any such indemnified party. In no event shall such indemnifying parties be liable for the fees and expenses of more than one counsel, including any local counsel, for all such indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. (d) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been indemnify or hold harmless an indemnified party under subsection (aSection 7(a) or (b7(b) above (“Indemnified Party”) hereof in respect of any losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”under Section 7(a) shall, in lieu of indemnifying such Indemnified Party, or 7(b) hereof shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand, from the offering of the BondsNotes. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (cSection 7(c) abovehereof and such indemnifying party was prejudiced in a material respect by such failure, then each Indemnifying Party such indemnifying party shall contribute to such amount paid or payable by such Indemnified Party indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault fault, as applicable, of the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand, in connection with the statements or omissions which that resulted in such losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by by, as applicable, the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the such offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault fault, as applicable, of the Company, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, on the one hand, or the Underwriters Underwriters, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (dSection 7(d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (dSection 7(d). The amount paid or payable by such an Indemnified Party indemnifying party as a result of the losses, damages, claims, damages expenses or liabilities (or actions or claims in respect thereof) referred to above in this subsection (dSection 7(d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 7(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the Notes purchased by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act▇▇▇▇ ▇▇▇) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (dSection 7(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 7 shall be in addition to any liability which that the Company may otherwise have and shall extend, upon the same terms and conditions, to each officer, director, officeremployee, agent and affiliate of an Underwriter, or other representative and to each person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act; and the obligations of the Underwriters under this Section 6 7 shall be in addition to any liability which that the respective Underwriters Underwriter may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act. (f) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof, including, without limitation, the provisions of this Section 7, and are fully informed regarding such provisions. They further acknowledge that the provisions of this Section 7 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration Statement, any Prospectus Supplement, Preliminary Prospectus, Pricing Disclosure Package, Issuer Free Writing Prospectus, the Prospectus, and any supplement or amendment thereof, as required by the 1933 Act. (g) The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

Appears in 2 contracts

Sources: Underwriting Agreement (Healthcare Realty Trust Inc), Underwriting Agreement (Healthcare Realty Trust Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or in the Base Prospectus, any Preliminary Prospectus or any other preliminary prospectus supplement relating to the Securities, the Final Prospectus, or any Issuer Free Writing Prospectus or the information contained in the final term sheet required to be prepared and filed pursuant to Section 5(b) hereto, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, and with respect to such prospectuses in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereofinclusion therein. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign signed the Registration Statement Statement, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with respect to any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) that arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse documents referred to in the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that the statements set forth (i) in the last paragraph of the cover page regarding delivery of the Securities and, under the heading “Underwriting”, (ii) the list of Underwriters and their respective participation in the sale of the Securities, (iii) the sentences related to concessions and reallowances, (iv) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus and (v) the paragraph with respect to compliance with Rule 5110(h) of the Financial Industry Regulatory Authority, Inc. constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise have knowledge of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with of any such action and appoint counsel satisfactory to such indemnified party, and, after notice from (including local counsel) of the indemnifying party party’s choice at the indemnifying party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel reasonably satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a), (b) or (bc) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending any loss, claim, damage, liability or action) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the ActAct or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Wyndham Worldwide Corp), Underwriting Agreement (Wyndham Worldwide Corp)

Indemnification and Contribution. (a) The To the extent permitted by law, the Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Holder and each person, if any, who controls any Underwriter such Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from Act, and each of their respective officers, directors and employees against any losses, claims, damages or liabilities, joint or several, actions in respect thereof to which such Underwriter, director, officer, agent, affiliate Holder or controlling person persons may become subject, subject under the Act Securities Act, or otherwiseotherwise (collectively, "Losses"), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) Losses arise out of of, or are based upon (i) upon, any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, any related Preliminary Prospectus or any related Prospectus, or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Actor arise out of, or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate such Holder or controlling person persons for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or actionLosses; provided, however, that the Company shall not be so liable in any such case to the extent that any such lossLosses arise out of, claimor are based upon, damage an untrue statement or liability arises alleged untrue statement of a material fact or an omission or alleged omission to state a material fact in said Registration Statement in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of such Holder specifically for use therein. Notwithstanding the foregoing, the Company shall not be liable in any such instance to the extent that any such Losses arise out of of, or is are based upon upon, an untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus if (i) after the Registration StatementCompany had made available sufficient number of copies of the Prospectus, any preliminary prospectus such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities to the person asserting such Losses or who purchased the Registrable Securities the purchase of which is the basis of the action if, in either instance, such delivery by such Holder is required by the Securities Act and (ii) the Prospectus would have corrected such untrue statement or alleged untrue statement or alleged omission; and the Company shall not be liable in any such instance to the extent that any such Losses arise out of, or are based upon, an untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact in the Prospectus, if such untrue statement or alleged untrue statement, omission or alleged omission is corrected in an amendment or supplement, in reliance upon and in conformity with written information furnished supplement to the Prospectus and if, having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus as so amended or supplemented, prior to or concurrently with the sale of Registrable Securities if such delivery by you, or such Holder is required by any Underwriter through you, specifically for use in the preparation thereofSecurities Act. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise havehave and shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any such Person and shall survive the Termination Date and the transfer of Registrable Securities by such Holder as otherwise permitted hereby. (b) Each Underwriter To the extent permitted by law, each Holder severally and not jointly will agrees to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement each other Holder and each person, if any, who controls the Company or such other Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective officers, directors and employees, against any losses, claims, damages or liabilities Losses to which the Company, such director, officer other Holder or controlling person such persons may become subject, subject under the Act Securities Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) Losses arise out of of, or are based upon (i) upon, any untrue statement or alleged untrue statement of a any material fact contained in the such Registration Statement, any related Preliminary Prospectus or any related Prospectus, or any amendment or supplement thereto, or arise out of, or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , and will reimburse the Company, such other Holder or (ii) such persons for any untrue statement legal or alleged untrue statement of a material fact contained other expenses reasonably incurred by them in connection with investigating or defending any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingsuch Losses, in each case instance to the extent, but only to the extent, that any such Losses arise out of, or are based upon, an untrue statement or alleged untrue statement of a material fact or an omission or alleged omission was made to state a material fact in the said Registration Statement, any preliminary prospectus or the said Preliminary Prospectus or said Prospectus, or any such said amendment or supplement, supplement thereto in reliance upon upon, and in conformity with with, written information furnished to the Company by you, or by any Underwriter through you, on behalf of such Holder specifically for use therein; provided, however, that the liability of each Holder under this Section 3.7(b) shall be limited to an amount equal to the proceeds of the sale of shares of Registrable Securities by such Holder in the preparation thereof; and will reimburse offering which gave rise to the Company for any legal liability (net of underwriting commissions paid or other expenses reasonably incurred by the Company such Holder in connection with investigating or defending against any such lossthe registration, claimif any, damage, liability or actionand sale). The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each Underwriter liability which Holder may otherwise havehave and shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any such person and shall survive the Termination Date and the transfer of Registrable Securities by such Holder as otherwise permitted hereby. (c) Promptly after receipt by an indemnified party any person entitled to indemnification under subsection (a) or (b) above of this Section 3.8 receives notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionpursuant to the indemnification provisions of this Section 3.7, notify the indemnifying party in writing of the claim or the commencement thereofof such action; but provided, however, that the omission failure or delay to so to notify the indemnifying party shall not relieve it from any liability which it may have to any the indemnified party otherwise hereunder unless and to the extent such failure or delay has prejudiced the rights of the indemnifying party and shall not, in any event, relieve it from any liability which it may have to the indemnified party other than under such subsectionpursuant to the indemnification provisions of this Section 3.7. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify has notified the indemnifying party of thereof in accordance with the commencement thereofterms hereof, the indemnifying party shall be entitled to participate in andthe defense of such claim, or, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after upon written notice to the indemnified party of such assumption. After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, (i) the indemnifying party shall not be liable to such the indemnified party under such subsection pursuant to the indemnification provisions hereof for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The , (ii) the indemnifying party shall not be liable for the costs and expenses of any settlement of such claim or action unless such settlement was effected with the consent of the indemnifying party (which consent shall not be unreasonably withheld or delayed) and (iii) the indemnified party will shall be obligated to cooperate with the indemnifying party in the investigation of such claim or action; provided, however, that any indemnified party hereunder shall have the right to employ its own separate counsel and to participate in any the defense of such actionclaim assumed by the indemnifying party, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1a) the employment of such counsel by the indemnified party has been specifically authorized in writing by the indemnifying party, (2b) the indemnifying party shall have failed to assume the defense of such claim from the person entitled to indemnification hereunder and failed to employ counsel within a reasonable period following such assumption, or (c) in the reasonable judgment of the indemnified party, based upon advice of its counsel, a material conflict of interest may exist between such indemnified party has reasonably concluded (based on advice of counsel) that and the indemnifying party with respect to such claims or there may be one or more material legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case case, if the indemnified party notifies the indemnifying party will in writing that the indemnified party elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to direct assume the defense of such action claim on behalf of the indemnified party). Notwithstanding the foregoing, the Holders (together with their respective controlling persons and officers, directors and employees) or (4) shall have the indemnifying party has not in fact employed counsel right to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be employ at the expense of the indemnifying party Company only one separate counsel to represent such Holders (and their respective controlling persons and officers, directors and employees) who may be subject to liability arising out of any one action (or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings separate but substantially similar actions in the same jurisdiction, jurisdiction arising out of the same general allegations or circumstances) in respect of which indemnity may be liable for sought by such Holders against the reasonable fees, disbursements and other charges Company pursuant to the indemnification provisions of more than one separate firm admitted to practice in this Section 3.7. If such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed defense is not assumed by the indemnifying party promptly as they are incurred. An party, the indemnifying party will not be liable subject to any liability for any settlement of any action or claim effected made without its written consent (which but such consent will not be unreasonably withheldwithheld or delayed). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or will consent to the entry of any judgment in or enter into any pending settlement that does not include as an unconditional term thereof the giving by the claimant or threatened claim, action or proceeding relating plaintiff to the matters contemplated by this Section 6 (whether or not any such indemnified party is of a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising in respect to such claim or that may arise out litigation. All fees and expenses to be paid by the indemnifying party hereunder shall be paid a commercially reasonable time after they are billed to the indemnified party, subject to receipt of a written undertaking from the indemnified party to repay such claim, action or proceedingfees and expenses if indemnity is not ultimately determined to be available to such indemnified party under this Section 3.7. (d) If In order to provide for just and equitable contribution between the Company and such Holders in circumstances in which the indemnification provided for in provisions of this Section 6 is unavailable under subsection (a) 3.7 are for any reason insufficient or (b) above inadequate to a party that would have been an hold the indemnified party under subsection harmless, the Company and such Holders shall contribute to the aggregate Losses (aincluding any investigation, legal and other fees and expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted, but after deducting any contribution actually received from persons other than the Company and such Holders) to which the Company and one or (b) above (“Indemnified Party”) in respect more of its directors or its officers who sign such Registration Statement or such Holders or any controlling person of any lossesof them, claimsor their respective officers, damages directors or liabilities (employees may become subject, under the Securities Act, under any other statute, at common law or otherwise, insofar as such Losses or actions in respect thereofthereof arise out of, or are based upon, any untrue statement or alleged untrue statement of any material fact contained in such Registration Statement or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading. Such contributions shall be in such amounts that the portion of such Losses for which each such Holder shall be responsible under this Section 3.7(d) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute shall be limited to the amount paid or payable by such Indemnified Party as a result portion of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate Losses which are directly attributable to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged an untrue statement of a material fact or alleged an omission to state a material fact relates in said Registration Statement in reliance upon, and in conformity with, written information furnished to information supplied by the Company by or the Underwriters on behalf of any such Holder specifically for use therein, and the parties’ relative intentCompany shall be responsible for the balance of such Losses; provided, knowledgehowever, access that the liability of each such Holder to information make such contribution shall be limited to an amount equal to the proceeds of the sale of shares of Registrable Securities by such Holder in the offering which gives rise to the liability (net of underwriting commissions and opportunity disbursements) paid or incurred in connection with the registration, if any, and sale). As among themselves, such Holders agree to correct or prevent contribute to amounts payable by other such statement or omissionHolders in such manner as shall, to the extent permitted by law, give effect to the provisions in Section 3.7(b). The Company and the Underwriters such Holders agree that it would not be just and equitable if contribution their respective obligations to contribute pursuant to this subsection (d) Section were to be determined by pro rata allocation (even if other than as set forth above) of the Underwriters were treated as one entity for aggregate Losses by reference to the proceeds realized by such purpose) Holders in a sale pursuant to said Registration Statement or said Prospectus or by any other method of allocation which does not take account of the equitable considerations referred to above set forth in this subsection (dSection 3.7(d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution under this Section from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Stock Restriction and Registration Rights Agreement (Pinnacle Systems Inc), Asset Purchase Agreement (Pinnacle Systems Inc)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriterthe Placement Agents, its directors, their respective officers, agentsemployees, affiliates representatives and agents and each person, if any, who controls any Underwriter such Placement Agents within the meaning of either Section 15 of the Securities Act or Section 20 of (collectively the Exchange Act from "PLACEMENT AGENT INDEMNIFIED PARTIES" and each a "PLACEMENT AGENT INDEMNIFIED PARTY") against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof, to which such Underwriter, director, officer, agent, affiliate or controlling person that Placement Agent Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (or actions in respect thereof) arise action arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Base Prospectus, the Registration Statement, the Time of Sale Prospectus, if any, or the Prospectus Supplement or in any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or (ii) the omission or alleged omission therefrom to state in the Base Prospectus, the Registration Statement, the Time of Sale Prospectus, if any, or the Prospectus Supplement or in any amendment or supplement thereto a material fact required to be stated therein or necessary to make the statements therein not misleading; , (iii) any breach of the representations and warranties of the Company contained herein or (iv) any act or failure to act, or any alleged act or failure to act, by any Placement Agent in connection with, or relating in any manner to, the Stock or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability or action arising out of or based upon matters covered by clause (i), (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, (iii) above; (provided that the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, Company shall not be liable in the light case of any matter covered by this clause (iv) to the circumstances under which they were madeextent that it is determined in a final judgment by a court of competent jurisdiction that such loss, not misleadingclaim, damage, liability or action resulted directly from any such act or failure to act undertaken or omitted to be taken by such Placement Agent through its gross negligence or willful misconduct) and will shall reimburse each Underwriter, director, officer, agent, affiliate or controlling person Placement Agent Indemnified Party promptly upon demand for any legal or other expenses reasonably incurred by it that Placement Agent Indemnified Party in connection with investigating or preparing to defend or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission made in from the Base Prospectus, the Registration Statement, any preliminary prospectus the Time of Sale Prospectus, if any, or the Prospectus Supplement or any such amendment or supplement, supplement in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter Placement Agent through you, the Representative specifically for use therein, which information the parties hereto agree is limited to the Placement Agents' Information (as defined in the preparation thereofSection 16). The This indemnity agreement set forth in this Section 6(a) shall is not exclusive and will be in addition to any liabilities that liability, which the Company might otherwise have and shall not limit any rights or remedies which may otherwise havebe available at law or in equity to each Placement Agent Indemnified Party. (b) Each Underwriter Placement Agent, severally and not jointly will jointly, shall indemnify and hold harmless the CompanyCompany its officers, employees, representatives and agents, each of its directors, its officers who sign the Registration Statement directors and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of (collectively the Exchange Act, "COMPANY INDEMNIFIED PARTIES" and each a "COMPANY INDEMNIFIED PARTY") against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, or any action in respect thereof, to which the Company, such director, officer or controlling person Company Indemnified Parties may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (or actions in respect thereof) arise action arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Base Prospectus, the Registration Statement, the Time of Sale Prospectus, if any, or the Prospectus Supplement or in any amendment thereto, or supplement thereto or (ii) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter on behalf of that Placement Agent through you, the Representative specifically for use in the preparation thereof; therein, and will shall reimburse the Company Indemnified Parties for any legal or other expenses reasonably incurred by the Company such parties in connection with investigating or preparing to defend or defending against or appearing as third party witness in connection with any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided that the parties hereto hereby agree that such written information provided by the Placement Agents consist solely of the Placement Agents Information. The This indemnity agreement set forth in this Section 6(b) shall is not exclusive and will be in addition to any liabilities that liability, which each Underwriter of the Placement Agents and the Purchasers might otherwise have and shall not limit any rights or remedies which may otherwise havebe available at law or in equity to the Company Indemnified Parties. Notwithstanding the provisions of this Section 7(b), in no event shall any indemnity by any Placement Agent under this Section 7(b) exceed the total compensation received by such Placement Agent in accordance with Section 1(e). (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 7 of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 7, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 7 except to the extent it has been materially prejudiced by such failure; and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsectionthis Section 7. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection this Section 7 for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The ; provided, however, that any indemnified party will shall have the right to employ its own separate counsel in any such action, action and to participate in the defense thereof but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party unless (1i) the employment of counsel by the indemnified party thereof has been specifically authorized in writing by the indemnifying partyparty in writing, (2ii) the such indemnified party has reasonably concluded (based on advice of counsel) shall have been advised by such counsel that there may be one or more legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel or (3iii) a conflict or potential conflict exists (based on advice the indemnifying party has failed to assume the defense of such action in accordance with the terms hereof and employ counsel reasonably satisfactory to the indemnified party) between the , in which case, if such indemnified party and notifies the indemnifying party (in which case writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party will shall not have the right to direct assume the defense of such action on behalf of the such indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable feesit being understood, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood however, that the indemnifying party or parties shall not, in connection with any proceeding one such action or separate but substantially similar or related proceedings actions in the same jurisdictionjurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted to practice in such jurisdiction of attorneys at any one time for all such indemnified party parties, which firm shall be designated in writing by the Representative, if the indemnified parties under this Section 7 consist of any Placement Agent Indemnified Party, or partiesby the Company if the indemnified parties under this Section 7 consist of any Company Indemnified Parties. All such feesEach indemnified party, disbursements as a condition of the indemnity agreements contained in Sections 7(a) and other charges will be reimbursed by 7(b) shall use all reasonable efforts to cooperate with the indemnifying party promptly as they are incurredin the defense of any such action or claim. An Subject to the provisions of Section 7(d) below, no indemnifying party will not shall be liable for any settlement settlement, compromise or consent to the entry of judgment in connection with any such action or claim effected without its written consent (which consent will shall not be unreasonably withheld). No , but if settled with its written consent or if there be a final judgment for the plaintiff in any such action (other than a judgment entered with the consent of such indemnified party), the indemnifying party shallagrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. (d) If at any time an indemnified party shall have requested that an indemnifying party reimburse the indemnified party for fees and expenses of counsel, without such indemnifying party agrees that it shall be liable for any settlement of the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters nature contemplated by this Section 6 7 effected without its written consent if (whether or i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the request for reimbursement, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not any have reimbursed such indemnified party is a party thereto), unless in accordance with such request prior to the date of such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (de) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (aSection 7(a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein7(b), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters Placement Agents on the other from the offering of the Bonds. If, however, Stock or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters Placement Agents on the other in connection with respect to the statements or omissions which resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters Placement Agents on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Stock purchased under this Agreement (before deducting expenses) received by the Company bear bears to the total underwriting discounts and commissions compensation received by the Underwriters, in each case as set forth in Placement Agents with respect to the table on the cover page of the Prospectus which is filed pursuant to Rule 424 Stock purchased under the Act referred to in Section 2(a) hereofthis Agreement. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Underwriters Placement Agents on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission; provided that the parties hereto agree that the written information furnished to the Company by the Placement Agents for use in the Prospectus Supplement consists solely of the Placement Agents' Information. The Company and the Underwriters Placement Agents agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 7(e) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 7(e) shall be deemed to include include, for purposes of this Section 7(e), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 7(e), no Underwriter the Placement Agents shall not be required to contribute any amount in excess of the underwriting discounts total compensation received by itsuch Placement Agent in accordance with Section 1(e) less the amount of any damages which such Placement Agent has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. . (f) The Underwriters’ Placement Agents' obligations to contribute as provided in this subsection (dSection 7(f) to contribute are several in proportion to their respective underwriting obligations the total compensation received by each of the Placement Agents in accordance with Section 1(e) and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Placement Agent Agreement (Halozyme Therapeutics Inc), Placement Agent Agreement (Halozyme Therapeutics Inc)

Indemnification and Contribution. (a) The In the event of a registration of any Warrant Shares under the Securities Act pursuant to Section 7.1 or 7.2, the Company will shall indemnify and hold harmless harmless, to the full extent permitted by law, each Underwriter, its directors, officers, agents, affiliates seller of such Warrant Shares thereunder and each personpartner, if anyofficer, who controls any Underwriter within the meaning trustee, director, employee, agent or Affiliate of either such seller (collectively, for purposes of this Section 15 of the Act or Section 20 of the Exchange Act from and 7.5, a "seller"), against any losses, claims, damages damages, liabilities or liabilitiesexpenses, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person seller may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in any registration statement under which such Warrant Shares were registered under the Registration StatementSecurities Act pursuant to Sections 7.1, any preliminary prospectus or final prospectus contained therein, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Actor supplement thereof, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will shall pay or reimburse each Underwriter, director, officer, agent, affiliate or controlling person such seller for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to a seller, if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information pertaining to such seller furnished in writing to the Company by you, or by any Underwriter through you, such seller specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Companysuch registration statement, its directorsprospectus, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Warrant Agreement (Autobond Acceptance Corp), Warrant Agreement (Autobond Acceptance Corp)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other U.S. federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) any untrue statement or alleged untrue statement of or a material fact contained in any preliminary prospectus, the Disclosure Package Preliminary Prospectus or the Prospectus (Prospectus, or in any amendment thereof or supplement thereto), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, therein in the light of the circumstances under which they were made, made not misleading, misleading and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereofinclusion therein. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign signs the Registration Statement Statement, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to written information relating to such Underwriter furnished to the Company by or on behalf of such Underwriter through the Representatives specifically for inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any losses, claims, damages or liabilities to liability which any Underwriter may otherwise have. The Company acknowledges that (i) the Company, such director, officer or controlling person may become subjectstatements set forth in the last paragraph of the cover page regarding delivery of the Securities and, under the Act or otherwiseheading “Underwriting”, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement the list of a material fact contained Underwriters and their respective participation in the sale of the Securities, (iii) the sentences related to concessions and reallowances and (iv) the paragraph related to stabilization, syndicate covering transactions and penalty bids in any preliminary prospectus Preliminary Prospectus and the Prospectus (or any supplement thereto) constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceeding. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee, Affiliate and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Spansion Inc.), Underwriting Agreement (Spansion Inc.)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or the are based upon an omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained fact, in any preliminary prospectus, light of the Disclosure Package or the Prospectus (or any amendment or supplement thereto)circumstances in which it was made, or the an omission or alleged omission therefrom of to state a material fact required to be stated or necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, in any Preliminary Prospectus, the Final Prospectus, or in any amendment or supplement thereto, or in any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Act, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveinclusion therein. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company documents referred to in connection with investigating or defending against any such loss, claim, damage, liability or actionSection 8(a) above. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that (i) the last sentence set forth on the cover page regarding delivery of the Securities and (ii) under the heading “Underwriting,” (A) the sentences related to concessions and reallowances and (B) the paragraphs related to stabilization, syndicate covering transactions and penalty bids in any Preliminary Prospectus and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceedingproceeding and does not include a statement as to, or admission of, fault, culpability or failure to act on behalf of any indemnified party. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is for any reason held to a party that would have been be unenforceable by an indemnified party or is insufficient to hold harmless a party indemnified under subsection paragraph (a) or (b) above of this Section 8, although applicable in accordance with its terms (“Indemnified Party”including the requirements of Section 8(c) in respect of any above), the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder; provided, further, that each Underwriter’s obligation to contribute to Losses hereunder shall be several and not joint. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (Peco Energy Co), Underwriting Agreement (Peco Energy Co)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, the Prospectus or any amendment or supplement thereto, including or any information deemed related preliminary prospectus supplement (or contained in any Registration Statement after it first become effective but prior to be the Pricing Agreement or in any prospectus forming a part thereof pursuant to Rule 430B under the Actduring such period), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, action or claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by youany Underwriter, directly or by any Underwriter through youthe Representatives, specifically expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities therein; and provided, further, that the Company may otherwise haveshall not be liable to any Underwriter under the indemnity agreement in this subsection (a) to the extent that any such loss, claim, damage or liability of such Underwriter results from the fact that such Underwriter sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or the Prospectus as then amended or supplemented (excluding documents incorporated by reference) in any case where such delivery is required by the Act and the untrue statement or omission of a material fact contained in the Prospectus, any such amendment or supplement thereto or any such other document was corrected in the Prospectus or the Prospectus as then amended or supplemented if the Company has furnished prior to such confirmation sufficient copies thereof to such Underwriter. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, the Prospectus or any amendment or supplement thereto, or any related preliminary prospectus supplement, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by yousuch Underwriter, directly or by any Underwriter through youthe Representatives, specifically expressly for use in the preparation thereoftherein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, action or claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of any claim or of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the . The omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party, provided that, in the case of any such omission relating to the commencement of an action, such omission shall relieve the indemnifying party otherwise than of liability under such subsection. In , in case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it or other indemnified parties, or both, which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of or its election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof (other than reasonable costs of investigation. The indemnified party will have investigation conducted at the right to employ its own counsel in any such action, but the fees, expenses and other charges request of such counsel will be at the expense of such indemnified party indemnifying party) unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice shall have employed separate counsel in connection with the assertion of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, approved by such indemnifying party, representing the indemnified parties under such subsection who are parties to such action), (3ii) a conflict or potential conflict exists (based on advice of the indemnifying party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and except that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is 5 shall be unavailable under subsection (a) or (b) above to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is in appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but Designated Securities and also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other in connection with the offering of the Designated Securities shall be deemed to be in the same proportion as the total net proceeds from the offering of such Securities (before deducting expenses) received by the Company bear bears to the total underwriting discounts and commissions received by the UnderwritersUnderwriters in respect thereof, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the indemnified party failed to give the notice required under subsection (c) above, including the consequences of such failure, and whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission, of the Company on the one hand and the Underwriters, directly or through the Representatives, on the other hand. With respect to any Underwriter, such relative fault shall also be determined by reference to the extent (if any) to which such losses, claims, damages or liabilities (or actions in respect thereof) result from the fact that such Underwriter sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or the Prospectus as then amended or supplemented (excluding documents incorporated by reference) if the Company has furnished prior to such confirmation copies thereof to such Underwriter. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata per-capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the applicable Designated Securities, underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations of the Underwriters in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 5 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; , and the obligations of the Underwriters under this Section 6 5 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed signs the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Underwriting Agreement (United Technologies Corp /De/), Underwriting Agreement (United Technologies Corp /De/)

Indemnification and Contribution. (a) The Company will Each of DFS and the Seller shall, jointly and severally, indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss, liability, claim, damage and will reimburse each Underwriterexpense whatsoever, directoras incurred, officerto the extent of the aggregate amount paid in settlement of any litigation, agentor any investigation or proceeding by any governmental agency or body, affiliate commenced or controlling person for threatened, or of any legal claim whatsoever based upon any such untrue statement or other expenses reasonably omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Seller and DFS (which consent shall not be unreasonably withheld); and (iii) against any and all expense whatsoever (including, subject to Section 7(c) hereof, the reasonable fees and disbursements of counsel chosen by the Representative) incurred by it in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such lossuntrue statement or omission, claim, damage, liability to the extent that any such expense is not paid under (i) or action(ii) above; provided, however, that the Company this Section 7 shall not be liable in apply to any such case to the extent that any such loss, liability, claim, damage or liability arises expense to the extent arising out of or is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, (A) in reliance upon and in conformity with written information furnished to the Company Seller by you, or by any Underwriter through you, specifically the Representative expressly for use in the preparation thereof. The indemnity agreement Registration Statement (or any amendment thereto) or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) and set forth in this Section 6(athe Prospectus and in the Prospectus Supplement, in each case as specified in the related Terms Agreement, or (B) shall be in addition any ABS Filing or any amendment or supplement thereof, except to the extent that any liabilities untrue statement or alleged untrue statement therein or omission therefrom results (or is alleged to have resulted) from an error (a "Pool Error") in the information concerning the characteristics of the Receivables furnished by the Seller to the Underwriter in writing or by electronic transmission that was used in the Company may otherwise havepreparation of any Computational Materials or ABS Term Sheets (or amendments or supplements thereof) included in such ABS Filing (or amendment or supplement thereof). (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the CompanySeller and DFS, its each of their respective directors, its each of their respective officers who sign signed the Registration Statement Statement, and each person, if any, who controls the Company Seller and DFS, respectively, within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesand all loss, claimsliability, damages or liabilities claim, damage and expense described in the indemnity contained in subsection (a) of this Section 7, as incurred, but only with respect to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement (or any amendment thereto), or any preliminary prospectus or the omission Prospectus (or alleged omission therefrom of a material fact required any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to be stated therein the Seller through the Representative expressly for use in the Registration Statement (or necessary to make the statements therein not misleading; any amendment thereto) or (ii) any untrue statement or alleged untrue statement of a material fact contained in any such preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case as specified in the related Terms Agreement, or (ii) any Computational Materials or ABS Term Sheets (or amendments or supplements thereof) furnished to the extentSeller by such Underwriter through the Representative pursuant to Section 9 or Section 10, but only or directly by such Underwriter, to the extent, extent that such untrue statement or alleged untrue statement or omission or alleged omission was made materials were delivered to investors by such Underwriter, and incorporated by reference in the such Registration Statement, any preliminary prospectus Statement or the related Prospectus or any such amendment or supplementsupplement thereof (except that no such indemnity shall be available for any losses, in reliance upon and in conformity with written information furnished to the Company by youclaims, damages or liabilities, or by actions in respect thereof, resulting from any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havePool Error). (c) Promptly after receipt by an Each indemnified party under subsection (a) or (b) above of shall give notice of the commencement as promptly as reasonably practicable to each indemnifying party of any actionaction commenced against it with respect to which indemnity may be sought hereunder, such indemnified party shall, if a claim in respect thereof is but failure to be made against the indemnifying party under such subsection, so notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the an indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party on account of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredthis Section 7. An indemnifying party will not be liable for any settlement of any action or claim effected without may participate at its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment own expense in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with action. In no event shall the provisions thereof). Notwithstanding indemnifying parties be liable for the provisions fees and expenses of this subsection more than one counsel (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning jurisdiction arising out of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actgeneral allegations or circumstances.

Appears in 2 contracts

Sources: Underwriting Agreement (Distribution Financial Services Floorplan Master Trust), Underwriting Agreement (Deutsche Floorplan Receivables L P)

Indemnification and Contribution. (a) The Company will Issuers agree jointly and severally, to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Holder of Registrable Securities and each personParticipating Broker-Dealer selling Exchange Securities during the Applicable Period, and each Person, if any, who controls any Underwriter such Person or its affiliates within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and (each, a “Participant”) against any losses, claims, damages or liabilities, joint or several, liabilities to which any Participant may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such Underwriterlosses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if any of the Issuers shall have furnished any amendments or supplements thereto) or any preliminary prospectus or “issuer free writing prospectus” (as defined in Rule 405) (an “Issuer FWP”); or (ii) the omission or alleged omission to state, in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if any of the Issuers shall have furnished any amendments or supplements thereto) or any preliminary prospectus or any Issuer FWP or any other document or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; and will reimburse, as incurred, the Participant for any legal or other expenses incurred by the Participant in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, none of the Issuers will be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any Registration Statement (or any amendment thereto) or Prospectus (as amended or supplemented if any of the Issuers shall have furnished any amendments or supplements thereto) or any preliminary prospectus or any Issuer FWP or any amendment or supplement thereto in reliance upon and in conformity with information relating to any Participant furnished to the Issuers by such Participant specifically for use therein. The indemnity provided for in this Section 7 will be in addition to any liability that the Issuers may otherwise have to the indemnified parties. The Issuers shall not be liable under this Section 7 for any settlement of any claim or action effected without their prior written consent, which shall not be unreasonably withheld. (b) Each Participant, severally and not jointly, agrees to indemnify and hold harmless the Issuers, their directors, their officers and each person, if any, who controls the Issuers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Issuers or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration StatementStatement or Prospectus, any amendment or supplement thereto, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Actpreliminary prospectus or Issuer FWP, or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Participant, furnished to the Company Issuers by you, or by any Underwriter through youthe Participant, specifically for use in the preparation thereoftherein; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any reasonable legal or other expenses reasonably incurred by the Company Issuers or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The indemnity agreement set forth provided for in this Section 6(b) shall 7 will be in addition to any liabilities liability that each Underwriter the Participants may otherwise havehave to the indemnified parties. The Participants shall not be liable under this Section 7 for any settlement of any claim or action effected without their consent, which shall not be unreasonably withheld. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 7 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 7, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 7, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 7 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by Participants who sold a majority in interest of the Registrable Securities and Exchange Securities sold by all such Participants in the case of paragraph (3a) a conflict of this Section 7 or potential conflict exists the Issuers in the case of paragraph (based on advice b) of counsel to this Section 7, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparty. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its the prior written consent of the indemnifying party (which consent will shall not be unreasonably withheld), unless such indemnified party waived in writing its rights under this Section 7, in which case the indemnified party may effect such a settlement without such consent. No indemnifying party shall, without the prior written consent of each the indemnified party, settle effect any settlement or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)party, or indemnity could have been sought hereunder by any indemnified party, unless such settlement, compromise or consent settlement (A) includes an unconditional written release of each the indemnified party party, in form and substance reasonably satisfactory to the indemnified party, from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and (B) does not include any statement as to an admission of fault, action culpability or proceedingfailure to act by or on behalf of any indemnified party. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 7 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Securities or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Issuers on the one hand and the Underwriters such Participant on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) of the Securities received by the Company bear to the total underwriting discounts and commissions net profit received by such Participant in connection with the Underwriters, in each case as set forth in the table on the cover page sale of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofSecurities. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuers on the one hand, or the Underwriters and Participants on the other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company and the Underwriters parties agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in the first sentence of this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter Participant shall be obligated to make contributions hereunder that in the aggregate exceed the total net profit received by such Participant in connection with the sale of the Securities, less the aggregate amount of any damages that such Participant has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations ), each person, if any, who controls a Participant within the meaning of Section 15 of the Company under this Act or Section 6 20 of the Exchange Act shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, rights to each director, officer, agent and affiliate of an Underwritercontribution as the Participants, and to each director of any Issuer, each officer of any Issuer and each person, if any, who controls any Underwriter Issuer within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20 of the Exchange Act, shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, rights to each director of contribution as the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the ActIssuers.

Appears in 2 contracts

Sources: Registration Rights Agreement (Aleris International, Inc.), Registration Rights Agreement (Aleris International, Inc.)

Indemnification and Contribution. (a) The In the case of each offering of Registrable Securities made pursuant to this Agreement, the Company will shall indemnify and hold harmless each UnderwriterHolder, its officers and directors, officers, agents, affiliates each underwriter of Registrable Securities so offered and each personPerson, if any, who controls any Underwriter of the foregoing persons within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act ("Holder Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages or liabilitiesexpenses and judgments, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation or alleged violation by the Company of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or county in which the Registrable Securities are offered, and relating to action taken or action or inaction required of the Company in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities, or any amendment thereof or supplement thereto, including or in any information deemed to be a part thereof pursuant to Rule 430B under the Actdocument incorporated by reference therein, or the any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that but the Company shall not be liable to any Holder Indemnitee in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement, or any omission or alleged omission, if such statement or omission or alleged omission shall have been made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company in writing by youor on behalf of such Holder specifically for inclusion in the Registration Statement (or in any preliminary or final prospectus included therein), or any amendment thereof or supplement thereto. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Underwriter through you, specifically for use in Holder and shall survive the preparation thereoftransfer of such securities. The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company may otherwise havehave to any Holder Indemnitee. (b) Each Underwriter severally and not jointly will In the case of each offering of Registrable Securities made pursuant to this Agreement, each Holder shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and directors and each person, if any, who controls any of the Company foregoing within the meaning of either Section 15 of the Securities Act or Section 20 of (the Exchange Act"Company Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages expenses and judgments, joint or liabilities several, to which the Company, such director, officer they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as any such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation or alleged violation by such Holder of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or country in which the Registrable Securities are offered and relating to action taken or action or inaction required of such Holder in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities or any amendment thereof or supplement thereto, or any amendment thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such untrue statement is contained in, or alleged untrue statement or omission or alleged omission was made in the Registration Statementsuch fact is omitted from, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished in writing to the Company by you, or by any Underwriter through you, on behalf of such Holder specifically for use inclusion in the preparation thereof; such Registration Statement (or in any preliminary or final prospectus included therein). Such indemnity shall remain in full force and will reimburse the effect regardless of any investigation made by or on behalf of any Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionIndemnitee. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each Underwriter liability which Holder may otherwise havehave to any Company Indemnitee. (c) Promptly after receipt by an In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to this Section 11, such person (the "indemnified party under party") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing. No indemnification provided for in subsection (a) or (b) above of shall be available to any person who shall fail to give notice of the commencement of any action, such indemnified party shall, as provided in this subsection (c) if a claim in respect thereof is to be made against the indemnifying party under to whom notice was not given was unaware of the proceeding to which such subsectionnotice would have related and was materially prejudiced by the failure to give such notice, notify but the failure to give such notice shall not relieve the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it or parties from any liability which it or they may have to any the indemnified party for contribution or otherwise than under such subsectionon account of the provisions of subsection (a) or (b). In case any such action proceeding shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from party and shall pay as incurred the indemnifying party fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party of shall have the right to retain its election so to assume own counsel at its own expense. Notwithstanding the defense thereofforegoing, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other pay as incurred the fees and expenses subsequently incurred of the counsel retained by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless event (1) the employment of counsel by indemnifying party and the indemnified party has been authorized in writing by shall have mutually agreed to the indemnifying party, retention of such counsel or (2) the indemnified party has reasonably concluded named parties to any such proceeding (based on advice of counselincluding any impleaded parties) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to include both the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between party and the indemnified party and representation of both parties by the same counsel, in the written opinion of such counsel, would be inappropriate due to actual or potential differing interests between them. The indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparties (in addition to local counsel). All such fees, disbursements and other charges will Such firm shall be reimbursed designated in writing by the Holders of a majority of the Registrable Securities disposed under the applicable Registration Statements in the case of Holder Indemnitees and by the Company in the case of Company Indemnitees. The indemnifying party promptly as they are incurred. An indemnifying party will shall not be liable for any settlement of any action or claim proceeding effected without its written consent (which but if settled with such consent will not or if there be unreasonably withheld). No a final judgment for the plaintiff, the indemnifying party shall, without agrees to indemnify the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all and against any loss or liability arising or that may arise out by reason of such claim, action settlement or proceedingjudgment. (d) If the indemnification provided for in this Section 6 11 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, or if the indemnified party failed to give the notice required under subsection (c), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party the indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect not only both the relative benefits received by such party (as compared to the Company on the one hand and the Underwriters on the benefits received by all other parties) from the offering in respect of the Bonds. Ifwhich indemnity is sought, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other all parties in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other a party shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company it bear to the total underwriting discounts and commissions amounts received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofother party. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters parties agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.this

Appears in 2 contracts

Sources: Registration Rights Agreement (Pegasus Communications Corp), Registration Rights Agreement (Pegasus Communications Corp)

Indemnification and Contribution. (a) A. The Company will Depositor agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any or such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act from and against any and all loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Notes), to which such Underwriter or any such controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof or supplement thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment thereof or supplement thereto, or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and shall reimburse such Underwriter and each such controlling person promptly upon demand for any legal or other expenses reasonably incurred by such Underwriter or such controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Depositor shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Prospectus, or any amendment thereof or supplement thereto, or the Registration Statement, or any amendment thereof or supplement thereto, in reliance upon and in conformity with written information furnished to the Depositor by or on behalf of such Underwriter specifically for inclusion therein. The foregoing indemnity agreement is in addition to any liability which the Depositor may otherwise have to any Underwriter or any controlling person of any of such Underwriter. The only information furnished by the Underwriters or on behalf of the Underwriters for use in connection with the preparation of the Registration Statement or the Prospectus is described in Section 8(I) hereof. B. Each Underwriter severally agrees to indemnify and hold harmless the Depositor, each of its directors, each of its officers who signed the Registration Statement, and each person, if any, who controls the Depositor within the meaning of Section 15 of the Securities Act against any and all loss, claim, damage or liability, or any action in respect thereof, to which the Depositor or any such director, officer or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof or supplement thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment thereof or supplement thereto, or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Depositor by or on behalf of such Underwriter specifically for inclusion therein, and shall reimburse the Depositor and any such director, officer or controlling person for any legal or other expenses reasonably incurred by the Depositor or any director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in addition to any liability which any Underwriter may otherwise have to the Depositor or any such director, officer or controlling person. The only information furnished by the Underwriters or on behalf of the Underwriters for use in connection with the preparation of the Registration Statement or the Prospectus is described in Section 8(I) hereof. C. Promptly after receipt by any indemnified party under this Section 8 of notice of any claim or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, except to the extent provided in the next following paragraph, the indemnifying party shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation. Any indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless: (i) the employment thereof has been specifically authorized by the indemnifying party in writing; (ii) such indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel; or (iii) the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party, in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party, it being understood, however, the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to one local counsel per jurisdiction) at any time for all such indemnified parties, which firm shall be designated in writing by the related Underwriter, if the indemnified parties under this Section 8 consist of one or more Underwriters or any of its or their controlling persons, or the Depositor, if the indemnified parties under this Section 8 consist of the Depositor or any of the Depositor's directors, officers or controlling persons. Each indemnified party, as a condition of the indemnity agreements contained in Section 8(A) and 8(B) shall use its best efforts to cooperate with the indemnifying party in the defense of any such action or claim. No indemnifying party shall be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing paragraph, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. D. [Reserved] E. Each Underwriter severally agrees, assuming all Seller-Provided Information is accurate and complete in all material respects, to indemnify and hold harmless the Depositor, each of the Depositor's officers and directors and each person who controls the Depositor within the meaning of Section 15 of the Securities Act against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person they may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed Computational Materials and ABS Term Sheets provided by such Underwriter and agrees to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person such indemnified party for any legal or other expenses reasonably incurred by him, her or it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case preparing to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against defend any such loss, claim, damage, liability or actionaction as such expenses are incurred. The indemnity agreement set forth in obligations of an Underwriter under this Section 6(b8(E) shall be in addition to any liabilities that each liability which such Underwriter may otherwise have. The procedures set forth in Section 8(C) shall be equally applicable to this Section 8(E). (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) F. If the indemnification provided for in this Section 6 is 8 shall for any reason be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (aSection 8(A), 8(B) or (b) above (“Indemnified Party”8(E) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company Depositor on the one hand and the Underwriters related Underwriter on the other other, from the offering of the Bonds. If, however, related Notes or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (c) aboveSection 8C., then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Depositor on the one hand and the Underwriters related Underwriter on the other in connection other, with respect to the statements or omissions which resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by of the Company on the one hand Depositor and the Underwriters on the other an Underwriter shall be deemed to be in the same such proportion as the total net proceeds from the offering (before deducting expenses) received by the Company Depositor bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofSupplement received by such Underwriter. The relative fault of an Underwriter and the Depositor shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Depositor or by such Underwriter, the Underwriters intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionomission and other equitable considerations. The Company Depositor and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(F) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purposepurposes) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(F) shall be deemed to include include, for purposes of this Section 8(F), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions For purposes of this subsection (d)Section 8, in no case shall any Underwriter shall be required to contribute responsible for any amount in excess of the amount of the underwriting discounts and commissions received by itsuch Underwriter in connection with its purchase of the Notes. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations G. For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend8, upon the same terms and conditions, as to each director, officer, agent Underwriter the term "Computational Materials" and affiliate of an Underwriter, and to each person"ABS Term Sheets" means such portion, if any, who controls any Underwriter within the meaning of the Act; and information delivered to the obligations of Depositor by such Underwriter pursuant to Section 4(B) for filing with the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.Commission on Form 8-K as:

Appears in 2 contracts

Sources: Underwriting Agreement (Imc Home Equity Loan Owner Trust 1998-4), Underwriting Agreement (Imc Home Equity Loan Owner Trust 1998-6)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Underwriters against any lossesloss, claimsclaim, damages damage or liabilities, joint or several, liability to which such Underwriter, director, officer, agent, affiliate or controlling person the Underwriters may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage or liabilities liability (or actions action in respect thereof) arise arises out of or are is based upon (i) any untrue statement or alleged untrue statement made by the Company in Section 1 hereof, or (ii) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, Statement or the Prospectus or any amendment or supplement thereto, including or (B) in any Blue Sky application or other document executed by the Company specifically for the purpose or based upon any written information deemed furnished by the Company filed in any state or other jurisdiction in order to be a part thereof pursuant to Rule 430B qualify any or all of the Purchased Securities under the Actsecurities laws thereof (any such application, document or information being hereinafter called "Blue Sky Information"), or (iii) the omission or alleged omission therefrom of to state in the Registration Statement or the Prospectus or any amendment or supplement thereto or in any Blue Sky Information a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light and shall reimburse each of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriters for any legal or other reasonable expenses reasonably as incurred by it the Underwriters in connection with investigating or defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action, notwithstanding the possibility that payments for such expenses might later be held to be improper, in which case the person receiving them shall promptly refund them; provided, however, that the Company shall not be liable to an Underwriter in any such case to the extent extent, but only to the extent, that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to of the Registration Statement, Prospectus or any liabilities that the Company may otherwise haveamendment or supplement thereto, or any Blue Sky Information. (b) Each Underwriter of the Underwriters, severally and but not jointly will jointly, shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesloss, claimsclaim, damages damage or liabilities liability to which the Company, such director, officer or controlling person Company may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage or liabilities liability (or actions action in respect thereof) arise arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, Statement or the Prospectus or any amendment or supplement thereto, or (B) in any Blue Sky Information, or (ii) the omission or alleged omission therefrom of to state in the Registration Statement or the Prospectus or any amendment or supplement thereto or in any Blue Sky Information a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will shall reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall , notwithstanding the possibility that payments for such expenses might later be in addition to any liabilities that each Underwriter may otherwise have.held 11 (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsection. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; except that you shall have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, represent you in connection with any proceeding or related proceedings claim in respect of which indemnity may be sought by the same jurisdictionUnderwriters against the Company under such subsection if, in your reasonable judgment, it is advisable for you to be liable for represented by separate counsel, and in that event the reasonable fees, disbursements fees and other charges expenses of more than one such separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will counsel shall be reimbursed paid by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceedingCompany. (d) If the indemnification provided for in this Section 6 5 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a) or actions in respect thereof(b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other hand from the offering of the Bonds. If, however, Purchased Securities or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Purchased Securities (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case Underwriters as set forth in the table on Prospectus Supplement covering the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofPurchased Securities. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in the first sentence of this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending against any such action or claim (which shall be limited as provided in is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofd). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the Purchased Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.12

Appears in 2 contracts

Sources: Underwriting Agreement (Coastal Corp), Underwriting Agreement (Coastal Corp)

Indemnification and Contribution. (a) The Company will and the Guarantor jointly and severally agree to indemnify and hold harmless each Underwriter, its directors, officers, agents, Underwriter and their affiliates that participate or are alleged to have participated in the offering of the Securities and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or in the Basic Prospectus, any Preliminary Final Prospectus, the Pricing Disclosure Package or the Final Prospectus, or in any amendment thereof or supplement thereto, any Issuer Free Writing Prospectus, or any amendment thereto, including any information deemed “issuer information” filed or required to be a part thereof filed pursuant to Rule 430B under the Act, 433(d) or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall and the Guarantor will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company and the Guarantor by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in connection with the preparation thereof, or that part of the Registration Statement constituting the “Statement of Eligibility and Qualification of Trustee” (Form T-1) under the Trust Indenture Act. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company and the Guarantor may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the CompanyCompany and the Guarantor, its each of their respective directors, its each of their respective officers who sign signs the Registration Statement Statement, and each person, if any, person who controls the Company or the Guarantor within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company and the Guarantor to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company and the Guarantor by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use in the preparation thereof; and will reimburse of the Company for any legal or other expenses reasonably incurred by documents referred to in the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company and the Guarantor acknowledge that the statements set forth in the last paragraph of the cover page, and, under the heading “Underwriting”, (i) the list of Underwriters and their respective participation in the sale of the Securities, (ii) the sentences related to discounts and commissions and (ii) the paragraphs related to stabilization and syndicate covering transactions and penalty bids in any Preliminary Final Prospectus or the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in the documents referred to in the foregoing indemnity. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionparagraph (a) or (b) of this Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionparagraph (a) or (b) of this Section 8. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in andtherein, and to the extent that it shall wish, jointly with any other indemnifying may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof such action and approval by the indemnified party of such counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (plus any local counsel), approved by the Representatives in the case of paragraph (a) that there may be legal defenses available to it or other of this Section 8, representing the indemnified parties that under such paragraph (a) who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and except that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending litigation, or threatened claim, action any investigation or proceeding relating to the matters contemplated by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 8 (whether or not any the indemnified party is a party parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimlitigation, action investigation, proceeding or proceedingclaim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is unavailable, the Company and the Guarantor, on the one hand, and the Underwriters severally and not jointly, on the other hand, shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to thereinwhich the Company, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, the Guarantor and one or more of the Underwriters may be subject in lieu of indemnifying such Indemnified Party, contribute proportion to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantor on the one hand and the Underwriters on the other from the offering of the Bonds. IfSecurities, such that the Underwriters are responsible for that portion represented by the percentage that the underwriting discount bears to the sum of such discount and the purchase price of the Securities specified in Schedule I hereto and the Company and the Guarantor are responsible for the balance; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) aboveGuarantor, then each Indemnifying Party on the one hand, and the Underwriters severally, on the other, shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits as described in the immediately preceding sentence but also the relative fault of the Company and the Guarantor on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or and liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company or the Guarantor on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company Company, the Guarantor and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend8, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, person who controls any an Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and the Guarantor who shall have signed the Registration Statement and each director of the Company and the Guarantor shall have the same rights to contribution as the Company and the Guarantor, subject in each case to the applicable terms and conditions of this paragraph (d). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this paragraph (d), notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (PNC Financial Services Group, Inc.), Underwriting Agreement (PNC Financial Services Group Inc)

Indemnification and Contribution. (a) The Each of the Company will and the Sponsor agrees to indemnify and hold you harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter you within the meaning of either Section 15 of the Act or Section 20 of the Exchange 1933 Act from and against any and all loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Designated Notes), to which you or any such controlling person may become subject, under the 1933 Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Final Prospectus or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and shall reimburse you and each such controlling person promptly upon demand for any legal or other expenses reasonably incurred by you or such controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Company and the Sponsor shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Base Prospectus, the Final Prospectus or the Registration Statement in reliance upon and in conformity with written information (including any Derived Information) furnished to the Company or the Sponsor by you specifically for inclusion therein; and provided, further, that as to any Base Prospectus this indemnity shall not inure to your benefit or the benefit of any controlling person on account of any loss, claim, damage, liability or action arising from the sale of the Designated Notes to any person by you if you failed to send or give a copy of the Final Prospectus, as amended or supplemented, to that person within the time required by the 1933 Act. For purposes of the last proviso to the immediately preceding sentence, the term "Final Prospectus" shall not be deemed to include the documents incorporated therein by reference, and you shall not be obligated to send or give any supplement or amendment to any document incorporated therein by reference to any person other than a person to whom you had delivered such incorporated document or documents in response to a written request therefor. The foregoing indemnity agreement is in addition to any liability which each of the Company and the Sponsor may otherwise have to you or any person who controls you. (b) You agree to indemnify and hold harmless each of the Company and the Sponsor, each of its directors, each of its officers who signed the Registration Statement, and each person, if any, who controls the Company and the Sponsor within the meaning of Section 15 of the 1933 Act against any and all loss, claim, damage or liability, or any action in respect thereof, to which the Company, the Sponsor or any such director, officer or controlling person may become subject, under the 1933 Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Final Prospectus or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company and the Sponsor by or on your behalf specifically for inclusion therein and provided that such written information was not based upon Company-Provided Information, and shall reimburse the Company and the Sponsor and any such director, officer or controlling person for any legal or other expenses reasonably incurred by the Company and the Sponsor or any director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in addition to any liability which you may otherwise have to each of the Company and the Sponsor or any such director, officer or controlling person. (c) Promptly after receipt by any indemnified party under this Section 8 of notice of any claim or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and provided, further, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation. Any indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless: (i) the employment thereof has been specifically authorized by the indemnifying party in writing; (ii) such indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel; or (iii) the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party, in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party, it being understood, however, the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to local counsel) at any time for all such indemnified parties, which firm shall be designated in writing by you, if the indemnified parties under this Section 8 consist of you or any of your controlling persons, or by the Company, if the indemnified parties under this Section 8 consist of the Company, the Sponsor, or any of the Company's directors, officers or controlling persons. Each indemnified party, as a condition of the indemnity agreements contained in Sections 8(a), 8(b) and 8(c) shall use its best efforts to cooperate with the indemnifying party in the defense of any such action or claim. No indemnifying party shall be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. (d) You agree to deliver to the Company or the Sponsor no later than the date on which the Prospectus Supplement is required to be filed pursuant to Rule 424 with a copy of its Derived Information (defined below) for filing with the Commission on Form 8-K. (e) You agree, assuming all Company-Provided Information (defined below) is accurate and complete in all material respects, to indemnify and hold harmless the Company, the Sponsor, each of the Company's and the Sponsor's officers and directors and each person who controls the Company and the Sponsor within the meaning of Section 15 of the 1933 Act against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person they may become subject, subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementDerived Information provided by you, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person such indemnified party for any legal or other expenses reasonably incurred by him, her or it in connection with investigating or defending against or preparing to defend any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any action as such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereofexpenses are incurred. The indemnity agreement set forth in Your obligations under this Section 6(a8(e) shall be in addition to any liabilities that the Company liability which you may otherwise have. (bf) Each Underwriter severally of the Company and not jointly will the Sponsor agree to indemnify and hold harmless the CompanyUnderwriter, its directors, its each of the Underwriter's officers who sign the Registration Statement and directors and each person, if any, person who controls the Company Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange Act, against any and all losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person they may become subject, subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementCompany-Provided Information provided by the Company or the Sponsor, or any amendment thereto, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in and agrees to reimburse each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company indemnified party for any legal or other expenses reasonably incurred by the Company him, her or it in connection with investigating or defending against or preparing to defend any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, action as such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement Each of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand Company's and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ Sponsor's obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 8(f) shall be in addition to any liability which the Company they may otherwise have have. The procedures set forth in Section 8(c) shall be equally applicable to Sections 8(e) and shall extend8(f). (g) For purposes of this Section 8, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each personterm "Derived Information" means such portion, if any, who controls any Underwriter within the meaning of the Actinformation delivered to the Company or the Sponsor by the Underwriter pursuant to Section 8(e) for filing with the Commission on Form 8-K as: (i) is not contained in the Final Prospectus without taking into account information incorporated therein by reference; (ii) does not constitute Company-Provided Information; and the obligations and (iii) is of the Underwriters under this Section 6 shall be type of information defined as Collateral Term Sheets, Structural Term Sheets or Computational Materials (as such terms are interpreted in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the ActNo-Action Letters).

Appears in 2 contracts

Sources: Underwriting Agreement (Headlands Mortgage Securities Inc), Underwriting Agreement (Greenpoint Home Equity Loan Trust 1999 2)

Indemnification and Contribution. (a) The In the case of each offering of Registrable Securities made pursuant to this Agreement, the Company will shall, to the extent permitted by applicable law, indemnify and hold harmless each UnderwriterHolder, its officers and directors, officers, agents, affiliates each underwriter of Registrable Securities so offered and each personPerson, if any, who controls any Underwriter of the foregoing persons within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act ("Holder Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages or liabilitiesexpenses and judgments, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation or alleged violation by the Company of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or country in which the Registrable Securities are offered, and relating to action taken or action or inaction required of the Company in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities, or any amendment thereof or supplement thereto, including or in any information deemed to be a part thereof pursuant to Rule 430B under the Actdocument incorporated by reference therein, or the any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that but the Company shall not be liable to any Holder Indemnitee in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement, or any omission or alleged omission, if such statement or omission or alleged omission shall have been made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company in writing by you, or by any Underwriter through you, on behalf of such Holder specifically for use in the preparation thereofof the Registration Statement (or in any preliminary or final prospectus included therein), or any amendment thereof or supplement thereto. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Holder and shall survive the transfer of such securities. The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company may otherwise havehave to any Holder Indemnitee. (b) Each Underwriter severally and not jointly will In the case of each offering of Registrable Securities made pursuant to this Agreement, each Holder participating in such offering, shall, to the extent permitted by applicable law, indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and directors and each person, if any, who controls any of the Company foregoing within the meaning of either Section 15 of the Securities Act or Section 20 of (the Exchange Act"Company Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages expenses and judgments, joint or liabilities several, to which the Company, such director, officer they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as any such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation by such Holder of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or country in which the Registrable Securities are offered and relating to action taken or action or inaction required of such Holder in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities or any amendment thereof or supplement thereto, or any amendment thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such untrue statement is contained in, or alleged untrue statement or omission or alleged omission was made in the Registration Statementsuch fact is omitted from, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished in writing to the Company by you, or by any Underwriter through you, on behalf of such Holder specifically for use in the preparation thereof; of such Registration Statement (or in any preliminary or final prospectus included therein). Such indemnity shall remain in full force and will reimburse effect regardless of any investigation made by or on behalf of any Company Indemnitee. In no event shall the Company for any legal liability of a Holder hereunder or other expenses reasonably incurred under Section 11(d) be greater in amount than the dollar amount of the net proceeds received by it upon the Company in connection with investigating or defending against any sale of Registrable Securities pursuant to such loss, claim, damage, liability or actionoffering. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each Underwriter liability which Holder may otherwise havehave to any Company Indemnitee. (c) Promptly after receipt by an indemnified party under subsection In case any proceeding (aincluding any governmental investigation) or (b) above shall be instituted involving any person in respect of notice of the commencement of any actionwhich indemnity may be sought pursuant to this Section 11, such person (the "indemnified party shallparty") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing, if a claim in respect thereof is but the failure to be made against give such notice shall not relieve the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it or parties from any liability which it or they may have to any the indemnified party otherwise than under such subsectionparty. In case any such action proceeding shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from party and shall pay as incurred the indemnifying party fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party of shall have the right to retain its election so to assume own counsel at its own expense. Notwithstanding the defense thereofforegoing, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other pay as incurred the fees and expenses subsequently incurred of the counsel retained by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless event (1) the employment of counsel by indemnifying party and the indemnified party has been authorized in writing by shall have mutually agreed to the indemnifying party, retention of such counsel or (2) the indemnified party has reasonably concluded named parties to any such proceeding (based on advice of counselincluding any impleaded parties) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to include both the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. The indemnifying party (in which case party, if the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the actionCompany, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable feesfees and expenses of more than two separate firms, disbursements one for the Ordinary Shares issued pursuant to the Securities Purchase Agreement, the Class B Warrants or Ordinary Shares for which the Class B Warrants have been exercised (the "Class B Holder Indemnitees") and one for all other charges Holder Indemnitees (the "Other Holder Indemnitees"). Such firm for the Class B Holder Indemnitees shall be designated in writing by Holders of a majority of the Registrable Securities held by the Class B Holder Indemnitees and disposed of under the applicable Registration Statements. Such firm for the Other Holder Indemnitees shall be designated in writing by the Holders of a majority of the Registrable Securities held by the Other Holder Indemnitees and disposed of under the applicable Registration Statement. The indemnifying party, if other than the Company, shall not, in connection with any proceeding or related proceedings in the same jurisdiction be liable for the reasonable fees and expenses of more than one separate firm admitted to practice for the Company Indemnitee, which firm shall be designated in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed writing by the Company. The indemnifying party promptly as they are incurred. An indemnifying party will shall not be liable for any settlement of any action or claim proceeding effected without its written consent but if settled with such consent or if there be a final judgement for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested the indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without the indemnifying party's written consent if (which consent will i) such settlement is entered into more than thirty (30) days after receipt by the indemnifying party of the aforesaid request, and (ii) the indemnifying party shall not be unreasonably withheld)have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or which consent shall not be unreasonably withheld, consent to the entry of any judgment in or enter into any pending settlement which does not include as an unconditional term thereof the giving by the claimant or threatened claim, action or proceeding relating plaintiff to the matters contemplated by this Section 6 (whether or not any such indemnified party is of a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising in respect to such claim or that may arise out litigation or which requires action other than the payment of such claim, action or proceedingmoney by the indemnifying party. (d) If the indemnification provided for in this Section 6 11 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, or if the indemnified party failed to give the notice required under subsection (c) and the indemnified party is actually prejudiced by such failure, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyto the extent permitted by applicable law, contribute to the amount paid or payable by such Indemnified Party the indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other all parties in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters parties agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations Notwithstanding any other provision of this Section 11, the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon an untrue statement or alleged untrue statement of any material fact contained in any such registration statement, preliminary prospectus, final prospectus or summary prospectus contained therein or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein in light of the Company circumstances in which they were made not misleading in a prospectus or prospectus supplement, if such untrue statement or omission is completely corrected in an amendment or supplement to such prospectus or prospectus supplement, the seller of the Registrable Securities has an obligation under this Section 6 shall be the Securities Act to deliver a prospectus or prospectus supplement in addition connection with such sale of Registrable Securities and the seller of Registrable Securities thereafter fails to any deliver such prospectus or prospectus supplement as so amended or supplemented prior to or concurrently with the sale of Registrable Securities to the person asserting such loss, claim, damage or liability which after the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate has furnished such seller with a sufficient number of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning copies of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actsame.

Appears in 2 contracts

Sources: Registration Rights Agreement (Scottish Annuity & Life Holdings LTD), Registration Rights Agreement (Scottish Annuity & Life Holdings LTD)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriterthe Manager, its the directors, officers, agentsemployees, affiliates and agents of the Manager and each person, if any, person who controls any Underwriter the Manager within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement as originally filed or in any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Actthereof, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein not misleading; , or (ii) any untrue statement or alleged untrue statement of a material fact contained included in any preliminary prospectusthe Basic Prospectus, the Disclosure Package or the Prospectus (Prospectus, or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereofManager Information (as defined below). The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities liability that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company. As used in this Agreement, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in with respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentManager, but only “Manager Information” shall mean written information relating to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information Manager furnished to the Company by you, or by any Underwriter through you, the Manager specifically for use inclusion in the preparation thereofdocuments referred to in the foregoing indemnity; it being understood and will reimburse agreed upon that the Company for any legal or other expenses reasonably incurred only such information furnished by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice Manager consists of the commencement of any action, such indemnified party shall, if a claim following information in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal Prospectus furnished by or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) Manager: the indemnifying party has not information contained in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice first sentence of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 ninth paragraph under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement caption “Plan of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not jointDistribution”. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Equity Distribution Agreement (Clean Energy Fuels Corp.), Equity Distribution Agreement (Clean Energy Fuels Corp.)

Indemnification and Contribution. (a) The Company will and the Guarantor jointly and severally agree to indemnify and hold harmless each Underwriter, its directors, officers, agents, Underwriter and their affiliates that participate or are alleged to have participated in the offering of the Securities and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementregistration statement for the registration of the Securities as originally filed or in any amendment thereof, or in the Basic Prospectus, any Preliminary Final Prospectus, the Pricing Disclosure Package or the Final Prospectus, or in any amendment thereof or supplement thereto, any Issuer Free Writing Prospectus, or any amendment thereto, including any information deemed “issuer information” filed or required to be a part thereof filed pursuant to Rule 430B under the Act, 433(d) or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall and the Guarantor will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company and the Guarantor by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in connection with the preparation thereof, or that part of the Registration Statement constituting the “Statement of Eligibility and Qualification” (Form T-1) of the Trustee under the Trust Indenture Act. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company and the Guarantor may otherwise have. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the CompanyCompany and the Guarantor, its each of their respective directors, its each of their respective officers who sign signs the Registration Statement Statement, and each person, if any, person who controls the Company or the Guarantor within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company and the Guarantor to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company and the Guarantor by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use in the preparation thereof; and will reimburse of the Company for any legal or other expenses reasonably incurred by documents referred to in the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company and the Guarantor acknowledge that the statements set forth in the last paragraph of the cover page, and, under the heading “Underwriting”, (i) the list of Underwriters and their respective participation in the sale of the Securities, (ii) the sentences related to discounts and commissions and (ii) the paragraphs related to stabilization and syndicate covering transactions and penalty bids in any Preliminary Final Prospectus or the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in the documents referred to in the foregoing indemnity. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionparagraph (a) or (b) of this Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionparagraph (a) or (b) of this Section 8. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in andtherein, and to the extent that it shall wish, jointly with any other indemnifying may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof such action and approval by the indemnified party of such counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (plus any local counsel), approved by the Representatives in the case of paragraph (a) that there may be legal defenses available to it or other of this Section 8, representing the indemnified parties that under such paragraph (a) who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and except that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending litigation, or threatened claim, action any investigation or proceeding relating to the matters contemplated by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 8 (whether or not any the indemnified party is a party parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimlitigation, action investigation, proceeding or proceedingclaim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (d) If In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is unavailable, the Company and the Guarantor, on the one hand, and the Underwriters severally, on the other hand, shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to thereinwhich the Company, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, the Guarantor and one or more of the Underwriters may be subject in lieu of indemnifying such Indemnified Party, contribute proportion to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantor on the one hand and the Underwriters on the other from the offering of the Bonds. IfSecurities, such that the Underwriters are responsible for that portion represented by the percentage that the underwriting discount bears to the sum of such discount and the purchase price of the Securities specified in Schedule I hereto and the Company and the Guarantor are responsible for the balance; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) aboveGuarantor, then each Indemnifying Party on the one hand, and the Underwriters severally, on the other, shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits as described in the immediately preceding sentence but also the relative fault of the Company and the Guarantor on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or and liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company or the Guarantor on the one hand or the Underwriters on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company Company, the Guarantor and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend8, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, person who controls any an Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company and the Guarantor who shall have signed the Registration Statement and each director of the Company and the Guarantor shall have the same rights to contribution as the Company and the Guarantor, subject in each case to the applicable terms and conditions of this paragraph (d). Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this paragraph (d), notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this paragraph (d).

Appears in 2 contracts

Sources: Underwriting Agreement (PNC Financial Services Group Inc), Underwriting Agreement (PNC Financial Services Group Inc)

Indemnification and Contribution. (a) A. The Company will Depositor agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act from and against any and all loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of the Offered Certificates), to which such Underwriter or any such controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof or supplement thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment thereof or supplement thereto, or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and shall reimburse such Underwriter and each such controlling person promptly upon demand for any legal or other expenses reasonably incurred by such Underwriter or such controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Depositor shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Prospectus, or any amendment thereof or supplement thereto, or the Registration Statement, or any amendment thereof or supplement thereto, in reliance upon and in conformity with written information furnished to the Depositor by or on behalf of such Underwriter specifically for inclusion therein. The foregoing indemnity agreement is in addition to any liability which the Depositor may otherwise have to any Underwriter or any controlling person of any of such Underwriter. The only information furnished by the Underwriters or on behalf of the Underwriters for use in connection with the preparation of the Registration Statement or the Prospectus is described in Section 8(I) hereof. B. Each Underwriter severally agrees to indemnify and hold harmless the Depositor, each of its directors, each of its officers who signed the Registration Statement, and each person, if any, who controls the Depositor within the meaning of Section 15 of the Securities Act against any and all loss, claim, damage or liability, or any action in respect thereof, to which the Depositor or any such director, officer or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereof or supplement thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or any amendment thereof or supplement thereto, or (iv) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Depositor by or on behalf of such Underwriter specifically for inclusion therein, and shall reimburse the Depositor and any such director, officer or controlling person for any legal or other expenses reasonably incurred by the Depositor or any director, officer or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in addition to any liability which any Underwriter may otherwise have to the Depositor or any such director, officer or controlling person. The only information furnished by the Underwriters or on behalf of the Underwriters for use in connection with the preparation of the Registration Statement or the Prospectus is described in Section 8(I) hereof. C. Promptly after receipt by any indemnified party under this Section 8 of notice of any claim or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided further, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, except to the extent provided in the next following paragraph, the indemnifying party shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation. Any indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless: (i) the employment thereof has been specifically authorized by the indemnifying party in writing; (ii) such indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying party and in the reasonable judgment of such counsel it is advisable for such indemnified party to employ separate counsel; or (iii) the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party, in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party, it being understood, however, the indemnifying party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to one local counsel per jurisdiction) at any time for all such indemnified parties, which firm shall be designated in writing by the related Underwriter, if the indemnified parties under this Section 8 consist of one or more Underwriters or any of its or their controlling persons, or the Depositor, if the indemnified parties under this Section 8 consist of the Depositor or any of the Depositor's directors, officers or controlling persons. Each indemnified party, as a condition of the indemnity agreements contained in Section 8(A) and (B), shall use its best efforts to cooperate with the indemnifying party in the defense of any such action or claim. No indemnifying party shall be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing paragraph, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. D. Each Underwriter agrees to provide the Depositor no later than two Business Days prior to the day on which the Prospectus Supplement is required to be filed pursuant to Rule 424 with a copy of any Computational Materials (as defined in Section 5(E) hereof) produced by such Underwriter for filing with the Commission on Form 8-K. E. Each Underwriter severally agrees, assuming all Seller Provided Information is accurate and complete in all material respects, to indemnify and hold harmless the Depositor, each of the Depositor's officers and directors and each person who controls the Depositor within the meaning of Section 15 of the Securities Act against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person they may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed Computational Materials provided by such Underwriter and agrees to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person such indemnified party for any legal or other expenses reasonably incurred by him, her or it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case preparing to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against defend any such loss, claim, damage, liability or actionaction as such expenses are incurred. The indemnity agreement set forth in obligations of an Underwriter under this Section 6(b8(E) shall be in addition to any liabilities that each liability which such Underwriter may otherwise have. The procedures set forth in Section 8(C) shall be equally applicable to this Section 8(E). (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) F. If the indemnification provided for in this Section 6 is 8 shall for any reason be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection Section 8(A), (aB) or (b) above (“Indemnified Party”E) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company Depositor on the one hand and the related Underwriters on the other from the offering of the Bonds. If, however, related Offered Certificates or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (c) aboveSection 8(C), then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Depositor on the one hand and the Underwriters related Underwriter on the other in connection with respect to the statements or omissions which resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand of an Underwriter and the Underwriters on the other Depositor shall be deemed to be in the same such proportion as the total net proceeds from the offering (before deducting expenses) received by the Company Depositor bear to the total underwriting discounts and commissions received by the Underwriters, related Underwriter from time to time in each case as set forth in the table on the cover page negotiated sales of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofrelated Offered Certificates. The relative fault of an Underwriter and the Depositor shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Depositor or by such Underwriter, the Underwriters intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionomission and other equitable considerations. The Company Depositor and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(F) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purposepurposes) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(F) shall be deemed to include include, for purposes of this Section 8(F), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions For purposes of this subsection (d)Section 8, in no case shall any Underwriter shall be required to contribute responsible for any amount in excess of (x) the underwriting discounts amount received by itsuch Underwriter in connection with its resale of the Offered Certificates exceeds (y) the amount paid by such Underwriter to the Depositor for the Offered Certificates by such underwriter hereunder. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations G. For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend8, upon the same terms and conditions, as to each director, officer, agent and affiliate of an Underwriter, and to each personUnderwriter the term "Computational Materials" means such portion, if any, who controls any Underwriter within the meaning of the Act; and information delivered to the obligations of Depositor by such Underwriter pursuant to Section 8(D) for filing with the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.Commission on Form 8-K as:

Appears in 2 contracts

Sources: Underwriting Agreement (Imc Home Equity Loan Trust 1996-4), Underwriting Agreement (Imc Home Equity Loan Trust 1997-2)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, the Prospectus or any amendment or supplement thereto, including or any information deemed related preliminary prospectus supplement (or contained in any Registration Statement after it first becomes effective but prior to be the Pricing Agreement or in any prospectus forming a part thereof pursuant to Rule 430B under the Actduring such period), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, action or claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by youany Underwriter, directly or by any Underwriter through youthe Representatives, specifically expressly for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities therein; and provided, further, that the Company may otherwise haveshall not be liable to any Underwriter under the indemnity agreement in this subsection (a) to the extent that any such loss, claim, damage or liability of such Underwriter results from the fact that such Underwriter sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or the Prospectus as then amended or supplemented (excluding documents incorporated by reference) in any case where such delivery is required by the Act and the untrue statement or omission of a material fact contained in the Prospectus, any such amendment or supplement thereto or any such other document was corrected in the Prospectus or the Prospectus as then amended or supplemented if the Company has furnished prior to such confirmation sufficient copies thereof to such Underwriter. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the any Registration Statement, the Prospectus or any amendment or supplement thereto, or any related preliminary prospectus supplement, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by yousuch Underwriter, directly or by any Underwriter through youthe Representatives, specifically expressly for use in the preparation thereoftherein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, action or claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of any claim or of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the . The omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party, provided that, in the case of any such omission relating to the commencement of an action, such omission shall relieve the indemnifying party otherwise than of liability under such subsection. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it or other indemnified parties, or both, which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of or its election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof (other than reasonable costs of investigation. The indemnified party will have investigation conducted at the right to employ its own counsel in any such action, but the fees, expenses and other charges request of such counsel will be at the expense of such indemnified party indemnifying party) unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice shall have employed separate counsel in connection with the assertion of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, approved by such indemnifying party, representing the indemnified parties under such subsection who are parties to such action), (3ii) a conflict or potential conflict exists (based on advice of the indemnifying party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and except that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is 5 shall be unavailable under subsection (a) or (b) above to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but Designated Securities and also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other in connection with the offering of the Designated Securities shall be deemed to be in the same proportion as the total net proceeds from the offering of such Securities (before deducting expenses) received by the Company bear bears to the total underwriting discounts and commissions received by the UnderwritersUnderwriters in respect thereof, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the indemnified party failed to give the notice required under subsection (c) above, including the consequences of such failure, and whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission, of the Company on the one hand and the Underwriters, directly or through the Representatives, on the other hand. With respect to any Underwriter, such relative fault shall also be determined by reference to the extent (if any) to which such losses, claims, damages or liabilities (or actions in respect thereof) result from the fact that such Underwriter sold Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or the Prospectus as then amended or supplemented (excluding documents incorporated by reference) if the Company has furnished prior to such confirmation copies thereof to such Underwriter. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata per-capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the applicable Designated Securities, underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations of the Underwriters in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 5 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; , and the obligations of the Underwriters under this Section 6 5 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed signs the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Underwriting Agreement (United Technologies Corp /De/), Underwriting Agreement (United Technologies Corp /De/)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, employees and affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of Notes), to which such that Underwriter, director, officer, agentemployee, affiliate or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in (A) any Preliminary Prospectus, the Registration Statement, the Prospectus or in any amendment or supplement thereto, including (B) any information deemed Issuer Free Writing Prospectus or in any amendment or supplement thereto or (C) any Permitted Issuer Information used or referred to be a part thereof pursuant in any “free writing prospectus” (as defined in Rule 405) used or referred to Rule 430B under the Act, by any Underwriter or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto or in any Permitted Issuer Information, any material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, misleading and will shall reimburse each Underwriter, Underwriter and each such director, officer, agentemployee, affiliate or controlling person promptly upon demand for any legal or other expenses reasonably incurred by it that Underwriter, director, officer, employee, affiliate or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, the Prospectus, any preliminary prospectus or the Issuer Free Writing Prospectus or in any such amendment or supplementsupplement thereto or in any Permitted Issuer Information, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company through the Representatives by you, or by on behalf of any Underwriter through you, specifically for use inclusion therein, which information consists solely of the information specified in the preparation thereofSection 8(e). The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities liability that the Company may otherwise havehave to any Underwriter or to any director, officer, employee, affiliate or controlling person of that Underwriter. (b) Each Underwriter Underwriter, severally and not jointly will jointly, shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and employees, and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, or any action in respect thereof, to which the Company, or any such director, officer officer, employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto, or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto, any material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company through the Representatives by you, or by any on behalf of that Underwriter through you, specifically for use in inclusion therein, which information is limited to the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement information set forth in this Section 6(b) shall be 8(e). The foregoing indemnity agreement is in addition to any liabilities liability that each any Underwriter may otherwise havehave to the Company or any such director, officer, employee or controlling person. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsectionthis Section 8. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; provided, however, that the Representatives shall have the right to employ its own counsel to represent jointly the Representatives and those other Underwriters and their respective directors, officers, employees, affiliates and controlling persons who may be subject to liability arising out of any claim in any such action, but respect of which indemnity may be sought by the fees, expenses and other charges of such counsel will be at Underwriters against the expense of such indemnified party unless Company under this Section 8 if (1i) the employment of counsel by Company and the indemnified party has been authorized in writing by the indemnifying party, Underwriters shall have so mutually agreed; (2ii) the indemnified party Company has failed within a reasonable time to retain counsel reasonably satisfactory to the Underwriters; (iii) the Underwriters and their respective directors, officers, employees, affiliates and controlling persons shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties them that are different from or in addition to those available to the indemnifying partyCompany; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Underwriters or their respective directors, (3) a conflict officers, employees, affiliates or controlling persons, on the one hand, and the Company, on the other hand, and representation of both sets of parties by the same counsel would be inappropriate due to actual or potential conflict exists (based on advice of counsel to differing interests between them, and in any such event the indemnified party) between the indemnified party fees and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense expenses of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed separate counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will shall be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed paid by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)Company. No indemnifying party shall, shall (i) without the prior written consent of each the indemnified partyparties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action, suit or proceeding and does not include any findings of fact or admissions of fault or culpability as to the indemnified party, or (ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with the consent of the indemnifying party or proceedingif there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. (d) If the indemnification provided for in this Section 6 is 8 shall for any reason be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”Section 8(a) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other other, from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other in connection other, with respect to the statements or omissions which that resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other other, with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes purchased under this Agreement (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the UnderwritersCompany, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant Prospectus, on the one hand, and the total underwriting discounts and commissions received by the Underwriters with respect to Rule 424 the Notes purchased under this Agreement, as set forth in the Act referred to in Section 2(a) hereoftable on the cover page of the Prospectus, on the other hand. The relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, on the one hand, or the Underwriters Underwriters, on the other hand, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(d) shall be deemed to include include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 8(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the net proceeds from the sale of the Notes underwritten by it exceeds the amount of any damages that such Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute as provided in this subsection (dSection 8(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations Underwriters severally confirm and the Company acknowledges and agrees that the statements regarding delivery of the Company Notes by the Underwriters set forth on the cover page of, and the concession and reallowance figures and the two paragraphs relating to stabilization, syndicate covering transactions, penalty bids and over-allotments by the Underwriters appearing under this Section 6 shall be the caption “Underwriting” in addition the most recent Preliminary Prospectus and the Prospectus are correct and constitute the only information concerning such Underwriters furnished in writing to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations by or on behalf of the Underwriters under this Section 6 shall be specifically for inclusion in addition to any liability which the respective Underwriters may otherwise have and shall extendPreliminary Prospectus, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each personStatement, if anythe Prospectus, who controls the Company within the meaning of the Actany Issuer Free Writing Prospectus or in any amendment or supplement thereto.

Appears in 2 contracts

Sources: Underwriting Agreement (Mohawk Industries Inc), Underwriting Agreement (Mohawk Industries Inc)

Indemnification and Contribution. (a) The Indemnification by the Company. Whenever, pursuant to Section 3, a Registration Statement relating to the Registrable Securities is filed under the Securities Act, the Company will (except as to matters covered by Section 7(b) hereof) indemnify and hold harmless each UnderwriterParticipant in the registration, its directors, each of their officers, agentsdirectors and employees, affiliates each underwriter of Registrable Securities, and each personPerson, if any, who controls any Underwriter within such Person (collectively, the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and "Participant Indemnitees" and, individually, a "Participant Indemnitee"), against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Participant Indemnitees may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the such Registration Statement, or Prospectus contained therein, or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) , unless any untrue such statement or alleged untrue statement omission is based on written information provided by the Participant Indemnitee, or a representation of a material fact contained Participant Indemnitee, that such Participant Indemnitee has requested be included in any preliminary prospectus, the Disclosure Package such Registration Statement or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingProspectus, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Participant Indemnitee for any all legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 2 contracts

Sources: Registration Rights Agreement (LCS Golf Inc), Registration Rights Agreement (LCS Golf Inc)

Indemnification and Contribution. (a) The Issuers (other than the Company) jointly and severally agree, and the Company will severally agrees, to indemnify and hold harmless each UnderwriterInitial Purchaser, its the directors, officers, agents, affiliates employees and agents of each Initial Purchaser and each person, if any, person who controls any Underwriter Initial Purchaser within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementPreliminary Memorandum, the Final Memorandum (or in any supplement or amendment thereto) or any information provided by any Issuer to any holder or prospective purchaser of Securities pursuant to Section 5(h), or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall Issuers will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus Preliminary Memorandum or the Prospectus Final Memorandum, or in any such amendment thereof or supplementsupplement thereto, in reliance upon and in conformity with written information furnished to the Company Issuers by you, or by on behalf of any Underwriter through you, Initial Purchaser specifically for use inclusion therein; provided, further, that with respect to any untrue statement or omission of material fact made in the preparation thereof. The Preliminary Memorandum, the indemnity agreement set forth contained in this Section 6(a8(a) shall not inure to the benefit of any Initial Purchaser from whom such person asserting any such loss, claim, damage or liability purchased the Securities concerned, to the extent that any such loss, claim, damage or liability of such Initial Purchaser occurs under the circumstance where (i) the Company had previously furnished copies of the Final Memorandum on a timely basis to the Initial Purchasers, (ii) delivery of the Final Memorandum was required by the Act to be made to such person, (iii) the untrue statement or omission of a material fact contained in the Preliminary Memorandum was corrected in the Final Memorandum and (iv) there was not sent or given to such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the Final Memorandum. This indemnity agreement will be in addition to any liabilities that liability which the Company Issuers may otherwise have. (b) Each Underwriter Initial Purchaser severally and not jointly will jointly, agrees to indemnify and hold harmless the Companyeach Issuer, each of its directors, each of its officers who sign the Registration Statement officers, and each person, if any, person who controls the Company an Issuer within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesto the same extent as the foregoing indemnity from the Issuers to each Initial Purchaser, claims, damages but only with reference to written information relating to such Initial Purchaser furnished to the Issuers by or liabilities to which on behalf of such Initial Purchaser specifically for inclusion in the Company, such director, officer Preliminary Memorandum or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities Final Memorandum (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each Underwriter liability which any Initial Purchaser may otherwise have. The Issuers acknowledge that the statements set forth in the last paragraph of the cover page regarding the delivery of the Securities, the disclosure on page (i) concerning stabilization, syndicate covering transactions and penalty bids and the paragraph related to stabilization, syndicate covering transactions and penalty bids under the heading “Plan of Distribution” in the Preliminary Memorandum and the Final Memorandum, constitute the only information furnished in writing by or on behalf of the Initial Purchasers for inclusion in the Preliminary Memorandum or the Final Memorandum (or in any amendment or supplement thereto). (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above unless and to a the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party that would have been an of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party under subsection other than the indemnification obligation provided in paragraph (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an above. The indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any person who was action for which indemnification is sought (in which case the indemnifying party shall not guilty thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection separate counsel if (di) the use of counsel chosen by the indemnifying party to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations represent the indemnified party would present such counsel with a conflict of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.interest;

Appears in 2 contracts

Sources: Purchase Agreement, Purchase Agreement (Crown Holdings Inc)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its partners, members, directors, officers, agents, officers and its affiliates and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementStatement at any time, any Statutory Prospectus at any time, the Prospectus or any Issuer Free Writing Prospectus, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, from any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company specifically for use therein by youany (i) Underwriter through the Representatives, or it being understood and agreed that the only such information furnished by any Underwriter through youconsists of the information described as such in subsection (c) below or (ii) Selling Securityholder, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveif any. (b) Each Underwriter The Selling Securityholders, severally and not jointly jointly, will indemnify and hold harmless the Companyeach Underwriter, its directorspartners, members, directors officers and its officers who sign the Registration Statement affiliates and each person, if any, who controls the Company such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementStatement at any time, any Statutory Prospectus at any time, the Prospectus or any Issuer Free Writing Prospectus, or any amendment thereto, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Selling Securityholders will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter consists of the information described as such in subsection (iic) below; and provided further the indemnity provided for in this paragraph (b) shall apply only to the extent that any such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by the applicable Selling Securityholder specifically for use therein, it being understood and agreed that the only such information furnished by any Selling Securityholder consists of that information regarding such Selling Securityholder and its ownership of Common Stock set forth in the Registration Statement and the Prospectus under the caption “Principal and Selling Stockholders”; and provided further that the aggregate liability under this subsection of each Selling Securityholder shall be limited to an amount equal to the aggregate gross proceeds after underwriting commissions and discounts, but before expenses, to such Selling Securityholder from the sale of Offered Securities sold by such Selling Securityholder hereunder. (c) Each Underwriter will severally and not jointly indemnify and hold harmless the Company, its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the Act and each Selling Securityholder, against any losses, claims, damages or liabilities to which the Company or any Selling Securityholder may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement at any preliminary prospectus or time, any Statutory Prospectus at any time, the Prospectus (or any amendment or supplement thereto)Issuer Free Writing Prospectus, or arise out of or are based upon the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through youthe Representatives, if any, specifically for use in the preparation thereof; therein, and will reimburse the Company for any legal or other expenses reasonably incurred by the Company and each Selling Securityholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth action as such expenses are incurred, it being understood and agreed that the only such information furnished by any Underwriter consists of the following information in this Section 6(b) shall be the Prospectus furnished on behalf of each Underwriter: the concession and reallowance figures appearing in addition to any liabilities that each Underwriter may otherwise havethe fourth paragraph under the caption “Underwriting” and the information contained in the twelfth paragraph under the caption “Underwriting” concerning stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the an indemnifying party under such subsectionsubsection (a), (b) or (c) above, notify the indemnifying party in writing of the commencement thereof; but the omission so failure to notify the indemnifying party shall not relieve it from any liability which that it may have under subsection (a), (b) or (c) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to any an indemnified party otherwise than under such subsectionsubsection (a), (b) or (c) above. In case any such action shall be is brought against any indemnified party, party and it shall notify the notifies an indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, andbe counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent settlement (i) includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction and (ii) does not include a statement as to, action or proceedingan admission of, fault, culpability or a failure to act by or on behalf of an indemnified party. (de) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a), (b) or (bc) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a), (b) or actions in respect thereof(c) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Selling Securityholders on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Offered Securities or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Selling Securityholders on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Selling Securityholders on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and the Selling Securityholders bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Selling Securityholders or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofe). Notwithstanding the provisions of this subsection (de), (x) no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Offered Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (y) no Selling Securityholder shall be required to contribute pursuant to this subsection (e) an aggregate amount in excess of the amount by which the aggregate gross proceeds after underwriting discounts received and commissions but before expenses to such Selling Securityholder from the sale of Offered Securities sold by itsuch Selling Securityholder hereunder exceeds the amount of any damages which such Selling Securityholder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (de) to contribute are several in proportion to their respective underwriting obligations and not joint. (ef) The obligations of the Company and the Selling Securityholders under this Section 6 shall be in addition to any liability which the Company and the Selling Securityholders may otherwise have and shall extend, upon the same terms and conditions, to each directorpartner, officer, agent director and affiliate of an Underwriterofficer of, and to each person, if any, who controls controls, any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act. (g) Nothing contained in this Agreement shall be deemed to limit or affect any provision of the Registration Rights Agreement, including, without limitation, the indemnification and contribution provisions thereof as between the Company and the Selling Securityholders.

Appears in 2 contracts

Sources: Underwriting Agreement (Lane Industries Inc /De/), Underwriting Agreement (Acco Brands Corp)

Indemnification and Contribution. (a) The Subject to the conditions set forth below, the Company will agrees to indemnify and hold harmless each Underwriterthe Placement Agent, its officers, directors, officerspartners, employees, agents, affiliates and counsel, and each person, if any, who controls any Underwriter the Placement Agent within the meaning of either Section 15 of the Act or Section 20 20(a) of the Exchange Act from and Act, against any lossesand all loss, claimsliability, damages claim, damage, and expense whatsoever (which shall include, for all purposes of this Section 10, but not be limited to, attorneys' fees and any and all expense whatsoever incurred in investigating, preparing, or liabilitiesdefending against any litigation, joint commenced or severalthreatened, to which such Underwriteror any claim whatsoever and any and all amounts paid in settlement of any claim or litigation) as and when incurred arising out of, directorbased upon, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon connection with (i) any untrue statement or alleged untrue statement of a material fact contained in (A) the Registration Statement, or the Prospectus (as from time to time amended and supplemented), or any amendment thereto, including or supplement thereto or (B) in any application or other document or communication (in this Section 10 collectively called an "application") executed by or on behalf of the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify any of the Securities under the Act, "blue sky" or securities laws thereof or filed with the Commission or any securities exchange; or any omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against unless such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company as stated in Section 10(b) with respect to the Placement Agent by youor on behalf of the Placement Agent through the Placement Agent expressly for inclusion in the Registration Statement or the Prospectus, or by any Underwriter through youamendment or supplement thereto, specifically for use or in any application, as the preparation thereofcase may be, or (ii) any breach of any representation, warranty, covenant, or agreement of the Company contained in this Agreement. The indemnity foregoing agreement set forth in this Section 6(a) to indemnify shall be in addition to any liabilities that liability the Company may otherwise have, including liabilities arising under this Agreement. (b) Each Underwriter severally and not jointly will indemnify and hold harmless If any action is brought against the CompanyPlacement Agent or any of its officers, its directors, its officers who sign the Registration Statement and each personpartners, if anyemployees, who controls the Company within the meaning of either Section 15 of the Act agents, or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statementcounsel, or any amendment thereto, or controlling persons of any Placement Agent (an "indemnified party") in respect of which indemnity may be sought against the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case Company pursuant to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any actionforegoing paragraph, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, or parties shall promptly notify the indemnifying party Company in writing of the commencement thereof; institution of such action (but the omission failure so to notify the indemnifying party shall not relieve it the Company from any liability which it may have other than pursuant to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified partythis Section 10(b), and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, except to the extent that it may have been prejudiced in any material respect by such failure) and the Company shall wish, jointly with any other indemnifying party, similarly notified, to promptly assume the defense thereofof such action, with including the employment of counsel (satisfactory to such indemnified party, and, after notice from the indemnifying party to such or parties) and payment of expenses. Such indemnified party of its election so to assume the defense thereof, the indemnifying party or parties shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its or their own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party or parties unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying party, (2) Company in connection with the defense of such action or the Company shall not have promptly employed counsel satisfactory to such indemnified party has or parties to have charge of the defense of such action or such indemnified party or parties shall have reasonably concluded (based on advice of counsel) that there may be one or more legal defenses available to it or them or to other indemnified parties that which are different from or in addition additional to those available to the indemnifying partyCompany, (3) a conflict or potential conflict exists (based on advice in any of counsel to which events such fees and expenses shall be borne by the indemnified party) between the indemnified party Company and the indemnifying party (in which case the indemnifying party will Company shall not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that Anything in this paragraph to the indemnifying party or parties contrary notwithstanding, the Company shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any such claim or action or claim effected without its written consent (consent, which consent will shall not be unreasonably withheld). No indemnifying party shallThe Company shall not, without the prior written consent of each indemnified partyparty that is not released as described in this sentence, settle or compromise any action, or permit a default or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened claimaction, action or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnity may be sought hereunder (whether or not any indemnified party is a party thereto), unless such settlement, compromise compromise, consent, or consent termination includes an unconditional release of each indemnified party from all liability arising or that may arise out in respect of such claimaction. The Company agrees promptly to notify the Placement Agent of the commencement of any litigation or proceedings against the Company or any of its officers or directors in connection with the sale of the Units, the Registration Statement or the Prospectus, or any amendment or supplement thereto, or any application. (c) The Placement Agent agrees to indemnify and hold harmless the Company, each director of the Company, each officer of the Company who shall have signed the Registration Statement, and each other person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, to the same extent as the foregoing indemnity from the Company to the Placement Agent in Section 10(a), but only with respect to statements or omissions, if any, made in the Registration Statement or the Prospectus (as from time to time amended and supplemented), or any amendment or supplement thereto, or in any application in reliance upon and in conformity with written information furnished to the Company as stated in this Section 10(c) with respect to the Placement Agent by or on behalf of the Placement Agent through the Placement Agent expressly for inclusion in the Registration Statement or the Prospectus, or any amendment or supplement thereto, or in any application, as the case may be; provided, however, that the obligation of the Placement Agent to provide indemnity under the provisions of this Section 10(c) shall be limited to the amount which represents the discounts received by the Placement Agent hereunder. If any action shall be brought against the Company or proceedingany other person so indemnified based on the Registration Statement or the Prospectus, or any amendment or supplement thereto, or in any application, and in respect of which indemnity may be sought against the Placement Agent pursuant to this Section 10(c), the Placement Agent shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the indemnified parties, by the provisions of Section 10(a). (d) If the indemnification provided To provide for in this Section 6 is unavailable under subsection just and equitable contribution, if (ai) or (b) above to a party that would have been an indemnified party under subsection (amakes a claim for indemnification pursuant to Section 10(a), 10(b) or 10(c) (bsubject to the limitations thereof) above but it is found in a final judicial determination, not subject to further appeal, that such indemnification may not be enforced in such case, even though this Agreement expressly provides for indemnification in such case or (“Indemnified Party”ii) in respect any indemnified or indemnifying party seeks contribution under the Act, the 1934 Act, or otherwise, then the Company (including for this purpose any contribution made by or on behalf of any director of the Company, any officer of the Company who signed the Registration Statement, and any controlling person of the Company), as one entity, and the Placement Agent (including for this purpose any contribution by or on behalf of an indemnified party), as a second entity, shall contribute to the losses, liabilities, claims, damages or liabilities (or actions in respect thereof) referred and expenses whatsoever to thereinwhich any of them may be subject, then each party so that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute the Placement Agent is responsible for the proportion thereof equal to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect percentage which the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as discount per Unit set forth in the table on the cover page of the Prospectus represents of the initial public offering price per share set forth on the cover page of the Prospectus and the Company is responsible for the remaining portion; provided, however, that if applicable law does not permit such allocation, then other relevant equitable considerations such as the relative fault of the Company and the Placement Agent, in connection with the facts which is filed pursuant to Rule 424 under the Act referred to resulted in Section 2(a) hereofsuch losses, liabilities, claims, damages and expenses shall also be considered. The relative fault fault, in the case of an untrue statement, alleged untrue statement, omission, or alleged omission, shall be determined by reference toby, among other things, whether the untrue or such statement, alleged untrue statement of a material fact statement, omission, or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters Placement Agent, and the parties, relative intent, knowledge, access to information information, and opportunity to correct or prevent such statement statement, alleged statement, omission, or alleged omission. The Company and the Underwriters Placement Agent agree that it would not be just unjust and equitable inequitable if the respective obligations of the Company and the Placement Agent for contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation of the aggregate losses, liabilities, claims, damages, and expenses (even if the Underwriters Placement Agent and the other indemnified parties were treated as one entity for such purpose) or by any other method of allocation which that does not take account of reflect the equitable considerations referred to above in this subsection (dSection 10(d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend10(d), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter the Placement Agent within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20(a) of the 1934 Act and each officer, director, partner, employee, agent, and counsel of the Placement Agent shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Placement Agent and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, each officer of the Company who shall have signed the Registration Statement, and each director of the Company shall have the same rights to contribution as the company, subject in each case to the provisions of this Section 10(d). Anything in this Section 12(d) to the contrary notwithstanding, no party shall be liable for contribution with respect to the settlement of any claim or action effected without its written consent. This Section 10(d) is intended to supersede any right to contribution under the Act, the 1934 Act, or otherwise.

Appears in 2 contracts

Sources: Placement Agreement (Searchhelp Inc), Placement Agreement (Searchhelp Inc)

Indemnification and Contribution. (a) The Company will Offerors jointly and severally agree to indemnify and hold harmless each Underwriter, each of its directors, officers, officers and agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and 1933 Act, against any and all losses, claims, damages or liabilitiesdamages, liabilities and expenses (including reasonable costs of investigation and attorney fees and expenses), joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon upon: (i) any untrue statement or alleged untrue statement of a material fact made by the Company or the Trust contained in the registration statement as originally filed or the Registration Statement, any Preliminary Prospectus or the Prospectus, or in any amendment or supplement thereto, including ; (ii) any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom to state a material fact in the registration statement as originally filed or the Registration Statement, the Preliminary Prospectus or the Prospectus, or in any amendment or supplement thereto, required to be stated therein or necessary to make the statements therein not misleading, and against any and all losses, claims, damages, liabilities and expenses (including reasonable costs of investigation and attorney fees), joint or several, arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus or the Prospectus, or in any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, ; or (iii) the enforcement of this indemnification provision or the contribution provisions of Section 7(d); and will shall reimburse each Underwriter, director, officer, agent, affiliate or controlling person such indemnified party for any reasonable 33 legal or other expenses reasonably as incurred, but in no event less frequently than 30 days after each invoice is submitted, incurred by it them in connection with investigating or defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action, notwithstanding the possibility that payments for such expenses might later be held to be improper, in which case such payments shall be promptly refunded; provided, however, that the Company Offerors shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that any such untrue statement losses, claims, damages, liabilities and expenses arise out of or alleged are based upon any untrue statement or omission or alleged omission was allegation thereof that has been made in the Registration Statement, any preliminary prospectus therein or the Prospectus or any such amendment or supplement, omitted therefrom in reliance upon and in conformity with the Underwriters' Information; provided, that the indemnification contained in this paragraph with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter (or of any person controlling any Underwriter) to the extent any such losses, claims, damages, liabilities or expenses directly result from the fact that such Underwriter sold Designated Preferred Securities to a person to whom there was not sent or given, at or prior to the written information confirmation of such sale, a copy of the Prospectus (as amended or supplemented if any amendments or supplements thereto shall have been furnished to you in sufficient time to distribute same with or prior to the Company written confirmation of the sale involved), if required by youlaw, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any if such loss, claim, damage, liability or actionexpense would not have arisen but for the failure to give or send such person such document. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that liability the Company or the Trust may otherwise have to any such indemnified party. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless each Offeror, each of its directors, each of its officers who signed the Registration Statement, and each person, if any, who controls an Offeror within the meaning of the 1933 Act, to the same extent as required by the foregoing indemnity from the Company to each Underwriter, but only with respect to the Underwriters' Information. The foregoing indemnity agreement is in addition to any liability which any Underwriter may otherwise havehave to any such indemnified party. (c) Promptly after receipt by If any action or claim shall be brought or asserted against any indemnified party or any person controlling an indemnified party under subsection (a) or (b) above in respect of notice of which indemnity may be sought from the commencement of any actionindemnifying party, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, or controlling person shall promptly notify the indemnifying party in writing writing, and the indemnifying party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the commencement thereofindemnified party and the payment of all expenses; but provided, however, that the omission failure so to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified partyparagraph, and further, shall only relieve it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, from liability under such paragraph to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such prejudiced thereby. Any indemnified party of its election so to assume the defense thereof, the indemnifying party or any such controlling person shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own separate counsel in any such actionaction and to participate in the defense thereof, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party or such controlling person unless (1i) the employment of thereof has been specifically authorized by the indemnifying party in writing, (ii) the indemnifying party has failed to assume the defense or to employ counsel by reasonably satisfactory to the indemnified party has been authorized in writing by or (iii) the named parties to any such action (including any impleaded parties) include both such indemnified party or such controlling person and the indemnifying party, (2) the party and such indemnified party has reasonably concluded (based on advice of counsel) or such controlling person shall have been advised by such counsel that there may be one or more legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.those

Appears in 2 contracts

Sources: Underwriting Agreement (Baylake Capital Trust I), Underwriting Agreement (Baylake Capital Trust I)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, as incurred, to which such UnderwriterUnderwriter may become subject under the Act or otherwise, directorinsofar as such losses, officerclaims, agentdamages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any breach of any representation, affiliate warranty, agreement or controlling covenant of the Company herein contained, or (ii) any untrue statement or alleged untrue statement made by the Company in Section 2 hereof, or (iv) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, any preliminary prospectus, the Prospectus or any amendment or supplement thereto, or (B) in any blue sky application or other document executed by the Company specifically for that purpose or based upon written information furnished by the Company filed in any state or other jurisdiction in order to qualify any or all of the Shares under the securities laws thereof (any such application, documents or information being hereinafter called a "Blue Sky Application"), or (iii) the omission or alleged omission to state in the Registration Statement or any amendment thereto a material fact required to be stated therein or necessary to make the statements therein not misleading, or the omission or alleged omission to state in any preliminary prospectus, the Prospectus or any supplement thereto or in any Blue Sky Application a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and shall reimburse each Underwriter on a monthly basis for any legal or other reasonable expenses as incurred by such Underwriter in connection with investigating or defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action, notwithstanding the possibility that payments for such expenses might later be held to be improper, in which case the person receiving them shall promptly refund them; except that the Company shall not be liable in any such case to the extent, but only to the extent, that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, such preliminary prospectus or the Prospectus, or any amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter specifically for use in the preparation thereof and, provided further, that the indemnity agreement provided in this Section 8(a) with respect to any preliminary prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any losses, claims, charges, liabilities or litigation based upon any untrue statement or alleged untrue statement of material fact or omission or alleged omission to state therein a material fact purchased Shares, if a copy of the Prospectus in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected has not been sent or given to such person within the time required by the Act and the Rules and Regulations thereunder, unless such failure is the result of noncompliance by the Company with Section 4(c) hereof. (b) Each Underwriter severally, but not jointly, shall indemnify and hold harmless the Company against any losses, claims, damages or liabilities, joint or several, as incurred, to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained (A) in the Registration Statement, preliminary prospectus, the Prospectus or any amendment or supplement thereto, including or (B) in any information deemed to be a part thereof pursuant to Rule 430B under the ActBlue Sky Application, or (ii) the omission or alleged omission therefrom of to state in the Registration Statement or any amendment thereto a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state in any preliminary prospectus, the Prospectus or any supplement thereto or in any Blue Sky Application a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against ; except that such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) indemnification shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, available in each such case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company through the Underwriters by you, or by any on behalf of such Underwriter through you, specifically for use in the preparation thereof; and will shall reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating investigation or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsection. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to the indemnified party; provided, however, if the defendants in any such action include both the indemnified parties and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party, and, after party or parties. After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1i) the employment of counsel by the indemnified party has been authorized shall have employed separate counsel in writing accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with appropriate local counsel) approved by the indemnifying party, representing all the indemnified parties under Section 8(a) and 8(b) hereof who are parties to such action), (2ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action, or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that the In no event shall any indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges in respect of more than one separate firm admitted to practice any amounts paid in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written unless the indemnifying party shall have approved the terms of such settlement; provided, however, that such consent (which consent will shall not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the In order to provide for just and equitable contribution in any action in which a claim for indemnification provided for in is made pursuant to this Section 6 8 for which it is unavailable under subsection judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) or (b) above that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8 provides for indemnification in such case, all the parties hereto shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as is appropriate to reflect so that the relative benefits received Underwriters are responsible pro rata for the portion represented by the Company on percentage that the one hand underwriting discount bears to the initial public offering price, and the Underwriters on Company is responsible for the other from the offering of the Bonds. Ifremaining portion; provided, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection that (ci) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received discount applicable to the Shares purchased by it. No such Underwriter, and (ii) no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to a contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this This subsection (d) shall not be operative as to contribute are several in proportion any Underwriter to their respective underwriting obligations and not jointthe extent that the Company has received indemnity under this Section 8. (e) The obligations of the Company under this Section 6 8 shall be in addition to any liability which the Company may otherwise have have, and shall extend, upon the same terms and conditions, to each director, officer, agent officer and affiliate director of an Underwriter, each Underwriter and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 8 shall be in addition to any liability which that the respective Underwriters may otherwise have have, and shall extend, upon the same terms and conditions, to each director of the Company (including any person who, with his consent, is named in the Registration Statement as about to become a director of the Company), to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Securities Act, in either case, whether or not such person is a party to any action or proceeding. (f) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including without limitation the provisions of this Section 8, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 8 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration Statement and Prospectus as required by the Act and the Exchange Act. The parties are advised that federal or state public policy, as interpreted by the courts in certain jurisdictions, may be contrary to certain of the provisions of this Section 8, and the parties hereto hereby expressly waive and relinquish any right or ability to assert such public policy as a defense to a claim under this Section 8 and further agree not to attempt to assert any such defense.

Appears in 2 contracts

Sources: Underwriting Agreement (Talisman Enterprise Inc), Underwriting Agreement (Talisman Enterprise Inc)

Indemnification and Contribution. (a) The Company will Each Issuer, jointly and severally, agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and their agents and affiliates against any losses, claims, damages or liabilities, joint or several, liabilities to which any Underwriter or such controlling person, agent or affiliate may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto; (ii) the omission or alleged omission to state, in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, and will reimburse, as incurred, the Underwriters and each such controlling person, agent or affiliate for any legal or other expenses incurred by the Underwriters or such controlling person, agent or affiliate in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, the Issuers will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Underwriters furnished to the Issuers by the Underwriters through the Representatives specifically for use therein. The indemnity provided for in this Section 9 will be in addition to any liability that any Issuer may otherwise have to the indemnified parties. Nothing in this Section 9(a) shall be deemed to impose on the Underwriters any informational delivery obligations in addition to those arising under applicable law. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Issuers, their directors, their officers and each person, if any, who controls any Issuer within the meaning of Section 15 of the Securities Act against any losses, claims, damages or liabilities to which any Issuer or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, specifically for use in the preparation thereoftherein; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company any Issuer or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The indemnity agreement set forth provided for in this Section 6(b) shall 9 will be in addition to any liabilities liability that each Underwriter the Underwriters may otherwise havehave to the indemnified parties. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 10 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the Representatives in the case of paragraph (3a) a conflict of this Section 9 or potential conflict exists the relevant Issuer(s) in the case of paragraph (based on advice b) of counsel to this Section 9, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparty. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its the prior written consent of the indemnifying party (which consent will shall not be unreasonably withheld), unless such indemnified party waived in writing its rights under this Section 9, in which case the indemnified party may effect such a settlement without such consent. Notwithstanding the foregoing, no indemnifying party shall be liable under this Section 9 for any settlement of any claim or action effected without its prior written consent. No indemnifying party shall, without the prior written consent of each the indemnified party, settle effect any settlement or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)party, or indemnity could have been sought hereunder by such party, unless such settlementsettlement does not include any statement as to or an admission of fault, compromise culpability or consent includes an unconditional release failure to act by or on behalf of each any indemnified party from all liability arising or that may arise out of such claim, action or proceedingparty. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Issuers on the one hand and the Underwriters any Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofsuch Underwriter. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuers, on the one hand, or such Underwriter, on the Underwriters and other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Issuers and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in the first sentence of this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Underwriter under this Agreement, less the aggregate amount of any damages that such Underwriter has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations ), each person, if any, who controls an Underwriter within the meaning of Section 15 of the Company under this Section 6 Securities Act shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, rights to each director, officer, agent and affiliate of an Underwritercontribution as the Underwriters, and to each director of any Issuer, each officer of any Issuer and each person, if any, who controls any Underwriter Issuer within the meaning of the Act; and the obligations Section 15 of the Underwriters under Securities Act shall have the same rights to contribution as such Issuer. The Underwriters’ obligations to contribute pursuant to this Section 6 shall be 9(d) are several in addition proportion to any liability which the their respective Underwriters may otherwise have purchase obligations and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actnot joint.

Appears in 2 contracts

Sources: Underwriting Agreement (Directv), Underwriting Agreement (Directv)

Indemnification and Contribution. (a) The Company will indemnify indemnify, defend and hold harmless each Underwriterthe Agent, its directorsand any officer, officersdirector or control person, agentsconsultant or counsel of the Agent, affiliates and each personsubagent, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or damages, liabilities, joint or several, expenses to which any of such Underwriter, director, officer, agent, affiliate or controlling person persons may become subject, subject under the Act or otherwiseany applicable state or federal securities or syndication laws, common law or any other law or any order, rule or regulation of any court or regulatory authority, insofar as such losses, claims, damages damages, liabilities or liabilities expenses (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged a claim of an untrue statement of a material fact contained in the Registration Statement, Memorandum or any amendment or supplement thereto, including any information deemed to be or arise out of or are based upon a part thereof pursuant to Rule 430B under the Act, or claim of the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) any untrue statement or alleged untrue statement arise out of a material fact contained in breach of any preliminary prospectusrepresentation, the Disclosure Package warranty or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light covenant of the circumstances under which they were made, not misleadingCompany contained herein, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person the Agent for any reasonable legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; providedaction;provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or as the result of the gross negligence, bad faith or intentional misconduct of the Agent, any subagent or any other entity or person entitled to indemnification hereunder;and provided further, that the foregoing indemnity agreement is subject to the condition that, insofar as it relates to any untrue statement, alleged untrue statement, omission or alleged omission made in any form of the Memorandum but eliminated or remedied by amendment or supplement to the Memorandum, such indemnity agreement shall not inure to the benefit of the Agent, any subagent or any other entity or person entitled to indemnification hereunder with respect to any loss, liability, claim or damage asserted by any person who purchased the Units which is the subject thereof, if a copy of the Memorandum, as so amended or supplemented, was not sent or given to such person with or prior to the written confirmation of sale of the Units to such person. (b) The Agent will indemnify, defend and hold harmless the Company, and any officer, director, or control person, consultant or counsel of the Company, against any losses, claims, damages, liabilities, or expenses to which any of such persons may become subject under the Act or otherwise insofar as such losses, claims, damages, liabilities, or expenses (or actions in respect thereof) arise out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus Memorandum or any such amendment or supplement, supplement thereto in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically on behalf of the Agent for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 thereof or as a result of the Act gross negligence or Section 20 intentional misconduct of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Agent or any amendment theretosubagent or directly from a breach by the Agent or subagent of any representation, warranty or covenant of the omission Agent contained herein or alleged omission therefrom from any violation of a material fact required to be stated therein or necessary to make applicable law by the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (Agent or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereofsubagent; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an Each party indemnified party under subsection (athe provisions of Section 6(a) or (b) above agrees that, upon the service of a summons or other initial legal process upon it in any action instituted against it in respect of which indemnity may be sought on account of any indemnity agreement contained in Section 6(a) or (b), it will promptly give written notice after such service of a summons or the initiation of legal process (herein called the “Notice”) of such service to the party or parties from whom indemnification may be sought hereunder. No indemnification provided for in Section 6(a) or (b) shall be available to any party who shall fail so to give the Notice if the party to whom such Notice was not given was unaware of the commencement of any actionaction to which the Notice would have related and was prejudiced by the failure to give the Notice, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the such indemnifying party or parties of any such service shall not relieve it such indemnifying party or parties from any liability which it or they may have to any the indemnified party for contribution or otherwise than under on account of such subsectionindemnity agreement. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the Any indemnifying party shall be entitled entitled, if it so elects within a reasonable time after receipt of the Notice by giving written notice (herein called the “Notice of Defense”) to participate in andthe indemnified party, to the extent that it shall wish, jointly assume (alone or in conjunction with any other indemnifying party, similarly notified, to assume party or parties) the entire defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the feesin which event such defense shall be conducted, expenses and other charges of such counsel will be at the expense of the indemnifying party or parties, by counsel chosen by such indemnified indemnifying party unless (1) the employment of counsel by or parties and reasonably satisfactory to the indemnified party has been authorized in writing by the indemnifying partyor parties; provided, however, that (2i) if the indemnified party has or parties reasonably concluded (based on advice determine that there may be a conflict between the positions of counsel) the indemnifying party or parties and of the indemnified party or parties in conducting the defense of such action or that there may be legal defenses available to it such indemnified party or other indemnified parties that are different from or in addition to those available to the indemnifying partyparty or parties, (3) a conflict or potential conflict exists (based on advice of then counsel to the indemnified party) between for the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right or parties shall be entitled to direct conduct the defense of the indemnified party or parties to the extent reasonably determined by such action on behalf counsel to be necessary to protect the interests of the indemnified partyparty or parties and (ii) in any event, the indemnified party or (4) parties shall, at their own expense, be entitled to have counsel chosen by such indemnified party or parties participate in, but not conduct, the indemnifying party has not in fact employed counsel to assume the defense of such action defense. If, within a reasonable time after receiving notice receipt of the commencement Notice, an indemnifying party gives a Notice of Defense and the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of chosen by the indemnifying party or parties is reasonably satisfactory to the indemnified party or parties. It is understood , the indemnifying party or parties will not be liable under Sections 6(a) through (c) for any legal or other expenses subsequently incurred by the indemnified party or parties in connection with the defense of the action except that (A) the indemnifying party or parties shall not, bear the legal and other expenses incurred in connection with any proceeding the conduct of the defense referred to in clause (i) of the proviso to the preceding sentence and (B) the indemnifying party or related proceedings in parties shall bear such other expenses as it or they have authorized to be incurred by the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such feesIf, disbursements and other charges will be reimbursed by within twenty (20) calendar days after receipt of the Notice, no Notice of Defense has been given, the indemnifying party promptly as they are incurred. An indemnifying party will not or parties shall be liable responsible for any settlement of any action legal or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without other expenses incurred by the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release parties in connection with the defense of each indemnified party from all liability arising or that may arise out of such claim, action or proceedingthe action. (d) If the indemnification provided for in this Section 6 is unavailable under subsection subparagraphs (a) or and (b) above is unavailable or insufficient to a party that would have been hold harmless an indemnified party under subsection subparagraphs (a) or and (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subparagraphs (or actions in respect thereofa) and (b) above, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters Agent and any subagents on the other from the offering Private Placement of the Bonds. IfShares, however, or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters Agent and any subagents on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection subparagraph (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending against any such action or claim (which shall be limited as provided in subsection (c) above if is the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions subject of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by itSection. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter the Agent within the meaning of the Act; and the obligations of the Underwriters Agent under this Section 6 shall be in addition to any liability which that the respective Underwriters Agent may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each and officer of the Company who has signed (including any person who, with his consent, is named in the Registration Statement Memorandum as about to become a director of the Company), and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Agency Agreement (Vertical Health Solutions Inc)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates agents and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate agent or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate agent or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Underwriting Agreement (South Carolina Electric & Gas Co)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates officers and employees and each person, if any, who controls any Underwriter each Under- writer within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof (including any loss, claim, damage, liability or action relating to purchases and sales of Capital Securities), to which such the Underwriter, director, officer, agent, affiliate employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, as amended or supplemented, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or (ii) the omission or alleged omission therefrom of a to state therein any material fact required to be stated therein or necessary to make the statements therein (A) in the case of the Registration Statement, not misleading; or misleading and (iiB) any untrue statement or alleged untrue statement in the case of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, in the light of the circumstances under which they were made, not misleading, and will shall reimburse each Underwriter, director, Underwriter and each such officer, agent, affiliate or employee and controlling person promptly upon demand for any legal or other expenses reasonably incurred by it the them in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred; providedPROVIDED, howeverHOWEVER, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission (x) made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with the written information furnished to the Company or the Trust by you, or by on behalf of any Underwriter through you, or by or on behalf of any Trustee, the Indenture Trustee or the Guarantee Trustee, specifically for use inclusion therein or the Statements of Eligibility and Qualification (Forms T-1) under the Trust Indenture Act of any of the trustees named therein or (y) made in any Preliminary Prospectus that is corrected in the preparation thereofProspectus (or any amendment or supplement thereto) if the person asserting the loss, claim, damage, liability or action purchased Securities but did not receive a copy of the Prospectus (as amended or supplemented), if required by law, at or before the written confirmation of the sale of such Securities to such person. The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company may otherwise havehave to the each Underwriter or to any officer, employee or controlling person of each Underwriter. (b) Each Underwriter severally and not jointly will agrees to indemnify and hold harmless the Company, its directors, its officers who sign and employees, the Registration Statement Trust, each Trustee, and each person, if any, who controls the Company or the Trust within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, or any action in respect thereof (including, any loss, claim, damage, liability or action relating to purchases and sales of Capital Securities), to which the Company, any such director, officer employee, or officer, the Trust, or any such Trustee or any controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, as amended or supplemented, or any amendment thereto, or (ii) the omission or alleged omission therefrom of a to state therein any material fact required to be stated therein or necessary to make the statements therein (A) in the case of the Registration Statement, not misleading; or misleading and (iiB) any untrue statement or alleged untrue statement in the case of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with the written information furnished to the Company or the Trust by you, or by on behalf of any Underwriter through you, you specifically for use in the preparation thereof; inclusion therein and will shall reimburse the Company and any such director, employee, or officer, or the Trust or any such Trustee, or any such controlling person promptly upon demand for any legal or other expenses reasonably incurred by the Company or any such director, employee, or officer, or the Trust or any such Trustee, or any such controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each Underwriter liability which the Underwriters may otherwise havehave to the Company or any such director, officer or employee, or the Trust or any such Trustee, or any such controlling person. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing writ- ing of the claim or the commencement thereofof that action; but PROVIDED, HOWEVER, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, PROVIDED FURTHER, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsectionthis Section 8. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . The assumption of the defense of any claim or action by an indemnifying party shall not constitute an admission of responsibility to indemnify or in any manner impair or restrict that party's rights to later seek to be reimbursed its costs and expenses if indemnification with respect to the claim or action was not required. After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof any claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The thereof; PROVIDED, HOWEVER, that the indemnified party will shall have the right to employ its own counsel in any such actioncounsel, but the fees, fees and expenses and other charges of such counsel will be at the expense of such the indemnified party unless (1) the employment of such counsel by the indemnified party has been authorized in writing by the Company or the indemnifying party, (2) party shall have not have employed counsel reasonably satisfactory to the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the claim or action, in each any of which cases events the reasonable fees, disbursements fees and other charges of counsel will be at the expense expenses of the indemnified party shall be borne by the indemnifying party or partiesparty. It is understood that in no event shall the indemnifying party or parties shall notCompany and the Trust be liable for the fees and expenses of more than one firm of attorneys (in addition to local counsel) for all Underwriters and their officers, employees and controlling persons, which firm may be designated by you, in connection with any proceeding one action or related proceedings in separate but similar actions arising out of the same jurisdictiongeneral allegations or circumstances. Each indemnified party, be liable for as a condition of the reasonable feesindemnity and contribution agreements contained in this Section 8, disbursements and other charges of more than one separate firm admitted shall use its best efforts to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by cooperate with the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement in the defense of any such action or claim effected without its written consent (which consent will not be unreasonably withheld)claim. No indemnifying party shall, shall (i) without the prior written consent of each the indemnified partyparties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, claim or action in respect of which indemnification or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), contribution may be sought hereunder unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claimclaim or action, or (ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with its written consent or proceedingif there be a final judgment of the plaintiff in any such claim or action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss of liability by reason of such settlement or judgment in accordance with this Section 8. In addition, no such settlement, compromise or consent by any indemnified party shall be binding on any indemnifying party without the indemnifying party's consent (which consent shall not be unreasonably withheld) for purposes of the indemnifying party's obligations under this Agreement or otherwise. Any consent of any indemnified party under this paragraph may be given by you in the case of parties indemnified pursuant to Section 8(a) above. (d) If the indemnification provided for in this Section 6 8 is applicable by its terms but for any reason (other than failure to provide notice to the indemnifying parties as provided in Section 8(c)) is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (aSection 8(a) or (b) above (“Indemnified Party”8(b) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company and the Trust on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Capital Securities or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Trust on the one hand and the Underwriters on the other in connection with respect to the statements or omissions which resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Trust on the one hand and the Underwriters on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Capital Securities purchased under this Agreement (net of commissions and discounts but before deducting expenses) received by the Company Trust on the one hand, and the total compensation received by the Underwriters with respect to the Capital Securities purchased under this Agreement, on the other hand, bear to the total underwriting discounts and commissions received by gross proceeds from the Underwritersoffering of the shares of the Capital Securities under this Agreement, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company and the Trust on the one hand or the Underwriters on the other hand, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Company, the Trust and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(d) shall be deemed to include include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 8(d), no Underwriter (except as may be provided in any Agreement Among Underwriters) shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the Capital Securities sold and distributed by it was offered to the purchasers exceeds the amount of any damages which that Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations Underwriters confirm that the statements set forth in paragraphs ____ under the caption "Plan of Distribution" in the Base Prospectus and paragraphs _____ under the caption "Plan of Distribution" in the Prospectus Supplement are correct and constitute the only information furnished in writing to the Company under this Section 6 shall be in addition to any liability which or the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations Trust by or on behalf of the Underwriters under this Section 6 shall be specifically for inclusion in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls or the Company within the meaning of the ActProspectus.

Appears in 1 contract

Sources: Underwriting Agreement (Old Kent Financial Corp /Mi/)

Indemnification and Contribution. (a) The Company will In the event that Registrable Shares are included in a registration statement pursuant to the terms of this Agreement, ABIOMED agrees to indemnify and hold harmless harmless, to the extent permitted by law and subject to the terms of this Agreement, each UnderwriterHolder, its directors, officers, agentspartners, affiliates and each person, if any, who controls any Underwriter such Holder (within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Securities Act) against any losses, claims, damages or liabilitiesdamages, liabilities and expenses (including reasonable attorneys’ fees and disbursements), joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, such registration statement (or any amendment thereto) or any preliminary, including final or supplemental prospectus contained therein (or any information deemed to be a part thereof pursuant to Rule 430B under the Act, amendment or the supplement thereto) or any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements made therein in the light of the circumstances under which they were made not misleading, and the Company shall reimburse the Holder, and each such director, officer, partner, underwriter and controlling person for any legal or any other expenses reasonably incurred by them in connection with investigating, defending or settling any such loss, claim, damage, liability or expense and any related action or proceeding; provided, however, that ABIOMED shall not be liable to any Holder or any person who controls such Holder (iiwithin the meaning of the Securities Act) to the extent that any such loss, claim, damage, liability or expense arises out of, or is based upon any such untrue or alleged untrue statement, or any such omission, if such statement or omission shall have been made in reliance upon and in conformity with information relating to such Holder or person furnished to ABIOMED in writing by or on behalf of any such Holder or person for use in the preparation of such registration statement (or any amendment thereto) or any prospectus contained therein (or any amendment or supplement thereto). (b) In connection with any such registration statement, each Holder agrees to indemnify, to the extent permitted by law and subject to the terms of this Agreement, ABIOMED, its directors, officers, employees and agents and each person who controls ABIOMED (collectively, the “ABIOMED Group”) (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and disbursements; collectively, all such amounts are hereinafter referred to as “ABIOMED Claims”) arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package such registration statement (or the Prospectus any amendment thereto) or any prospectus contained therein (or any amendment or supplement thereto), ) or the any omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of state therein a material fact required to be stated therein or necessary to make the statements made therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, in each case to the extent, but only to the extent, extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company ABIOMED in writing by you, or by any Underwriter through you, specifically on behalf of such Holder for use in the preparation thereof; and will reimburse the Company for of such registration statement (or any legal amendment thereto) or other expenses reasonably incurred by the Company in connection with investigating any prospectus contained therein (or defending against any such loss, claim, damage, liability amendment or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise havesupplement thereto). (c) Promptly Each party entitled to indemnification under this Section 9 shall give notice to the party required to provide indemnification promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shallhas actual knowledge of any claim as to which indemnity may be sought, if a claim in respect thereof is to be made against and shall permit the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of any such action within claim or any litigation resulting therefrom; provided that counsel for the indemnifying party, who shall conduct the defense of such claim or litigation, shall be approved by the indemnified party (whose approval shall not be unreasonably withheld or delayed); and provided, further, that the delay or failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under this Section 9, except to the extent that the indemnifying party is actually prejudicial by such delay or failure. The indemnified party may participate in such defense at such party’s expense; provided, however, that the indemnifying party shall pay such expense if the indemnified party shall have reasonably concluded that there may be a reasonable time after receiving notice of conflict between the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense positions of the indemnifying party and the indemnified party in conducting the defense of any such claim or parties. It is understood that litigation resulting therefrom or the indemnifying party or parties shall not, fails to defend such claim in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such a reasonably diligent manner. No indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement shall consent to entry of any action judgment or settle any claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, or litigation without the prior written consent of each indemnified the indemnifying party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 9 from the indemnifying party is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) hereunder in respect of any losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof) expenses referred to thereintherein as a result of a binding judicial determination that such indemnification may not be enforced in such case notwithstanding this Agreement, then each party that would have been an the indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyindemnified party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof) expenses in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand indemnifying party and the Underwriters on the other indemnified parties in connection with the statements or omissions actions which resulted in such losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof)expense, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand fault of such indemnifying party and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault indemnified parties shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact fact, has been made by, or relates to information supplied by the Company by, such indemnifying party or the Underwriters indemnified parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by itaction. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Registration Rights and Stock Restriction Agreement (Abiomed Inc)

Indemnification and Contribution. (a) The Company and Advanta, jointly and severally, will indemnify and hold harmless each Underwriter, its directorspartners, officers, agents, affiliates directors and officers and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Act, from and against (i) any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or any such controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (ix) any an untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, including or any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated preliminary prospectus, or (y) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, and will promptly reimburse each Underwriter, directortheir respective directors and officers and each person who controls the Underwriter within the meaning of Section 15 of the Act, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it any Underwriter and such other indemnified persons in connection with investigating investigating, preparing or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company and Advanta shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveUnderwriters' Information. (b) Each Underwriter will severally and not jointly will indemnify and hold harmless the CompanyCompany and Advanta, its directors, its their respective directors and officers who sign the Registration Statement and each person, if any, any who controls the Company or Advanta, as the case may be, within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against (i) any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, Advanta or such director, officer or controlling indemnified person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (ix) any an untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, or any related preliminary prospectus, or (y) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, in each case to the extent, but only to the extent, that that, with respect to the Underwriters, such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Underwriters' Information and will reimburse any legal or other expenses reasonably incurred by the Company by youand Advanta in connection with investigating or defending any such loss, claim, damage, liability or by any Underwriter through you, specifically for use in the preparation thereofaction as such expenses are incurred; and will reimburse the Company and Advanta, their respective directors and officers and each person who controls the Company or Advanta within the meaning of Section 15 of the Act, for any legal or other expenses reasonably incurred by the Company Company, Advanta and such other indemnified persons in connection with investigating investigating, preparing or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise haveaction as such expenses are incurred. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the claim or commencement thereof; but provided, however, that the omission so failure to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure; and provided further, however, that the failure to notify any indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 8. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who may be counsel to the indemnifying party); provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party, and, after notice from and the indemnified party shall have been advised in writing (with a copy to the indemnifying party) by counsel that representation of such indemnified party and the indemnifying party is inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them, the indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party of its election so to assume the defense thereof, or parties. It is understood that the indemnifying party shall shall, in connection with any such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of only one separate firm of attorneys together with appropriate local counsel at any time from all indemnified parties not having actual or potential differing interests with any other indemnified party. The indemnifying party will not be liable for any settlement entered into without its consent and will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or shall have employed separate counsel in addition to those available accordance with the proviso to the indemnifying partynext preceding sentence, (3ii) a conflict or potential conflict exists (based on advice of the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party party; and provided that, if clause (i) or parties. It (iii) is understood that applicable, such liability shall be only in respect of the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted counsel referred to practice in such jurisdiction at any one time for all such indemnified party clause (i) or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldiii). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and does not include a statement as to, action or proceedingan admission of, fault, culpability or failure to act by or on behalf of any indemnified party. (d) If the indemnification provided for in this Section 6 8 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company and Advanta on the one hand and the Underwriters on the other from the offering of the BondsOffered Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party indemnified party failed to give the notice required under subsection (c) above, then each Indemnifying Party indemnifying party shall contribute to such amount paid or payable by such Indemnified Party indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and Advanta on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and Advanta on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Offered Securities purchased under this Agreement (before deducting expenses) received by the Company and Advanta bear to the total underwriting discounts and commissions received by the UnderwritersUnderwriters with respect to the Offered Securities purchased under this Agreement, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or Advanta on the one hand or the Underwriters on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company Company, Advanta and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating investigating, preparing or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required obligated to contribute any amount in excess of the underwriting discounts received discount applicable to the Offered Securities purchased by itsuch Underwriter under this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company and Advanta under this Section 6 8 shall be in addition to any liability which the Company and Advanta may otherwise have and shall extend, upon the same terms term and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 8 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company, to each officer of the Company or Advanta who has signed the Registration Statement and to each person, if any, who controls the Company or Advanta within the meaning of the Act.

Appears in 1 contract

Sources: Underwriting Agreement (Advanta Business Receivables Corp)

Indemnification and Contribution. (a) The In the event of any registration of any Registrable Securities under the Securities Act pursuant to this Agreement, Company will shall indemnify and hold harmless each Underwriterthe Holder of such Registrable Securities, its directors, officers, agents, affiliates such Holder’s directors and officers and each personother Person (including each underwriter) who participated in the offering of such Registrable Securities and each other Person, if any, who controls any Underwriter such Holder or such participating Person within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Securities Act, against any losses, claims, damages damages, liabilities or liabilities, joint or severalexpenses, to which such Underwriter, director, officer, agent, affiliate Holder or any such director or officer or participating Person or controlling person Person may become subject, subject under the Securities Act or otherwiseany other applicable law, insofar as such losses, claims, damages damages, liabilities or liabilities expenses, (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained, on the effective date thereof, in any registration statement under which such securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained in the Registration Statementtherein, or any amendment or supplement thereto, including or (ii) any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , except insofar as such losses, claims, damages, liabilities or (ii) expenses are caused by any untrue statement such actual or alleged untrue statement of a material fact contained or omission so made in strict conformity with information furnished in writing to Company by such Holder or on such Holder’s behalf expressly for use therein; provided that with respect to any actual or alleged untrue statement or actual or alleged omission made in any preliminary prospectus, or in any prospectus, as the Disclosure Package or case may be, the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary indemnity agreement contained in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company this paragraph shall not be liable in any such case apply to the extent that any such loss, claim, damage, liability or expense results from the fact that a current copy of the prospectus (or, in the case of a prospectus, the prospectus as amended or supplemented) was not sent or given to the Person asserting any such loss, claim, damage or liability arises out at or prior to the written confirmation of the sale of the Registrable Securities concerned to such Person if it is determined that Company has provided such prospectus to such Holder in a timely manner prior to such sale and it was the responsibility of such Holder under the Securities Act to provide such Person with a current copy of the prospectus (or is based upon an untrue statement such amended or alleged untrue statement supplemented prospectus, as the case may be) and such current copy of the prospectus (or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplementsupplemented prospectus, in reliance upon and in conformity with written information furnished as the case may be) would have cured the defect giving rise to the Company by yousuch loss, claim, damage or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise haveliability. (b) Each Underwriter severally and not jointly In connection with any registration statement in which a Holder is participating, such Holder will indemnify and hold harmless the Company, its directors, its directors and officers who sign the Registration Statement and each personPerson, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages damages, liabilities or liabilities expenses to which the Company, Company or any such director, director or officer or controlling person other Person may become subject, under the Act or otherwise, insofar as such losses, claims, damages damages, liabilities or liabilities expenses (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact information in writing furnished to Company by such Holder for use in (and such information is contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iiin) any untrue registration statement or alleged untrue statement under which securities were registered under the Securities Act at the request of a material fact contained in such Holder, any preliminary prospectus or the Prospectus (final prospectus contained therein or any amendment or supplement thereto), or (ii) the omission or alleged omission therefrom fact that a current copy of a material fact necessary in order to make the statements thereinprospectus (or, in the light case of a prospectus, the circumstances under which they were made, prospectus as amended or supplemented) was not misleading, in each case sent or given to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against Person asserting any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(bexpense at or prior to the written confirmation of the sale of the Registrable Securities concerned to such Person if it is determined that it was the responsibility of such Holder to provide such Person with a current copy of the prospectus (or such amended or supplemented prospectus, as the case may be) shall be in addition and such current copy of the prospectus (or such amendment or supplemented prospectus, as the case may be) would have cured the defect giving rise to any liabilities that each Underwriter may otherwise havesuch loss, claim, damage, liability or expenses. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 7 from the indemnifying party is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) hereunder in respect of any losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof) expenses referred to therein, then each party that would have been an the indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyindemnified party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof) expenses in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand indemnifying party and the Underwriters on the other indemnified parties in connection with the statements or omissions actions which resulted in such losses, claims, damages damages, liabilities or liabilities (or actions in respect thereof)expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand fault of such indemnifying party and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault indemnified parties shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact fact, has been made by, or relates to information supplied by the Company by, such indemnifying party or the Underwriters indemnified parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. The Company amount paid or payable by a party as a result of the losses, claims, damages, liabilities and the Underwriters expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this subsection (dSection 7(c) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by itimmediately preceding paragraph. No person Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person Person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Registration Rights Agreement (TRX Inc/Ga)

Indemnification and Contribution. (a) The Company will and the Subsidiary Guarantors, jointly and severally, agree to indemnify and hold harmless each Underwriterthe Initial Purchaser, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter the Initial Purchaser within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which any Initial Purchaser or such controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any Circular or any amendment or supplement thereto; or (ii) the omission or alleged omission to state, in any Circular or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse, as incurred, the Initial Purchaser and each such controlling person for any legal or other expenses incurred by the Initial Purchaser or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action in respect thereof; provided, however, the Company and the Subsidiary Guarantors will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any Circular or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Initial Purchaser furnished to the Company or the Subsidiary Guarantors by the Initial Purchaser specifically for use therein. This indemnity agreement will be in addition to any liability that the Company or the Subsidiary Guarantors may otherwise have to the indemnified parties. Neither the Company nor the Subsidiary Guarantors shall be liable under this Section 9 for any settlement of any claim or action effected without their prior written consent, which shall not be unreasonably withheld. (b) The Initial Purchaser agrees to indemnify and hold harmless each of the Company, the Subsidiary Guarantors, their directors, their officers and each person, if any, who controls the Company or the Subsidiary Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, liabilities to which the Company or the Subsidiary Guarantors or any such Underwriter, director, officer, agent, affiliate officer or controlling person may become subject, subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, any Circular or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in any Circular or any amendment or supplement thereto or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not no misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and an in conformity with written information concerning the Initial Purchaser, furnished to the Company by you, or by any Underwriter through you, the Initial Purchaser specifically for use in the preparation thereoftherein; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company or the Subsidiary Guarantors or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter the Initial Purchaser may otherwise havehave to the indemnified parties. The Initial Purchaser shall not be liable under this Section 9 for any settlement of any claim or action effected without their consent, which shall not be unreasonably withheld. None of the Company or any of the Subsidiary Guarantors shall, without the prior written consent of the Initial Purchaser, effect any settlement or compromise of any pending or threatened proceeding in respect of which the Initial Purchaser is or could have been a party, or indemnity could have been sought hereunder by the Initial Purchaser, unless such settlement (A) includes an unconditional written release of the Initial Purchaser, in form and substance reasonably satisfactory to the Initial Purchaser, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of the Initial Purchaser. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party or substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the Initial Purchaser in the case of paragraph (3a) a conflict of this Section 9 or potential conflict exists the Company or the Subsidiary Guarantors in the case of paragraph (based on advice b) of counsel to this Section 9, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that After such notice from the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such feesparty, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying by such indemnified party shall, without the prior written consent of each indemnified party, settle or compromise or the indemnifying party (which consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or shall not any indemnified party is a party theretobe unreasonably withheld), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that waived in writing its rights under this Section 9, in which case the indemnified party may arise out of effect such claim, action or proceedinga settlement without such consent. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Securities or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Subsidiary Guarantors on the one hand and the Underwriters Initial Purchaser on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and the Subsidiary Guarantors bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofInitial Purchaser. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and Subsidiary Guarantors on the one hand, or the Initial Purchaser on the other, the parties" relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission. , and any other equitable considerations appropriate in the circumstances. (e) The Company Company, the Subsidiary Guarantors and the Underwriters Initial Purchaser agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection the first sentence of the immediately preceding paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d)paragraph 9, no Underwriter Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by the Initial Purchaser under this Agreement, less the aggregate amount of any damages that the Initial Purchaser has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection For purposes of the immediately preceding paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter the Initial Purchaser within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20 of the Exchange Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribute as the Initial Purchaser, and conditions, to each director of the CompanyCompany and the Subsidiary Guarantors, to each officer of the Company who has signed and the Registration Statement Subsidiary Guarantors and to each person, if any, who controls the Company and the Subsidiary Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company and the Subsidiary Guarantors.

Appears in 1 contract

Sources: Purchase Agreement (Packaged Ice Inc)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directorspartners, officers, agents, affiliates directors and officers and each person, if any, any who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration Statement, the Prospectus, or any amendment or supplement thereto, including or any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated preliminary prospectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, from any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, the Representatives specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities therein, it being understood and agreed that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.such

Appears in 1 contract

Sources: Underwriting Agreement (Beyond Com Corp)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, subject under the 1933 Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any breach of any warranty or covenant of the Company herein contained, (iii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in (A) any Prepricing Prospectus Supplement, the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, including or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify the Shares under the Actsecurities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), or (iii) arise out of or are based upon the omission or alleged omission therefrom of to state in any Prepricing Prospectus Supplement, the Registration Statement, the Prospectus, or any amendment or supplement thereto, or any Application a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prepricing Prospectus Supplement, the Registration Statement, any preliminary prospectus Statement or the Prospectus Prospectus, or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by youany Underwriter expressly for use therein; provided, further, however, that the Company shall not be liable to any Underwriter in respect of any untrue statement or alleged untrue statement or omission or alleged omission made in any Prepricing Prospectus Supplement (other than in documents, information or statements incorporated by reference therein) to the extent (i) the Prospectus (other than any documents, information or statement incorporated by reference therein) did not contain such untrue statement or alleged untrue statement or omission or alleged omission, (ii) the Prospectus was not sent or given to the purchaser of the Shares in question at or prior to the time at which the written confirmation of the sale of such Shares was sent or given to such person, and (iii) the failure to deliver such Prospectus was not the result of the Company's noncompliance with its obligations under Section 3(b), (c) and (e) hereof. In addition to their other obligations under this Section 6(a), the Company agrees that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or by any Underwriter through youalleged statement or omission, specifically for use in the preparation thereof. The indemnity agreement set forth described in this Section 6(a), it will reimburse the Underwriters on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of the Company's obligation to reimburse the Underwriters for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to an Underwriter within 30 days of a request for reimbursement shall bear interest at the prime rate (or reference rate or other commercial lending rate for borrowers of the highest credit standing) published from time to time by The Wall Street Journal (the "Prime Rate") from the date of such request. This indemnity agreement shall be in addition to any liabilities that the Company may otherwise have. . The Company will not, without the prior written consent of each Underwriter, settle or compromise or consent to the entry of any judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (bwhether or not such Underwriter is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of such Underwriter from all liability arising out of such action or claim (or related cause of action or portion thereof). The indemnity agreement in this Section 6(a) Each Underwriter severally shall extend upon the same terms and not jointly will indemnify conditions to, and hold harmless shall inure to the Companybenefit of, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company any Underwriter within the meaning of either Section 15 of the 1933 Act or Section 20 of the Exchange ActAct to the same extent as such agreement applies to the Underwriters. (b) Each Underwriter, severally but not jointly, will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person Company may become subject, under the 1933 Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any breach of any warranty or covenant by such Underwriter herein contained or any untrue statement or alleged untrue statement of a material fact contained in any Prepricing Prospectus Supplement, the Registration StatementStatement or the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Prepricing Prospectus Supplement, the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplement, supplement thereto in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically expressly for use in the preparation thereoftherein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth In addition to its other obligations under this Section 6(b), the Underwriters agree that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or any alleged statement or omission, described in this Section 6(b) ), they will reimburse the Company on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of their obligation to reimburse the Company for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to the Company within 30 days of a request for reimbursement shall bear interest at the Prime Rate from the date of such request. This indemnity agreement shall be in addition to any liabilities that each Underwriter the Underwriters may otherwise have. No Underwriter will, without the prior written consent of the Company, settle or compromise or consent to the entry of judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (whether or not the Company is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of the Company from all liability arising out of such action or claim (or related cause of action or portion thereof). The indemnity agreement in this Section 6(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of , each officer and director of the Company and each person, if any, who controls the Company within the meaning of the 1933 Act or the Exchange Act to the same extent as such agreement applies to the Company. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying indemnified party under such subsection, notify the indemnifying party in writing of the commencement thereof; no indemnification provided for in Section 6(a) or 6(b) shall be available to any party who shall fail to give notice as provided in this Section 6(c) if the party to whom notice was not given was unaware of the proceeding to which such notice would have been related and was prejudiced by the failure to give such notice, but the omission so to notify the indemnifying party shall will not relieve it the indemnifying party from any liability which that it may have to any indemnified party otherwise than under such subsectionSection 6. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, thereof with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by except that if the indemnified party has been authorized advised by counsel in writing by the indemnifying party, (2) that there are one or more defenses available to the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between then the indemnified party and the indemnifying party (in which case the indemnifying party will not shall have the right to direct employ separate counsel and in that event the defense reasonable fees and expenses of such action on behalf separate counsel for the indemnified party shall be paid by the indemnifying party; provided, however, that if the indemnifying party is the Company, the Company shall only be obligated to pay the reasonable fees and expenses of a single law firm (and any reasonably necessary local counsel) employed by all of the indemnified partyparties and the person referred to in Section 6(a) or (4) the hereof. The indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim proceeding effected without its written consent, but if settled with such consent (which consent will not or if there be unreasonably withheld). No a final judgment for the plaintiff, the indemnifying party shall, without agrees to indemnify the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all and against any loss or liability arising or that may arise out by reason of such claim, action settlement or proceedingjudgment. (d) If It is agreed that any controversy arising out of the indemnification operation of the interim reimbursement arrangements set forth in Section 6(a) and 6(b) hereof, including the amounts of any requested reimbursement payments, the method of determining such amounts and the basis on which such amounts shall be apportioned among the indemnifying parties, shall be settled by arbitration conducted pursuant to the Code of Arbitration Procedure of the NASD. Any such arbitration must be commenced by service of a written demand for arbitration or a written notice of intention to arbitrate, therein electing the arbitration tribunal. In the event the party demanding arbitration does not make such designation of an arbitration tribunal in such demand or notice, then the party responding to said demand or notice is authorized to do so. Any such arbitration will be limited to the operation of the interim reimbursement provisions contained in Sections 6(a) and 6(b) hereof and will not resolve the ultimate propriety or enforceability of the obligation to indemnify for expenses that is created by the provisions of Sections 6(a) and 6(b). (e) In order to provide for just and equitable contribution in circumstances under which the indemnity provided for in this Section 6 is unavailable under subsection for any reason judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the right of appeal) or (b) above to a party that would have been an be unenforceable by the indemnified party under subsection (a) or (b) above (“Indemnified Party”) parties although applicable in respect of any accordance with its terms, the Company, on the one hand, and the Underwriters on the other shall contribute to the aggregate losses, liabilities, claims, damages and expenses of the nature contemplated by such indemnity incurred by the Company and one or liabilities (or actions in respect thereof) referred to thereinmore of the Underwriters, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallas incurred, in lieu such proportions that (a) the Underwriters are responsible pro rata for that portion represented by the percentage that the underwriting discount appearing on the cover page of indemnifying such Indemnified Party, contribute the Prospectus bears to the amount paid or payable by such Indemnified Party as a result public offering price (before deducting expenses) appearing thereon, and (b) the Company is responsible for the balance, provided, however, that no person guilty of fraudulent misrepresentations (within the meaning of Section 11(f) of the 1933 ▇▇▇) ▇▇all be entitled to contribution from any person who was not guilty of such lossesfraudulent misrepresentation; provided, claimsfurther, damages or liabilities (or actions in respect thereof) in such proportion as that if the allocation provided above is appropriate to reflect the relative benefits received not permitted by applicable law, the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party the aggregate losses in such proportion as is appropriate to reflect not only such the relative benefits referred to above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged the omission to state a material fact relates to information supplied by the Company on the one hand or by the Underwriters on the other hand and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 6(e) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (dSection 6(e). The amount paid or payable by an Indemnified Party a party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other fees or expenses reasonably incurred by such Indemnified Party party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 6(e), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by it. No person guilty which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled any damages which such Underwriter has otherwise been required to contribution from any person who was not guilty pay by reason of such fraudulent misrepresentationuntrue or alleged untrue statement or omission or alleged omission. The Underwriters' obligations in this subsection (dSection 6(e) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations . For purposes of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend6(e), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Section 6 1933 Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement Statement, and to each person, if any, who controls the Company within the meaning of the Act.w

Appears in 1 contract

Sources: Underwriting Agreement (Jameson Inns Inc)

Indemnification and Contribution. (a) The Company will Depositor and HMFC shall, jointly and severally, indemnify and hold harmless each Underwriter, its the directors, officers, agents, affiliates employees and agents of each Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter or such controlling person may become subject under the Securities Act or otherwise, to the extent such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement made by the Depositor or HMFC in Section 2 hereof, (ii) any untrue statement or alleged untrue statement of any material fact contained or incorporated in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto, or (iii) the omission or alleged omission to state in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto a material fact required to be stated therein or necessary to make the statements therein, not misleading, and will reimburse, as incurred, each such indemnified party for any legal or other costs or expenses reasonably incurred by it in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, that the Depositor and HMFC will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Issuer Information or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with the Underwriters’ Information; provided, further, that the Depositor and HMFC shall not be liable to any Underwriter or any of the directors, officers, employees and agents of an Underwriter and each person, if any, who controls an Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, with respect to any loss, claim, damage or liability that results from the fact that the Underwriter sold Notes to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, if delivery thereof was required, a copy of the Prospectus or the Prospectus as then amended or supplemented, whichever is most recent, if the Depositor has previously furnished copies thereof to such Underwriter within a reasonable time period prior to such confirmation. The indemnity provided for in this Section 10 shall be in addition to any liability which the Depositor and HMFC may otherwise have. The Depositor and HMFC will not, without the prior written consent of the Representative, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not the Representative or any person who controls the Representative is a party to such claim, action, suit or proceeding), unless such settlement, compromise or consent (i) includes an unconditional release of all of the Underwriters and such controlling persons from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or admission of, fault, culpability or a failure to act by or on behalf of any Underwriter or controlling person. (b) Each Underwriter, severally and not jointly, will indemnify and hold harmless each of the Depositor and HMFC, each of its directors and officers and each person, if any, who controls the Depositor or HMFC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Depositor, HMFC or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, ) or (ii) the omission or the alleged omission therefrom of to state in the Preliminary Prospectus, any Free Writing Prospectus or the Prospectus Supplement (or any amendment or supplement thereto) a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by youUnderwriters’ Information, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company Depositor, HMFC or any such director, officer or controlling person in connection with investigating or investigating, defending against or appearing as a third--party witness in connection with any such loss, claim, damage, liability or actionany action in respect thereof. The indemnity agreement set forth remedies provided for in this Section 6(b) 10 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition available to any liabilities that each Underwriter may otherwise haveindemnified party at law or in equity. (c) Promptly after receipt by an indemnified party under subsection In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to paragraph (a) or (b) above of this Section 10, such person (for purposes of this paragraph (c), the “indemnified party”) shall, promptly after receipt by such party of notice of the commencement of any such action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the person against whom such indemnity may be sought (for purposes of this paragraph (c), the “indemnifying party in writing of the commencement thereof; party”), but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 10. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (which may be counsel to such indemnifying party if otherwise reasonably acceptable to the indemnified party); provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, and, after the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofof any such action and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 10 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The thereof, unless (i) the indemnified party will shall have the right to employ its own employed separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel in each applicable local jurisdiction) in any one action or separate but substantially similar actions arising out of the same general allegations or circumstances, designated in writing by the Representative in the case of paragraph (a) of this Section 10, representing the indemnified parties under such actionparagraph (a) who are parties to such action or actions), but (ii) the fees, expenses and other charges indemnifying party has authorized the employment of such counsel will be for the indemnified party at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2iii) the use of counsel chosen by the indemnifying party to represent the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) would present such counsel with a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) interest or (4iv) the indemnifying party has not in fact employed counsel elected to assume the defense of such action proceeding but has failed within a reasonable time after receiving notice of to retain counsel reasonably satisfactory to the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its written the consent (which consent will not be unreasonably withheld)of the indemnifying party. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement (x) includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimproceeding and (y) does not include any statement as to or any admission of fault, action culpability or proceedinga failure to act by or on behalf of any indemnified party. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 10 is unavailable under subsection (a) or (b) above insufficient, for any reason, to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Depositor and HMFC on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes (before deducting expenses) received by the Company Depositor and HMFC (including for such purpose, the value of the Certificates) bear to the total underwriting discounts and commissions received by the Underwriters, in each case Underwriters (the “Spread”) as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Depositor, HMFC or the Underwriters and Underwriters, the parties’ relative intentintents, knowledge, access to information and opportunity to correct or prevent such statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Depositor, HMFC and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter shall be obligated to make contributions hereunder that in the aggregate exceed the amount by which the Spread received by it in the initial offering of such Notes, less the aggregate amount of any damages that such Underwriter has otherwise been required to contribute any amount pay in excess respect of the underwriting discounts received by it. No same or any substantially similar claim, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11 (f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute hereunder are several in proportion to their respective underwriting obligations principal amount of Notes they have purchased hereunder, and not joint. . For purposes of this paragraph (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extendd), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any an Underwriter within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Securities Act or Section 6 20 of the Exchange Act, and each director, officer, employee and agent of an Underwriter shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as such Underwriter, and conditions, to each director of the CompanyDepositor and HMFC, to each officer of the Company who has signed the Registration Statement Depositor and to HMFC and each person, if any, who controls the Company Depositor and HMFC within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Depositor and HMFC.

Appears in 1 contract

Sources: Underwriting Agreement (Hyundai Auto Receivables Trust 2008-A)

Indemnification and Contribution. (a) The Company will Depositor shall indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon follows: (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (ii) arising out of any untrue statement or alleged untrue statement of a material fact contained in the Definitive Free Writing Prospectus, or in any preliminary prospectusIssuer Information contained in any other Free Writing Prospectus, or in any Underwriter Derived Information to the Disclosure Package extent caused by any material error in the Pool Information, or in the Registration Statement for the registration of the Securities as originally filed or in any amendment thereof or other filing incorporated by reference therein, or in the in the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleadingmisleading except insofar as such losses, claims, damages, or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon any information with respect to which the Underwriters have agreed to indemnify the Depositor pursuant to Section 8(a)(ii). This indemnity agreement will be in addition to any liability which the Depositor may otherwise have.; (ii) against any and will reimburse each Underwriterall loss, directorliability, officerclaim, agentdamage and expense whatsoever, affiliate as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or controlling person for any legal investigation or other expenses reasonably proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of the Depositor (which consent shall not be unreasonably withheld); and (iii) against any and all expense whatsoever (including, subject to Section 8(c) hereof, the reasonable fees and disbursements of counsel chosen by the Representative) incurred by it in connection with investigating investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such lossuntrue statement or omission, claim, damage, liability to the extent that any such expense is not paid under (i) or action(ii) above; provided, however, that the Company this Section 8 shall not be liable in apply to any such case to the extent that any such loss, liability, claim, damage or liability arises expense to the extent arising out of or is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, (A) in reliance upon and in conformity with written information furnished to the Company Depositor by you, or by any Underwriter through you, specifically the Representative expressly for use in the preparation thereof. The indemnity agreement Registration Statement (or any amendment thereto) or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) and set forth in this Section 6(athe Prospectus and in the Prospectus Supplement, in each case as specified in the related Terms Agreement, or (B) shall be in addition any ABS Filing or any amendment or supplement thereof, except to the extent that any liabilities untrue statement or alleged untrue statement therein or omission therefrom results (or is alleged to have resulted) from an error (a "POOL ERROR") in the information concerning the characteristics of the Mortgage Loans furnished by the Depositor to the Underwriter in writing or by electronic transmission that was used in the Company may otherwise havepreparation of any Computational Materials or ABS Term Sheets (or amendments or supplements thereof) included in such ABS Filing (or amendment or supplement thereof). (b) Each Underwriter Underwriter, severally and not jointly will agrees to indemnify and hold harmless the CompanyDepositor, its directors, its officers who sign signed the Registration Statement Statement, and each person, if any, who controls the Company Depositor within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any lossesand all loss, claimsliability, damages or liabilities claim, damage and expense described in the indemnity contained in subsection (a) of this Section 8, as incurred, but only with respect to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement statements or omissions, or alleged untrue statement of a material fact contained statements or omissions, made in the Registration Statement, Statement (or any amendment thereto), or any preliminary prospectus or the omission Prospectus (or alleged omission therefrom of a material fact required any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to be stated therein the Depositor through the Representative expressly for use in the Registration Statement (or necessary to make the statements therein not misleading; any amendment thereto) or (ii) any untrue statement or alleged untrue statement of a material fact contained in any such preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case as specified in the related Terms Agreement, (ii) any Computational Materials or ABS Term Sheets (or amendments or supplements thereof) furnished to the extentDepositor by such Underwriter through the Representative pursuant to Section 10 or Section 11, but only or directly by such Underwriter, to the extent, extent that such untrue statement or alleged untrue statement or omission or alleged omission was made materials were delivered to investors by such Underwriter, and incorporated by reference in the such Registration Statement, any preliminary prospectus Statement or the related Prospectus or any such amendment or supplementsupplement thereof (except that no such indemnity shall be available for any losses, claims, damages or liabilities, or actions in reliance upon respect thereof, resulting from any Pool Error), (iii) the Underwriters' Information and in conformity with written information furnished the decrement/yield tables, (iv) any Underwriter Derived Information, except to the Company by you, or by extent of any errors in any Underwriter through you, specifically for use Derived Information that are caused by errors in the preparation thereof; and will reimburse Pool Information, (v) any Free Writing Prospectus for which the Company for any legal or other expenses reasonably incurred conditions set forth in Section 4(d)(v) above are not satisfied with respect to the prior approval by the Company Depositor, (vi) any portion of any Free Writing Prospectus (other than the Definitive Free Writing Prospectus) not constituting Issuer Information, (vii) any liability resulting from the Underwriters' failure to provide any investor with the Definitive Free Writing Prospectus prior to entering into a Contract of Sale with such investor or failure to file any Free Writing Prospectus required to be filed by the Underwriter in accordance with Section 5(m), and (vii) any liability resulting from the Underwriters' failure to comply with Section 4(f) in connection with investigating or defending against any such loss, claim, damage, liability or actionroad show. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which the Underwriter may otherwise have. The Depositor acknowledges that the Underwriters' Information and the decrement/yield tables constitute the only information furnished in writing by or on behalf of the Underwriter expressly for use in the Registration Statement or the Prospectus or in any amendment thereof or supplement thereto, as the case may be. (c) Promptly after receipt by an Each indemnified party under subsection (a) or (b) above of shall give notice of the commencement as promptly as reasonably practicable to each indemnifying party of any actionaction commenced against it with respect to which indemnity may be sought hereunder, such indemnified party shall, if a claim in respect thereof is but failure to be made against the indemnifying party under such subsection, so notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the an indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party on account of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredthis Section 8. An indemnifying party will not be liable for any settlement of any action or claim effected without may participate at its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment own expense in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with action. In no event shall the provisions thereof). Notwithstanding indemnifying parties be liable for the provisions fees and expenses of this subsection more than one counsel (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning jurisdiction arising out of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actgeneral allegations or circumstances.

Appears in 1 contract

Sources: Underwriting Agreement (Nomura Home Equity Loan, Inc.)

Indemnification and Contribution. (a) The Company will shall indemnify and hold harmless each Underwriter, its directors, officers, agents, employees and affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilitiesliability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of Notes), to which such that Underwriter, director, officer, agentemployee, affiliate or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in (A) any Preliminary Prospectus, the Registration Statement, the Prospectus or in any amendment or supplement thereto, including (B) any information deemed Issuer Free Writing Prospectus or in any amendment or supplement thereto or (C) any Permitted Issuer Information used or referred to be a part thereof pursuant in any “free writing prospectus” (as defined in Rule 405) used or referred to Rule 430B under the Act, by any Underwriter or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto or in any Permitted Issuer Information, any material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, misleading and will shall reimburse each Underwriter, Underwriter and each such director, officer, agentemployee, affiliate or controlling person promptly upon demand for any legal or other expenses reasonably incurred by it that Underwriter, director, officer, employee, affiliate or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, the Prospectus, any preliminary prospectus or the Issuer Free Writing Prospectus or in any such amendment or supplementsupplement thereto or in any Permitted Issuer Information, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company through the Representatives by you, or by on behalf of any Underwriter through you, specifically for use inclusion therein, which information consists solely of the information specified in the preparation thereofSection 8(e). The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities liability that the Company may otherwise havehave to any Underwriter or to any director, officer, employee, affiliate or controlling person of that Underwriter. (b) Each Underwriter Underwriter, severally and not jointly will jointly, shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and employees, and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, from and against any lossesloss, claimsclaim, damages damage or liabilities liability, joint or several, or any action in respect thereof, to which the Company, Company or any such director, officer officer, employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon upon, (i) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto, or (ii) the omission or alleged omission therefrom of a to state in any Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto, any material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such the untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company through the Representatives by you, or by any on behalf of that Underwriter through you, specifically for use in inclusion therein, which information is limited to the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement information set forth in this Section 6(b) shall be 8(e). The foregoing indemnity agreement is in addition to any liabilities liability that each any Underwriter may otherwise havehave to the Company or any such director, officer, employee or controlling person. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of any claim or the commencement of any action, such the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the claim or the commencement thereofof that action; but provided, however, that the omission so failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to any an indemnified party otherwise than under such subsectionthis Section 8. In case If any such claim or action shall be brought against any an indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wishwishes, jointly with any other similarly notified indemnifying party, similarly notified, to assume the defense thereof, thereof with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofof such claim or action, the indemnifying party shall not be liable to such the indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; provided, however, that the Representatives shall have the right to employ its own counsel to represent jointly the Representatives and those other Underwriters and their respective directors, officers, employees, affiliates and controlling persons who may be subject to liability arising out of any claim in any such action, but respect of which indemnity may be sought by the fees, expenses and other charges of such counsel will be at Underwriters against the expense of such indemnified party unless Company under this Section 8 if (1i) the employment of counsel by Company and the indemnified party has been authorized in writing by the indemnifying party, Underwriters shall have so mutually agreed; (2ii) the indemnified party Company has failed within a reasonable time to retain counsel reasonably satisfactory to the Underwriters; (iii) the Underwriters and their respective directors, officers, employees, affiliates and controlling persons shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties them that are different from or in addition to those available to the indemnifying partyCompany; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Underwriters or their respective directors, (3) a conflict officers, employees, affiliates or controlling persons, on the one hand, and the Company, on the other hand, and representation of both sets of parties by the same counsel would be inappropriate due to actual or potential conflict exists (based on advice of counsel to differing interests between them, and in any such event the indemnified party) between the indemnified party fees and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense expenses of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed separate counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will shall be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed paid by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld)Company. No indemnifying party shall, shall (i) without the prior written consent of each the indemnified partyparties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action, suit or proceeding and does not include any findings of fact or admissions of fault or culpability as to the indemnified party, or (ii) be liable for any settlement of any such action effected without its written consent (which consent shall not be unreasonably withheld), but if settled with the consent of the indemnifying party or proceedingif there be a final judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. (d) If the indemnification provided for in this Section 6 is 8 shall for any reason be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”Section 8(a) in respect of any lossesloss, claimsclaim, damages damage or liabilities (liability, or actions any action in respect thereof) , referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Partyindemnified party, contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof, (i) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other other, from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other in connection other, with respect to the statements or omissions which that resulted in such lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Company, on the one hand hand, and the Underwriters Underwriters, on the other other, with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes purchased under this Agreement (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the UnderwritersCompany, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant Prospectus, on the one hand, and the total underwriting discounts and commissions received by the Underwriters with respect to Rule 424 the Notes purchased under this Agreement, as set forth in the Act referred to in Section 2(a) hereoftable on the cover page of the Prospectus, on the other hand. The relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters Underwriters, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss, claimsclaim, damages damage or liabilities (liability, or actions action in respect thereof) , referred to above in this subsection (dSection 8(d) shall be deemed to include include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 8(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the net proceeds from the sale of the Notes underwritten by it exceeds the amount of any damages that such Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute as provided in this subsection (dSection 8(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations Underwriters severally confirm and the Company acknowledges and agrees that the statements regarding delivery of the Company Notes by the Underwriters set forth on the cover page of, and the concession and reallowance figures and the paragraph relating to stabilization by the Underwriters appearing under this Section 6 shall be the caption “Underwriting” in, the most recent Preliminary Prospectus and the Prospectus are correct and constitute the only information concerning such Underwriters furnished in addition writing to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations by or on behalf of the Underwriters under this Section 6 shall be specifically for inclusion in addition to any liability which the respective Underwriters may otherwise have and shall extendPreliminary Prospectus, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each personStatement, if anythe Prospectus, who controls the Company within the meaning of the Actany Issuer Free Writing Prospectus or in any amendment or supplement thereto.

Appears in 1 contract

Sources: Underwriting Agreement (Mohawk Industries Inc)

Indemnification and Contribution. (a) The Company and each of the Principal Shareholders, jointly and severally, will indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, subject under the Act 1933 Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any breach of any warranty or covenant of the Company herein contained, (iii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in (A) any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement or the Prospectus, or any amendment or supplement thereto, including or (B) any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information deemed furnished by or on behalf of the Company filed in any jurisdiction in order to be a part thereof pursuant to Rule 430B qualify the Shares under the Actsecurities or blue sky laws thereof or filed with the Commission or any securities association or securities exchange (each an "Application"), or (iii) arise out of or are based upon the omission or alleged omission therefrom of to state in any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement, the Prospectus, or any amendment or supplement thereto, or any Application a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, any preliminary prospectus 462(b) Registration Statement or the Prospectus Prospectus, or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by youany Underwriter expressly for use therein. In addition to its other obligations under this Section 8(a), the Company and each Principal Shareholder agrees that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or by any Underwriter through youalleged statement or omission, specifically for use in the preparation thereof. The indemnity agreement set forth described in this Section 6(a8(a), it will reimburse the Underwriters on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of their obligation to reimburse the Underwriters for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to an Underwriter within 30 days of a request for reimbursement shall bear interest at the prime rate (or reference rate or other commercial lending rate for borrowers of the highest credit standing) published from time to time by The Wall Street Journal (the "Prime Rate") from the date of such request. This indemnity agreement shall be in addition to any liabilities that the Company and each Principal Shareholder may otherwise have. . The Company and each Principal Shareholder will not, without the prior written consent of each Underwriter, settle or compromise or consent to the entry of any judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (bwhether or not such Underwriter is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of such Underwriter from all liability arising out of such action or claim (or related cause of action or portion thereof). Notwithstanding the foregoing, no Principal Shareholder shall be required to provide indemnification pursuant to this Section 8(a) Each unless the Underwriter severally seeking indemnification shall have first made a written demand for payment to the Company with respect to any losses, claims, damages or liabilities for which the Company and not jointly the Principal Shareholders are required to indemnify the Underwriters pursuant to this Section 8(a) and the Company shall have failed to make such demanded payment within sixty (60) days after receipt thereof. In no event, however, shall the liability of any Principal Shareholder for indemnification under this Section 8(a) or for breaches of the representations and warranties set forth in Section 1 exceed the proceeds received by such Principal Shareholder from the Underwriters in the offering. This indemnity agreement will indemnify be in addition to any liability which the Company or any of the Principal Shareholders may have other than pursuant to this Agreement. The indemnity agreement in this Section 8(a) shall extend upon the same terms and hold harmless conditions to, and shall inure to the Companybenefit of, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company any Underwriter within the meaning of either the 1933 Act to the same extent as such agreement applies to the Underwriters. (b) Each Selling Shareholder, (other than the Principal Shareholders), severally but not jointly, will indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject under the 1933 Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any breach of any warranty or covenant of such Selling Shareholder herein contained, (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in (A) any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement or the Prospectus, or any amendment or supplement thereto, or (B) any Application, or (iii) arise out of or are based upon the omission or alleged omission to state in any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement, the Prospectus, or any amendment or supplement thereto, or any Application a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that such Selling -------- ------- Shareholder shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement, or the Prospectus, or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by any Underwriter expressly for use therein; provided, however, that the indemnification obligation arising under the -------- ------- subsection (b) shall apply only to the extent that such loss, claim, damage or liability is caused by an untrue statement or omission or alleged omission made in reliance upon and in conformity with information relating to such Selling Shareholder furnished to the Company by or on behalf of such Selling Shareholder expressly for use in the Registration Statement, any Preliminary Prospectus, the Prospectus or any amendments or supplements thereto. In no event, however, shall the liability of any such Selling Shareholder for indemnification under this Section 15 8(b) or for breaches of the Act representations and warranties set forth in Section 2 exceed the proceeds received by such Selling Shareholder from the Underwriters in the offering. This indemnity agreement will be in addition to any liability which such Selling Shareholders may otherwise have. In addition to their other obligations under this Section 8(b), each Selling Shareholder agrees that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or any alleged statement or omission, described in this Section 20 8(b), such Selling Shareholder will reimburse the Underwriters on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of such Selling Shareholder's obligation to reimburse the Underwriters for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to an Underwriter within 30 days of a request for reimbursement shall bear interest at the prime rate (or reference rate or other commercial lending rate for borrowers of the Exchange Acthighest credit standing) published from time to time by The Wall Street Journal (the "Prime Rate") from the date of such request. This indemnity agreement shall be in addition to any liabilities that such Selling Shareholder may otherwise have. Such Selling Shareholder will not, without the prior written consent of each Underwriter, settle or compromise or consent to the entry of any judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (whether or not such Underwriter is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of such Underwriter from all liability arising out of such action or claim (or related cause of action or portion thereof). The liability of each Selling Shareholder under the representations, warranties and agreements contained herein and under the indemnity agreements contained in the provisions of this Section 8(b) shall be limited to an amount equal to the proceeds to such Selling Shareholder of the Selling Shareholder Shares sold by such Selling Shareholder to the Underwriters. The indemnity agreement in this Section 8(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the 1933 Act to the same extent as such agreement applies to the Underwriters. (c) Each Underwriter, severally but not jointly, will indemnify and hold harmless the Company and each Selling Shareholder against any losses, claims, damages or liabilities to which the Company, Company and such director, officer or controlling person Selling Shareholder may become subject, under the Act 1933 Act, or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any breach of any warranty or covenant by such Underwriter herein contained or any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement, any 462(b) Registration Statement or the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in any Preliminary Prospectus, the Registration Statement, any preliminary prospectus Statement or the Prospectus or any such amendment or supplement, supplement thereto in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically expressly for use in the preparation thereoftherein; and will reimburse the Company and each Selling Shareholder for any legal or other expenses reasonably incurred by the Company and such Selling Shareholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth In addition to its other obligations under this Section 8(c), the Underwriters agree that, as an interim measure during the pendency of any such claim, action, investigation, inquiry or other proceeding arising out of or based upon any statement or omission, or any alleged statement or omission, described in this Section 6(b) 8(c), they will reimburse the Company and each Selling Shareholder on a monthly basis for all reasonable legal and other expenses incurred in connection with investigating or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the propriety and enforceability of their obligation to reimburse the Company for such expenses and the possibility that such payments might later be held to have been improper by a court of competent jurisdiction. Any such interim reimbursement payments that are not made to the Company within 30 days of a request for reimbursement shall bear interest at the Prime Rate from the date of such request. This indemnity agreement shall be in addition to any liabilities that each Underwriter the Underwriters may otherwise have. No Underwriter will, without the prior written consent of the Company, settle or compromise or consent to the entry of judgment in any pending or threatened action or claim or related cause of action or portion of such cause of action in respect of which indemnification may be sought hereunder (whether or not the Company is a party to such action or claim), unless such settlement, compromise or consent includes an unconditional release of the Company from all liability arising out of such action or claim (or related cause of action or portion thereof). The indemnity agreement in this Section 8(c) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer and director of the Company and each person, if any, who controls the Company and each Selling Shareholder within the meaning of the 1933 Act to the same extent as such agreement applies to the Company and the Selling Shareholder. (cd) Promptly after receipt by an indemnified party under subsection (a), (b) or (bc) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; no indemnification provided for in subsection (a), (b) or (c) shall be available to any party who shall fail to give notice as provided in this subsection (d) if the party to whom notice was not given was unaware of the proceeding to which such notice would have related and was prejudiced by the failure to give such notice, but the omission so to notify the indemnifying party shall will not relieve it the indemnifying party from any liability which that it may have to any indemnified party otherwise than under such subsectionSection 8. In case any such action shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, thereof with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by except that if the indemnified party has been authorized advised by counsel in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it are one or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Underwriting Agreement (Datawave Systems Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold you harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person you may become subject, subject under the Securities Act, the Exchange Act or otherwise, insofar as such specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of the Company herein contained; (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, or any amendment amendments or supplements thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), including any Incorporated Document, or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person you for any legal or other expenses reasonably incurred by it you in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus Prospectus, or any such amendment or supplementsupplement thereto, in reliance upon upon, and in conformity with with, written information relating to you furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a11(a) shall extend upon the same terms and conditions to, and shall inure to the benefit of, you and your affiliates and the partners, directors, officers, employees and agents of you and your affiliates, and each person or entity, if any, who controls or is under common control with, you within the meaning of the Securities Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that liabilities, which the Company may otherwise have. (b) Each Underwriter severally and not jointly will You agree to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person Company may become subject, subject under the Securities Act, the Exchange Act or otherwise, insofar as such specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of yours herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, or any amendment amendments or supplements thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus or the Registration Statement and the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each the case of subparagraphs (ii) and (iii) of this Section 11(b) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statementreliance upon, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with with, written information furnished to the Company by you, or by any Underwriter through you, you specifically for use in the Registration Statement, or any amendment or supplement thereto or in the preparation thereof; , and will you agree to reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b11(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer of the Company who signed the Registration Statement and each director of the Company, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that each Underwriter which you may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 11 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the an indemnifying party under such subsectionthis Section 11, notify the indemnifying party in writing of the commencement thereof; , but the omission so to notify the indemnifying party shall will not relieve it such indemnifying party from any liability which it may have to any indemnified party for contribution or otherwise than under the indemnity agreement contained in this Section 11 or to the extent the indemnifying party is not prejudiced as a proximate result of such subsectionfailure. In case any such action shall be is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in in, and, to the extent that it shall wishelect, jointly with any all other indemnifying party, parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its such indemnifying party's election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 11 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or shall have employed separate counsel in addition to those available accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying partyparty shall not be liable for the expenses of more than one separate counsel (together with local counsel), (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and approved by the indemnifying party (the Company in which the case of Section 11(a) and U.S. Bancorp ▇▇▇▇▇ ▇▇▇▇▇▇▇, Inc. in the case of Section 11(b)), representing the indemnified parties who are parties to such action), (ii) the indemnifying party will shall not have employed counsel satisfactory to the right indemnified party to direct represent the defense indemnified party within a reasonable time after notice of commencement of such action on behalf of the indemnified party) action, or (4iii) the indemnifying party has not in fact employed authorized the employment of counsel to assume for the defense of such action within a reasonable time after receiving notice indemnified party at the expense of the commencement of the actionindemnifying party, in each of which cases the reasonable fees, disbursements fees and other charges expenses of counsel will shall be at the expense of the indemnifying party or parties. It is understood that the party. (d) The indemnifying party or parties under this Section 11 shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim proceeding effected without its written consent, unless the indemnifying party shall have approved the terms of settlement, provided that such consent (which consent will shall not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or effect any settlement, compromise or consent to the entry of any judgment in any pending or threatened claimaction, action suit or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent includes (i) an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claimaction, action suit or proceedingproceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. (de) If the In order to provide for just and equitable contribution in any action in which a claim for indemnification provided for in is made pursuant to this Section 6 11 but it is unavailable under subsection judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) or (b) above that such indemnification may not be enforced in such case notwithstanding the fact that this Section 11 provides for indemnification in such case, all the parties hereto shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as is appropriate to reflect so that you are responsible for the relative benefits received portion represented by the Company on percentage that the one hand maximum Placement Agent's fee payable to the Placement Agent pursuant to Section 6 hereof bears to the value of the maximum amount of New Notes issuable pursuant to the Cash Offer, and the Underwriters on Company is responsible for the other from the offering of the Bonds. Ifremaining portion, provided, however, the allocation provided by the immediately preceding sentence is that (i) you shall not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by it. No which the fee paid to you pursuant to Section 6 hereof exceeds the amount of damages which you have been otherwise required to pay and (ii) no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations contribution agreement in this subsection (dSection 11(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, extend upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriterconditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls you or the Company within the meaning of the ActSecurities Act or the Exchange Act and each officer of the Company who signed the Registration Statement and each director of the Company.

Appears in 1 contract

Sources: Placement Agreement (Transwitch Corp /De)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each UnderwriterHolder of New Notes or Exchange Notes, its as the case may be, covered by any Registration Statement (including each Dealer Manager and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer), the directors, officers, agents, affiliates employees and agents of each such Holder and each person, if any, person who controls any Underwriter such Holder within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person any of the foregoing may become subject, subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the such Registration StatementStatement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement in the case of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, in the light of the circumstances under which they were made, ) not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, such Holder specifically for use inclusion therein and provided, further, that with respect to any untrue statement or omission of a material fact made in any preliminary Prospectus, the preparation thereof. The indemnity agreement set forth contained in this Section 6(a7(a) shall not inure to the benefit of any indemnified party under this indemnity agreement from whom the person asserting any such loss, claim, damage or liability purchased the New Notes or Exchange Notes concerned to the extent that any such loss, claim, damage or liability of such party occurs under the circumstance where (i) the Company had previously furnished copies of the Prospectus to such indemnified party in accordance with the terms hereof and prior to the written confirmation of the sale of such New Notes or Exchange Notes, as applicable, to such person, (ii) to the extent required by applicable law, a copy of the final Prospectus was not sent or given to such person at or prior to the written confirmation of the sale of such New Notes or Exchange Notes, as applicable, to such person and (iii) the untrue statement in or omission from the preliminary Prospectus was corrected in the final Prospectus. This indemnity agreement shall be in addition to any liabilities that liability which the Company may otherwise have. The Company also agrees to indemnify as provided in this Section 7(a) or contribute as provided in Section 7(d) hereof to Losses of each underwriter of New Notes, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each person who controls such underwriter on substantially the same basis as that of the indemnification of the selling Holders provided in this Section 7(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 4(q) hereof. (b) Each Underwriter Holder of securities covered by a Registration Statement (including each Dealer Manager and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer), severally and not jointly will jointly, agrees to indemnify and hold harmless the Company, and each of its directors, its officers who sign the Registration Statement officers, employees and agents and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange ActAct (each, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto“Company Indemnitee”), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the indemnity in Section 7(a) from the Company to each such Holder, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Holder furnished to the Company by you, or by any Underwriter through you, on behalf of such Holder specifically for use inclusion in the preparation thereof; documents referred to in the foregoing indemnity, and will further agrees to reimburse the each Company Indemnitee for any legal or other expenses reasonably incurred by the such Company Indemnitee in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability liability, judgment or actionaction as such expenses are incurred. The This indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter liability which any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) this Section 7 or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above unless and to a the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party that would have been an of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party under subsection other than the indemnification obligation provided in paragraph (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an above. The indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations appoint counsel of the Company under this Section 6 indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be in addition reasonably satisfactory to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.indemnified

Appears in 1 contract

Sources: Registration Rights Agreement (Coca Cola Bottling Co Consolidated /De/)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directorsaffiliates, officers, agents, affiliates directors and officers and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Act, from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwiseotherwise (including in settlement of any litigation if such settlement is effected with the written consent of the Company), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or including the 430A Information and any amendment thereto, including any other information deemed to be a part thereof of the Registration Statement at the time of effectiveness and at any subsequent time pursuant to Rule 430B under the ActRules and Regulations, if applicable, any Preliminary Prospectus, the Time of Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus or in any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Common Stock (“Marketing Materials”), including any roadshow or investor presentations made to investors by the Company (whether in person or electronically), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under in which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that (x) the Company shall will not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or Preliminary Prospectus, the Prospectus Time of Sale Disclosure Package, the Prospectus, or any such amendment or supplement, any Issuer Free Writing Prospectus or in any Marketing Materials, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities ; it being understood and agreed that the only information furnished by an Underwriter consists of the information described as such in Section 6(g), and (y) the Company may otherwise havewill not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from the Selling Stockholder Information. (b) Each Underwriter Selling Stockholder, severally and not jointly will jointly, agrees to indemnify and hold harmless the Companyeach Underwriter, its directorsaffiliates, its directors and officers who sign the Registration Statement and each person, if any, who controls the Company such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person Underwriter may become subject, under the Act or otherwiseotherwise (including in settlement of any litigation if such settlement is effected with the written consent of such Selling Stockholder), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, including the 430A Information and any other information deemed to be a part of the Registration Statement at the time of effectiveness and at any subsequent time pursuant to the Rules and Regulations, if applicable, any Preliminary Prospectus, the Time of Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus, or in any Marketing Materials, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that (x) a Selling Stockholder shall be liable in any such case only to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any Preliminary Prospectus, the Time of Sale Disclosure Package, the Prospectus, or any such amendment or supplement, any Issuer Free Writing Prospectus or in any Marketing Materials in reliance upon and in conformity with Selling Stockholder Information relating to such Selling Stockholder, and (iiy) in no event shall any Selling Stockholder’s liability hereunder exceed the aggregate amount of proceeds after deducting underwriting discounts and commissions, but before expenses, to such Selling Stockholder from the sale of Securities sold by such Selling Stockholder pursuant to this Agreement. (c) Each Underwriter will, severally and not jointly, indemnify and hold harmless the Company and each Selling Stockholder, its affiliates, directors and officers and each person, if any, who controls the Company and each Selling Stockholder within the meaning of Section 15 of the Act and Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities to which the Company and the Selling Stockholders may become subject, under the Act or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Underwriter), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any preliminary prospectus or Preliminary Prospectus, the Prospectus (Time of Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto), or any Issuer Free Writing Prospectus or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or Preliminary Prospectus, the Prospectus Time of Sale Disclosure Package, the Prospectus, or any such amendment or supplement, or any Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, specifically for use in the preparation thereof; thereof (it being understood and agreed that the only information furnished by an Underwriter consists of the information described as such in Section 6(g)), and will reimburse the Company and the Selling Stockholders for any legal or other expenses reasonably incurred by the Company or any such Selling Stockholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise haveaction as such expenses are incurred. (cd) Promptly after receipt by an indemnified party under subsection (a), (b) or (bc) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it the indemnifying party from any liability which that it may have to any indemnified party otherwise than under except to the extent such subsectionindemnifying party has been materially prejudiced by such failure (through the forfeiture of substantive rights or defenses). In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in in, and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, and after notice from the indemnifying party to such indemnified party of its the indemnifying party’s election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will ; provided, however, that if, in the sole judgment of the Representatives, it is advisable for the Underwriters to be represented as a group by separate counsel, the Representatives shall have the right to employ its own a single counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available local counsel) to represent the indemnifying party, Representatives and all Underwriters who may be subject to liability arising from any claim in respect of which indemnity may be sought by the Underwriters under subsection (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified partya) or (4b) of this Section 6, in which event the indemnifying party has not in fact employed counsel to assume the defense reasonable fees and expenses of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of separate counsel will shall be at the expense of the indemnifying party or parties. It is understood that borne by the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in and reimbursed to the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly Underwriters as they are incurred. An indemnifying party will shall not be liable for obligated under any settlement of agreement relating to any action or claim effected without its written consent (under this Section 6 to which consent will it has not be unreasonably withheld)agreed in writing. No In addition, no indemnifying party shall, without the prior written consent of each the indemnified partyparty (which consent shall not be unreasonably withheld or delayed), settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from for all liability arising or on claims that may arise out are the subject matter of such claimproceeding and does not include a statement as to, action or proceedingan admission of, fault, culpability or a failure to act by or on behalf of an indemnified party. (de) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a), (b) or (bc) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a), (b) or actions in respect thereof(c) above, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Selling Stockholders on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Securities or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Selling Stockholders on the one hand and the Underwriters on the other in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof)liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Selling Stockholders on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and Selling Stockholders bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofProspectus. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Selling Stockholders or the Underwriters and the parties’ relative relevant intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company Company, the Selling Stockholders and the Underwriters agree that it would not be just and equitable if contribution contributions pursuant to this subsection (de) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in the first sentence of this subsection (de). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending against any such action or claim (which shall be limited as provided in is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofe). Notwithstanding the provisions of this subsection (de), (i) no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (ii) the liability under this subsection of each Selling Stockholder shall be limited to an amount equal to the aggregate amount of proceeds after deducting underwriting discounts received and commissions, but before expenses, to such Selling Stockholder from the sale of Securities sold by itsuch Selling Stockholder pursuant to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (de) to contribute are several in proportion to their respective underwriting obligations and not joint. The Selling Stockholders’ obligations in this subsection (e) to contribute are several in proportion to their respective aggregate gross proceeds received after underwriting discounts and commissions, but before expenses, from the sale of the Securities sold by the Selling Stockholders hereunder and not joint. (ef) The obligations of the Company and the Selling Stockholders under this Section 6 shall be in addition to any liability which the Company and the Selling Stockholders may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which that the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company (including any person who, with his consent, is named in the Registration Statement as about to become a director of the Company), to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company or any Selling Stockholder within the meaning of the Act. (g) The Underwriters severally confirm and the Company and each Selling Stockholder acknowledges that the statements with respect to the public offering of the Securities by the Underwriters set forth in the second, fourth, tenth and eleventh paragraphs under the caption “Underwriting” in the Time of Sale Disclosure Package and in the Prospectus are correct and constitute the only information concerning such Underwriters furnished in writing to the Company by or on behalf of the Underwriters specifically for inclusion in the Registration Statement, any Preliminary Prospectus, the Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus.

Appears in 1 contract

Sources: Purchase Agreement (Body Central Corp)

Indemnification and Contribution. (a) The In the case of each offering of Registrable Securities made pursuant to this Agreement, the Company will shall indemnify and hold harmless each UnderwriterHolder, its officers and directors, officers, agents, affiliates each underwriter of Registrable Securities so offered and each personPerson, if any, who controls any Underwriter of the foregoing persons within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act ("Holder Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages or liabilitiesexpenses and judgments, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation or alleged violation by the Company of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or county in which the Registrable Securities are offered, and relating to action taken or action or inaction required of the Company in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities, or any amendment thereof or supplement thereto, including or in any information deemed to be a part thereof pursuant to Rule 430B under the Actdocument incorporated by reference therein, or the any omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that but the Company shall not be liable to any Holder Indemnitee in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement, or any omission or alleged omission, if such statement or omission or alleged omission shall have been made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company in writing by youor on behalf of such Holder specifically for inclusion in the Registration Statement (or in any preliminary or final prospectus included therein), or any amendment thereof or supplement thereto. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Underwriter through you, specifically for use in Holder and shall survive the preparation thereoftransfer of such securities. The foregoing indemnity agreement set forth in this Section 6(a) shall be is in addition to any liabilities that liability which the Company may otherwise havehave to any Holder Indemnitee. (b) Each Underwriter severally and not jointly will In the case of each offering of Registrable Securities made pursuant to this Agreement, each Holder shall indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and directors and each person, if any, who controls any of the Company foregoing within the meaning of either Section 15 of the Securities Act or Section 20 of (the Exchange Act"Company Indemnitees"), from and against any and all claims, liabilities, losses, claimsdamages, damages expenses and judgments, joint or liabilities several, to which the Company, such director, officer they or controlling person any of them may become subject, under the Act including any amount paid in settlement of any litigation commenced or otherwisethreatened, and shall promptly reimburse them, as and when incurred, for any legal or other expenses incurred by them in connection with investigating any claims and defending any actions, insofar as any such losses, claims, damages or damages, liabilities (or actions in respect thereof) shall arise out of, or shall be based upon, any violation or alleged violation by such Holder of the Securities Act, any blue sky laws, securities laws or other applicable laws of any state or country in which the Registrable Securities are offered and relating to action taken or action or inaction required of such Holder in connection with such offering, or shall arise out of, or shall be based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in any preliminary or final prospectus included therein) relating to the offering and sale of such Registrable Securities or any amendment thereof or supplement thereto, or any amendment thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, but in each case to the extent, but only to the extent, extent that such untrue statement is contained in, or alleged untrue statement or omission or alleged omission was made in the Registration Statementsuch fact is omitted from, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished in writing to the Company by you, or by any Underwriter through you, on behalf of such Holder specifically for use inclusion in the preparation thereof; such Registration Statement (or in any preliminary or final prospectus included therein). Such indemnity shall remain in full force and will reimburse the effect regardless of any investigation made by or on behalf of any Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionIndemnitee. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities that each Underwriter liability which Holder may otherwise havehave to any Company Indemnitee. (c) Promptly after receipt by an In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to this Section 11, such person (the "indemnified party under party") shall promptly notify the person against whom such indemnity may be sought (the "indemnifying party") in writing. No indemnification provided for in subsection (a) or (b) above of shall be available to any person who shall fail to give notice of the commencement of any action, such indemnified party shall, as provided in this subsection (c) if a claim in respect thereof is to be made against the indemnifying party under to whom notice was not given was unaware of the proceeding to which such subsectionnotice would have related and was materially prejudiced by the failure to give such notice, notify but the failure to give such notice shall not relieve the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it or parties from any liability which it or they may have to any the indemnified party for contribution or otherwise than under such subsectionon account of the provisions of subsection (a) or (b). In case any such action proceeding shall be brought against any indemnified party, party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and, after notice from party and shall pay as incurred the indemnifying party fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party of shall have the right to retain its election so to assume own counsel at its own expense. Notwithstanding the defense thereofforegoing, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other pay as incurred the fees and expenses subsequently incurred of the counsel retained by such the indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless event (1) the employment of counsel by indemnifying party and the indemnified party has been authorized in writing by shall have mutually agreed to the indemnifying party, retention of such counsel or (2) the indemnified party has reasonably concluded named parties to any such proceeding (based on advice of counselincluding any impleaded parties) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to include both the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between party and the indemnified party and representation of both parties by the same counsel, in the written opinion of such counsel, would be inappropriate due to actual or potential differing interests between them. The indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparties (in addition to local counsel). All such fees, disbursements and other charges will Such firm shall be reimbursed designated in writing by the Holders of a majority of the Registrable Securities disposed under the applicable Registration Statements in the case of Holder Indemnitees and by the Company in the case of Company Indemnitees. The indemnifying party promptly as they are incurred. An indemnifying party will shall not be liable for any settlement of any action or claim proceeding effected without its written consent (which but if settled with such consent will not or if there be unreasonably withheld). No a final judgment for the plaintiff, the indemnifying party shall, without agrees to indemnify the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all and against any loss or liability arising or that may arise out by reason of such claim, action settlement or proceedingjudgment. (d) If the indemnification provided for in this Section 6 11 is unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, or if the indemnified party failed to give the notice required under subsection (c), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party the indemnified party as a result of such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect not only both the relative benefits received by such party (as compared to the Company on the one hand and the Underwriters on the benefits received by all other parties) from the offering in respect of the Bonds. Ifwhich indemnity is sought, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other all parties in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other a party shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company it bear to the total underwriting discounts and commissions amounts received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofother party. The relative Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters party and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters parties agree that it would not be just and equitable if contribution contributions pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations indemnity provided for hereunder shall not inure to the benefit of any indemnified party to the extent that the claim is based on such indemnified party's failure to comply with the applicable prospectus delivery requirements of the Company under this Section 6 shall be in addition Securities Act as then applicable to any the person asserting the loss, claim, damage or liability for which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actindemnity is sought.

Appears in 1 contract

Sources: Merger Agreement (Pegasus Communications Corp)

Indemnification and Contribution. (a) The Company Each of the Company, the Adviser and BDC Partners, jointly and severally, will indemnify and hold harmless each Underwriterthe Dealer Manager, its directorspartners, directors and officers, agents, affiliates and each person, if any, any person who controls any Underwriter the Dealer Manager within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act Act, and the successors and assigns of all of the foregoing persons, from and against any lossesloss, claimsdamage, damages expense, liability or liabilitiesclaim (including the reasonable cost of investigation) which, joint jointly or severalseverally, to which the Dealer Manager or any such Underwriter, director, officer, agent, affiliate or controlling person may become subject, incur under the Act Securities Act, the Exchange Act, the Investment Company Act, the Advisers Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration StatementStatement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 7 being deemed to include the Prospectus and the Prospectus as amended or supplemented by the Company), or arises out of or is based upon any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state a material fact required to be stated therein in either such Registration Statement or such Prospectus or necessary to make the statements made therein not misleading; , except insofar as any such loss, damage, expense, liability or (ii) claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in and in conformity with information concerning the Dealer Manager furnished in writing by or on behalf of the Dealer Manager to the Company expressly for use in such Registration Statement or such Prospectus or arises out of or is based upon any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state a material fact in connection with such information required to be stated in such Registration Statement or such Prospectus or necessary in order to make the statements therein, in the light of the circumstances under which they were made, such information not misleading, (ii) any untrue statement or alleged untrue statement made by the Company, the Adviser or BDC Partners in Section 1 hereof or the failure by the Company, the Adviser or BDC Partners to perform when and will reimburse each Underwriteras required any agreement or covenant contained herein, directoror (iii) any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials provided by the Company, officerthe Adviser or BDC Partners or based upon written information furnished by or on behalf of the Company including, agentwithout limitation, affiliate slides, videos, films or controlling person for any legal or other expenses reasonably incurred by it tape recordings used in connection with investigating the marketing of the Rights or defending the Shares. If any action, suit or proceeding (each, a "Proceeding") is brought against the Dealer Manager or any such lossperson in respect of which indemnity may be sought against the Company, claimthe Adviser or BDC Partners pursuant to the foregoing paragraph, damagethe Dealer Manager or such person shall promptly notify the Company, liability the Adviser or actionBDC Partners, as applicable, in writing of the institution of such Proceeding and the Company, the Adviser or BDC Partners, as the case may be, shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to such indemnified party and payment of all fees and expenses; provided, however, that the Company omission to so notify the Company, the Adviser or BDC Partners shall not relieve the Company, the Adviser or BDC Partners from any liability which the Company, the Adviser or BDC Partners may have to the Dealer Manager or any such person or otherwise. The Dealer Manager or such person shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Dealer Manager or of such person unless the employment of such counsel shall have been authorized in writing by the Company, the Adviser or BDC Partners in connection with the defense of such Proceeding or the Company, the Adviser or BDC Partners shall not have, within a reasonable period of time in light of the circumstances, employed counsel to have charge of the defense of such Proceeding or such indemnified party or parties shall have reasonably concluded that there may be defenses available to it or them which are different from, additional to or in conflict with those available to the Company, the Adviser or BDC Partners (in which case the Company, the Adviser or BDC Partners shall not have the right to direct the defense of such Proceeding on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company, the Adviser or BDC Partners, as applicable, and paid as incurred (it being understood, however, that the Company, the Adviser or BDC Partners shall not be liable in any such case to for the extent that any such loss, claim, damage or liability arises out expenses of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be more than one separate counsel (in addition to any liabilities local counsel) in any one Proceeding or series of related Proceedings in the same jurisdiction representing the indemnified parties who are parties to such Proceeding). The Company, the Adviser or BDC Partners shall not be liable for any settlement of any Proceeding effected without its written consent but if settled with the written consent of the Company, the Adviser or BDC Partners, the Company, the Adviser or BDC Partners agrees to indemnify and hold harmless the Dealer Manager and any such person from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (i) such settlement is entered into more than 60 business days after receipt by such indemnifying party of the Company may otherwise haveaforesaid request, (ii) such indemnifying party shall not have fully reimbursed the indemnified party in accordance with such request prior to the date of such settlement and (iii) such indemnified party shall have given the indemnifying party at least 30 days' prior notice of its intention to settle. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened Proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such indemnified party. (b) Each Underwriter severally and not jointly The Dealer Manager will indemnify and hold harmless each of the Company, its directorsthe Adviser and BDC Partners, its officers who sign the Registration Statement their respective members, directors and each personofficers, if any, and any person who controls the Company Company, the Adviser or BDC Partners within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons, from and against any lossesloss, claimsdamage, damages expense, liability or liabilities to which claim (including the reasonable cost of investigation) which, jointly or severally, the Company, the Adviser or BDC Partners or any such director, officer or controlling person may become subject, incur under the Act Securities Act, the Exchange Act, the Investment Company Act, the Advisers Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in and in conformity with information concerning the Dealer Manager furnished in writing by or on behalf of the Dealer Manager to the Company expressly for use in the Registration StatementStatement (or in the Registration Statement as amended by any post-effective amendment thereof by the Company) or in a Prospectus, or arises out of or is based upon any amendment thereto, or the omission or alleged omission therefrom of to state a material fact in connection with such information required to be stated therein in such Registration Statement or such Prospectus or necessary to make the statements therein such information not misleading; . If any Proceeding is brought against the Company, the Adviser or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus BDC Partners or any such amendment or supplement, person in reliance upon and in conformity with written information furnished respect of which indemnity may be sought against the Dealer Manager pursuant to the Company by youforegoing paragraph, the Company, the Adviser or by any Underwriter through you, specifically for use in BDC Partners or such person shall promptly the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party Dealer Manager in writing of the commencement thereofinstitution of such Proceeding and the Dealer Manager shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to such indemnified party and payment of all fees and expenses; but provided, however, that the omission to so to notify the indemnifying party Dealer Manager shall not relieve it the Dealer Manager from any liability which it the Dealer Manager may have to any indemnified party otherwise than under such subsection. In case the Company, the Adviser or BDC Partners or any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal person or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigationotherwise. The indemnified party will Company the Adviser or BDC Partners or such person shall have the right to employ its own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of the Company, the Adviser or BDC Partners or such indemnified party person unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying partyDealer Manager in connection with the defense of such Proceeding or the Dealer Manager shall not have, (2) within a reasonable period of time in light of the circumstances, employed counsel to defend such Proceeding or such indemnified party has or parties shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that them which are different from or additional to or in addition to conflict with those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party Dealer Manager (in which case the indemnifying party will Dealer manager shall not have the right to direct the defense of such action Proceeding on behalf of the indemnified party) party or (4) parties, but the indemnifying party has not Dealer Manager may employ counsel and participate in fact employed counsel to assume the defense thereof but the fees and expenses of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will shall be at the expense of the indemnifying party or parties. It is understood Dealer Manager), in any of which events such fees and expenses shall be borne by the Dealer Manager and paid as incurred (it being understood, however, that the indemnifying party or parties Dealer Manager shall not, in connection with any proceeding or related proceedings in the same jurisdiction, not be liable for the reasonable fees, disbursements and other charges expenses of more than one separate firm admitted counsel (in addition to practice any local counsel) in such jurisdiction at any one time for all Proceeding or series of related Proceedings in the same jurisdiction representing the indemnified parties who are parties to such indemnified party or partiesProceeding). All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will The Dealer Manager shall not be liable for any settlement of any action such Proceeding effected without the written consent of the Dealer Manager but if settled with the written consent of the Dealer Manager, the Dealer Manager agrees to indemnify and hold harmless the Company, the Adviser or claim BDC Partners and any such person from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (which consent will i) such settlement is entered into more than 60 business days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall not be unreasonably withheld)have reimbursed the indemnified party in accordance with such request prior to the date of such settlement and (iii) such indemnified party shall have given the indemnifying party at least 30 days' prior notice of its intention to settle. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not Proceeding in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claim, action or proceedingProceeding. (dc) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection subsections (a) or and (b) above (“Indemnified Party”) of this Section 7 or is insufficient to hold an indemnified party harmless in respect of any losses, claimsdamages, damages expenses, liabilities or liabilities (or actions in respect thereof) claims referred to therein, then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claimsdamages, damages expenses, liabilities or liabilities claims (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Company, the Adviser and BDC Partners on the one hand and the Underwriters Dealer Manager on the other hand from the offering of Rights Offering and the Bonds. If, however, Shares or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Company, the Adviser and BDC Partners, on the one hand hand, and of the Underwriters Dealer Manager, on the other hand, in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities or claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Company, the Adviser and BDC Partners on the one hand and the Underwriters Dealer Manager on the other shall be deemed to be in the same proportion respective proportions as the total net proceeds from the offering Rights Offering (before deducting expenses) received by the Company Company, the Adviser and BDC Partners and the total fees received by the Dealer Manager, bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page aggregate offering price of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofShares. The relative fault of the Company, the Adviser and BDC Partners, on the one hand. and of the Dealer Manager, on the other hand, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Adviser or BDC Partners, or by the Underwriters Dealer Manager and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to in this subsection shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or defending any Proceeding. (d) The Company, the Adviser, BDC Partners and the Underwriters Dealer Manager agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 7 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection (d)Section 7, no Underwriter the Dealer Manager shall not be required to contribute any amount in excess of the underwriting discounts fees received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations indemnity and contribution agreements contained in this Section 7 and the covenants, warranties and representations of the Company under Company, the Adviser and BDC Partners contained in this Section 6 Agreement shall be remain in addition to full force and effect regardless of any liability which investigation made by or on behalf of the Company may otherwise have and shall extendDealer Manager, upon the same terms and conditionsits partners, to directors or officers or any person (including each directorpartner, officer, agent and affiliate officer or director of an Underwriter, and to each such person, if any, ) who controls any Underwriter the Dealer Manager within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Securities Act or Section 6 shall be in addition to any liability which 20 of the respective Underwriters may otherwise have and shall extendExchange Act, upon the same terms and conditions, to each director or by or on behalf of the Company, to each officer of the Company who has signed the Registration Statement and to each personits directors or officers, if any, or any person who controls the Company Company, the Adviser or BDC Partners within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act., and shall survive any termination of this Agreement or the acceptance and delivery of the Shares and payment therefor. The Company, the Adviser, BDC Partners and the Dealer Manager agree promptly to notify each other of the commencement of any Proceeding agai

Appears in 1 contract

Sources: Dealer Manager Agreement (Technology Investment Capital Corp)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each Underwriter, its directorspartners, officersmembers, agents, affiliates directors and officers and each person, if any, any who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration Statement, the Prospectus, or any amendment or supplement thereto, including or any information deemed to be a part thereof pursuant to Rule 430B under the Actrelated preliminary prospectus, or arise out of or are based upon the omission or alleged omission therefrom to state, in the case of any Registration Statement or amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; , or, in the case of the Prospectus or (ii) any untrue statement or alleged untrue statement of a material fact contained in any related preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter in connection with investigating or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, from any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to the Company by youany Underwriter through the Representative specifically for use therein, or it being understood and agreed that the only such information furnished by any Underwriter through youconsists of the information described as such in subsection (c) below; and provided, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities further, that the Company may otherwise have. shall not be liable to any Underwriter under the indemnity agreement in this subsection (ba) Each with respect to any preliminary prospectus to the extent that any such loss, claim, damage or liability of such Underwriter severally results from the fact that such Underwriter sold Offered Securities to a person as to whom it shall be established that there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or of the Prospectus as then amended or supplemented in any case where such delivery is required by the Act if the Company has previously furnished copies thereof in sufficient quantity to such Underwriter and not jointly will sufficiently in advance of the Closing Date to allow for distribution by such Closing Date and the loss, claim, damage or liability of such Underwriter results from an untrue statement or omission of a material fact contained in or omitted from the preliminary prospectus which was identified in writing at such time to such Underwriter and corrected in the Prospectus or in the Prospectus as them amended or supplemented and such correction would have cured the defect giving rise to such loss, claim, damage or liability. The Company agrees to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement Designated Underwriter and each person, if any, who controls the Company Designated Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (the “Designated Entities”), from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) (i) caused by any untrue statement or alleged untrue statement of a material fact contained in any material (other than the Prospectus or any Registration Statement, which shall be governed by the foregoing paragraph) prepared by, or with the consent and approval of, the Company for distribution to Participants in connection with the Directed Share Program or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) caused by the failure of any Participant to pay for and accept delivery of Directed Shares that the Participant agreed to purchase; or (iii) related to, arising out of, or in connection with the Directed Share Program, other than losses, claims, damages or liabilities (or expenses relating thereto) that are finally judicially determined to have resulted from the bad faith or gross negligence of the Designated Entities. (b) The Selling Stockholders, severally and not jointly, will indemnify and hold harmless each Underwriter, its partners, members, directors and officers and each person who controls such Underwriter within the meaning of Section 15 of the Act, against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person Underwriter may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration Statement, the Prospectus, or any amendment or supplement thereto, or any related preliminary prospectus, or arise out of or are based upon the omission or alleged omission therefrom to state, in the case of any Registration Statement or amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement , or, in the case of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto)related preliminary prospectus, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that a Selling Stockholder will be liable in any such case to the extent but only to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Selling Stockholder specifically for use therein; and provided further, however, that in no such case shall such Selling Stockholder be liable or responsible for any amount in excess of the proceeds (net of underwriting discounts and commissions but before deducting other expenses) applicable to the Offered Securities sold by such Selling Stockholder pursuant to the transactions contemplated hereby; and provided, further, however, that Selling Stockholders shall not be liable to any Underwriter under the indemnity agreement in this subsection (b) with respect to any preliminary prospectus to the extent that any such loss, claim, damage or liability of such Underwriter results from the fact that such Underwriter sold Offered Securities to a person as to whom it shall be established that there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus or of the Prospectus as then amended or supplemented in any case where such delivery is required by the Act if the Company has previously furnished copies thereof in sufficient quantity to such Underwriter and sufficiently in advance of the Closing Date to allow for distribution by such Closing Date and the loss, claim, damage or liability of such Underwriter results from an untrue statement or omission of a material fact contained in or omitted from the preliminary prospectus which was identified in writing at such time to such Underwriter and corrected in the Prospectus or in the Prospectus as then amended or supplemented and such correction would have cured the defect giving rise to such loss, claim, damage or liability. (c) Each Underwriter will severally and not jointly indemnify and hold harmless the Company, its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the Act, and each Selling Stockholder against any losses, claims, damages or liabilities to which the Company or such Selling Stockholder may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement, the Prospectus, or any amendment or supplement thereto, or any related preliminary prospectus, or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any such Underwriter through you, the Representative specifically for use in the preparation thereof; therein, and will reimburse the Company for any legal or other expenses reasonably incurred by the Company and each Selling Stockholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth action as such expenses are incurred, it being understood and agreed that the only such information furnished by any Underwriter consists of the following information in this Section 6(bthe Prospectus furnished on behalf of each Underwriter: the concession and reallowance figures appearing in the fourth paragraph under the caption “Underwriting” and the information contained in the sixth paragraph (regarding sales to discretionary accounts), the sixteenth paragraph (regarding stabilization) shall be in addition to any liabilities that each Underwriter may otherwise haveand the seventeenth paragraph (regarding electronic distribution) under the caption “Underwriting. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the an indemnifying party under such subsectionsubsection (a), (b) or (c) above, notify the indemnifying party in writing of the commencement thereof; but the omission so failure to notify the indemnifying party shall not relieve it from any liability which that it may have under subsection (a), (b) or (c) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to any an indemnified party otherwise than under such subsectionsubsection (a), (b) or (c) above. In case any such action shall be is brought against any indemnified party, party and it shall notify the notifies an indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, andbe counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have Notwithstanding anything contained herein to the right contrary, if indemnity may be sought pursuant to employ its own counsel the last paragraph in any such action, but the fees, expenses and other charges Section 7(a) hereof in respect of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying partyaction or proceeding, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or then in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to such separate firm for the indemnified party) between the indemnified party and parties, the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of not more than one separate firm admitted (in addition to practice in such jurisdiction at any one time local counsel) for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable Designated Underwriter for any settlement the defense of any action or claim effected without its written consent (which consent will not be unreasonably withheld)losses, claims, damages and liabilities arising out of the Directed Share Program, and all persons, if any, who control the Designated Underwriter within the meaning of either Section 15 of the Act of Section 20 of the Exchange Act. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent (i) settlement includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction and (ii) does not include a statement as to, action or proceedingan admission of, fault, culpability or a failure to act by or on behalf of an indemnified party. (de) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a), (b) or (bc) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a), (b) or actions in respect thereof(c) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Selling Stockholders on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, Securities or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Selling Stockholders on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Selling Stockholders on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and the Selling Stockholders bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Company, the Selling Stockholders or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (de) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in is the subject of this subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereofe). Notwithstanding the provisions of this subsection (de), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and no Selling Stockholder shall be required to contribute any amount that, when added to any liability of such Selling Stockholder under subsection (b) above, exceeds the proceeds (net of underwriting discounts received and commissions but before deducting other expenses) applicable to the Offered Securities sold by itsuch Selling Stockholder pursuant to the transactions contemplated hereby. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.subsection

Appears in 1 contract

Sources: Underwriting Agreement (Blackboard Inc)

Indemnification and Contribution. (a) The Company will Each Issuer, jointly and severally, agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates Underwriter and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and their agents and affiliates against any losses, claims, damages or liabilities, joint or several, liabilities to which any Underwriter or such controlling person, agent or affiliate may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto; (ii) the omission or alleged omission to state, in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading; or (iii) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary in order to make the statements therein, not misleading, and will reimburse, as incurred, the Underwriters and each such controlling person, agent or affiliate for any legal or other expenses incurred by the Underwriters or such controlling person, agent or affiliate in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, the Issuers will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Underwriters furnished to the Issuers by the Underwriters through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of the Underwriters consists of the information as set forth Section 12 hereof. The indemnity provided for in this Section 9 will be in addition to any liability that any Issuer may otherwise have to the indemnified parties. Nothing in this Section 9(a) shall be deemed to impose on the Underwriters any informational delivery obligations in addition to those arising under applicable law. (b) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Issuers, their directors, their officers and each person, if any, who controls any Issuer within the meaning of Section 15 of the Securities Act against any losses, claims, damages or liabilities to which any Issuer or any such director, officer, agent, affiliate officer or controlling person may become subject, subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration StatementPreliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in the Preliminary Prospectus, any other Time of Sale Information, any Issuer Free Writing Prospectus or the Prospectus or any amendment or supplement thereto, or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, specifically for use therein, it being understood and agreed that the only such information furnished by or on behalf of the Underwriters consists of the information as set forth in the preparation thereofSection 12 hereof; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company any Issuer or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The indemnity agreement set forth provided for in this Section 6(b) shall 9 will be in addition to any liabilities liability that each Underwriter the Underwriters may otherwise havehave to the indemnified parties. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the Representatives in the case of paragraph (3a) a conflict of this Section 9 or potential conflict exists the relevant Issuer(s) in the case of paragraph (based on advice b) of counsel to this Section 9, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or partiesparty. All such fees, disbursements fees and other charges will expenses reimbursed pursuant to this paragraph (c) shall be reimbursed by the indemnifying party promptly as they are incurred. An After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected by such indemnified party without its the prior written consent of the indemnifying party (which consent will shall not be unreasonably withheld), unless such indemnified party waived in writing its rights under this Section 9, in which case the indemnified party may effect such a settlement without such consent. Notwithstanding the foregoing, no indemnifying party shall be liable under this Section 9 for any settlement of any claim or action effected without its prior written consent. No indemnifying party shall, without the prior written consent of each the indemnified party, settle effect any settlement or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)party, or indemnity could have been sought hereunder by such party, unless such settlementsettlement does not include any statement as to or an admission of fault, compromise culpability or consent includes an unconditional release failure to act by or on behalf of each any indemnified party from all liability arising or that may arise out of such claim, action or proceedingparty. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Issuers on the one hand and the Underwriters any Underwriter on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofsuch Underwriter. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company Issuers, on the one hand, or such Underwriter, on the Underwriters and other, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company Issuers and the Underwriters agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in the first sentence of this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Underwriter under this Agreement, less the aggregate amount of any damages that such Underwriter has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations ), each person, if any, who controls an Underwriter within the meaning of Section 15 of the Company under this Section 6 Securities Act shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, rights to each director, officer, agent and affiliate of an Underwritercontribution as the Underwriters, and to each director of any Issuer, each officer of any Issuer and each person, if any, who controls any Underwriter Issuer within the meaning of the Act; and the obligations Section 15 of the Underwriters under Securities Act shall have the same rights to contribution as such Issuer. The Underwriters’ obligations to contribute pursuant to this Section 6 shall be 9(d) are several in addition proportion to any liability which the their respective Underwriters may otherwise have purchase obligations and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Actnot joint.

Appears in 1 contract

Sources: Underwriting Agreement (Directv)

Indemnification and Contribution. (a) The Company will Each of AMS and the Trust Manager, jointly and severally, agrees to indemnify and hold harmless each UnderwriterUnderwriter and the Issuer Trustee, its directorspartners, officers, agents, affiliates directors and officers and each person, if any, who controls any such Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or controlling person the Issuer Trustee may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration Statement, Statement or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectusthe Prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or any related preliminary prospectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it such Underwriter or the Issuer Trustee in connection with investigating or defending against any such loss, claim, damage, liability or actionaction as such expenses are incurred; provided, however, that neither AMS nor the Company shall not Trust Manager will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission made in the Registration Statement, from any preliminary prospectus or the Prospectus or any of such amendment or supplement, documents in reliance upon and in conformity with written information furnished to AMS or the Company Trust Manager by you(i) any Underwriter through the Representative specifically for use therein, or it being understood and agreed that the only such information furnished by any Underwriter through youconsists of the information described as such in subsection (b) below or (ii) ABN AMRO Bank N.V., specifically for use information inclusion in the preparation thereof. The Prospectus under the heading “Description of the US$ Bonds – Fixed-Floating Rate Swap Provider and Currency Swap Provider”; and provided, further, that with respect to any untrue statement or alleged untrue statement in or omission or alleged omission from any preliminary prospectus the indemnity agreement set forth contained in this Section 6(aparagraph (a) shall not inure to the benefit of any Underwriter from whom the person asserting any such losses, claims, damages or liabilities purchased the US$ Bonds concerned, to the extent that a prospectus relating to such US$ Bonds was required to be delivered by such Underwriter under the Securities Act in addition connection with such purchase and any such loss, claim, damage or liability of such Underwriter results from the fact that there was not sent or given to any liabilities that such person, at or prior to the Company may otherwise havewritten confirmation of the sale of such US$ Bonds to such person, a copy of the Prospectus if the Trust Manager had previously furnished copies thereof to such Underwriter at least three Business Days prior to the written confirmation of the sale of the US$ Bonds. (b) Each Underwriter will severally and not jointly will indemnify and hold harmless AMS, the CompanyIssuer Trustee and the Trust Manager, its directorspartners, its directors and officers who sign the Registration Statement and each person, if any, who controls the Company such company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Securities Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person company may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the any Registration Statement, Statement or any amendment thereto, arise out of or are based upon the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; misleading or (ii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus or the Prospectus (Prospectus, or any amendment or supplement thereto), or any related preliminary prospectus, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company Trust Manager by you, or by any such Underwriter through you, the Representative specifically for use in the preparation thereof; therein, and will reimburse the Company for any legal or other expenses reasonably incurred by AMS, the Company Issuer Trustee or the Trust Manager in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth action as such expenses are incurred, it being understood and agreed that the only such information furnished by the Underwriters consists of the following information in this Section 6(bthe Prospectus furnished on behalf of the Underwriters by the Representative: under the caption “Plan of Distribution”, (i) shall be the concession and reallowance figures appearing in addition to any liabilities that each Underwriter may otherwise havethe table following the third paragraph and (ii) the seventh paragraph. (c) Promptly after receipt by an indemnified party under subsection this Section (ac) or (b) above of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionsubsection (a) or (b) above, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall will not relieve it from any liability which that it may have to any indemnified party otherwise than under such subsectionsubsection (a) or (b) above. In case any such action shall be is brought against any indemnified party, party and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, andbe counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto), and indemnity could have been sought hereunder by such indemnified party unless such settlement, compromise or consent settlement (i) includes an unconditional release of each such indemnified party from all liability arising or on any claims that may arise out are the subject matter of such claimaction and (ii) does not include a statement as to, action or proceedingan admission of, fault, culpability or a failure to act by or on behalf of an indemnified party. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinabove, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such the losses, claims, damages or liabilities referred to in subsection (a) or actions in respect thereof(b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company AMS Parties and the Issuer Trustee on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, US$ Bonds or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company AMS Parties and the Issuer Trustee on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company AMS Parties and the Issuer Trustee on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company AMS Parties and the Issuer Trustee bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company AMS Parties and the Issuer Trustee or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in that is the subject of this subsection (c) above if d). In addition, nothing in this Section 7 shall require the Indemnifying Party has assumed AMS Parties to indemnify and hold harmless ABN AMRO Bank N.V. from any losses, claims, damages or liabilities arising out of or based on information contained in or omitted from the defense information set forth in the Prospectus under the heading “Description of any such action in accordance with the provisions thereof)US$ Bonds – Fixed-Floating Rate Swap Provider and Currency Swap Provider”. Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received amount by itwhich the total price at which the US$ Bonds underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company AMS Parties and the Issuer Trustee under this Section 6 shall be in addition to any liability which the Company AMS Parties and the Issuer Trustee may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Securities Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the CompanyTrust Manager, to each officer of the Company AMS Parties or the Issuer Trustee who has signed the Registration Statement and to each person, if any, who controls the Company AMS Parties or the Issuer Trustee within the meaning of the Securities Act.

Appears in 1 contract

Sources: Underwriting Agreement (Australian Securitisation Management Pty LTD)

Indemnification and Contribution. (a) The Company will indemnify and hold harmless each UnderwriterPlacement Agent, each of its respective affiliates, and its respective directors, officers, agentsmanagers, affiliates members, employees, representatives and agents and each person, if any, who controls any Underwriter each Placement Agent within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Placement Agent Indemnified Parties”), from and against any and all losses, claims, damages or liabilities, joint expenses and damages (including any and all investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or severalproceeding or any claim asserted), to which such Underwriterthey, directoror any of them, officer, agent, affiliate or controlling person may become subject, subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages or liabilities (or actions in respect thereof) arise out of or are based upon on (iA) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, any preliminary prospectus, the Base Prospectus, the Pricing Prospectus, the Prospectus or any amendment or supplement thereto, including or any information deemed Issuer Free Writing Prospectus or any “issuer information” filed or required to be a part thereof filed pursuant to Rule 430B 433(d) under the Securities Act, or (B) the omission or alleged omission therefrom of to state in such document a material fact required to be stated therein in it or necessary to make the statements therein in it not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, misleading in the light of the circumstances under in which they were made, not misleadingin whole or in part, any inaccuracy in the representations and will reimburse each Underwriterwarranties of the Company contained herein, director, officer, agent, affiliate or controlling person for any legal failure of the Company to perform its obligations hereunder or other expenses reasonably incurred by it under law in connection with investigating or defending against such loss, claim, damage, liability or actionthe transactions contemplated hereby; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, liability, expense or damage or liability arises out from the sale of or the Shares to any Purchaser and is based upon on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information relating to the Placement Agents furnished in writing to the Company through the Representative by or alleged omission made on behalf of any Placement Agent expressly for inclusion in the Registration Statement, any preliminary prospectus prospectus, the Base Prospectus, the Pricing Prospectus, the Prospectus, or any Issuer Free Writing Prospectus. The Company acknowledges that the Placement Agents’ Information in the Pricing Prospectus and the Prospectus or any such amendment or supplement, constitutes the only information relating to the Placement Agents furnished in reliance upon and in conformity with written information furnished writing to the Company through the Representative by youor on behalf of any Placement Agent expressly for inclusion in the Registration Statement, any preliminary prospectus, the Base Prospectus, the Pricing Prospectus, the Prospectus, or by any Underwriter through you, specifically for use in the preparation thereofIssuer Free Writing Prospectus. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities liability that the Company may might otherwise have. (b) Each Underwriter Placement Agent, severally and not jointly jointly, will indemnify and hold harmless the Company, its directorseach director of the Company, its officers each officer of the Company who sign signs the Registration Statement Statement, and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange ActAct (collectively, against any the “Company Indemnified Parties”), to the same extent as the foregoing indemnity from the Company to the Placement Agent, as set forth in Section 8(a), but only insofar as losses, claims, liabilities, expenses or damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) on any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance on and in conformity with information relating to the Placement Agent furnished in writing to the Company through the Representative by or on behalf of any Placement Agent expressly for use in any preliminary prospectus, the Registration Statement, the Base Prospectus, any preliminary prospectus Prospectus Supplement, the Prospectus, or any Issuer Free Writing Prospectus. The Company acknowledges that the Placement Agents’ Information in the Prospectus or constitutes the only information relating to any such amendment or supplement, Placement Agent furnished in reliance upon and in conformity with written information furnished writing to the Company through the Representative by you, or by on behalf of any Underwriter through you, specifically Placement Agent expressly for use in any preliminary prospectus, the preparation thereof; and Registration Statement, the Base Prospectus, any Prospectus Supplement, the Prospectus, or any Issuer Free Writing Prospectus. This indemnity will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities liability that each Underwriter may the Placement Agents might otherwise have. (c) Promptly Any party that proposes to assert the right to be indemnified under this Section 8 shall, promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, action against such indemnified party shall, if in respect of which a claim in respect thereof is to be made against the an indemnifying party or parties under such subsectionthis Section 8, notify the each such indemnifying party in writing of the commencement thereof; of such action, enclosing with such notice a copy of all papers served, but the omission so to notify the such indemnifying party shall will not relieve it from any liability which that it may have to any indemnified party otherwise than under the foregoing provisions of this Section 8 unless, and only to the extent that, such subsectionomission results in the loss of substantive rights or defenses by the indemnifying party. In case If any such action shall be is brought against any indemnified party, party and it shall notify notifies the indemnifying party of the commencement thereofits commencement, the indemnifying party shall will be entitled to participate in and, to the extent that it shall wishelects by delivering written notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party, party similarly notified, to assume the defense thereofof the action, with counsel reasonably satisfactory to such the indemnified party, and, after . After notice from the indemnifying party to such the indemnified party of its election so to assume the defense thereofdefense, the indemnifying party shall will not be liable to such the indemnified party under such subsection for any legal or other expenses subsequently except as provided below and except for the reasonable costs of investigation incurred by such the indemnified party in connection with the defense thereof other than reasonable costs of investigationdefense. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party party, unless (1i) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2ii) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3iii) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iv) the indemnifying party has not in fact employed counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of an indemnified party. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheldwithheld or delayed). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 8 is applicable in accordance with its terms but for any reason is held to be unavailable under subsection (a) to or (b) above insufficient to a party that would have been hold harmless an indemnified party under subsection paragraphs (a) or ), (b) above and (“Indemnified Party”c) of this Section 8 in respect of any losses, claims, liabilities, expenses and damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyindemnified party, shall contribute to the amount paid or payable (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Placement Agents, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) by such Indemnified Party indemnified party as a result of such losses, claims, liabilities, expenses and damages or liabilities (or actions in respect thereof) in such proportion as is shall be appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Placement Agents, on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerationshand. The relative benefits received by the Company Company, on the one hand hand, and the Underwriters Placement Agents, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering Offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions Placement Fee received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed Placement Agents pursuant to Rule 424 under this Agreement. If, but only if, the Act allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in Section 2(a) hereofthe foregoing sentence but also the relative fault of the Company, on the one hand, and the Placement Agents, on the other hand, with respect to the statements or omissions that resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. The Such relative fault shall be determined by reference to, among other things, to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters Placement Agents, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters Placement Agents agree that it would not be just and equitable if contribution contributions pursuant to this subsection (dSection 8(d) were to be determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection (d)herein. The amount paid or payable by an Indemnified Party indemnified party as a result of the lossesloss claim, claimsliability, damages expense or liabilities (damage, or actions action in respect thereof) , referred to above in this subsection (dSection 8(d) shall be deemed to include include, for purposes of this Section 8(d), any legal or other expenses reasonably incurred by such Indemnified Party indemnified party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)claim. Notwithstanding the provisions of this subsection (dSection 8(d), in no Underwriter case shall the Placement Agents be required to contribute any amount in excess of the underwriting discounts Fee received by itthe Placement Agents pursuant to this Agreement. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to 8(d), any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, person who controls any Underwriter a party to this Agreement within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise Securities Act will have and shall extend, upon the same terms rights to contribution as that party, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and will have the same rights to contribution as the Company, subject in each personcase to the provisions hereof. Any party entitled to contribution, if anypromptly after receipt of notice of commencement of any action against any such party in respect of which a claim for contribution may be made under this Section 8(d), who controls will notify any such party or parties from whom contribution may be sought, but the Company within omission so to notify will not relieve the meaning party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 8(d). No party will be liable for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably withheld). The Placement Agents’ obligations to contribute as provided in this Section 8(d) are several in proportion to the amount of the ActPlacement Fee received by each of them and not joint.

Appears in 1 contract

Sources: Placement Agency Agreement (Electro Optical Sciences Inc /Ny)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriterthe Initial Purchasers, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter Initial Purchaser within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which any Initial Purchaser or such controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any Memorandum or any amendment or supplement thereto or any application or other document, or any amendment or supplement thereto, executed by the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Notes under the securities or "Blue Sky" laws thereof or filed with any securities association or securities exchange (each an "Application"); or (ii) the omission or alleged omission to state, in any Memorandum or any amendment or supplement thereto or any Application, a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse, as incurred, the Initial Purchasers and each such controlling person for any legal or other expenses incurred by the Initial Purchasers or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, the Company will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any Memorandum or any amendment or supplement thereto or any application in reliance upon and in conformity with written information concerning the Initial Purchasers furnished to the Company by the Initial Purchasers specifically for use therein; provided, further, that the foregoing indemnity with respect to the Preliminary Memorandum shall not inure to the benefit of any Initial Purchaser (or to the benefit of any person controlling such Initial Purchaser) from whom the person asserting any such losses, claims, damages or liabilities purchased Notes if such untrue statement or omission or alleged untrue statement or omission made in the Preliminary Memorandum is eliminated or remedied in the Final Memorandum (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto to such Initial Purchaser prior to confirmation of the sale of such Notes to such person by such Initial Purchaser) and a copy of the Final Memorandum as so amended or supplemented if the Company shall have furnished any amendments or supplements thereto to such Initial Purchaser prior to confirmation the sale of such Notes to such person by such Initial Purchaser) and a copy of the Final Memorandum (as so amended or supplemented) shall not have been furnished to such person at or prior to the written confirmation of the sale of such Notes to such person, unless such failure to deliver was a result of non-compliance by the Company with Section 5(a) or 5(c), and the claims asserted by such person do not include allegations of other untrue statements or omissions of material facts made in the Final Memorandum, which allegations are upheld in a final judgment. This indemnity agreement will be in addition to any liability that the Company may otherwise have to the indemnified parties. The Company shall not be liable under this Section 9 for any settlement of any claim or action effected without its prior written consent, which shall not be unreasonably withheld. (b) The Initial Purchasers agree to indemnify and hold harmless the Company, its directors, its officers and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, liabilities to which the Company or any such Underwriter, director, officer, agent, affiliate officer or controlling person may become subject, subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, any Memorandum or any amendment thereto, including or supplement thereto or any information deemed to be a part thereof pursuant to Rule 430B under the ActApplication, or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in any Memorandum or any amendment or supplement thereto or any Application, or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information concerning such Initial Purchaser, furnished to the Company by you, or by any Underwriter through you, the Initial Purchasers specifically for use in the preparation thereoftherein; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or actionaction in respect thereof. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter the Initial Purchasers may otherwise havehave to the indemnified parties. The Initial Purchasers shall not be liable under this Section 9 for any settlement of any claim or action effected without their consent, which shall not be unreasonably withheld. The Company shall not, without the prior written consent of the Initial Purchasers, effect any settlement or compromise of any pending or threatened proceeding in respect of which any Initial Purchaser is or could have been a party, or indemnity could have been sought hereunder by any Initial Purchaser, unless such settlement (A) includes an unconditional written release of the Initial Purchasers, in form and substance reasonably satisfactory to the Initial Purchasers, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to an admission of fault, culpability or failure to act by or on behalf of any Initial Purchaser. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (based on advice it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or more than one separate counsel (in addition to those available to local counsel) in any one action or separate but substantially similar actions in the indemnifying partysame jurisdiction arising out of the same general allegations or circumstances, designated by the Initial Purchasers in the case of paragraph (3a) a conflict of this Section 9 or potential conflict exists the Company in the case of paragraph (based on advice b) of counsel to this Section 9, representing the indemnified partyparties under such paragraph (a) between or paragraph (b), as the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right may be, who are parties to direct the defense of such action on behalf of the indemnified partyor actions) or (4ii) the indemnifying party has not authorized in fact employed counsel to assume writing the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that After such notice from the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such feesparty, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for the costs and expenses of any settlement of any such action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying by such indemnified party shall, without the prior written consent of each indemnified party, settle or compromise or the indemnifying party (which consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or shall not any indemnified party is a party theretobe unreasonably withheld), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that waived in writing its rights under this Section 9, in which case the indemnified party may arise out of effect such claim, action or proceedinga settlement without such consent. (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Notes or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters any Initial Purchaser on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofsuch Initial Purchaser. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand, or such Initial Purchaser on the Underwriters and other, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Company and the Underwriters Initial Purchasers agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in the first sentence of this subsection paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include Notwithstanding any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions provision of this subsection paragraph (d), no Underwriter Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Initial Purchaser under this Agreement, less the aggregate amount of any damages that such Initial Purchaser has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in For purposes of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter an Initial Purchaser within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20 of the Exchange Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as the Initial Purchasers, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company.

Appears in 1 contract

Sources: Purchase Agreement (FWT Inc)

Indemnification and Contribution. (a) The Company will Company, the Trust Depositor and the Trust, jointly and severally, shall indemnify and hold harmless each Underwriterthe Initial Purchaser (whether acting as Initial Purchaser or as placement agent with respect to any of the Notes), its directorsaffiliates, officers, agentsdirectors, affiliates employees, agents and each person, if any, who controls any Underwriter the Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and the affiliates of the Initial Purchaser from and against any lossesloss, claimsclaim, damages damage, liability or liabilitiesexpense, joint or several, and any action in respect thereof, to which such Underwriter, director, officer, agent, affiliate or controlling person any indemnified party may become subject, under the Securities Act or Exchange Act or otherwise, insofar as such lossesloss, claimsclaim, damages damage, liability, expense or liabilities (action arises out of, or actions in respect thereof) arise out of or are is based upon (i) upon, any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Final Memorandum (or any amendment or supplement thereto), including any information deemed to be a part thereof pursuant to Rule 430B under Additional Offering Materials, the ActTime of Sale Information or arises out of, or is based upon, (i) the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, made not misleading, (ii) in whole or in part, any inaccuracy in the representations and will warranties of the Company contained herein, or (iii) in whole or in part, any failure of the Company to perform its obligations hereunder or under law; and shall reimburse each Underwriter, director, officer, agent, affiliate or controlling person any such indemnified party for any legal or and other expenses reasonably incurred by it such indemnified party in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability liability, expense or action; provided, however, that the Company indemnifying parties shall not be liable to any such indemnified party in any such case to the extent that any such loss, claim, damage damage, liability, expense or liability action arises out of of, or is based upon an upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration StatementTime of Sale Information, any preliminary prospectus or the Prospectus Memorandum or any such amendment or supplement, Additional Offering Materials in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use on behalf of the Initial Purchaser referenced in the preparation thereof. The indemnity agreement set forth in last sentence of this Section 6(a) shall be in addition to any liabilities 8(a); provided, further, that the Company may otherwise have. (b) Each Underwriter severally and foregoing indemnity shall not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case inure to the extent, but only to benefit of any indemnified party from whom the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against person asserting any such loss, claim, damage, liability or actionexpense purchased the Notes which are the subject thereof if the indemnified party sold Notes to or placed Notes with the person alleging such loss, claim, damage or liability without sending or giving a copy of the Time of Sale Information at or prior to the confirmation of the sale of the Notes, if the Company shall have previously furnished copies thereof to such indemnified party and the loss, claim, damage or liability of such person results from an untrue statement or omission of a material fact contained in the Preliminary Memorandum which was corrected in the Time of Sale Information. The foregoing indemnity agreement set forth in this Section 6(b) shall be is in addition to any liabilities liability that each Underwriter the indemnifying parties may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionparty. In case any such action shall be brought against any indemnified party, and it shall notify The indemnifying parties acknowledge that the indemnifying party of statements set forth in the commencement thereof, Initial Purchaser Information (as defined herein) constitute the indemnifying party shall be entitled to participate in and, only written information furnished to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal Company by or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings specifically for inclusion in the same jurisdictionTime of Sale Information, be liable for any Memorandum or any Additional Offering Materials. “Initial Purchaser Information” shall mean the reasonable fees, disbursements information appearing in the Preliminary Memorandum and other charges the Final Memorandum under the caption: “Plan of more than one separate firm admitted Distribution” (but solely with respect to practice statements in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding second paragraph relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party theretoInitial Purchaser under such caption), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding. (d) If the indemnification provided for in this Section 6 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.

Appears in 1 contract

Sources: Note Purchase Agreement (Horizon Technology Finance Corp)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and Act, against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate Underwriter or such controlling person may become subjectsubject (including, without limitation, in its capacity as an Underwriter), under the Act, the Exchange Act or otherwise, insofar as such specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of the Company herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or , (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus, the Disclosure Package Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, [or (iv) any untrue statement or alleged untrue statement of any material fact contained in any audio or visual materials used in connection with the marketing of the Shares furnished by the Company, including without limitation, slides, videos, films and will tape recordings,] and agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus such Preliminary Prospectus or the Prospectus Prospectus, or any such amendment or supplementsupplement thereto, in reliance upon upon, and in conformity with with, written information relating to any Underwriter furnished (or not furnished in the case of an omission or alleged omission of information relating to any Underwriter) to the Company by yousuch Underwriter, directly or by any Underwriter through youthe Representatives, specifically for use in the preparation thereof. The This indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that which the Company may otherwise have. (b) Each Underwriter Underwriter, severally and not jointly will jointly, agrees to indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, such director, officer or controlling person Company may become subject, subject under the Act or otherwise, insofar as such specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of such Underwriter herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each the case of subparagraphs (ii) and (iii) of this Section 8(b) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished (or not furnished in the case of an omission or alleged omission of information relating to any Underwriter) to the Company by yousuch Underwriter, directly or by any Underwriter through youthe Representatives, specifically for use in the preparation thereof; , and will agrees to reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b8(b) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer of the Company who signed the Registration Statement and each director of the Company, and each person, if any, who controls the Company within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that each which such Underwriter may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the any indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; , but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under this Section 8 except to the extent that it has been prejudiced by such subsectionomission. In case any such action shall be is brought against any indemnified party, and it shall notify notified the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to those available to the indemnifying party, and that it is a conflict for the indemnified party or parties to be represented by such counsel, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its the indemnifying party's election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with appropriate local counsel) that there may be legal defenses available to it or other approved by the indemnifying party representing all the indemnified parties that under Section 8(a), 8(b), or 8(c) hereof who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel reasonably satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that the In no event shall any indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges in respect of more than one separate firm admitted to practice any amounts paid in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written unless the indemnifying party shall have approved the terms of such settlement; provided that such consent (which consent will shall not be unreasonably withheld)withheld or delayed. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on all claims that may arise out are the subject matter of such claim, action or proceeding. (d) If the In order to provide for just and equitable contribution in any action in which a claim for indemnification provided for in is made pursuant to this Section 6 8 but it is unavailable under subsection judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) or (b) above that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8 provides for indemnification in such case, all the parties hereto shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as is appropriate to reflect so that the relative benefits received Underwriters severally and not jointly are responsible pro rata for the portion represented by the Company on percentage that the one hand underwriting discount bears to the public offering price (less the underwriting discount), and the Underwriters on Company and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ are responsible for the other from the offering of the Bonds. Ifremaining portion, provided, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection that (ci) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the underwriting discounts received discount applicable to the Shares purchased by it. No such Underwriter exceeds the amount of damages which such Underwriter has otherwise been required to pay and (ii) no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations contribution agreement in this subsection (dSection 8(d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, extend upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriterconditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls or the Company within the meaning of the Act or the Exchange Act and each officer of the Company who signed the Registration Statement and each director of the Company. (e) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions of this Section 8, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 8 fairly allocate the risks in light of the ability of the parties to investigate the Company and its business in order to assure that adequate disclosure is made in the Registration Statement and Prospectus as required by the Act and the Exchange Act.

Appears in 1 contract

Sources: Underwriting Agreement (Mediabay Inc)

Indemnification and Contribution. (a) The In connection with any Registration Statement, the Company will and the Guarantors, jointly and severally, agree to indemnify and hold harmless each UnderwriterHolder of Securities covered thereby (including the Initial Purchasers and, its with respect to any Prospectus delivery as contemplated by Sections 2(e) and 4(h) hereof, each Exchanging Dealer) the directors, officers, agents, affiliates employees and agents of such Holder and each person, if any, person who controls any Underwriter such Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and Act, against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the such Registration StatementStatement as originally filed or in any amendment thereof, or in any preliminary Prospectus or Prospectus, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement in the case of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements thereinProspectus, in the light of the circumstances under which they were made, ) not misleading, and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, damage or liability (or actionaction in respect thereof); provided, however, that none of the Company shall not or the Guarantors will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company or the Guarantors by youor on behalf of any such indemnified party specifically for inclusion therein; provided further, however, that none of the Company or the Guarantors will be liable in any case with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary Prospectus or Prospectus, or by in any Underwriter through youamendment thereof or supplement thereto to the extent that any such loss, specifically for use claim, damage or liability (or action in respect thereof) resulted from the fact that any indemnified party sold Initial Securities or Exchange Securities to a person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus as then amended or supplemented, and if the untrue statement contained in or omission from such preliminary Prospectus or Prospectus was corrected in the preparation thereofProspectus as then amended or supplemented unless such failure is the result of noncompliance by the Company and the Guarantors with the provisions of Section 4(f) or 4(h) hereof. This indemnity agreement will be in addition to any liability that each of the Company and the Guarantors may otherwise have. The indemnity agreement set forth Company and the Guarantors, jointly and severally, also agree to indemnify or contribute to Losses of, as provided in Section 6(d) hereof, any underwriters of Securities registered under a Shelf Registration Statement, their employees, officers, directors and agents and each person who controls such underwriters on the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 6(a) shall be and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in addition to any liabilities that the Company may otherwise haveSection 4(s) hereof. (b) Each Underwriter Holder of Securities covered by a Registration Statement (including the Initial Purchasers and, with respect to any Prospectus delivery as contemplated by Sections 2(e) and 4(h) hereof, each Exchanging Dealer) severally and not jointly will agrees to indemnify and hold harmless (i) the CompanyCompany and the Guarantors, its directors(ii) each of the directors of the Company and the Guarantors, its (iii) each of the officers of the Company and the Guarantors who sign the signs such Registration Statement and (iv) each person, if any, Person who controls the Company or the Guarantors within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company and the Guarantors to each such Holder, but only with respect to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company or the Guarantors by you, or by any Underwriter through you, on behalf of such Holder specifically for use inclusion in the preparation thereof; and will reimburse documents referred to in the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities liability that each Underwriter any such Holder may otherwise have. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 6 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 6, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve the indemnifying party from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses, and (ii) will not, in any event, relieve the indemnifying party from any liability which it may have obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel (including local counsel) of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, 's choice at the indemnifying party's expense to assume represent the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from party in any action for which indemnification is sought (in which case the indemnifying party to such shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party of its election so or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to assume the defense thereof, the indemnified party. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent but, if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to such indemnify the indemnified party under from and against any loss or liability by reason of such subsection for any legal settlement or other expenses subsequently incurred by such judgment. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless (1and local counsel) if (i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or partiesparty. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements fees and other charges expenses of more than one separate firm admitted (in addition to practice in such jurisdiction at any one time local counsel) for all such indemnified party or parties. All parties and that all such fees, disbursements fees and other charges will expenses shall be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceeding. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 6 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of for any losses, claims, damages or liabilities (or actions in respect thereof) referred to thereinreason, then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyindemnified party, shall have a joint and several obligation to contribute to the amount paid or payable by such Indemnified Party as a result of such aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending the same) (collectively "Losses") to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company such indemnifying party, on the one hand hand, and the Underwriters such indemnified party, on the other hand, from the offering Initial Placement and the Registration Statement that resulted in such Losses; no Holder shall in any case be required to contribute any amount in excess of the Bondsamount by which the total price at which the Initial Securities were sold by such Holder exceeds the amount of damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such underwriter under the Registration Statement that resulted in such Losses. If, however, If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give indemnifying party and the notice required under subsection (c) above, then each Indemnifying Party indemnified party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company such indemnifying party, on the one hand hand, and the Underwriters such indemnified party, on the other hand, in connection with the statements or omissions which that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), Losses as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other Guarantor shall be deemed to be in the same proportion as equal to the total net proceeds from the offering Initial Placement (before deducting expenses) as set forth on the cover page of the Offering Memorandum. Benefits received by the Company bear Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Offering Memorandum, and benefits received by any other Holders shall be deemed to be equal to the value of receiving Initial Securities or Exchange Securities, as applicable, registered under the Securities Act. Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under forming a part of the Act referred to Registration Statement that resulted in Section 2(a) hereofsuch Losses. The relative Relative fault shall be determined by reference to, among other things, to whether the untrue or any alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied provided by the Company indemnifying party, on the one hand, or by the Underwriters and indemnified party, on the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionother hand. The Company and the Underwriters parties agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does that did not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations For purposes of this Section 6, each person who controls a Holder within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each person who controls the Company or any Guarantor within the meaning of either the Securities Act or the Exchange Act, each officer of the Company and the Guarantors who shall have signed the Registration Statement and each director of the Company and the Guarantors shall have the same rights to contribution as the Company and the Guarantors, subject in each case to the applicable terms and conditions of this subsection paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint). (e) The obligations provisions of the Company under this Section 6 shall be will remain in addition to full force and effect, regardless of any liability which the Company may otherwise have and shall extendinvestigation made by or on behalf of any Holder, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer the Guarantors or any of the Company who has signed officers, directors or controlling persons referred to in Section 6 hereof, and will survive the sale by a Holder of Securities covered by a Registration Statement and to each person, if any, who controls the Company within the meaning of the ActStatement.

Appears in 1 contract

Sources: Registration Rights Agreement (Dobson Communications Corp)

Indemnification and Contribution. (a) The Company will indemnify and the Operating Partnership, jointly and severally, agree to indemnify, defend and hold harmless each Underwriterthe Managers and their respective affiliates, its and their respective directors, officers, agents, affiliates employees and each person, if any, agents and any person who controls any Underwriter either of the Managers within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act Act, and the successors and assigns of all of the foregoing persons, from and against any lossesloss, claimsdamage, damages expense, liability or liabilitiesclaim (including the reasonable cost of investigation), joint as incurred, which, jointly or severalseverally, to which the Managers or any such Underwriter, director, officer, agent, affiliate or controlling person may become subject, incur under the Act Act, the Exchange Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, Statement (or in the Registration Statement as amended by any post effective amendment thereto, including thereof by the Company) or arises out of or is based upon any information deemed to be a part thereof pursuant to Rule 430B under the Act, or the omission or alleged omission therefrom of to state a material fact required to be stated therein or necessary to make the statements therein not misleading; , except insofar as any such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information furnished in writing by or on behalf of the Managers to the Company expressly for use in, the Registration Statement or arises out of or is based upon any omission or alleged omission to state a material fact in the Registration Statement in connection with such information, which material fact was not contained in such information and which material fact was required to be stated in such Registration Statement or was necessary to make such information not misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained included in any preliminary prospectus, the Disclosure Package or the Prospectus (the term Prospectus for the purpose of this Section 7 being deemed to include any Basic Prospectus, any Prospectus Supplement, any Prospectus and any amendments or any amendment or supplement theretosupplements to the foregoing), in any Permitted Free Writing Prospectus, in any “issuer information” (as defined in Rule 433 under the Act) of the Company or in any Prospectus together with any combination of one or more of the Permitted Free Writing Prospectuses, if any, or arises out of or is based upon any omission or alleged omission therefrom of to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriterexcept, directorwith respect to such Prospectus or Permitted Free Writing Prospectus, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that insofar as any such loss, claimdamage, damage expense, liability or liability claim arises out of or is based upon an any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information furnished in writing by or on behalf of the Managers to the Company expressly for use in, such Prospectus or Permitted Free Writing Prospectus or arises out of or is based upon any omission or alleged omission made to state a material fact in such Prospectus or Permitted Free Writing Prospectus in connection with such information, which material fact was not contained in such information and which material fact was necessary in order to make the statements in such information, in the Registration Statementlight of the circumstances under which they were made, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise havenot misleading. (b) Each Underwriter Manager agrees, severally and not jointly will indemnify jointly, to indemnify, defend and hold harmless the CompanyCompany and the Operating Partnership, its directorstheir respective directors and officers, its officers who sign the Registration Statement and each person, if any, any person who controls the Company and the Operating Partnership within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, and the successors and assigns of all of the foregoing persons, from and against any lossesloss, claimsdamage, damages expense, liability or liabilities to which claim (including the Companyreasonable cost of investigation) which, jointly or severally, the Company or any such director, officer or controlling person may become subject, incur under the Act Act, the Exchange Act, the common law or otherwise, insofar as such lossesloss, claimsdamage, damages expense, liability or liabilities (or actions in respect thereof) arise claim arises out of or are is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information furnished in writing by or on behalf of the Managers to the Company expressly for use in, the Registration Statement (or in the Registration StatementStatement as amended by any post effective amendment thereof by the Company), or arises out of or is based upon any amendment thereto, or the omission or alleged omission therefrom of to state a material fact in such Registration Statement in connection with such information, which material fact was not contained in such information and which material fact was required to be stated therein in such Registration Statement or was necessary to make the statements therein such information not misleading; , or (ii) any untrue statement or alleged untrue statement of a material fact contained in, and in any preliminary prospectus conformity with information furnished in writing by or on behalf of the Managers to the Company expressly for use in, the Prospectus (Supplement or any amendment or supplement thereto)a Permitted Free Writing Prospectus, or the arises out of or is based upon any omission or alleged omission therefrom of to state a material fact in the Prospectus Supplement or a Permitted Free Writing Prospectus in connection with such information, which material fact was not contained in such information and which material fact was necessary in order to make the statements thereinin such information, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have. (c) Promptly after receipt by If any action, suit or proceeding (each, a “Proceeding”) is brought against a person (an indemnified party under party”) in respect of which indemnity may be sought against the Company or the Managers (as applicable, the “indemnifying party”) pursuant to subsection (a) or (b) above ), respectively, of notice of the commencement of any actionthis Section 7, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under shall promptly notify such subsection, notify the indemnifying party in writing of the commencement thereofinstitution of such Proceeding and such indemnifying party shall assume the defense of such Proceeding, including the employment of counsel reasonably satisfactory to such indemnified party and payment of all fees and expenses; but provided, however, that the omission to so to notify the such indemnifying party shall not relieve it such indemnifying party from any liability which it such indemnifying party may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigationotherwise. The indemnified party will or parties shall have the right to employ its or their own counsel in any such actioncase, but the fees, fees and expenses and other charges of such counsel will shall be at the expense of such indemnified party or parties unless (1) the employment of such counsel by the indemnified party has shall have been authorized in writing by the indemnifying partyparty in connection with the defense of such Proceeding or the indemnifying party shall not have, (2) within a reasonable period of time in light of the circumstances, employed counsel to defend such Proceeding or such indemnified party has or parties shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that them which are different from from, additional to or in addition to conflict with those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the such indemnifying party (in which case the such indemnifying party will shall not have the right to direct the defense of such action Proceeding on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the ), in any of which events such fees and expenses shall be borne by such indemnifying party or parties and paid as incurred (it being understood, however, that such indemnifying party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, not be liable for the reasonable fees, disbursements and other charges expenses of more than one separate firm admitted counsel (in addition to practice any local counsel) in such jurisdiction at any one time for all Proceeding or series of related Proceedings in the same jurisdiction representing the indemnified parties who are parties to such indemnified party or partiesProceeding). All such fees, disbursements and other charges will be reimbursed by the The indemnifying party promptly as they are incurred. An indemnifying party will shall not be liable for any settlement of any action or claim Proceeding effected without its written consent but, if settled with its written consent, such indemnifying party agrees to indemnify and hold harmless the indemnified party or parties from and against any loss or liability, as incurred, by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second sentence of this Section 7(c), then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected without its written consent if (which consent will i) such settlement is entered into more than 60 business days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall not be unreasonably withheld)have fully reimbursed the indemnified party in accordance with such request prior to the date of such settlement, and (iii) such indemnified party shall have given the indemnifying party at least 30 days’ prior notice of its intention to settle. No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not Proceeding in respect of which any indemnified party is or could have been a party thereto)and indemnity could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on claims that may arise out are the subject matter of such claim, action Proceeding and does not include an admission of fault or proceedingculpability or a failure to act by or on behalf of such indemnified party. (d) If the indemnification provided for in this Section 6 7 is unavailable under subsection (a) or (b) above to a party that would have been an indemnified party under subsection subsections (a) or and (b) above (“Indemnified Party”) of this Section 7 or insufficient to hold an indemnified party harmless in respect of any losses, claimsdamages, damages expenses, liabilities or liabilities (or actions in respect thereof) claims referred to therein, then each party that would have been an applicable indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claimsdamages, damages expenses, liabilities or liabilities claims (or actions in respect thereofi) in such proportion as is appropriate to reflect the relative benefits received by the Company Company, on the one hand hand, and the Underwriters Managers, on the other hand, from the offering of the Bonds. IfShares, however, or (ii) if the allocation provided by the immediately preceding sentence clause (i) above is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such the relative benefits referred to in clause (i) above but also the relative fault of the Company Company, on the one hand hand, and of the Underwriters Managers, on the other other, in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities or claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company Company, on the one hand hand, and the Underwriters Managers, on the other other, shall be deemed to be in the same proportion respective proportions as the total net proceeds from the offering (net of underwriting discounts and commissions but before deducting expenses) received by the Company bear to Company, and the total underwriting discounts and commissions received by the UnderwritersManagers, in each case as set forth in bear to the table on the cover page aggregate public offering price of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofShares. The relative fault of the Company, on the one hand, and of the Managers, on the other, shall be determined by reference to, among other things, whether the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Underwriters Managers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities and claims referred to in this subsection shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with investigating, preparing to defend or defending any Proceeding. (e) The Company and the Underwriters Managers agree that it would not be just and equitable if contribution pursuant to this subsection (d) Section 7 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection (d)Section 7, no Underwriter the Managers shall not be required to contribute any amount in excess of the underwriting discounts commissions received by itit under this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (ef) The obligations Company and the Managers agree promptly to notify each other of the Company under commencement of any Proceeding against it and, in the case of the Company, against any of the Company’s officers or directors in connection with the issuance and sale of the Shares, or in connection with the Registration Statement, the Basic Prospectus, the Prospectus or any Permitted Free Writing Prospectus. (g) For purposes of this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend7, upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter or is controlled by or is under common control with either of the Managers within the meaning of the Act; and the obligations Section 15 of the Underwriters under this Act or Section 6 20 of the Exchange Act shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms rights to contribution as its respective Manager, and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement Statement, and to each person, if any, who controls or is controlled by or is under common control with the Company or the Operating Partnership within the meaning of Section 15 of the ActAct or Section 20 of the Exchange Act shall have the same rights to contribution or the Company or the Operating Partnership, as the case may be.

Appears in 1 contract

Sources: Equity Distribution Agreement (Duke Realty Corp)

Indemnification and Contribution. (a) The Company will and the Subsidiary Guarantors, jointly and severally, agree to indemnify and hold harmless each Underwriterthe Initial Purchaser, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter the Initial Purchaser within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which any Initial Purchaser or such controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any Circular or any amendment or supplement thereto; or (ii) the omission or alleged omission to state, in any Circular or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse, as incurred, the Initial Purchaser and each such controlling person for any legal or other expenses incurred by the Initial Purchaser or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action in respect thereof; provided, however, the Company and the Subsidiary Guarantors will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any Circular or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Initial Purchaser furnished to the Company or the Subsidiary Guarantors by the Initial Purchaser specifically for use therein. This indemnity agreement will be in addition to any liability that the Company or the Subsidiary Guarantors may otherwise have to the indemnified parties. Neither the Company nor the Subsidiary Guarantors shall be liable under this Section 9 for any settlement of any claim or action effected without their prior written consent, which shall not be unreasonably withheld. (b) The Initial Purchaser agrees to indemnify and hold harmless each of the Company, the Subsidiary Guarantors, their directors, their officers and each person, if any, who controls the Company or the Subsidiary Guarantors within the meaning of Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, liabilities to which the Company or the Subsidiary Guarantors or any such Underwriter, director, officer, agent, affiliate officer or controlling person may become subject, subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, any Circular or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or supplement thereto or (ii) the omission or the alleged omission therefrom of to state therein a material fact required to be stated therein in any Circular or any amendment or supplement thereto or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Disclosure Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each Underwriter, director, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by you, or by any Underwriter through you, specifically for use in the preparation thereof. The indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not no misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and an in conformity with written information concerning the Initial Purchaser, furnished to the Company by you, or by any Underwriter through you, the Initial Purchaser specifically for use in the preparation thereoftherein; and subject to the limitation set forth immediately preceding this clause, will reimburse the Company for reimburse, as incurred, any legal or other expenses reasonably incurred by the Company or the Subsidiary Guarantors or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that each Underwriter may otherwise have.such (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 9 of notice of the commencement of any actionaction for which such indemnified party is entitled to indemnification under this Section 9, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 9, notify the indemnifying party in writing of the commencement thereofthereof in writing; but the omission to so to notify the indemnifying party shall (i) will not relieve it from any liability which it may have under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party or substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraphs (a) and (b) above. In case any such action shall be is brought against any indemnified party, and it shall notify notifies the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall may wish, jointly with any other indemnifying party, party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereofthereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 9 for any legal or other expenses expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such actionthereof, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or shall have employed separate counsel in addition to those available accordance with the proviso to the indemnifying partyimmediately preceding sentence (it being understood, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and however, that in connection with such action the indemnifying party (in which case the indemnifying party will shall not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges expenses of more than one separate firm admitted counsel (in addition to practice local counsel) in such jurisdiction at any one time for all such indemnified party action or parties. All such feesseparate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances, disbursements and other charges will be reimbursed designated by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not any indemnified party is a party thereto), unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action or proceeding.Initial (d) If In circumstances in which the indemnification indemnity agreement provided for in the preceding paragraphs of this Section 6 9 is unavailable under subsection (a) to, or (b) above insufficient to a party that would have been hold harmless, an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein), then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shallparty, in lieu of indemnifying such Indemnified Partyorder to provide for just and equitable contribution, shall contribute to the amount paid or payable by such Indemnified Party indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other from the offering of the Bonds. If, however, Securities or (ii) if the allocation provided by the immediately preceding sentence foregoing clause (i) is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) abovelaw, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company indemnifying party or parties on the one hand and the Underwriters indemnified party on the other in connection with the statements or omissions which or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company and the Subsidiary Guarantors on the one hand and the Underwriters Initial Purchaser on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company and the Subsidiary Guarantors bear to the total underwriting discounts and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofInitial Purchaser. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and Subsidiary Guarantors on the one hand, or the Initial Purchaser on the other, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission. , and any other equitable considerations appropriate in the circumstances. (e) The Company Company, the Subsidiary Guarantors and the Underwriters Initial Purchaser agree that it would not be just and equitable if the amount of such contribution pursuant to this subsection (d) were determined by pro rata or per capita allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which that does not take into account of the equitable considerations referred to above in this subsection the first sentence of the immediately preceding paragraph (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d)paragraph 9, no Underwriter Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by the Initial Purchaser under this Agreement, less the aggregate amount of any damages that the Initial Purchaser has otherwise been required to contribute any amount in excess pay by reason of the underwriting discounts received by it. No untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection For purposes of the immediately preceding paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend), upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, who controls the Company within the meaning of the Act.the

Appears in 1 contract

Sources: Purchase Agreement (Packaged Ice Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its directors, officers, agents, affiliates and each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate or controlling person Underwriter may become subjectsubject (including, without limitation, in its capacity as an Underwriter or as a "qualified independent underwriter" within the meaning of Schedule E of the Bylaws of the NASD), under the Act, the Exchange Act or otherwise, insofar as such specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arise arising out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of the Company herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the ActIncorporated Document, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus, the Disclosure Package Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will agrees to reimburse each Underwriter, director, officer, agent, affiliate or controlling person Underwriter for any legal or other related expenses reasonably incurred by it in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage damage, liability or liability action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, such Preliminary Prospectus or the Prospectus, or any preliminary prospectus such amendment or supplement thereto, in reliance upon, and in conformity with, written information relating to any Underwriter furnished to the Company by such Underwriter, directly or through you, specifically for use in the preparation thereof and, provided further, that the indemnity agreement provided in this Section 8(a) with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any losses, claims, damages, liabilities or actions based upon any untrue statement or alleged untrue statement of material fact or omission or alleged omission to state therein a material fact purchased Shares, if a copy of the Prospectus in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected had not been sent or given to such person within the time required by the Act and the Rules and Regulations, unless such failure is the result of noncompliance by the Company with Section 4(d) hereof. The indemnity agreement in this Section 8(a) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities which the Company may otherwise have. (b) Each Selling Stockholder, severally and not jointly, agrees to indemnify and hold harmless each Underwriter against any losses, claims, damages or liabilities, joint or several, to which such Underwriter may become subject (including, without limitation, in its capacity as an Underwriter or as a "qualified independent underwriter" within the meaning of Schedule E or the Bylaws of the NASD) under the Act, the Exchange Act or otherwise, specifically including, but not limited to, losses, claims, damages or liabilities (or actions in respect thereof) arising out of or based upon (i) any breach of any representation, warranty, agreement or covenant of such Selling Stockholder herein contained, (ii) any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement or any amendment or supplement thereto, including any Incorporated Document, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any untrue statement or alleged untrue statement of any material fact contained in any Preliminary Prospectus or the Prospectus or any such amendment or supplementsupplement thereto, or the omission or alleged omission to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, in the case of subparagraphs (ii) and (iii) of this Section 8(b) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company or such Underwriter by yousuch Selling Stockholder, directly or by any Underwriter through yousuch Selling Stockholder's representatives, specifically for use in the preparation thereof, and agrees to reimburse each Underwriter for any legal or other related expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement provided in this Section 8(b) with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any losses, claims, damages, liabilities or actions based upon any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state therein a material fact purchased Shares, if a copy of the Prospectus in which such untrue statement or alleged untrue statement or omission or alleged omission was corrected had not been sent or given to such person within the time required by the Act and the Rules and Regulations, unless such failure is the result of noncompliance by the Company with Section 4(d) hereof. The indemnity agreement set forth in this Section 6(a8(b) shall be in addition extend upon the same terms and conditions to, and shall inure to any liabilities that the Company may otherwise have. (b) Each Underwriter severally and not jointly will indemnify and hold harmless the Companybenefit of, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act. This indemnity agreement shall be in addition to any liabilities which such Selling Stockholder may otherwise have. (c) Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company and each Selling Stockholder against any losses, claims, damages or liabilities liabilities, joint or several, to which the Company, Company or such director, officer or controlling person Selling Stockholder may become subject, subject under the Act or otherwise, insofar specifically including, but not limited to, losses, claims, damages or liabilities, in so far as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any breach of any representation, warranty, agreement or covenant of such Underwriter herein contained, (ii) any untrue statement or alleged untrue statement of a any material fact contained in the Registration Statement, Statement or any amendment or supplement thereto, including any Incorporated Document, or the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; , or (iiiii) any untrue statement or alleged untrue statement of a any material fact contained in any preliminary prospectus Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each the case of subparagraphs (ii) and (iii) of this Section 8(c) to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information furnished to the Company by yousuch Underwriter, directly or by any Underwriter through you, specifically for use in the preparation thereof; , and will agrees to reimburse the Company and each such Selling Stockholder for any legal or other expenses reasonably incurred by the Company and each such Selling Stockholder in connection with investigating or defending against any such loss, claim, damage, liability or action. The indemnity agreement set forth in this Section 6(b8(c) shall extend upon the same terms and conditions to, and shall inure to the benefit of, each officer of the Company who signed the Registration Statement and each director of the Company, each Selling Stockholder and each person, if any, who controls the Company or any Selling Stockholder within the meaning of the Act or the Exchange Act. This indemnity agreement shall be in addition to any liabilities that which each Underwriter may otherwise have. (cd) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the any indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; thereof but the omission so to notify the indemnifying party shall will not relieve it from any liability which it may have to any indemnified party otherwise than under such subsectionthis Section 8. In case any such action shall be is brought against any indemnified party, and it shall notify notified the indemnifying party of the commencement thereof, the indemnifying party shall will be entitled to participate in therein and, to the extent that it shall wish, jointly with any other indemnifying elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, andhowever, after that if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its the indemnifying party's election so to assume the defense thereofof such action and approval by the indemnified party of counsel, the indemnifying party shall will not be liable to such indemnified party under such subsection this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. The indemnified party will have the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2i) the indemnified party has reasonably concluded shall have employed separate counsel in accordance with the proviso to the next preceding sentence (based on advice it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (together with appropriate local counsel) that there may be legal defenses available to it or other approved by the indemnifying party representing all the indemnified parties that under Section 8(a), 8(b) or 8(c) hereof who are different from or in addition parties to those available to such action), (ii) the indemnifying party, (3) a conflict or potential conflict exists (based on advice of party shall not have employed counsel satisfactory to the indemnified party) between party to represent the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense within a reasonable time after notice of such action on behalf commencement of the indemnified party) action or (4iii) the indemnifying party has not in fact employed counsel to assume authorized the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges employment of counsel will be for the indemnified party at the expense of the indemnifying party or partiesparty. It is understood that the In no event shall any indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges in respect of more than one separate firm admitted to practice any amounts paid in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurred. An indemnifying party will not be liable for any settlement of any action or claim effected without its written unless the indemnifying party shall have approved the terms of such settlement; provided that such consent (which consent will shall not be unreasonably withheld). No indemnifying party shall, without the prior written consent of each the indemnified party, settle or compromise or consent to the entry effect any settlement of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by this Section 6 (whether or not in respect of which any indemnified party is or could have been a party thereto)and indemnification could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent settlement includes an unconditional release of each such indemnified party from all liability arising or on all claims that may arise out are the subject matter of such claim, action or proceeding. (de) If the In order to provide for just and equitable contribution in any action in which a claim for indemnification provided for in is made pursuant to this Section 6 8 but it is unavailable under subsection judicially determined (aby the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) or (b) above that such indemnification may not be enforced in such case notwithstanding the fact that this Section 8 provides for indemnification in such case, all the parties hereto shall contribute to a party that would have been an indemnified party under subsection (a) or (b) above (“Indemnified Party”) in respect of any the aggregate losses, claims, damages or liabilities to which they may be subject (or actions in respect thereof) referred to therein, then each party that would have been an indemnifying party thereunder (“Indemnifying Party”) shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereofafter contribution from others) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Bonds. Ifso that, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the Indemnified Party failed to give the notice required under subsection (c) above, then each Indemnifying Party shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions received by the Underwriters, in each case except as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a8(f) hereof. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or alleged omission to state a material fact relates to information supplied Underwriters severally and not jointly are responsible pro rata for the portion represented by the Company or percentage that the Underwriters underwriting discount bears to the initial public offering price, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree Selling Stockholders are responsible for the remaining portion, provided, however, that it would not be just and equitable if contribution pursuant to this subsection (di) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof). Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to contribute any amount in excess of the amount by which the underwriting discounts received discount applicable to the Shares purchased by it. No such Underwriter exceeds the amount of damages which such Underwriter has otherwise required to pay and (ii) no person guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was is not guilty of such fraudulent misrepresentation. The Underwriters’ obligations contribution agreement in this subsection (dSection 8(e) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations of the Company under this Section 6 shall be in addition to any liability which the Company may otherwise have and shall extend, extend upon the same terms and conditions, to each director, officer, agent and affiliate of an Underwriterconditions to, and shall inure to the benefit of, each person, if any, who controls any Underwriter Underwriter, the Company or any Selling Stockholder within the meaning of the Act; Act or the Exchange Act and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and each director of the Company. (f) The liability of each Selling Stockholder under the representations, warranties and agreements contained herein and under the indemnity agreements contained in the provisions of this Section 8 shall be limited to an amount equal to the initial public offering price of the Selling Stockholder Shares sold by such Selling Stockholder to the Underwriters minus the amount of the underwriting discount paid thereon to the Underwriters by such Selling Stockholder. The Company and such Selling Stockholders may agree, as among themselves and without limiting the rights of the Underwriters under this Agreement, as to the respective amounts of such liability for which they each personshall be responsible. (g) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, if anywithout limitation, who controls the provisions of this Section 8, and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 8 fairly allocate the risks in light of the ability of the parties to investigate the Company within and its business in order to assure that adequate disclosure is made in the meaning of Registration Statement and Prospectus as required by the Act and the Exchange Act.

Appears in 1 contract

Sources: Underwriting Agreement (Broadvision Inc)

Indemnification and Contribution. (a) The Company will agrees to indemnify and hold harmless each Underwriter, its the directors, officers, agentsemployees, affiliates and agents of each person, if any, Underwriter and each person who controls any Underwriter within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages or liabilities, joint or several, to which such Underwriter, director, officer, agent, affiliate they or controlling person any of them may become subject, subject under the Act, the Exchange Act or other U.S. Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or in any amendment thereof or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Act, or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) upon any untrue statement or alleged untrue statement of a material fact contained in the Base Prospectus, any Preliminary Prospectus or any other preliminary prospectusprospectus supplement relating to the Securities, the Disclosure Package or the Final Prospectus (or any Issuer Free Writing Prospectus, any information of the Company that the Company has filed or is required to file pursuant to Rule 433(d) under the Act, or in any amendment thereof or supplement thereto), or arise out of or are based upon the omission or alleged omission therefrom of to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, ; and will agrees to reimburse each Underwritersuch indemnified party, directoras incurred, officer, agent, affiliate or controlling person for any legal or other expenses reasonably incurred by it them in connection with investigating or defending against any such loss, claim, damage, liability or action; provided, however, that the Company shall will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an any such untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, therein in reliance upon and in conformity with written information furnished to the Company by you, or by on behalf of any Underwriter through you, the Representatives specifically for use in the preparation thereofinclusion therein. The This indemnity agreement set forth in this Section 6(a) shall will be in addition to any liabilities that liability which the Company may otherwise have. (b) Each Underwriter Underwriter, severally and not jointly will jointly, agrees to indemnify and hold harmless the Company, each of its directors, each of its officers who sign signs the Registration Statement Statement, and each person, if any, person who controls the Company within the meaning of either Section 15 of the Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities to which the Company, such director, officer or controlling person may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extentsame extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any preliminary prospectus or the Prospectus or any such amendment or supplement, in reliance upon and in conformity with written information relating to such Underwriter furnished to the Company by you, or by any on behalf of such Underwriter through you, the Representatives specifically for use inclusion in the preparation thereof; and will reimburse documents referred to in the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending against any such loss, claim, damage, liability or actionforegoing indemnity. The This indemnity agreement set forth in this Section 6(b) shall will be in addition to any liabilities that each liability which any Underwriter may otherwise have. The Company acknowledges that (i) the statements set forth in the last paragraph of the cover page regarding delivery of the Securities, and (ii) the following information under the heading “Underwriting”: (A) the second sentence of the third paragraph related to the Underwriters’ market making activities, (B) the first and second sentences of the fourth paragraph related to discounts, concessions and reallowances and (C) the sixth, seventh and eighth paragraphs related to over-allotment, stabilization, syndicate covering transactions and penalty bids in the Preliminary Prospectus and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus, or in any amendment thereof or supplement thereto. (c) Promptly after receipt by an indemnified party under subsection (a) or (b) above this Section 8 of notice of the commencement of any action, such indemnified party shallwill, if a claim in respect thereof is to be made against the indemnifying party under such subsectionthis Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission failure so to notify the indemnifying party shall (i) will not relieve it from liability under paragraph (a) or (b) above unless and only to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any liability which it may have event, relieve the indemnifying party from any obligations to any indemnified party otherwise other than under such subsectionthe indemnification obligation provided in paragraph (a) or (b) above. In case any such action shall be brought against any indemnified party, and it shall notify the indemnifying party of the commencement thereof, the The indemnifying party shall be entitled to participate in and, to appoint counsel of the extent that it shall wish, jointly with any other indemnifying party, similarly notified, to assume the defense thereof, with counsel satisfactory to such indemnified party, and, after notice from ’s choice at the indemnifying party party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such responsible for the fees and expenses of any separate counsel retained by the indemnified party under or parties except as set forth below); provided, however, that such subsection for any legal or other expenses subsequently incurred by such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in connection with an action, the defense thereof other than reasonable costs of investigation. The indemnified party will shall have the right to employ its own separate counsel in any such action(including local counsel), but and the indemnifying party shall bear the reasonable fees, costs and expenses and other charges of such separate counsel will be at the expense of such indemnified party unless if (1i) the employment use of counsel chosen by the indemnifying party to represent the indemnified party has been authorized in writing by the indemnifying partywould present such counsel with a conflict of interest, (2ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party has and the indemnifying party and the indemnified party shall have reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or and/or other indemnified parties that which are different from or in addition additional to those available to the indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4iii) the indemnifying party has shall not in fact have employed counsel satisfactory to assume the defense of such action indemnified party to represent the indemnified party within a reasonable time after receiving notice of the commencement institution of such action or (iv) the action, in each of which cases indemnifying party shall authorize the reasonable fees, disbursements and other charges of indemnified party to employ separate counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they are incurredparty. An indemnifying party will not be liable for any settlement of any action or claim effected without its written consent (which consent will not be unreasonably withheld). No indemnifying party shallnot, without the prior written consent of each the indemnified partyparties, settle or settle, compromise or consent to the entry of any judgment in with respect to any pending or threatened claim, action action, suit or proceeding relating to the matters contemplated by this Section 6 in respect of which indemnification or contribution may be sought hereunder (whether or not any the indemnified party is a party thereto), parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise out of such claim, action action, suit or proceeding. (d) If In the indemnification event that the indemnity provided for in this Section 6 is unavailable under subsection paragraph (a) or (b) above of this Section 8 is unavailable to a party that would have been or insufficient to hold harmless an indemnified party under subsection (a) or (b) above (“Indemnified Party”) for any reason, but is otherwise applicable in respect of any accordance with its terms, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages or and liabilities (including legal or actions other expenses reasonably incurred in respect thereofconnection with investigating or defending same) referred to therein, then each party that would have been an indemnifying party thereunder (collectively Indemnifying PartyLosses”) shall, in lieu to which the Company and one or more of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the Bonds. IfSecurities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is not permitted by applicable law or if unavailable for any reason, the Indemnified Party failed to give Company and the notice required under subsection (c) above, then each Indemnifying Party Underwriters severally shall contribute to such amount paid or payable by such Indemnified Party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company Company, on the one hand hand, and of the Underwriters Underwriters, on the other other, in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof)Losses, as well as any other relevant equitable considerations. The relative benefits Benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Company bear Underwriters shall be deemed to be equal to the total underwriting discounts and commissions received by the Underwriterscommissions, in each case as set forth in the table on the cover page of the Prospectus which is filed pursuant to Rule 424 under the Act referred to in Section 2(a) hereofFinal Prospectus. The relative Relative fault shall be determined by reference to, among other things, whether the any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied provided by the Company Company, on the one hand, or the Underwriters Underwriters, on the other, the intent of the parties and the parties’ their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim (which shall be limited as provided in subsection (c) above if the Indemnifying Party has assumed the defense of any such action in accordance with the provisions thereof)above. Notwithstanding the provisions of this subsection paragraph (d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts received by it. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective underwriting obligations and not joint. (e) The obligations For purposes of the Company under this Section 6 shall be in addition to any liability which 8, each person who controls an Underwriter within the Company may otherwise have meaning of either the Act or the Exchange Act and shall extend, upon the same terms and conditions, to each director, officer, employee, affiliate and agent and affiliate of an Underwriter shall have the same rights to contribution as such Underwriter, and to each person, if any, who controls any Underwriter within the meaning of the Act; and the obligations of the Underwriters under this Section 6 shall be in addition to any liability which the respective Underwriters may otherwise have and shall extend, upon the same terms and conditions, to each director of the Company, to each officer of the Company who has signed the Registration Statement and to each person, if any, person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

Appears in 1 contract

Sources: Underwriting Agreement (Oneok Inc /New/)