Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission. (b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus. (c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 4 contracts
Samples: Stockholders Agreement (Amneal Pharmaceuticals, Inc.), Business Combination Agreement (Impax Laboratories Inc), Business Combination Agreement (Impax Laboratories Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, (i) indemnify and hold harmlessharmless the Shareholder (but not, for the avoidance of doubt, any Shareholder Designee), the Shareholder Parent and each underwriter in any offering or cause to be indemnified and held harmlesssale of Registrable Shares, each Amneal Group Member and its and their respective officers, directors, employees Representatives and controlling Persons, if any, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims Prospectus (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement, in light of the circumstances in which they were made), not misleading, ; and each Amneal Group Member shall, and it hereby agrees to, (ii) reimburse the Company periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any such indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and documented in conformity with information furnished in writing to the Company by the Shareholder or any Representative of the Shareholder expressly for use therein, or if the Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Shareholder and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement.
(b) The Shareholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company and each underwriter in any offering or sale of Registrable Shares, and its and their respective Representatives and controlling Persons, if any, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of the circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member Shareholder or its any Representative of the Shareholder, expressly for use therein that is therein, or if the subject Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Shareholder and such Prospectus corrected such untrue statement or omissionalleged untrue statement or omission or alleged omission made in such Registration Statement; provided, however, that the liability of each Amneal Group Member the Shareholder hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member the Shareholder from the sale of Registrable Shareholder Shares sold by such Amneal Group Member the Shareholder pursuant to such registration statement Registration Statement or prospectusProspectus.
(c) Amneal Group The Shareholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a6.6(a) or Section 5.8(b6.6(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c6.6(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.6(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.6(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.7) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member the Shareholder shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member the Shareholder from the sale of Registrable Shareholder Shares sold by such Amneal Group Member the Shareholder pursuant to such registration statement Registration Statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Prospectus.
Appears in 4 contracts
Samples: Shareholder Agreement, Shareholder Agreement (Elan Corp PLC), Shareholder Agreement (Alkermes Plc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless each Holder of Registrable Securities, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, members, managers and controlling Personsagents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities, expenses and actions to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any registration statementamendment thereof, or the Disclosure Package, or any preliminary preliminary, final or final prospectus contained thereinsummary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement (in light of the circumstances under which they were made) not misleading, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability, expense or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or (ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 1(f)(ii) hereof. This indemnity clause will be in writing addition to any liability which the Company may otherwise have.
(b) Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by the Amneal Group Member applicable law, from and against any and all losses, claims, damages or its Representative expressly for use therein that is the liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of the or are based upon any untrue statement or omissionalleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein, including, without limitation, any notice and questionnaire; provided, however, that the liability of each Amneal Group Member hereunder total amount to be indemnified by such Holder pursuant to this Section 5(b) shall be limited to an amount equal to the dollar amount of the net proceeds (after deducting underwriters’ discounts and commissions) received by such Amneal Group Member from Holder in the sale of Registrable Shares sold by offering to which such Amneal Group Member pursuant Registration Statement, Disclosure Package, Prospectus or Holder Free Writing Prospectus relates. This indemnity clause will be in addition to any liability which any such registration statement or prospectusHolder may otherwise have.
(c) Amneal Group Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above except to the extent such action and such failure materially prejudices the indemnifying party; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying 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, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), but the indemnified party shall bear the reasonable fees, costs and expenses of such separate counsel unless (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would be inappropriate due to a conflict of interest in the reasonable judgment of the indemnified party; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the Company agree indemnifying party and the indemnified party shall have reasonably concluded that ifthere 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; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party in writing to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any reasonlocal counsel) for all indemnified parties unless the use of only one firm of attorneys would be inappropriate due to a conflict of interest in the reasonable judgment of the indemnified party. An indemnifying party shall not be liable under this Section 5 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 indemnification provisions contemplated indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to in writing by such indemnifying party, which consent shall not be unreasonably withheld or delayed. No 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 or compromise if 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 or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding, (ii) does not involve the imposition of equitable remedies or the imposition of any obligations on such indemnified party, and does not otherwise adversely affect such indemnified party, other than as a result of the imposition of financial obligations for which such indemnified party will be indemnified hereunder and (iii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in Section 5.8(a5(a) or Section 5.8(b5(b) are above is held by a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in with respect of to any Claims loss, claim, damage, liability, expense or action referred to thereinherein, then each applicable indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative benefits received from the offering of the Securities, as applicable, and relative fault of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handin connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative benefit received by the Company shall be deemed to be equal to the applicable offering total value received or proposed to be received (after deducting expenses) by the Company pursuant to the sale of securitiesSecurities in an offering, if any. The relative benefit received by the Holders shall be deemed to be equal to the total value received or proposed to be received (after deducting expenses) by the Holders of Securities in an offering, if any. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party on the one hand or by such the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(d) were to be determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them 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 preceding sentences of this Section 5.8(c5(d). The amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 5(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. No Notwithstanding the provisions of this Section 5(d), no Person guilty of fraud or 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 fraud or fraudulent misrepresentation. Notwithstanding For purposes of this Section 5, each Person who controls any Holder of Registrable Securities, agent or underwriter within the foregoingmeaning of either the Securities Act or the Exchange Act and each director, no Amneal Group Member officer, employee and agent of any such Holder, agent or underwriter shall be liable have the same rights to contribute any amount in excess contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act and each officer and director of the dollar amount equal Company shall have the same rights to contribution as the Company, subject in each case to the sum applicable terms and conditions of this Section 5(d).
(ie) the net proceeds received The provisions of this Section 5 will remain in full force and effect, regardless of any investigation made by such Amneal Group Member from the sale or on behalf of any Holder of Registrable Shares sold by such Amneal Group Member pursuant Securities or the Company or any of the officers, directors or controlling Persons referred to such registration statement or prospectusin this Section 5, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in and will survive the case transfer of fraud or willful misconduct)Registrable Securities.
Appears in 4 contracts
Samples: Registration Rights Agreement (KCG Holdings, Inc.), Merger Agreement (Knight Capital Group, Inc.), Merger Agreement (GETCO Holding Company, LLC)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member of the Stockholders and its respective officersControlling Persons, directorsif any, employees and controlling each underwriter and its Controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of-pocket fees of counselcounsel reasonably incurred) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically any such Amneal Group Member Stockholder or underwriter for any actual out-of-pocket legal or other actual out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member any Stockholder, any underwriter or on behalf of such Amneal Group Member by any Representative of the Amneal Group Membersuch Stockholder, expressly for use therein, or by such Stockholder’s failure to furnish the Company, upon request, with the information with respect to such Stockholder, or any underwriter or Representative of such Stockholder, or such Stockholder’s intended method of distribution, that is the subject of the untrue statement or omission.
(b) In Each of the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Stockholders shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and Controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Controlling Persons, if any, in any offering or sale of its Registrable Shares Securities by it against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Stockholder expressly for use therein that is therein, and (ii) reimburse the subject of Company for any actual out-of-pocket legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Each of the Stockholders and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a5.9(a) or Section 5.8(b5.9(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c5.9(c) is not permitted by applicable lawLaw, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.9(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.9(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.10) any actual out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 4 contracts
Samples: Stockholders’ Agreement (T-Mobile US, Inc.), Stockholders’ Agreement (T-Mobile US, Inc.), Business Combination Agreement (T-Mobile US, Inc.)
Indemnification; Contribution. (a) In the event of any Registrable Shares are included in a registration statement contemplated by this Agreementof any securities of the Company under the Securities Act, the Company shallwill, and it hereby agrees todoes, indemnify and hold harmlessharmless in the case of any registration statement filed pursuant to Section 2 or 3, or cause to be indemnified the holder of any Registrable Securities covered by such registration statement, its directors and held harmlessofficers, each Amneal Group Member officer and its respective officersdirector of each underwriter, directors, employees each other person who participates as an underwriter in the offering or sale of such securities and controlling Personseach other person, if any, in who controls such holder or any offering or sale such underwriter within the meaning of the Registrable Shares, Securities Act against any losses, claims, damages damages, liabilities and expenses, joint or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”)several, to which each such indemnified party holder or any such director or officer or participating or controlling person may become subjectsubject under the Securities Act or otherwise, insofar as such Claims losses, claims, damages, liabilities or expenses (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings or investigations in respect thereof, ) arise out of or are based upon an (x) any untrue statement or alleged untrue statement of a any material fact contained in any registration statementstatement under which such securities were registered under the Securities Act, or any preliminary or prospectus (unless, with respect to the indemnification of the officers and directors of each underwriter and each other person participating as an underwriter, any such statement is corrected in a subsequent prospectus and the underwriters are given the opportunity to circulate the corrected prospectus to all persons receiving the preliminary prospectus), final prospectus contained or summary prospectus included therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyy) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (z) any violation by the Company of any securities laws, and the Company will reimburse such holder and each Amneal Group Member shallsuch director, officer, participating person and it hereby agrees to, reimburse the Company controlling person for any legal or any other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, liability, action or proceeding; PROVIDED, HOWEVER, that the Company shall not be liable to any seller, director, officer, participating person or controlling person in each any such case only to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company in an instrument executed by or under the direction of such seller, director, officer, participating person or controlling person for use in the preparation thereof, which information was specifically stated to be for use in the registration statement, prospectus, offering circular or other document. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such seller or any such director, officer, participating person or controlling person and shall survive the transfer of such securities by such seller. The Company shall agree to provide for contribution relating to such indemnity as shall be reasonably requested by any seller of Registrable Securities or the underwriters.
(b) The Company may require, as a condition to including any Registrable Securities in any registration statement filed pursuant to Section 2(a), that the Company shall have received an undertaking satisfactory to it from the prospective sellers of such securities and their underwriters, to indemnify and hold harmless (in the same manner and to the same extent as set forth in subdivision (a) of this Section 6) the Company, each director of the Company, each officer of the Company who shall sign such registration statement and each other person, if any, who controls the Company within the meaning of the Securities Act, with respect to any statement in or omission from such registration statement, any preliminary prospectus, final prospectus or summary prospectus included therein, or any amendment or supplement thereto, but only if such statement or omission was made in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing through an instrument duly executed by the Amneal Group Member such sellers or its Representative expressly their underwriters specifically stating that it is for use therein that is in the subject preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement, and PROVIDED THAT (i) the untrue statement or omission; providedobligation to provide indemnification pursuant to this Section 6(b) shall be several, howeverand not joint and several, that among such sellers and (ii) the liability of each Amneal Group Member seller hereunder shall be limited to an amount the proportion of any such loss, claim, damage, liability or expense which is equal to the dollar amount proportion that the public offering price of the shares sold by such seller under such registration statement bears to the total public offering price of all securities sold thereunder, but not in any event to exceed the net proceeds received by such Amneal Group Member seller from the sale of Registrable Shares sold Securities covered by such Amneal Group Member pursuant to registration statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any such registration statement director, officer or prospectuscontrolling person and shall survive the transfer of such securities by such sellers.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of notice of the commencement of any Claims action or proceeding involving a claim referred to thereinin the preceding subdivisions of this Section 6, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of such action; PROVIDED, HOWEVER, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding subdivisions of this Section 6 except to the extent that the indemnifying party's liabilities and obligations under this Section 6 are increased as a result of such Claims in failure to give notice. In case any such proportion as action is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the brought against an indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference toentitled to participate in and to assume the defense thereof, among jointly with any other things, 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 such indemnifying party or by similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and . After notice from the parties’ relative intent, knowledge, access indemnifying party to information and opportunity such indemnified party of its election so to correct or prevent such statement or omission. If, howeverassume the defense thereof, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute not be liable to the amount paid or payable by such indemnified party for any legal or other expenses subsequently incurred by the indemnified party in such proportion connection with the defense thereof unless (i) the indemnifying party shall have failed to retain counsel for the indemnified party as is appropriate to reflect not only such relative faultsaforesaid, but also the relative benefits of (ii) the indemnifying party and the indemnified party, as well as party shall have mutually agreed to the retention of such counsel or (iii) representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other relevant equitable considerationsperson represented by such counsel in such proceeding or 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 (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the indemnified party). The parties hereto agree that it would not be just and equitable if contributions pursuant No indemnifying party will consent to this Section 5.8(c) were to be determined by pro rata allocation entry of any judgment or by enter into any other method of allocation settlement which does not take into account include as an unconditional term thereof the equitable considerations referred giving by the claimant or plaintiff to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party of a release from all liability in connection respect to such claim or litigation. The indemnifying party shall not be liable for any settlement of any proceeding effected without the written consent of such indemnifying party, such consent not to be unreasonably withheld or delayed, but if settled with investigating such consent or defending if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify each indemnified party from and against any loss or liability by reason of such action, proceeding settlement or claim. No Person guilty judgment.
(d) Indemnification similar to that specified in this Section 6 (with appropriate modifications) shall be given by the Company and each seller of fraudulent misrepresentation (within the meaning Registrable Securities with respect to any required registration or other qualification of Section 11(f) of such Registrable Securities under any federal or state law or regulation or governmental authority other than the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 4 contracts
Samples: Preferred Stock Purchase Agreement (GenuTec Business Solutions, Inc.), Preferred Stock Purchase Agreement (SeaView Mezzanine Fund L P), Note Purchase Agreement (Technology Investment Capital Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmlessharmless the Stockholder, or cause to be indemnified the Stockholder’s Subsidiaries and held harmless, each Amneal Group Member and its respective officers, directors, employees and their controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of-pocket fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member reimburse periodically the Stockholder and its Subsidiaries for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member the Stockholder, any of its Subsidiaries, any underwriter or on behalf of such Amneal Group Member by any Representative of the Amneal Group MemberStockholder, expressly for use therein, or by the Stockholder’s failure to furnish the Company, upon request, with the information with respect to the Stockholder or its Subsidiaries, or any underwriter or Representative of the Stockholder, or the Stockholder’s or its Subsidiary’s intended method of distribution, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member The Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative Stockholder expressly for use therein that is therein, and (ii) reimburse the subject of Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group The Stockholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a5.9(a) or Section 5.8(b5.9(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c5.9(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsfault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.9(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.9(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.10) any actual and documented out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 3 contracts
Samples: Stockholder's Agreement (Horton D R Inc /De/), Stockholder's Agreement (Forestar Group Inc.), Stockholder Agreement (Horton D R Inc /De/)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees toto the fullest extent permitted by law, indemnify and hold harmlessharmless each Holder of Registrable Securities, any Person who is or cause might be deemed to be indemnified a “controlling person” of the Company or any of its subsidiaries within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each such Person, a “Controlling Person”), their respective direct and held harmlessindirect general and limited partners, each Amneal Group Member and its respective officersadvisory board members, directors, employees officers, trustees, managers, members, employees, agents, Affiliates and controlling Personsshareholders, and each other Person, if any, in who acts on behalf of or controls any offering such Holder or sale Controlling Person (each of the Registrable Sharesforegoing, a “Covered Person”) against any losses, claims, damages actions, damages, liabilities and expenses, joint or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”)several, to which each such indemnified party Covered Person may become subjectsubject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, actions, damages, liabilities or actions or proceedings in respect thereof, expenses arise out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in or incorporated by reference in any registration statementRegistration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any preliminary or final prospectus contained therein, successor rule to Rule 405) or any amendment or supplement thereto, to or any document incorporated by reference thereinin the same, or arise out of or are based upon (ii) any omission or alleged omission to state therein of a material fact required to be stated therein in any such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements therein, made in light the same not misleading or (iii) any violation or alleged violation by the Company of the circumstances in which they were made, not misleading, and Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated under such federal or state securities laws applicable to the Company shalland relating to any action or inaction required of the Company in connection with any registration of securities. In addition, and it hereby agrees to, reimburse, upon request, the Company shall reimburse each such Amneal Group Member Covered Person for any legal or other out-of-pocket expenses reasonably incurred and documented by them such Covered Person in connection with investigating investigating, defending or defending settling any such Claims; providedloss, howeverclaim, that action, damage or liability. Notwithstanding the previous sentence, the Company shall not be so liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any loss, claim, action, damage, liability or expense arises out of or is based upon any such Claims untrue statement or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to or any document incorporated by reference in the same in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Covered Person expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. This indemnity shall be in addition to any liability the Company may otherwise have.
(b) In connection with any registration in which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus. Each Holder shall, to the fullest extent permitted by law, indemnify and hold harmless the Company, its directors and officers, employees, agents and any Person who is or might be deemed to be a Controlling Person against any losses, claims, actions, damages, liabilities and expenses, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act, any state blue sky securities laws, any equivalent non-U.S. securities laws or otherwise, insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon an (i) any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementthe Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule 405 under the Securities Act or any preliminary or final prospectus contained therein, successor rule to Rule 405) or any amendment of or supplement thereto, to the same or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein of a material fact required to be stated therein in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus or necessary to make the statements therein made in the same not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claimsbut, in the case of each case of clauses (i) and (ii), only to the extent that such untrue statement or alleged untrue statement statement, or omission or alleged omission was omission, is made in such Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus or any amendment or supplement to the same in reliance upon upon, and in conformity with the Required Amneal Group Member Information with, written information prepared and furnished to the Company in writing by the Amneal Group Member or its Representative such Holder expressly for use therein that in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus. In addition, such Holder shall reimburse the Company, its directors and officers, employees, agents and any Person who is the subject of the untrue statement or omission; providedmight be deemed to be a Controlling Person for any legal or other expenses reasonably incurred by them in connection with investigating, howeverdefending or settling any such loss, that the liability of each Amneal Group Member hereunder claim, action, damage or liability. The obligation to indemnify pursuant to this Section 11(b) shall be limited individual and several, not joint and several, for each participating Holder and shall be proportional to and shall not exceed an amount equal to the dollar amount of the net proceeds (after deducting Selling Expenses) actually received by such Amneal Group Member from Holder in the sale of Registrable Shares sold Securities to which such Registration Statement or Prospectus relates. The indemnity agreement contained in this Section 11(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, action or proceeding if such settlement is effected without the consent of such Holder. The Company and the Holders of the Registrable Securities hereby acknowledge and agree that, unless otherwise expressly agreed to in writing by such Amneal Group Member pursuant Holders, the only information furnished or to be furnished to the Company for use in any Registration Statement or Prospectus relating to the Registrable Securities or in any amendment, supplement or preliminary materials associated with the same are statements specifically relating to (a) the beneficial ownership of shares of Common Stock by such registration statement Holder and its Affiliates, (b) the name and address of such Holder and (c) any additional information about such Holder or prospectusthe plan of distribution (other than for an underwritten offering) required by law or regulation to be disclosed in any such document. This indemnity shall be in addition to any liability which such Holder may otherwise have.
(c) Amneal Group Any Person entitled to indemnification pursuant to this Agreement shall give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification. Notwithstanding the previous sentence, any failure or delay to so notify the indemnifying party shall not relieve the indemnifying party of its obligations under this Agreement, except to the extent that the indemnifying party is actually and materially prejudiced by reason of such failure or delay. In case a claim or an action that is subject or potentially subject to indemnification pursuant to this Agreement is brought against an indemnified party, the Company agree that ifindemnifying party shall be entitled to participate in and shall have the right, exercisable by giving written notice to the indemnified party as promptly as practicable after receipt of written notice from such indemnified party of such claim or action, to assume, at the indemnifying party’s expense, the defense of any such claim or action, with counsel reasonably acceptable to the indemnified party. Notwithstanding the previous sentence, any indemnified party shall continue to be entitled to participate in the defense of such claim or action, with counsel of its own choice, but the indemnifying party shall not be obligated to reimburse the indemnified party for any reasonfees, costs and expenses subsequently incurred by the indemnified party in connection with such defense unless (A) the indemnifying party has agreed in writing to pay such fees, costs and expenses, (B) the indemnifying party has failed to assume the defense of such claim or action within a reasonable time after receipt of notice of such claim or action, (C) having assumed the defense of such claim or action, the indemnifying party fails to employ counsel reasonably acceptable to the indemnified party or to pursue the defense of such claim or action in a reasonably vigorous manner, (D) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest or (E) the indemnified party has reasonably concluded that there may be one or more legal or equitable defenses available to it and/or other any other indemnified party which are different from or additional to those available to the indemnifying party. Subject to the foregoing sentence, no indemnifying party shall, in connection with any one claim or action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees, costs and expenses of more than one firm of attorneys (in addition to any local counsel) for all indemnified parties. The indemnifying party shall not have the right to settle a claim or action for which any indemnified party is entitled to indemnification provisions contemplated pursuant to this Agreement without the consent of the indemnified party, The indemnifying party shall not consent to the entry of any judgment or enter into or agree to any settlement relating to such claim or action unless such judgment or settlement does not impose any admission of wrongdoing or ongoing obligations on any indemnified party and includes as an unconditional term of such judgment or settlement the giving by Section 5.8(a) the claimant or Section 5.8(b) are unavailable plaintiff in such judgment or settlement to such indemnified party, in form and substance reasonably satisfactory to such indemnified party, of a full and final release from all liability in respect of such claim or action. The indemnifying party shall not be liable under this Agreement for any amount paid or payable or incurred pursuant to or are insufficient in connection with any judgment entered or settlement effected with the consent of an indemnified party unless the indemnifying party has also consented to hold harmless such judgment or settlement (such consent not to be unreasonably withheld, conditioned or delayed).
(d) If the indemnification provided for in this Section 11 is held by a court of competent jurisdiction to be unavailable to, or unenforceable by, an indemnified party in respect of any Claims loss, claim, action, damage, liability or expense referred to thereinin this Section 11, then each the applicable indemnifying party, in lieu of indemnifying such indemnified party under this Agreement, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims loss, claim, action, damage, liability or expense in such proportion as is appropriate to reflect the relative benefits received by the indemnified party and the indemnifying party. If the allocation provided by the preceding sentence is not permitted by applicable law, the indemnifying party shall contribute to such amount in such proportion as is appropriate to reflect not only the relative benefits referred to in the preceding sentence but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party or by such the indemnified party, and whether the violation of the Securities Act or any other federal or state securities law or rule or regulation promulgated under such federal or state securities law applicable to the Company, and, relating to any action or inaction required of the Company in connection with any registration of securities, whether such action or inaction was perpetrated by the indemnifying party or the indemnified party. The relative fault shall also be determined by reference to the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement statement, omission or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerationsviolation. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) Agreement were to be determined by pro rata allocation or by any other method of or allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c11(d). The In no event shall the amount paid or payable which a Holder of Registrable Securities may be obligated to contribute pursuant to this Section 11(d) exceed an amount equal to the net proceeds (after deducting Selling Expenses) actually received by an such Holder in the sale of Registrable Securities that gives rise to such obligation to contribute. No indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal guilty or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty liable of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) Act shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding .
(e) The provisions of this Section 11 shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any officer, director or controlling person of such indemnified party and shall survive the foregoing, no Amneal Group Member shall be liable to contribute Transfer of any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received Registrable Securities by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Holder.
Appears in 3 contracts
Samples: Registration Rights Agreement (Savers Value Village, Inc.), Registration Rights Agreement (Savers Value Village, Inc.), Registration Rights Agreement (CPG Newco LLC)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company The Corporation shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member harmless Gotham and its Controlled Affiliates, the Loan Bank and their respective directors, officers, employees and Controlling Persons, if any, and each underwriter, its partners, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counselattorneys' fees) (collectively, “Claims”), "CLAIMS") to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company Corporation as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company Corporation shall, and it hereby agrees to, reimbursereimburse periodically Gotham and its Controlled Affiliates, upon request, each the Loan Bank or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; providedPROVIDED, howeverHOWEVER, that the Company Corporation shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing Corporation by such Amneal Group Member Person or on behalf any underwriter or representative of such Amneal Group Member by any Representative of the Amneal Group Member, Person expressly for use therein, or by such Person's failure to furnish the Corporation, promptly upon request, with the information with respect to such Person, or any underwriter or representative of such Person, or such Person's intended method of distribution, that is the subject of the untrue statement or omissionomission or if the Corporation shall sustain the burden of proving that such Person or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Corporation had previously furnished copies thereof to Gotham, the Loan Bank or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In Each of Gotham, the event any Registrable Shares are included in applicable Founders and the Loan Bank shall separately (i.e., not on a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, joint or severable basis)
(i) indemnify and hold harmless the Company Corporation, its directors, officers, employees, Affiliates and Controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Controlling Persons, if any, in any offering or sale of its Registrable Shares Shares, against any Claims to which each such indemnified party may become subject, insofar as and only to the extent that such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing Corporation by Gotham, the Amneal Group Member applicable Founders or its Representative the Loan Bank, as the case may be, expressly for use therein that is therein, and (ii) reimburse the subject of Corporation for any legal or other out-of-pocket expenses reasonably incurred by the untrue statement Corporation in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 5.6(a) or Section 5.6(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 5.6(a) or Section 5.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to as sume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; PROVIDED, HOWEVER, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the Company indemnifying party shall be liable for any expenses therefor (including any such reasonable counsel's fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 5.6(a) or Section 5.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the indemnified party to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(d) Gotham, the applicable Founders, the Loan Bank and the Corporation agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 5.6(a) or Section 5.8(b5.6(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.6(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.6(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.6(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 3 contracts
Samples: Equityholders Agreement (Gotham Golf Corp), Equityholders Agreement (Gotham Golf Corp), Equityholders Agreement (Gotham Golf Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless each Holder of Registrable Securities, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, members, managers and controlling Personsagents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any registration statementamendment thereof, or the Disclosure Package, or any preliminary preliminary, final or final prospectus contained thereinsummary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or (ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 2(e)(ii) hereof. This indemnity agreement will be in writing addition to any liability which the Company may otherwise have.
(b) Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by the Amneal Group Member applicable law, from and against any and all losses, claims, damages or its Representative expressly for use therein that is the liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or omissionalleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the liability of each Amneal Group Member hereunder total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be limited to an amount equal to the dollar amount of the net proceeds (after deducting underwriters’ discounts and commissions) received by such Amneal Group Member from Holder in the sale of Registrable Shares sold by offering to which such Amneal Group Member pursuant to such registration statement Registration Statement or prospectusProspectus relates.
(c) Amneal Group Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and 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 other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein 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 (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the Company agree indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel 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 actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that ifthere 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; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any reasonlocal counsel) for all indemnified parties. An indemnifying party 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 indemnification provisions contemplated indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No 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 or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in Section 5.8(a8(a) or Section 5.8(b8(b) are above is unavailable to or are insufficient to hold harmless an indemnified party in respect of for any Claims referred to thereinreason, then each applicable indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative fault of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handin connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party on the one hand or by such the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c8(d) were to be determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them 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 preceding sentences of this Section 5.8(c8(d). The amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 8(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. No Notwithstanding the provisions of this Section 8(d), 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. For purposes of this Section 8, each Person who controls any Holder of Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Holder, agent or underwriter shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of either the Securities Act 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 Section 8(d). Notwithstanding the foregoing, no Amneal Group Member the total amount to be contributed by any Holder pursuant to this Section 8(d) shall be liable limited to contribute the net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates.
(e) The provisions of this Section 8 will remain in full force and effect, regardless of any amount in excess investigation made by or on behalf of any Holder of Registrable Securities or the Company or any of the dollar amount equal officers, directors or controlling Persons referred to in this Section 8 hereof, and will survive the transfer of Registrable Securities.
(f) To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 8 to the sum of fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such Amneal Group Member seller from the sale of such Registrable Shares sold by such Amneal Group Member Securities pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Shelf Registration.
Appears in 3 contracts
Samples: Registration Rights Agreement (Visteon Corp), Registration Rights Agreement (Ubs Ag), Registration Rights Agreement (Goldman Sachs Group Inc)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this Agreement, and subject to applicable law, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member and Holder of Registrable Securities (including its respective directors, officers, directors, employees and controlling Personsagents) so registered, if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "Exchange Act"), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation or alleged violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claims; registration, provided, however, that the Company shall will not be liable to such underwriter, Holder or controlling person to the extent that such loss, claim, damage, expense or liability arises from and is based on (A) an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information furnished in writing to the Company by such underwriter, Holder or controlling person expressly for use in such registration statement or (B) any Amneal Group Member (or its officerspreliminary prospectus, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage or are based upon liability results solely from an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementin, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out the omission of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein from, such preliminary prospectus which untrue statement or necessary to make omission was corrected in the statements therein not misleadingfinal prospectus, and each Amneal Group Member shall, and it hereby agrees to, reimburse if the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by shall sustain the Company in connection with investigating or defending any such Claims, in each case only burden of proving that a Holder sold Registrable Securities to the extent that person alleging such loss, claim, damage or liability without sending or giving, at or prior to the written confirmation of such sale, a copy of the final prospectus. With respect to such untrue statement or omission or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Holder expressly for use therein that is in such registration statement, such Holder will indemnify and hold harmless each underwriter, the subject Company (including its directors, officers, employees and agents), each other Holder of Registrable Securities (including its respective directors, officers, employees and agents) so registered, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; providedSection 20 of the Exchange Act, from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, that shall the liability of each Amneal Group Member hereunder shall be limited to an amount a Holder for indemnification under this Section 1.07(a) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the dollar amount proportion of the net total Registrable Securities sold under such registration statement which is being sold by such Holder or (ii) the proceeds received by such Amneal Group Member Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 1.07(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 1.07, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities in such proportion as is appropriate to reflect the relative fault of the indemnifying partyCompany, on the one hand, selling Holders and the indemnified partyunderwriters in connection with the statements or omissions which resulted in such losses, on the claims, damages, expenses or liabilities, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party the Company, the selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawHolders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c1.07(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of sentences. In no event, however, shall a Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 1.07(b) in excess of the Claims referred to above shall be deemed to include lesser of (subject i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which is being sold by such indemnified party in connection with investigating Holder or defending any (ii) the proceeds received by such action, proceeding or claimHolder from its sale of Registrable Securities under such registration statement. No Person person found 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute .
(c) The indemnification and contribution provided for in this Section 1.07 will remain in full force and effect regardless of any amount in excess investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)indemnified parties.
Appears in 3 contracts
Samples: Registration Rights Agreement (General Chemical Group Inc), Registration Rights Agreement (Equitable Life Assurance Society), Registration Rights Agreement (Network Fund Iii LTD)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, and it hereby ITC Investments agrees to, to indemnify and hold harmlessharmless each Shareholder holding Registrable Securities, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, shareholders, managers and controlling Personsagents of each such Shareholder and each Person who controls any such Shareholder within the meaning of either the Securities Act or the Exchange Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a registration statement as originally filed or in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, or any preliminary or final prospectus contained therein, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, that ITC Investments will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to ITC Investments by or on behalf of any such Shareholder specifically for inclusion therein including any notice and questionnaire, or (ii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 3.3(c). This indemnity agreement will be in addition to any liability which ITC Investments may otherwise have.
(b) Each Shareholder severally (and not jointly) agrees to indemnify and hold harmless ITC Investments and each of its Affiliates, directors, employees, shareholders, managers and agents and each Person who controls ITC Investments within the Company in writing meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by the Amneal Group Member applicable law, from and against any and all losses, claims, damages or its Representative expressly for use therein that is the liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or omissionalleged untrue statement of a material fact contained in a registration statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Shareholder Free Writing Prospectus, preliminary, final or summary prospectus included in any such registration statement, or in any amendment thereof or supplement thereto, 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 (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such registration statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Shareholder furnished to ITC Investments by or on behalf of such Shareholder specifically for inclusion therein; provided, however, that the liability of each Amneal Group Member hereunder total amount to be indemnified by such Shareholder pursuant to this Section 3.8(b) shall be limited to an amount equal to the dollar amount of the net proceeds (after deducting underwriters’ discounts and commissions and other reimbursable expenses) received by such Amneal Group Member from Shareholder in the sale of Registrable Shares sold by such Amneal Group Member pursuant offering to which such registration statement or prospectusprospectus relates.
(c) Amneal Group Promptly after receipt by an indemnified party under this Section 3.8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 3.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and 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 other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying 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, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the Company agree indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel 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 actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that ifthere 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; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any reasonlocal counsel) for all indemnified parties. An indemnifying party shall not be liable under this Section 3.8 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 indemnification provisions contemplated indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No 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 or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in Section 5.8(a3.8(a) or Section 5.8(b3.8(b) are above is unavailable to or are insufficient to hold harmless an indemnified party in respect of for any Claims referred to thereinreason, then each applicable indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including legal or payable by other expenses reasonably incurred in connection with investigating or defending same) to which such indemnified indemnifying party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative fault of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handhand in connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party on the one hand or by such the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c3.8(d) were to be determined by pro rata allocation (even if the Shareholders holding Registrable Securities or any agents or underwriters or all of them 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 preceding sentences of this Section 5.8(c3.8(d). The amount paid to or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 3.8(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. No Notwithstanding the provisions of this Section 3.8(d), 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. For purposes of this Section 3.8, each Person who controls any Shareholder holding Registrable Securities, agent or underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any such Shareholder, agent or underwriter shall have the same rights to contribution as such Shareholder, agent or underwriter, and each Person who controls ITC Investments within the meaning of either the Securities Act or the Exchange Act and each officer and director of ITC Investments shall have the same rights to contribution as ITC Investments, subject in each case to the applicable terms and conditions of this Section 3.8(d). Notwithstanding the foregoing, no Amneal Group Member the total amount to be contributed by any Shareholder pursuant to this Section 3.8(d) shall be liable limited to contribute the net proceeds (after deducting underwriters’ discounts and commissions and other reimbursable expenses) received by such Shareholder in the offering to which such registration statement or prospectus relates.
(e) The provisions of this Section 3.8 will remain in full force and effect, regardless of any amount in excess investigation made by or on behalf of any Shareholder holding Registrable Securities or ITC Investments or any of the dollar amount equal officers, directors or controlling Persons referred to in this Section 3.8, and will survive the transfer of Registrable Securities.
(f) To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 3.8 to the sum of fullest extent permitted by Applicable Law; provided, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount (after deducting underwriters’ discounts and commissions and other reimbursable expenses) of proceeds received by such Amneal Group Member seller from the sale of such Registrable Shares sold by such Amneal Group Member Securities pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Shelf Registration.
Appears in 3 contracts
Samples: Shareholders Agreement (Fortis Inc.), Shareholders’ Agreement (Fortis Inc.), Subscription Agreement
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by this AgreementSecurities or Takedown Offering pursuant to Section 2.01 or Section 2.02, the Company shallwill indemnify, and it hereby agrees to, indemnify defend and hold harmlessharmless Holder, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersAffiliates, directors, employees officers and controlling Persons, if any, in any offering or sale shareholders and each person who controls Holder within the meaning of either Section 15 of the Registrable Shares, against any losses, claims, damages Securities Act or liabilities in respect thereof and expenses (including reasonable fees Section 20 of counsel) the Exchange Act (collectively, the “ClaimsIndemnified Persons”), to which each such indemnified party may become subject, insofar as such Claims (including ) from and against any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an and all Losses caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, part of any Registration Statement or any preliminary or final prospectus contained thereinProspectus, or including any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them used in connection with investigating the Registrable Securities or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statementIssuer FWP, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a Prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall Company will not be limited required to an amount equal indemnify any Indemnified Person for any Losses resulting from any such untrue statement or omission if such untrue statement or omission was made in reliance on and in conformity with information with respect to any Indemnified Person furnished to the dollar amount Company in writing by, or at the direction of, Holder or any Indemnified Person expressly for use in such Registration Statement, Prospectus or Issuer FWP.
(b) In connection with any Registration Statement, Prospectus or Issuer FWP, each Holder, on a several but not joint and several basis, will indemnify, defend and hold harmless the Company, its directors, its officers and each person, if any, who controls the Company (within the meaning of either Section 15 of the net proceeds received Securities Act or Section 20 of the Exchange Act) from and against any and all Losses caused by any untrue or alleged untrue statement of material fact contained in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities or any Issuer FWP, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, in the light of the circumstances under which they were made) not misleading, but only with respect to information furnished to the Company in writing by, or at direction of, such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant Holder or any Indemnified Persons related to such registration statement Holder expressly for use in such Registration Statement, Prospectus or prospectusIssuer FWP.
(c) Amneal Group and the Company agree that ifIn case any claim, for action or proceeding (including any reason, the indemnification provisions contemplated by governmental investigation) is instituted involving any person in respect of which indemnity may be sought pursuant to Section 5.8(a2.08(a) or Section 5.8(b2.08(b), such person (the “Indemnified Party”) will promptly notify the person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall be entitled to participate therein and, to the extent it shall wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such counsel related to such claim, action or proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its obligations pursuant to this Agreement except to the extent such Indemnifying Party has been actually prejudiced by such failure or delay. In any such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party have mutually agreed to the retention of such counsel, (ii) the Indemnifying Party fails to assume the defense of the claim, action or proceeding within 15 Business Days following receipt of notice from the Indemnified Party, or (iii) the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party will not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties and that all such reasonable fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm will be designated in writing by the Indemnified Parties. The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any Loss by reason of such settlement or judgment. No Indemnifying Party will, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless (i) such settlement includes an unconditional release of such Indemnified Party from all liability in connection with such proceeding, (ii) such settlement includes no finding or admission of any violation of Law or any violation of the rights of any person by the Indemnified Party or any of its Affiliates as the result of such action, and (iii) the sole relief (if any) provided in such settlement is monetary damages that are reimbursed in full by the Indemnifying Party. No Indemnified Party will, without the prior written consent of the Indemnifying Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder.
(d) If the indemnification provided for in this Section 2.08 from the Indemnifying Party is unavailable to an Indemnified Party hereunder or are is insufficient to hold harmless an indemnified party in respect of any Claims Losses referred to thereinin this Section 2.08, then each the Indemnifying Party, in lieu of indemnifying party shall such Indemnified Party, will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party and Indemnified Party in connection with the actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of the Company, on the one hand, and the indemnified partyHolder, on the other, in connection with the statements or omissions that resulted in such Losses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the Losses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any reasonable legal or other out of pocket fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsconnection with any investigation, but also the relative benefits of the indemnifying party and the indemnified partyclaim, as well as any other relevant equitable considerations. action or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.08(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.08(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person person guilty of “fraudulent misrepresentation misrepresentation” (within the meaning of Section 11(f) of the Securities Act) shall will be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoingprovisions of this Section 2.08(e), no Amneal Group Member Holder shall not be liable required to contribute contribute, in the aggregate, any amount in excess of the dollar amount equal to the sum of (i) by which the net proceeds received by such Amneal Group Member Holder from the sale of the Registrable Shares sold Securities exceeds the amount of any damages which Holder has otherwise been required to pay by reason of such Amneal Group Member pursuant to such registration untrue or alleged untrue statement or prospectusomission or alleged omission.
(f) If indemnification is available under this Section 2.08, minus (ii) any amounts paid or payable by such Amneal Group Member the Indemnifying Party will indemnify each Indemnified Party pursuant to Section 5.8(b2.08(a) (except and 2.08(b) to the fullest extent permissible under applicable Law, without regard to the relative fault of said Indemnifying Party or Indemnified Party or any other equitable consideration provided for in Section 2.08(d) or Section 2.08(e). The obligations of the case of fraud or willful misconduct)Company under this Section 2.08 shall be in addition to any liability that the Company may otherwise have to any Indemnified Person.
Appears in 3 contracts
Samples: Stockholders Agreement (Asac Ii Lp), Stockholders Agreement (Activision Blizzard, Inc.), Stock Purchase Agreement (Activision Blizzard, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, (i) indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, Stockholder in any offering or sale of the Registrable Shares, and such Stockholder’s partners, members, managers and Affiliates (but not, for the avoidance of doubt, any Stockholder Designee in such person’s capacity as a Director of the Company) and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act from and against any and all losses, claims, damages damages, or liabilities liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and costs and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims Prospectus (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement, in the light of the circumstances in which they were made), not misleading, ; and (ii) reimburse periodically upon demand each Amneal Group Member shall, and it hereby agrees to, reimburse the Company indemnified party for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims; provided, however, that the Company shall not be liable to an indemnified party in any such case to the extent, and only to the extent, that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company about a Stockholder by such indemnified party expressly for use therein, or if the Stockholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to such Stockholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement.
(b) Each Stockholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless the Company in any offering or sale of Registrable Shares, each director of the Company, each officer of the Company who shall sign the applicable Registration Statement and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand each indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case to the extent, and only to the extent extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with the Required Amneal Group Member Information information about such Stockholder furnished in writing to the Company in writing by the Amneal Group Member or its Representative such Stockholder expressly for use therein that is therein, or if such Stockholder sold securities to the subject Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Stockholders a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or omissionalleged untrue statement or omission or alleged omission made in such Registration Statement; provided, however, that the aggregate liability of each Amneal Group Member hereunder a Stockholder under this Section 6.6 shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member Stockholder from the sale of Registrable Stockholder Shares sold by such Amneal Group Member Stockholder pursuant to such registration statement Registration Statement or prospectusProspectus in the transaction giving rise to such Claim.
(c) Amneal Group Each Stockholder, on the one hand, and the Company agree Company, on the other hand, agrees that if, for any reason, the indemnification provisions contemplated by Section 5.8(a6.6(a) or Section 5.8(b6.6(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c6.6(c) is not permitted by applicable lawLaw, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and a Stockholder on the other hand shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Stockholder with respect to its sale of Registrable Shares giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.6(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.6(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.7) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member Stockholder shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member Stockholder from the sale of Registrable Stockholder Shares sold by such Amneal Group Member Stockholder pursuant to such registration statement Registration Statement or prospectus, minus (ii) Prospectus in the transaction giving rise to such Claim less any amounts previously paid or payable by such Amneal Group Member Stockholder pursuant to Section 5.8(b6.6(b). The Stockholders obligations to contribute as provided in this Section 6.6(c) (except in the case of fraud or willful misconduct)are several and not joint.
Appears in 3 contracts
Samples: Stockholders Agreement (Avista Capital Partners GP, LLC), Stockholders Agreement (Angiodynamics Inc), Stockholders Agreement (Angiodynamics Inc)
Indemnification; Contribution. (a) In To the event any Registrable Shares are included in a registration statement contemplated fullest extent permitted by this Agreementapplicable law, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmlessharmless Sponsor Stockholder, each Amneal Group Member underwriter and its respective officersthe equityholders, controlling persons, directors, officers and employees and controlling Persons, if any, of each of the foregoing in any offering or sale of the Registrable SharesSecurities, including pursuant to Section 6.01, Section 6.02 or Section 6.05, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual and documented out-of-pocket fees of counsellegal counsel reasonably incurred) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse periodically each such Amneal Group Member indemnified Person for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statementRegistration Statement, or preliminary or final prospectusProspectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing (x) by such Amneal Group Member Sponsor Stockholder or on behalf of such Amneal Group Member by any Representative of the Amneal Group MemberSponsor Stockholder, expressly for use therein, it being understood and agreed that is the subject only such information furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the untrue statement information described as such in Section 6.13(b) or omission(y) by or on behalf of any underwriter expressly for use therein.
(b) In To the event any Registrable Shares are included in a registration statement contemplated fullest extent permitted by this Agreementapplicable law, each Amneal Group Member Sponsor Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and its other equityholders and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities by it against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information regarding Sponsor Stockholder furnished to the Company in writing by the Amneal Group Member Sponsor Stockholder or its any Representative of Sponsor Stockholder expressly for use therein therein, it being understood and agreed that is the subject only such information furnished by Sponsor Stockholder or any Representative of Sponsor Stockholder consists of the untrue statement number of shares of Common Stock owned by Sponsor Stockholder, the number of Registrable Securities proposed to be sold by Sponsor Stockholder, the name and address of Sponsor Stockholder and the method of distribution proposed by Sponsor Stockholder, and (ii) reimburse the Company for any actual and documented out-of-pocket legal or omissionother out-of-pocket expenses reasonably incurred by the Company in connection with investigating or defending any such Claim; provided, however, that the liability of each Amneal Group Member hereunder in no event shall be limited to any indemnity or reimbursement by Sponsor Stockholder under this Section 6.13(b) exceed an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from Sponsor Stockholder in respect of the sale of Registrable Shares sold by such Amneal Group Member pursuant Securities giving rise to such registration statement indemnification or prospectusreimbursement obligation.
(c) Amneal Group Sponsor Stockholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a6.13(a) or Section 5.8(b6.13(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party Indemnifying Party (as defined below) shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party Indemnifying Party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c6.13(c) is not permitted by applicable law, then each indemnifying party Indemnifying Party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.13(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.13(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.14) any actual and documented out-of- pocket legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 3 contracts
Samples: Stockholders Agreement (Amazon Holdco Inc.), Stockholders Agreement (Amazon Holdco Inc.), Stockholders Agreement (Amazon Holdco Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) the Holder, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Holder or underwriter (any of the persons referred to be indemnified in this clause (iii) being hereinafter referred to as a "controlling person") and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and controlling Persons, if any, in any offering or sale agents of the Registrable SharesHolder or underwriter or any controlling person (any person referred to in clause (i), (ii), (iii) or (iv) may hereinafter be referred to as an "indemnified Person"), to the fullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is the subject Holder 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, as amended or supplemented, if the Company shall have previously furnished copies thereof to the Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Blackout Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) The Holder agrees to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to the Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Holder from the sale or other disposition of Registrable Shares sold its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against the Holder, such Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling person shall have the rights and duties given to the Holder by Section 2.8(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.8 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party, on the one hand, Company and the indemnified partyHolder in connection with the statements or omissions which resulted in such losses, on the claims, damages, liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party the Company on the one hand and indemnified party of the Holder 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 such indemnifying party the Company or by such indemnified party, the Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.8(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party connection with investigating or defending any action or claim. The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holder agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c). The 2.8(c) the Holder (and its related indemnified Persons) shall not be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity, and contribution provisions contained in this Section 2.8 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 3 contracts
Samples: Registration Rights Agreement (Compost America Holding Co Inc), Registration Rights Agreement (Compost America Holding Co Inc), Registration Rights Agreement (Compost America Holding Co Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Investor and its respective partners, members, officers, directors, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of the Registrable Common Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages or liabilities, or actions or proceedings in respect thereof, including any amounts paid in settlement as provided herein (collectively, "Claims"), arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse each Participating Investor or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Participating Investor or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, underwriter expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Each Participating Investor shall, and hereby agrees to, to (1) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Common Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Participating Investor expressly for use therein that is therein, and (2) reimburse the subject of Company for any legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of the commencement of such action or proceeding, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation and does not subject the indemnified party to any material injunctive relief or other material equitable remedy.
(d) Each Participating Investor and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 4.7(a) or Section 5.8(b4.7(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to thereintherein (other than as a result of the provisos thereto), then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of and benefits derived by the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.94.7(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Shareholders Agreement (Arch Capital Group LTD), Shareholders Agreement (H&f Corp Investors Iv Bermuda LTD)
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
6.1. To the extent permitted by applicable law, the Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Selling Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Selling Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner, and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively a “Violation”):
(i) Any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) The omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case for any such loss, claim, damage, liability or expense to the extent that any such Claims arise it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, indemnified party expressly for use thereinin connection with such registration; provided, further, that the indemnity agreement contained in this Section 7 shall not apply to any underwriter to the extent that any such loss is the subject of the untrue statement based on or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise arises out of or are based upon an untrue statement or alleged untrue statement of a material fact fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if such underwriter was under an obligation to deliver such final prospectus and failed to do so. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders.
6.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or any preliminary threatened action, suit, proceeding or final prospectus contained thereininvestigation, or to which any amendment of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state laws, or any document incorporated by reference thereininsofar as such losses, or claims, damages, liabilities and expenses arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such ClaimsViolation, in each case to the extent (and only to the extent extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made Violation occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is the subject of the untrue statement or omissionin connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of each Amneal Group Member hereunder the relevant Selling Holder of Registrable Securities, which consent shall not be limited to an amount equal to unreasonably withheld, and (y) in no event shall the dollar amount of any indemnity under this Section 7.2 exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Holder.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 6.3. Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to an indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be unreasonably withheld.
6.4. If the indemnification required by this Section 7 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 7:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 7.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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.
6.5. Notwithstanding If indemnification is available under this Section 7, the foregoing, no Amneal Group Member indemnifying parties shall be liable indemnify each indemnified party to contribute the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party or indemnified party or any amount other equitable consideration referred to in excess Section 7.4.
6.6. The obligations of the dollar amount equal to Company and the sum of (i) the net proceeds received by such Amneal Group Member from the sale Selling Holders of Registrable Shares sold by such Amneal Group Member Securities under this Section 7 shall survive the completion of any offering of Registrable Securities pursuant to such a registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
Appears in 2 contracts
Samples: Registration Rights Agreement (Gleacher & Company, Inc.), Registration Rights Agreement (First Albany Companies Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Investor and its respective partners, members, officers, directors, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of the Registrable Common Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages or liabilities, or actions or proceedings in respect thereof, including any amounts paid in settlement as provided herein (collectively, "Claims"), arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse each Participating Investor or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Participating Investor or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, underwriter expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Each Participating Investor shall, and hereby agrees to, to (1) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Common Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Participating Investor expressly for use therein that is therein, and (2) reimburse the subject of Company for any legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of the commencement of such action or proceeding, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation and does not subject the indemnified party to any material injunctive relief or other material equitable remedy.
(d) Each Participating Investor and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 4.7(a) or Section 5.8(b4.7(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to thereintherein (other than as a result of the provisos thereto), then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of and benefits derived by the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.94.7(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding pro- ceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Shareholder Agreement (Arch Capital Group LTD), Shareholders Agreement (Arch Capital Group LTD)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, shall indemnify and hold harmlessharmless each Holder, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, officers and directors, employees and controlling Personseach person, if any, in any offering or sale who controls such Holder within the meaning of either Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act and any agents, representatives or advisers thereof against any all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable attorneys' fees and expenses and reasonable costs of counselinvestigation) (collectivelyincurred by such party pursuant to any actual or threatened action, “Claims”)suit, to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), proceeding or actions or proceedings in respect thereof, arise investigation arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, any Prospectus or any preliminary or final prospectus contained thereinProspectus, or any amendment or supplement thereto, or to any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were madeforegoing, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyii) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a Prospectus or a preliminary Prospectus, in light of the circumstances then existing) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse or (iii) any violation or alleged violation by the Company for of any legal United States federal, state or other out-of-pocket expenses reasonably incurred common law rule or regulation applicable to the Company and documented relating to action required of or inaction by the Company in connection with investigating or defending any such Claims, registration except in each case only insofar as the same arise out of or are based upon, any such untrue statement or omission made in reliance on and in conformity with written information with respect to a Holder furnished to the Company by such Holder or its counsel expressly for use therein. In connection with an Underwritten Offering, the Company shall indemnify the underwriters thereof, their officers, directors and agents and each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of each Holder. Notwithstanding the foregoing provisions of this Section 11(a), the Company shall not be liable to any Holder, any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls any such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), under this Section 11 for any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense that such arises out of an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with the Required Amneal Group Member Information furnished preliminary Prospectus if a Holder, or other Person on behalf of such Holder, failed to send or deliver a copy of a final Prospectus to the Company in writing by Person asserting the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal claim prior to the dollar amount written confirmation of the net proceeds received by such Amneal Group Member from the sale of the Registrable Shares sold Securities to such Person and such statement or omission was corrected in such final Prospectus and the Company had previously and timely furnished sufficient copies thereof to the Holders in accordance with this Agreement.
(b) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such Amneal Group Member indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Section 11 (provided that failure to give such registration statement notification shall not affect the obligations of the indemnifying party pursuant to this Section 11 except to the extent the indemnifying party shall have been materially prejudiced as a result of 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 therein and, to the extent that it shall wish, jointly with any other indemnifying 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, 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 this Section 11 for any legal expenses of other counsel or prospectusany other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, if (i) the indemnifying party shall not have employed counsel reasonably satisfactory to such indemnified party to take charge of the defense of such action within a reasonable time after notice of commencement of such action (so long as such failure to employ counsel is not the result of an unreasonable determination by such indemnified party that counsel selected pursuant to the immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not have demonstrated to the reasonable satisfaction of the indemnified party its ability to finance such defense, or (ii) the actual or potential defendants in, or targets of, any such action include both the indemnifying party and such indemnified party and such 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 which, if the indemnifying party and such indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such indemnified party, then such indemnified party shall have the right to employ separate counsel, in which case the fees and expenses of one counsel or firm of counsel (plus one local or regulatory counsel or firm of counsel) selected by a majority in interest of the indemnified parties shall be borne by the indemnifying party and the fees and expenses of all other counsel retained by the indemnified parties shall be paid by the indemnified parties. No indemnified party shall consent to entry of any judgment or enter into any settlement without the consent (which consent, in the case of an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably withheld) of each indemnifying party.
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by from the indemnifying party provided for in this Section 5.8(a) or Section 5.8(b) are 11 is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to therein, then each the indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions or omissions which resulted in such losses, on the one handclaims, damages, liabilities and the indemnified partyexpenses, on the as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 (in writing, in the case of a Holder) by, such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement action or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 11(b) hereof, any legal and other fees and expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerationsinvestigation or proceeding. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c11(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to above in this Section 11(c). Any underwriter's obligations in this Section 11(c) to contribute shall be several in proportion to the preceding sentences number of Registrable Securities underwritten by them and not joint. Notwithstanding the provisions of this Section 5.8(c11(c). The , no underwriter shall be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject amount by which the total price at which the Registrable Securities underwritten by it and distributed to the limitations set forth in Section 5.9) public were offered to the public exceeds the amount of any legal damages which such underwriter has otherwise been required to pay by reason of such untrue or other fees alleged untrue statement or expenses reasonably incurred by such indemnified party in connection with investigating omission or defending any such action, proceeding or claimalleged 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. Notwithstanding If indemnification is available under this Section 11, the foregoing, no Amneal Group Member indemnifying parties shall indemnify each indemnified party to the fullest extent provided in Section 11(a) hereof without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 11(c).
(d) The provisions of this Section 11 shall be liable in addition to contribute any amount liability which any party may have to any other party and shall survive any termination of this Agreement. The indemnification provided by this Section 11 shall survive the transfer of such Registrable Securities by the Holder and shall remain in excess full force and effect irrespective of the dollar amount equal to the sum any investigation made by or on behalf of (i) the net proceeds received by an indemnified party, so long as such Amneal Group Member from the sale indemnified party is not guilty of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement acting in a fraudulent, reckless or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)grossly negligent manner.
Appears in 2 contracts
Samples: Registration Rights Agreement (Wellchoice Inc), Registration Rights Agreement (Wellchoice Inc)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementArticle 4, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and its respective stockholders of any such partners), and directors, officers, directors, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a "Controlling Person"), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by such underwriter, Selling Holder or Controlling Person expressly for use in such registration statement. With respect to such untrue statement or omission or alleged untrue statement or omission made in the information furnished in writing to the Company by such Selling Holder expressly for use in such registration statement, such Selling Holder will indemnify and hold harmless each other underwriter, the Company (including its directors, officers, employees, shareholders and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or preliminary Section 20 of the Exchange Act, from and against any and all losses, claims, damages, expenses and liabilities, joint or final prospectusseveral, to which they, or amendment any of them, may become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state statutory law or regulation, in reliance upon and in conformity with the Required Amneal Group Member Information furnished at common law or otherwise to the Company same extent provided in writing the immediately preceding sentence. In no event, however, shall the liability of a Selling Holder for indemnification under this Section 4.7(a) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the proportion of the total securities sold under such registration statement which is being sold by such Amneal Group Member Selling Holder or on behalf (ii) the proceeds received by such Selling Holder from its sale of Registrable Securities under such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omissionregistration statement.
(b) In the event the Company, any Registrable Shares are included selling Holder or other person receives a complaint, claim or other notice of any liability or action, giving rise to a claim for indemnification under Section 4.7(a) above, the person claiming indemnification under such paragraph shall promptly notify the person against whom indemnification is sought of such complaint, notice, claim or action, and such indemnifying person shall have the right to investigate and defend any such loss, claim, damage, liability or action. No indemnifying person in a registration statement contemplated by this Agreementthe defense of any such claim or litigation, each Amneal Group Member shall, except with the consent of each indemnified person, 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 person of a release from all liability in respect of such claim or litigation. The person claiming indemnification shall have the right to employ separate counsel in any such action and hereby agrees to, indemnify to participate in the defense thereof but the fees and hold harmless expenses of such counsel shall not be at the Company and its officers, directors, employees and controlling Persons, if anyexpense of the person against whom indemnification is sought (unless the indemnifying party fails to promptly defend, in which case the fees and expenses of such separate counsel shall be borne by the person against whom indemnification is sought). In no event shall a person against whom indemnification is sought be obligated to indemnify any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company person for any legal settlement of any claim or other out-of-pocket expenses reasonably incurred and documented by action effected without the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusindemnifying person's prior written consent.
(c) Amneal Group and If the Company agree that if, indemnification provided for in Section 4.7(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 4.7, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawSelling Holders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c4.7(c) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 4.7(c) in excess of the Claims referred to above shall be deemed to include lesser of (subject i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which are being sold by such indemnified party in connection with investigating Selling Holder or defending any (ii) the proceeds received by such action, proceeding or claimSelling Holder from its sale of Registrable Securities under such registration statement. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(d) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 4.7 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.7 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal indemnified parties or any officer, director, employee, agent or controlling person of the indemnified parties.
(e) The indemnification provided by this Section 4.7 shall be a continuing right to indemnification and shall survive the sum of (i) the net proceeds received by such Amneal Group Member from the registration and sale of any Registrable Shares sold Securities by such Amneal Group Member pursuant any person entitled to such registration statement indemnification hereunder and the expiration or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case termination of fraud or willful misconduct)this Agreement.
Appears in 2 contracts
Samples: Stock Rights and Restrictions Agreement (Vermont Teddy Bear Co Inc), Stock Rights and Restrictions Agreement (Vermont Teddy Bear Co Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company EchoStar shall, and it hereby agrees to, indemnify and hold harmlessharmless the Investors and their respective directors, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, employees, Affiliates and controlling Persons, if any, and each underwriter, its partners, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company EchoStar as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, any “issuer free writing prospectus” as defined in Rule 433 under the Securities Act, any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company EchoStar shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically the Investors or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company EchoStar shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made (i) in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to EchoStar by the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Investors expressly for use therein, (ii) in any prospectus used after such time as EchoStar advised such Investor in writing that is the subject filing of a post-effective amendment or supplement thereto was required, other than such prospectus as so amended or supplemented or (iii) in any prospectus used after such time as the untrue statement or omissionobligation of EchoStar to keep such prospectus effective and current shall have expired.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member The Investors shall, and hereby agrees to, indemnify and hold harmless the Company EchoStar, its directors, officers, employees, Affiliates and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Investors as provided herein), or actions or proceedings in *** Certain confidential portions of this exhibit were omitted by means of redacting a portion of the text. Copies of the exhibit containing the redacted portions have been filed separately with the Securities and Exchange Commission subject to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act. respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing EchoStar by the Amneal Group Member or its Representative Investors expressly for use therein that is the subject therein, and periodically reimburse such indemnified Person for any legal or other out-of-pocket expenses reasonably incurred by such indemnified Person in connection with investigating or defending any such Claim.
(c) Promptly after receipt by an indemnified party under Section 4.4(a) or Section 4.4(b) of written notice of the untrue statement commencement of any action or omissionproceeding for which indemnification under Section 4.4(a) or Section 4.4(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission to so notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to promptly assume and control the defense of such action or proceeding; (ii) if such indemnified party who is a defendant in any action or proceeding that is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party that are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each Amneal Group Member hereunder jurisdiction) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such counsel’s reasonable fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel (and one local counsel per jurisdiction) for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received indemnified party, compromise or consent to entry of any judgment or enter into *** Certain confidential portions of this exhibit were omitted by such Amneal Group Member from means of redacting a portion of the sale text. Copies of Registrable Shares sold by such Amneal Group Member the exhibit containing the redacted portions have been filed separately with the Securities and Exchange Commission subject to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act. any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 4.4(a) or Section 4.4(b) (whether or not the indemnified party is an actual or potential party thereto), unless such registration compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the indemnified party to any material injunctive relief or other material equitable remedy and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal Group The Investors and the Company EchoStar agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 4.4(a) or Section 5.8(b4.4(b) of this Agreement are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable lawApplicable Law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c4.4(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c4.4(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.94.4(c) of this Agreement) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities ActAct or any successor provision thereof) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Investor Rights Agreement (EchoStar CORP), Investor Rights Agreement (DISH Network CORP)
Indemnification; Contribution. (a) In the event Incident to any registration of any Registrable Shares are included in a registration statement contemplated by Securities under the Securities Act pursuant to this Agreement, the Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and stockholders of any such partners), and directors, officers, employees, representatives and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or cause to be indemnified and held harmlessany of them, each Amneal Group Member and its respective officersmay become subject under the Securities Act, directorsthe Exchange Act or other federal or state statutory law or regulation, employees and controlling Personsat common law or otherwise, if any, in any offering or sale of the Registrable Shares, against any insofar as such losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement thereto, to such registration statement or any document incorporated by reference therein, prospectus) or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any (1) such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by or alleged omission made on behalf of such Holder in accordance with Section 4(b) of this Agreement for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (2) in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing case of a sale directly by such Amneal Group Member or Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided hereinHolder), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made contained in reliance upon a preliminary prospectus and corrected in conformity with a final or amended prospectus, and such Holder failed to deliver a copy of the Required Amneal Group Member Information final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any state securities laws. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by or on behalf of such Holder in writing by the Amneal Group Member or its Representative expressly accordance with Section 4(b) of this Agreement for use therein that is in such registration statement, such Holder, on a several and not joint basis, will indemnify and hold harmless the subject Company (including its directors, officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount Section 20 of the net proceeds received by such Amneal Group Member Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the sale same are incurred), to which they, or any of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement them, may become subject under the Securities Act, the Exchange Act or prospectusother federal or state statutory law or regulation, at common law or otherwise.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 5, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and the other Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company and indemnified party the Holders 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 such indemnifying party or by such indemnified party, on behalf of the Company or the Holders and the partiesParties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement or omissioninformation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimparagraph. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 5 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal indemnified parties or any officer, director, employee, agent or controlling person of the indemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party that proposes to assert the right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such party in respect of which a claim is to be made against an indemnifying party under this Section 5 notify the indemnifying party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability that the indemnifying party may have to any indemnified party under the foregoing provisions of this Section 5 unless, and only to the sum extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. The indemnified party will have the right to retain its own counsel in any such action if (i) the net proceeds received employment of counsel by such Amneal Group Member from the sale of Registrable Shares sold indemnified party has been authorized by such Amneal Group Member pursuant to such registration statement or prospectusthe indemnifying party, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except the indemnified party’s counsel, with the concurrence of indemnifying party’s counsel, shall have reasonably concluded that there is a substantial likelihood of a conflict of interest between the indemnifying party and the indemnified party in the case conduct of fraud the defense of such action or willful misconduct)(iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified party’s separate counsel shall be at the expense of the indemnifying party; provided, however, that the indemnified party shall agree to repay any expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified party has reasonably concluded that no conflict of interest exists, the indemnifying party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified party.
(d) In the event of an underwritten offering of Registrable Securities under this Agreement, the Company and the Holders shall enter into standard indemnification and underwriting agreements with the underwriter thereof. To the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the provisions of this Section 5, the provisions in the underwriting agreement shall control.
(e) The obligation of the Company and Holders under this Section 5 shall survive the completion of any offering of Registrable Securities in a registration statement under Section 2, and otherwise.
Appears in 2 contracts
Samples: Registration Rights Agreement (Aptevo Therapeutics Inc.), Class a Stockholders’ Registration Rights Agreement (Emergent BioSolutions Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each holder and each affiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in under any offering Blue Sky Law or sale of the Registrable Shares, regulation against any losses, claims, damages damages, or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party holder may become subjectsubject under the Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages, or liabilities (or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement, or any preliminary or final prospectus contained thereinprospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and will reimburse each Amneal Group Member shall, such holder and it hereby agrees to, reimburse the Company affiliate for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such holder in connection with investigating or defending any such Claimsaction or claim regardless of the negligence of any such holder or affiliate; 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, registration statement or prospectus, or any such amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by any such holder expressly for use therein.
(b) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any losses, claims, damages, or liabilities 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 an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, 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, 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 any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such holder expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectustherein.
(c) Amneal Group Promptly after receipt by an indemnified party under Sections 8(a) or (b) above 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 either 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 that it may otherwise have to any indemnified party. 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 assume the defense thereof by notice in writing to the indemnified party. After notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under either of such subsections for any legal expenses of other counsel or any other expense, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party, unless such expenses have been specifically authorized in writing by the indemnifying party, the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the Company agree indemnifying party, as appropriate, and such indemnified party has been advised by counsel that ifthe representation of such indemnified party and the indemnifying party by the same counsel would be inappropriate due to actual or potential differing interests between them, in each of which cases the fees of counsel for any reason, the indemnified party will be paid by the indemnifying party.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) 8 is unavailable or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any Claims losses, claims, damages, or liabilities (or action in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims 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 holder or holders from this Agreement and from the offering of the shares of Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, 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 indemnifying party, on the one hand, Company and the indemnified partyholders in connection with the statement or omissions that resulted in such losses, on the claims, damages, or liabilities (or actions in respect thereof), as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company or by such indemnified party, the holder and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c8(d) were to be determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation which that does not take into account the equitable considerations referred to above in the preceding sentences of this Section 5.8(csubsection (e). The Except as provided in Section 8(c), the amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 8(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating investigation or defending any such action, proceeding action or claim. 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. Notwithstanding any provision in this Section 8(d) to the foregoingcontrary, no Amneal Group Member holder shall be liable to contribute for any amount amount, in the aggregate, in excess of the dollar amount equal to the sum of (i) the net proceeds received by to such Amneal Group Member holder from the sale of Registrable Shares sold by such Amneal Group Member pursuant holder's shares (obtained upon exercise of Warrants) giving rise to such registration statement losses, claims, damages, or prospectusliabilities.
(e) The obligations of the Company under this Section 8 shall be in addition to any liability that the Company may otherwise have and shall extend, minus (ii) upon the same terms and conditions, to each person, if any, who controls any amounts paid or payable by holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 8 shall be in addition to any liability that such Amneal Group Member pursuant holders may otherwise have and shall extend, upon the same terms and conditions to Section 5.8(b) (except in each person, if any, who controls the case Company within the meaning of fraud or willful misconduct)the Act.
Appears in 2 contracts
Samples: Warrant Agreement (Horizon Pharmacies Inc), Warrant Agreement (Lorecom Technologies Inc)
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
7.1. To the extent permitted by applicable law, the Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Selling Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Selling Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner, and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively a “Violation”):
(i) Any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) The omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case for any such loss, claim, damage, liability or expense to the extent that any such Claims arise it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, indemnified party expressly for use thereinin connection with such registration; provided, further, that the indemnity agreement contained in this Section 7 shall not apply to any underwriter to the extent that any such loss is the subject of the untrue statement based on or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise arises out of or are based upon an untrue statement or alleged untrue statement of a material fact fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if such underwriter was under an obligation to deliver such final prospectus and failed to do so. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders.
7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or any preliminary threatened action, suit, proceeding or final prospectus contained thereininvestigation, or to which any amendment of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state laws, or any document incorporated by reference thereininsofar as such losses, or claims, damages, liabilities and expenses arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such ClaimsViolation, in each case to the extent (and only to the extent extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made Violation occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is the subject of the untrue statement or omissionin connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of each Amneal Group Member hereunder the relevant Selling Holder of Registrable Securities, which consent shall not be limited to an amount equal to unreasonably withheld, and (y) in no event shall the dollar amount of any indemnity under this Section 7.2 exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Holder.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 7.3. Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to an indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be unreasonably withheld.
7.4. If the indemnification required by this Section 7 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 7:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 7.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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.
7.5. Notwithstanding If indemnification is available under this Section 7, the foregoing, no Amneal Group Member indemnifying parties shall be liable indemnify each indemnified party to contribute the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party or indemnified party or any amount other equitable consideration referred to in excess Section 7.4.
7.6. The obligations of the dollar amount equal to Company and the sum of (i) the net proceeds received by such Amneal Group Member from the sale Selling Holders of Registrable Shares sold by such Amneal Group Member Securities under this Section 7 shall survive the completion of any offering of Registrable Securities pursuant to such a registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
Appears in 2 contracts
Samples: Investment Agreement (Gleacher & Company, Inc.), Investment Agreement (First Albany Companies Inc)
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by Securities pursuant to this AgreementArticle III, the Company shall, and it hereby Parent agrees to, to indemnify and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by Law, each Amneal Group Member of the Investors and their respective Affiliates, the Investors’ Representative and each of its respective Affiliates, and each Person who controls an Investor or the Investors’ Representative within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and the directors, officers, directorsemployees, employees partners, affiliates, members, managers, trustees, shareholders, assignees and controlling Persons, if any, in any offering or sale representatives of each of the Registrable Sharesforegoing (collectively, the “Indemnified Persons”) from and against any and all losses, claims, damages or liabilities in respect thereof damages, liabilities, judgments, actions and expenses (including reasonable attorneys’ fees of counseland other expenses actually incurred by them in connection with investigating, defending or settling any such losses, claims, damages, liabilities, actions or proceedings) (collectively, “ClaimsLosses”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), ) joint or actions or proceedings in respect thereof, arise several arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementpart of any Registration Statement, or any preliminary or final prospectus contained thereinor other disclosure document used in connection with the Registrable Securities, any Issuer FWP or any amendment or supplement theretoto any of the foregoing, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 misleadingmisleading or (ii) any violation or alleged violation by Parent or any of its Subsidiaries of any federal, state, foreign or common law rule or regulation applicable to Parent or any of its Subsidiaries and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal relating to action or other out-of-pocket expenses reasonably incurred and documented by the Company inaction in connection with investigating or defending any such Claimsregistration, in each case only Registration Statement, other disclosure document or Issuer FWP; provided, however, that Parent will not be required to the extent that indemnify any Indemnified Person for any losses, claims, damages, liabilities, judgments, actions or expenses resulting from any such untrue statement or alleged omission if such untrue statement or omission or alleged omission was made in conformity with information with respect to such Indemnified Person or related Investors furnished to Parent in writing by or on behalf of such related Investors expressly for use therein.
(b) In connection with any Registration Statement, preliminary or final prospectus, or Issuer FWP, in which an Investor is participating, each such Investor agrees to indemnify, severally and not jointly, Parent, its Directors, its officers who sign such Registration Statement and each Person, if any, who controls Parent (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Parent to the Investors, but only with respect to information with respect to such Investor furnished to Parent in writing by such Investor expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP to the extent such information is included therein in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing Parent by the Amneal Group Member or its Representative such Investor expressly for use therein therein; provided, however, that is the subject in no event shall any Investor’s liability pursuant to this Section 2.08 in respect of the untrue statement offering to which such loss, claim, damages, liabilities, judgments, actions or omissionexpenses relate exceed an amount equal to the proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which such Investor has otherwise been required to pay by reason of such information.
(c) In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.08(a) or Section 2.08(b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided, however, that the liability failure to give such notice shall not relieve the indemnifying party of each Amneal Group Member hereunder shall be limited its obligations pursuant to an amount equal this Agreement except to the dollar amount extent such indemnifying party has been prejudiced in any material respect by such failure and (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party (in which case, indemnifying party shall pay the fees and disbursements of such counsel related to such claim, action or proceeding). In any such claim, action or proceeding, any indemnified party will have the right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, Bylaws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to Parent, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action or proceeding is a criminal or regulatory enforcement action. It is understood that the indemnifying party will not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (D) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the net proceeds received retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable 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 will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 2.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such Amneal Group Member from indemnifying party of the sale aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of Registrable Shares sold the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such Amneal Group Member pursuant to indemnified party, unless such registration statement settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding or prospectus(ii) which involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder and provides for no admission of wrongdoing on the part thereof.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.08 from the indemnifying party is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities, judgments, actions or expenses referred to thereinin this Section 2.08, then each the indemnifying party shall party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Xxxxxx, on the one hand, and the indemnified partyInvestors, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will 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 taken by, or relates to information supplied by by, such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.08(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.08(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of “fraudulent misrepresentation 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. Notwithstanding the foregoingprovisions of Section 2.08(d) and this Section 2.08(e), no Amneal Group Member shall be liable each Investor’s liability pursuant to contribute any amount Section 2.08(d) in excess respect of the dollar offering to which such loss, claim, damages, liabilities, judgments, actions or expenses relate shall not exceed an amount equal to the sum proceeds to such Investor (after deduction of (iall Underwriters’ discounts and commissions) from such offering less the net proceeds received amount of any damages which such Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 2.08 is several in proportion to the respective number of Registrable Securities held by such Amneal Group Member Investor hereunder and not joint.
(f) For purposes of this Section 2.08, each Indemnified Person shall have the same rights to contribution as such Investor, and each officer, Director and Person, if any, who controls Parent within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as Parent, subject in each case to the limitations set forth in the immediately preceding paragraph. 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 Section 2.08, notify such party or parties from whom contribution may be sought, but the sale of Registrable Shares sold omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 2.08 or otherwise except to the extent that it has been prejudiced in any material respect by such Amneal Group Member pursuant failure. No party shall be liable for contribution with respect to any action or claim settled without its written consent; provided, however, that such registration statement written consent was not unreasonably withheld.
(g) If indemnification is available under this Section 2.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Section 2.08(a) and Section 2.08(b) without regard to the relative fault of said indemnifying party or prospectus, minus (iiindemnified party or any other equitable consideration provided for in Section 2.08(d) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct2.08(e).
Appears in 2 contracts
Samples: Investor Rights Agreement (Forward Air Corp), Investor Rights Agreement (Forward Air Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the Persons referred to be indemnified in this clause (iii) being hereinafter referred to as a "controlling Person"), and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling PersonsPerson (any Person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an "indemnified Person"), to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a Person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.3(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel, or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons; and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any Person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with ---- respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Purchaser from the sale or other disposition of Registrable Shares sold his or its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling Person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such Holder shall have the rights and duties given the Company in Section 2.7(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling Person shall have the rights and duties given to each Holder by Section 2.7(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.7 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities, or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.7(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.7(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c2.7(c). The , no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity and contribution provisions contained in this Section 2.7 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying Person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified Persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 2 contracts
Samples: Registration Rights Agreement (Senesco Technologies Inc), Registration Rights Agreement (Senesco Technologies Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless each Holder of Registrable Securities, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, members, managers and controlling Personsagents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any registration statementamendment thereof, or the Disclosure Package, or any preliminary preliminary, final or final prospectus contained thereinsummary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect on behalf of any Claims referred to thereinsuch Holder specifically for inclusion therein including, then each indemnifying party shall contribute to the amount paid without limitation, any notice and questionnaire, or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct2(e)(ii).
Appears in 2 contracts
Samples: Registration Rights Agreement (Select Energy Services, Inc.), Registration Rights Agreement (Select Energy Services, Inc.)
Indemnification; Contribution. (a) In the event of any Registrable Shares are included in a registration statement contemplated by this Agreementof any securities of the Company under the Securities Act, the Company shallwill, and it hereby agrees todoes, indemnify and hold harmlessharmless in the case of any registration statement filed pursuant to Section 2 or 3, or cause to be indemnified the holder of any Registrable Securities covered by such registration statement, its directors and held harmlessofficers, each Amneal Group Member officer and its respective officersdirector of each underwriter, directors, employees each other person who participates as an underwriter in the offering or sale of such securities and controlling Personseach other person, if any, in who controls such holder or any offering or sale such underwriter within the meaning of the Registrable Shares, Securities Act against any losses, claims, damages damages, liabilities and expenses, joint or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”)several, to which each such indemnified party holder or any such director or officer or participating or controlling person may become subjectsubject under the Securities Act or otherwise, insofar as such Claims losses, claims, damages, liabilities or expenses (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings or investigations in respect thereof, ) arise out of or are based upon an (x) any untrue statement or alleged untrue statement of a any material fact contained in any registration statementstatement under which such securities were registered under the Securities Act, or any preliminary or prospectus (unless, with respect to the indemnification of the officers and directors of each underwriter and each other person participating as an underwriter, any such statement is corrected in a subsequent prospectus and the underwriters are given the opportunity to circulate the corrected prospectus to all persons receiving the preliminary prospectus), final prospectus contained or summary prospectus included therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyy) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (z) any violation by the Company of any securities laws, and the Company will reimburse such holder and each Amneal Group Member shallsuch director, officer, participating person and it hereby agrees to, reimburse the Company controlling person for any legal or any other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, liability, action or proceeding; provided, however, that the Company shall not be liable to any seller, director, officer, participating person or controlling person in each any such case only to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company in an instrument executed by or under the direction of such seller, director, officer, participating person or controlling person for use in the preparation thereof, which information was specifically stated to be for use in the registration statement, prospectus, offering circular or other document. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such seller or any such director, officer, participating person or controlling person and shall survive the transfer of such securities by such seller. The Company shall agree to provide for contribution relating to such indemnity as shall be reasonably requested by any seller of Registrable Securities or the underwriters.
(b) The Company may require, as a condition to including any Registrable Securities in any registration statement filed pursuant to Section 2(a), that the Company shall have received an undertaking satisfactory to it from the prospective sellers of such securities and their underwriters, to indemnify and hold harmless (in the same manner and to the same extent as set forth in subdivision (a) of this Section 6) the Company, each director of the Company, each officer of the Company who shall sign such registration statement and each other person, if any, who controls the Company within the meaning of the Securities Act, with respect to any statement in or omission from such registration statement, any preliminary prospectus, final prospectus or summary prospectus included therein, or any amendment or supplement thereto, but only if such statement or omission was made in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing through an instrument duly executed by the Amneal Group Member such sellers or its Representative expressly their underwriters specifically stating that it is for use therein that is in the subject preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the untrue statement Company or omission; providedany such director, howeverofficer or controlling person and shall survive the transfer of such securities by such sellers. Anything contained herein to the contrary notwithstanding, that the maximum liability of each Amneal Group Member hereunder prospective seller in the case of each prospective seller shall be limited to an amount equal to the dollar amount of the net proceeds actually received by such Amneal Group Member prospective seller from the sale of such Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSecurities.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of notice of the commencement of any Claims action or proceeding involving a claim referred to thereinin the preceding subdivisions of this Section 6, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of such action; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding subdivisions of this Section 6 except to the extent that the indemnifying party's rights are prejudiced, or liabilities and obligations under this Section 6 are increased, as a result of such Claims in failure to give notice. In case any such proportion as action is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the brought against an indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference toentitled to participate in and to assume the defense thereof, among jointly with any other things, 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 such indemnifying party or by similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and . After notice from the parties’ relative intent, knowledge, access indemnifying party to information and opportunity such indemnified party of its election so to correct or prevent such statement or omission. If, howeverassume the defense thereof, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute not be liable to the amount paid or payable by such indemnified party for any legal or other expenses subsequently incurred by the indemnified party in such proportion connection with the defense thereof unless (i) the indemnifying party shall have failed to retain counsel for the indemnified party as is appropriate to reflect not only such relative faultsaforesaid, but also the relative benefits of (ii) the indemnifying party and the indemnified party, as well as party shall have mutually agreed to the retention of such counsel or (iii) representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other relevant equitable considerationsperson represented by such counsel in such proceeding or 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 (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the indemnified party). The parties hereto agree that it would not be just and equitable if contributions pursuant No indemnifying party will consent to this Section 5.8(c) were to be determined by pro rata allocation entry of any judgment or by enter into any other method of allocation settlement which does not take into account include as an unconditional term thereof the equitable considerations referred giving by the claimant or plaintiff to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party of a release from all liability in connection with investigating respect to such claim or defending litigation. The indemnifying party shall not be liable for any such action, settlement of any proceeding or claim. No Person guilty of fraudulent misrepresentation (within effected without the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty written consent of such fraudulent misrepresentation. Notwithstanding indemnifying party (which consent shall not be unreasonably withheld), but if settled with such consent or if there be a final judgment for the foregoingplaintiff, no Amneal Group Member shall be liable the indemnifying party agrees to contribute indemnify each indemnified party from and against any amount in excess loss or liability by reason of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement settlement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)judgment.
Appears in 2 contracts
Samples: Purchase Agreement (Bianco Joseph J), Purchase Agreement (Alliance Entertainment Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmlessharmless each Stockholder (which, or cause for purposes of this Article VI, shall be deemed to be indemnified and held harmless, include each Amneal Group Member holder of Registrable Shares) and its controlled Affiliates and their respective directors, officers, directorsmembers, employees employees, managers, partners, accountants, attorneys and controlling agents and each Person who controls (within the meaning of the Securities Act and the Exchange Act) such Persons, if any, in any offering or sale of the Registrable Shares, from and against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, statement used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission of a material fact required to state be stated therein or necessary to make the statements therein not misleading and (ii) any untrue or alleged untrue statement of a material fact in any prospectus or preliminary prospectus used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in under which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member reimburse periodically the indemnified person for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case only to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, made in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal the Stockholder Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject . The members of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Stockholder Group Member shall, and hereby agrees toagree, severally and not jointly, to (i) indemnify and hold harmless the Company and Company, its directors, officers, directors, employees and controlling each Person who controls (within the meaning of the Securities Act or the Exchange Act) such Persons, if any, in any offering or sale of its Registrable Shares Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, statement used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading and (ii) any untrue or alleged untrue statement of a material fact in any prospectus or preliminary prospectus used to register Registrable Shares pursuant to this Agreement or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission of 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 each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Stockholder Group Member or its Representative expressly for use therein that is therein, and (ii) reimburse the subject Company for any legal or other out-of-pocket expenses reasonably incurred by the Company in connection with investigating or defending any such Claim. Notwithstanding the foregoing, no member of the untrue statement Stockholder Group shall be liable under this Section 6.1(a) for amounts in excess of the proceeds (net of underwriting discounts and commissions) received by such holder in the offering giving rise to such liability.
(b) Promptly after receipt by an indemnified party under Section 6.1(a) or omissionSection 6.1(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 6.1(a) or Section 6.1(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each Amneal Group Member hereunder jurisdiction) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 6.1(a) or Section 6.1(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified party to such registration any material injunctive relief or other material equitable remedy and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(c) Amneal The members of the Stockholder Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 6.1(a) or Section 5.8(b6.1(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.1(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.1(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.1(b) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal member of the Stockholder Group Member shall be liable required to contribute any amount make a contribution in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member person from the sale of its Registrable Shares sold by such Amneal Group Member pursuant in connection with the offering that gave rise to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)contribution obligation.
Appears in 2 contracts
Samples: Stockholders Agreement (Engility Holdings, Inc.), Agreement and Plan of Merger (Engility Holdings, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Holder and its respective officerspartners, members, directors, employees officers, employees, agents and controlling Persons, if any, in any offering or sale of the Registrable SharesParticipating Shares pursuant to the Shelf Registration Statement, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, (i) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementthe Shelf Registration Statement, or any Prospectus or preliminary or final prospectus Prospectus contained thereintherein with respect to Participating Shares, or any amendment or supplement thereto, or any document incorporated by reference therein, or (ii) arise out of or are 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, in each case in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, provided that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statementthe Shelf Registration Statement, or Prospectus or preliminary or final prospectusProspectus relating to the Participating Shares, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Participating Holder with respect to such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Participating Holder expressly for use therein, or by such Participating Holder’s failure to furnish the Company, upon the Company’s reasonable request, with the information with respect to such Participating Holder, or such Participating Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Participating Holder, each Amneal Group Member severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company and Company, its directors, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Participating Shares pursuant to the Shelf Registration Statement, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of such Participating Holder as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, the Shelf Registration Statement or any Prospectus or preliminary or final prospectus Prospectus contained therein, or any amendment or supplement theretotherein with respect to the Participating Shares, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Participating Holder with respect to such Participating Holder expressly for use therein therein; provided, that in no event shall any indemnity under this Section 2.05(b), when combined with any contribution under Section 2.05(d) exceed the total proceeds from the offering received by such Participating Holder unless such liability arises out of or is based on Fraud (as defined in the subject Merger Agreement) or Willful Breach (as defined in the Merger Agreement) by such Participating Holder.
(c) Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice of the untrue statement commencement of any action or omissionproceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it notifies an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of each Amneal Group Member hereunder both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent (not to be unreasonably withheld, conditioned or delayed). No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.05(a) or Section 2.05(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from the sale all liability in respect of Registrable Shares sold by such Amneal Group Member pursuant to such registration claim or litigation, and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal Group The Participating Holders and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.05(a) or Section 5.8(b2.05(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsfault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.05(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.05(d). The amount paid or payable by an indemnified party as a result Notwithstanding any of the Claims referred to above foregoing, in no event shall be deemed to include (subject to the limitations set forth in any contribution by any Participating Holder under this Section 5.9) 2.05(d), when combined with any legal amounts payable or other fees or expenses reasonably incurred paid by such indemnified party Participating Holder under Section 2.05(b), exceed the total proceeds from the offering received by such Participating Holder, unless such liability arises out of or is based on Fraud (as defined in connection with investigating the Merger Agreement) or defending any Willful Breach (as defined in the Merger Agreement) by such action, proceeding or claimParticipating Holder. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Registration Rights Agreement, Registration Rights Agreement (Alphabet Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each holder and each affiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in under any offering Blue Sky Law or sale of the Registrable Shares, regulation against any losses, claims, damages damages, or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party holder may become subjectsubject under the Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages, or liabilities (or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement, or any preliminary or final prospectus contained thereinprospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and will reimburse each Amneal Group Member shall, such holder and it hereby agrees to, reimburse the Company affiliate for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such holder in connection with investigating or defending any such Claimsaction or claim regardless of the negligence of any such holder or affiliate; 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, registration statement or prospectus, or any such amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by any such holder expressly for use therein.
(b) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any losses, claims, damages, or liabilities 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 an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, 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, 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 any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such holder expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectustherein.
(c) Amneal Group Promptly after receipt by an indemnified party under Sections 7(a) or (b) above 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 either 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 that it may otherwise have to any indemnified party. 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 assume the defense thereof by notice in writing to the indemnified party. After notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under either of such subsections for any legal expenses of other counsel or any other expense, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party, unless such expenses have been specifically authorized in writing by the indemnifying party, the indemnifying party has failed to assume the defense and employ counsel, or the named parties to any such action include both the indemnified party and the Company agree indemnifying party, as appropriate, and such indemnified party has been advised by counsel that ifthe representation of such indemnified party and the indemnifying party by the same counsel would be inappropriate due to actual or potential differing interests between them, in each of which cases the fees of counsel for any reason, the indemnified party will be paid by the indemnifying party.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) 7 is unavailable or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under Section 7(a) or 7(b) in respect of any Claims losses, claims, damages, or liabilities (or action in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims 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 holder or holders from this Agreement and from the offering of the shares of Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, 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 indemnifying party, on the one hand, Company and the indemnified partyholders in connection with the statement or omissions that resulted in such losses, on the claims, damages, or liabilities (or actions in respect thereof), as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company or by such indemnified party, the holder and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c7(d) were to be determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation which that does not take into account the equitable considerations referred to above in the preceding sentences of this Section 5.8(csubsection (d). The Except as provided in Section 7(c), the amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 7(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating investigation or defending any such action, proceeding action or claim. 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. Notwithstanding any provision in this Section 7(d) to the foregoingcontrary, no Amneal Group Member holder shall be liable to contribute for any amount amount, in the aggregate, in excess of the dollar amount equal to the sum of (i) the net proceeds received by to such Amneal Group Member holder from the sale of Registrable Shares sold by such Amneal Group Member pursuant holder's shares (obtained upon exercise of Warrants) giving rise to such registration statement losses, claims, damages, or prospectusliabilities.
(e) The obligations of the Company under this Section 7 shall be in addition to any liability that the Company may otherwise have and shall extend, minus (ii) upon the same terms and conditions, to each person, if any, who controls any amounts paid or payable by holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 7 shall be in addition to any liability that such Amneal Group Member pursuant holders may otherwise have and shall extend, upon the same terms and conditions to Section 5.8(b) (except in each person, if any, who controls the case Company within the meaning of fraud or willful misconduct)the Act.
Appears in 2 contracts
Samples: Warrant Agreement (Talisman Enterprise Inc), Warrant Agreement (Talisman Enterprise Inc)
Indemnification; Contribution. (aA) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this Agreement, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and its respective stockholders of any such partners), and directors, officers, directors, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a "Controlling Person")), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, reasonable attorney's fees and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (x) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (y) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it, in light of the circumstances under which it was made, or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (z) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by such underwriter, Selling Holder or alleged omission made Controlling Person expressly for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished . With respect to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is in such registration statement, such Selling Holder will indemnify and hold harmless each underwriter, the subject Company (including its directors, officers, employees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; providedSection 20 of the Exchange Act), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. The Company shall not be obligated hereunder to indemnify any Holder for any amount paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld). In no event, however, that shall the liability of each Amneal Group Member hereunder shall be limited to an amount a Selling Holder for indemnification under this Section 5 exceed the lesser of (x) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the dollar amount proportion of the net total securities sold under such registration statement which is being sold by such Selling Holder or (y) the proceeds received by such Amneal Group Member Selling Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cB) Amneal Group and If the Company agree that if, indemnification provided for in Section 5(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 5, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (x) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters from the offering of the Registrable Securities or (y) if the allocation provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawSelling Holders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 5(b) in excess of the Claims referred to above shall be deemed to include lesser of (subject x) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which are being sold by such indemnified party in connection with investigating Selling Holder or defending any (y) the proceeds received by such action, proceeding or claimSelling Holder from its sale of Registrable Securities under such registration statement. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(C) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 5 shall be liable 10 deemed to contribute include, subject to the limitations set forth above, any amount reasonable legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)indemnified parties.
Appears in 2 contracts
Samples: Registration Rights Agreement (Physicians Specialty Corp), Registration Rights Agreement (Physicians Specialty Corp)
Indemnification; Contribution. (a) In The Company agrees, to the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, the Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified harmless each Holder and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in who controls any offering or sale Holder within the meaning of Section 15 of the Registrable SharesAct or Section 20 of the Exchange Act, against any and all losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party they or any of them may become subjectsubject under the Act or otherwise ("Indemnified Holder"), and to reimburse the Holders 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 4(c) hereof, insofar as such Claims losses, claims, damages, liabilities or actions, suits or proceedings (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, governmental investigations) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementShelf Registration Statement, or, if any Shelf Registration Statement shall be amended or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements thereinsupplemented, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal Shelf Registration Statement as so amended or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference thereinsupplemented, or arise out of or are 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, and each Amneal Group Member shallexcept insofar as such losses, and it hereby agrees toclaims, reimburse the Company for damages, liabilities or actions arise out of or are based upon any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission which was made in the Shelf Registration Statement or in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member or its Representative any Holder expressly for use therein that is therein. The Company's indemnity agreement contained in this Section 4(a), and the subject covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of any Person, and the indemnity agreement contained in this Section 4 shall survive any termination of this Agreement. The liabilities of the Company in this Section 4 are in addition to any other liabilities of the Company under this Agreement or otherwise.
(b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse 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, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statement statements or omission; providedomissions made in the Shelf Registration Statement or in the Shelf Registration Statement, howeveras amended or supplemented (if applicable), that in reliance upon and in conformity with information furnished in writing to the liability Company by such Holder expressly for use therein. The indemnity agreement on the part of each Amneal Group Member hereunder Holder contained in this Section 4(b) shall be limited to an amount equal to the dollar amount remain in full force and effect regardless of any investigation made by or on behalf of the net proceeds received by such Amneal Group Member from Company or any other Person, and the sale indemnity agreement contained in this Section 4(b) shall survive any termination of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusthis Agreement.
(c) Amneal Group If a claim is made or an action, suit or proceeding (including governmental investigations) is commenced or threatened against any person as to which indemnity may be sought under Section 4(a) or 4(b) hereof, such Person (the "Indemnified Person") shall notify the Person against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to institute an action, suit or 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 claim. Failure to so notify the Indemnifying Person shall not, however, relieve the Indemnifying Person from any liability which it may have on account of the indemnity under Section 4(a) or 4(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 Person shall assume the defense of any such litigation or proceeding, including the employment of counsel and the payment of all expenses, with such counsel being designated, subject to the immediately succeeding sentence, in writing by a majority in interest of the Holders in the case of parties indemnified pursuant to Section 4(b) hereof and by the Company in the case of parties indemnified pursuant to Section 4(a) hereof. Any Indemnified Person shall have the right to participate in such litigation or proceeding and to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnified Person, representation of both parties by the same counsel would be inappropriate due to actual or likely conflicts of interest between them, in either of which cases the reasonable fees and expenses of counsel (including disbursements) for such Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in clause (ii) above, and the Indemnified Persons have participated in the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to be solely liable, such Indemnified Person shall repay to the Indemnifying Parties such fees and expenses of such separate counsel as the Indemnifying Person shall have reimbursed. It is understood that the Indemnifying Person shall not, in connection with any litigation or proceeding or related litigation or proceedings in the same jurisdiction as to which the Indemnified Persons are entitled to such separate representation, be liable under this Agreement for the reasonable fees and out-of-pocket expenses of more than one separate firm (together with not more than one appropriate local counsel) for all such Indemnified Persons. Subject to the next paragraph, all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that ifthe 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 Persons pursuant to clause (ii) of the preceding paragraph, the Indemnified Persons shall in good faith fully consult with the Indemnifying Person in advance as to 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 Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Indemnifying Person shall not be liable for any reasonsettlement of any litigation or proceeding effected without the written consent of the Indemnifying Person, but if settled with such consent or if there be a final judgment against the Indemnified Person, the Indemnifying Person agrees, subject to the provisions of this Section 4, to indemnify the Indemnified Person from and against any loss, damage, liability or expenses by reason of such settlement or judgment. The Indemnifying Person shall not, without the prior written consent of the Indemnified Persons, effect any settlement of any pending or threatened litigation, proceeding or claim in respect of which indemnity has been properly sought by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to claims which are the subject matter of such litigation, proceeding or claim.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 4 is unavailable to or are insufficient to hold harmless an indemnified party Indemnified Person under this Section 4 in respect of any Claims losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect thereof) referred to therein, then each indemnifying party Indemnifying Person under this Section 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such Claims losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Person on the one hand and the Indemnified Person on the other from the sale of the Registrable Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying partyeach Indemnifying Person, if any, on the one hand, hand and the indemnified party, Indemnified Person on the other handin connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company on the one hand or by such indemnified party, the Holders on the other and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 4 were to be determined by pro rata allocation (even if the Holders 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 in the preceding sentences of this Section 5.8(c)4. The amount paid or payable by an indemnified party Indemnified Person as a result of the Claims losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental proceedings) in respect thereof) referred to above in this Section 4 shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party Indemnified Person in connection with investigating or defending any such actionactions, proceeding suits or claimproceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 4, no Holder shall be required to contribute any amount greater than the excess of the amount by which the total received by such Holder with respect to the sale of its Registrable Securities pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such Holder for such Registrable Securities plus (B) the amount of any damages which such Holder 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 person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Holders' obligations in this Section 4 to contribute are several in proportion to their respective obligations and not joint. The agreement with respect to contribution contained in this Section 4 shall remain in full force and effect regardless of any amount in excess investigation made by or on behalf of the dollar amount equal to the sum Company or any Holder, and shall survive any termination of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)this Agreement.
Appears in 2 contracts
Samples: Purchase Agreement (CMS Energy Corp), Registration Rights Agreement (CMS Energy Corp)
Indemnification; Contribution. (a) In the event Incident to any registration of any Registrable Shares are included in a registration statement contemplated by Securities under the Securities Act pursuant to this Agreement, the Company shallwill, and it hereby agrees toto the extent permitted by law, indemnify and hold harmlessharmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and stockholders of any such partners), and directors, officers, stockholders, affiliates, employees, representatives and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or cause to be indemnified and held harmlessany of them, each Amneal Group Member and its respective officersmay become subject under the Securities Act, directorsthe Exchange Act or other federal or state statutory law or regulation, employees and controlling Personsat common law or otherwise, if any, in any offering or sale of the Registrable Shares, against any insofar as such losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any (1) such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by or alleged omission made on behalf of such Holder in accordance with Section 4(a) of this Agreement for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (2) in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing case of a sale directly by such Amneal Group Member or Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided hereinHolder), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made contained in reliance upon a preliminary prospectus and corrected in conformity with a final or amended prospectus, and such Holder failed to deliver a copy of the Required Amneal Group Member Information final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any state securities laws, or (iii) any violation or alleged violation by any other party hereto, of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by or on behalf of such Holder in writing by the Amneal Group Member or its Representative expressly accordance with Section 4(a) of this Agreement for use therein that is in such registration statement, such Holder will severally and not jointly indemnify and hold harmless the subject Company (including its directors, officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; Section 20 of the Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, provided, however, that the indemnification obligations of the Holder contained in this Section 5(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of each Amneal Group Member hereunder the Holder, which consent shall not be limited to an amount equal to the dollar amount of unreasonably withheld; and provided, further, that, in no event shall any indemnity under this Section 5(a) exceed the net proceeds from the offering received by such Amneal Group Member from Holder, except in the sale case of Registrable Shares sold fraud or willful misconduct by such Amneal Group Member pursuant to such registration statement or prospectusHolder.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 5, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and the other Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company and indemnified party the Holders 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 such indemnifying party or by such indemnified party, on behalf of the Company or the Holders and the parties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement or omissioninformation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimparagraph. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 5 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal indemnified parties or any officer, director, employee, agent or controlling person of the indemnified parties. No indemnifying party, in the defense of any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party that proposes to assert the right to be indemnified under this Section 5 will, promptly after receipt of notice of commencement or threat of any claim or action against such party in respect of which a claim is to be made against an indemnifying party under this Section 5 notify the indemnifying party in writing (such written notice, an “Indemnification Notice”) of the commencement or threat of such action, enclosing a copy of all papers served or notices received (if applicable), but the omission so to notify the indemnifying party will not relieve the indemnifying party from any liability that the indemnifying party may have to any indemnified party under the foregoing provisions of this Section 5 unless, and only to the sum extent that, such omission results in the forfeiture of substantive rights or defenses by the indemnifying party. The indemnified party will have the right to retain its own counsel in any such action if (i) the net proceeds received employment of counsel by such Amneal Group Member from the sale of Registrable Shares sold indemnified party has been authorized by such Amneal Group Member pursuant to such registration statement or prospectusthe indemnifying party, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except the indemnified party’s counsel, shall have reasonably concluded that there is a reasonable likelihood of a conflict of interest between the indemnifying party and the indemnified party in the case conduct of fraud the defense of such action or willful misconduct)(iii) the indemnifying party shall not in fact have employed counsel to assume the defense of such action within a reasonable period of time following its receipt of the Indemnification Notice, in each of which cases the fees and expenses of the indemnified party’s separate counsel shall be at the expense of the indemnifying party; provided, however, that the indemnified party shall agree to repay any expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the indemnified party to whom such expenses are advanced is not entitled to be indemnified; and provided, further, that so long as the indemnified party has reasonably concluded that no conflict of interest exists, the indemnifying party may assume the defense of any action hereunder with counsel reasonably satisfactory to the indemnified party.
(d) In the event of an underwritten offering of Registrable Securities under this Agreement, the Company shall enter into standard indemnification and underwriting agreements with the underwriter thereof.
Appears in 2 contracts
Samples: Joint Venture Agreement (Winwin Gaming Inc), Registration Rights Agreement (Winwin Gaming Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees shall cause each of its Subsidiaries to, indemnify jointly and severally, without limitation as to time, indemnify, defend and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by law, each Amneal Group Member and its respective holder of Registrable Securities, the partners, members, officers, directors, managers, agents, employees and controlling PersonsAffiliates of each of them, if any, in any offering or sale each Person who controls each such holder (within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act), the partners, members, officers, directors, managers, agents and employees of each such controlling person and any financial or investment adviser (each, a “Covered Person”), to the fullest extent permitted by law, from and against any and all losses, claims, damages damages, liabilities, actions or liabilities in respect thereof proceedings (whether commenced or threatened), costs (including reasonable and documented costs of preparation and attorneys’ fees) and expenses (including reasonable fees and documented expenses of counselinvestigation) (as used in this Section 13.7, collectively, “ClaimsLosses”), to which each such indemnified party may become subjectas incurred, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an (A) any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus or form of prospectus under which any preliminary Registrable Securities were registered or final prospectus contained therein, or in any amendment or supplement theretosupplements thereto or in any preliminary prospectus (if used prior to the effective date of such Registration Statement), or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements thereintherein (in the case of a prospectus or preliminary prospectus, in light of the circumstances in under which they were made, ) not misleading, and except to the extent that the same arise out of or are based upon information furnished in writing to the Company shallby such Covered Person or the related holder of Registrable Securities expressly for use therein or (B) any violation by the Company of any federal, state or common law applicable to the Company and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal relating to action required of or other out-of-pocket expenses reasonably incurred and documented inaction by them the Company in connection with investigating or defending any such Claimsregistration; provided, however, provided that the Company shall not be liable to any Amneal Group Member (Person who participates as an underwriter in the offering or its officers, directors, employee and controlling Personssale of Registrable Securities or any other Person, if any, who controls such underwriter(s) in any such case within the meaning of the Securities Act to the extent that any such Claims Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (1) such registration statement, Person failed to send or preliminary deliver a copy of the prospectus with or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished prior to the Company in writing delivery of written confirmation of the sale by such Amneal Group Member Person to the Person asserting the claim from which such Losses arise, (2) the prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, and (3) the Company has complied with its obligations under Section 13.4(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Amneal Group Member by Covered Person. If the Public Offering pursuant to any Representative Registration Statement provided for under this Section 13.7 is made through underwriter(s), no action or failure to act on the part of such underwriter(s) (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Amneal Group MemberCompany to indemnify any holder of Registrable Securities or any other Person pursuant to this Section 13.7. If the Public Offering pursuant to any Registration Statement provided for under this Article XIII is made through underwriter(s), expressly for use thereinthe Company agrees to enter into an underwriting agreement in customary form with such underwriter(s) and the Company agrees to indemnify such underwriter(s), that is their officers, directors, managers, employees and agents, if any, and each Person, if any, who controls such underwriter(s) within the subject meaning of Section 15 of the Securities Act to the same extent as provided in this Section 13.7 with respect to the indemnification of the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such underwriter, or any officer, director, manager or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or omissionalleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus.
(b) In connection with any Registration Statement in which a holder of Registrable Securities is participating, such holder, or an authorized officer of such holder, shall furnish to the event Company in writing such information regarding such holder as the Company reasonably requests for use in connection with any Registrable Shares are included in a registration statement contemplated by this AgreementRegistration Statement or prospectus and agrees, each Amneal Group Member shallseverally and not jointly, and hereby agrees toto indemnify, indemnify defend and hold harmless to the fullest extent permitted by law, the Company, its directors, managers, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and its officersSection 20 of the Exchange Act), and the partners, members, directors, managers, officers, agents or employees of such controlling persons, from and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise all Losses arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus, or any preliminary or final prospectus contained thereinform of prospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, and each Amneal Group Member shallto the extent, and it hereby agrees tobut only to the extent, reimburse that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information regarding such holder so furnished in writing by such holder to the Company expressly for any legal use in such Registration Statement or other out-of-pocket expenses reasonably incurred prospectus and documented that such statement or omission was relied upon by the Company in connection with investigating preparation of such Registration Statement, prospectus or defending form of prospectus; provided that such holder of Registrable Securities shall not be liable in any such Claims, in each case only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement prospectus or omission amendment or alleged omission was supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made in reliance upon and in conformity with the Required Amneal Group Member Information not misleading, information previously furnished to the Company, and the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that failed to include such information therein. In no event shall the liability of each Amneal Group Member any holder of Registrable Securities hereunder shall be limited to an greater in amount equal to than the dollar amount of the proceeds (net proceeds of payment of all taxes, fees and expenses incurred in connection therewith) received by such Amneal Group Member from holder upon the sale of the Registrable Shares sold by such Amneal Group Member pursuant Securities giving rise to such registration statement indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or prospectuson behalf of such Indemnified Party.
(c) Amneal Group If any Person shall be entitled to indemnification or contribution pursuant to this Section 13.7 (an “Indemnified Party”), then such Indemnified Party shall give prompt notice to the party or parties from which such indemnity is sought (the “Indemnifying Parties”) of the commencement of any action, suit, proceeding or investigation or written threat thereof (each, a “Proceeding”) with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided that the failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to the extent that the Indemnifying Parties have been prejudiced by such failure. The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such Proceeding, to assume, at the Indemnifying Parties’ expense, the defense of any such Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided that an Indemnified Party or parties (if more than one such Indemnified Party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless: (A) the Indemnifying Parties agree to pay such fees and expenses; (B) the Indemnifying Parties fail promptly to assume the defense of such Proceeding or fail to employ counsel reasonably satisfactory to such Indemnified Party or parties; or (C) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or parties and the Company agree Indemnifying Parties or an Affiliate of the Indemnifying Parties or such Indemnified Parties, and there may be one or more defenses available to such Indemnified Party or parties that ifare different from or additional to those available to the Indemnifying Parties, in which case, if such Indemnified Party or parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party or parties. Whether or not such defense is assumed by the Indemnifying Parties, such Indemnifying Parties or Indemnified Party or parties shall not be subject to any liability for any reasonsettlement made without its or their consent (but such consent shall not be unreasonably withheld, conditioned or delayed). The Indemnifying Parties shall not consent to entry of any judgment or enter into any settlement which (1) provides for other than monetary damages without the consent of the Indemnified Party or parties (which consent shall not be unreasonably withheld, conditioned or delayed) or (2) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or parties of a release, in form and substance satisfactory to the Indemnified Party or parties, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 13.7 is unavailable to an Indemnified Party or are is insufficient to hold such Indemnified Party harmless an indemnified party for any Losses in respect of any Claims referred to thereinwhich this Section 13.7 would otherwise apply by its terms, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall have an obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified partysuch Indemnified Party, on the other hand, in connection with respect to the applicable offering of securitiesactions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party, on the one hand, and indemnified party Indemnified Party, on the other hand, 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The 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 indemnified party in connection with any Proceeding, to the extent such proportion as is appropriate party would have been indemnified for such expenses if the indemnification provided for in Section 13.7(a) or 13.7(b) was available to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c13.7(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account of the equitable considerations referred to in this Section 13.7(d). Notwithstanding the preceding sentences provisions of this Section 5.8(c13.7(d). The , an Indemnifying Party that is a holder of Registrable Securities shall not be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred net proceeds received by such indemnified party in connection with investigating Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reasons of such untrue or defending any such action, proceeding alleged untrue statement or claimomission 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 who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Limited Liability Company Agreement (Hc2 Holdings, Inc.), Business Purchase Agreement (Hc2 Holdings, Inc.)
Indemnification; Contribution. (a) In To the event any Registrable Shares are included in a registration statement contemplated fullest extent permitted by this Agreementapplicable law, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmlessharmless Xxxxxx, each Amneal Group Member underwriter and its respective officersthe equityholders, controlling persons, directors, officers and employees and controlling Persons, if any, of each of the foregoing in any offering or sale Sale of the Registrable SharesSecurities, including pursuant to Section 4.01, Section 4.02 or Section 4.05, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual and documented out-of-pocket fees of counsellegal counsel reasonably incurred) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse periodically each such Amneal Group Member indemnified Person for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statementRegistration Statement, or preliminary or final prospectusProspectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company (x) by Xxxxxx or any Representative of Xxxxxx, it being understood and agreed that the only such information furnished by Xxxxxx or any Representative of Xxxxxx consists of the information described as such in writing Section 4.13(b) or (y) by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, underwriter expressly for use therein, that is the subject of the untrue statement or omission.
(b) In To the event any Registrable Shares are included in a registration statement contemplated fullest extent permitted by this Agreementapplicable law, each Amneal Group Member Xxxxxx shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and its other equityholders and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale Sale of its Registrable Shares Securities by it against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information regarding Xxxxxx furnished to the Company by Xxxxxx or any Representative of Xxxxxx, it being understood and agreed that the only such information furnished by Xxxxxx or any Representative of Xxxxxx consists of the number of shares of Common Stock owned by Xxxxxx, the number of Registrable Securities proposed to be Sold by Xxxxxx, the name and address of Xxxxxx and the method of distribution (including the description of any debt-for-equity exchange) proposed by Xxxxxx, any financial statements or other information (or omissions thereof) about the SpinCo Business to the extent relating to any date or period ended on or before the Effective Date, in writing each case, to the extent provided by Xxxxxx or any Representative of Xxxxxx (for the avoidance of doubt, including information provided prior to the date hereof, whether for inclusion in the Company’s registration statement on Form 10 or otherwise) (collectively, the “Xxxxxx Information”) and (ii) reimburse the Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by the Amneal Group Member Company in connection with investigating or its Representative expressly for use therein that is the subject of the untrue statement or omissiondefending any such Claim; provided, however, that the liability of each Amneal Group Member hereunder in no event shall be limited to any indemnity or reimbursement by Xxxxxx under this Section 4.13(b) exceed an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from Xxxxxx (or, in the sale case of a Debt Exchange, the anticipated fair value of the securities or indebtedness received by Xxxxxx) in respect of the Sale of Registrable Shares sold by such Amneal Group Member pursuant Securities giving rise to such registration statement indemnification or prospectusreimbursement obligation.
(c) Amneal Group Xxxxxx and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a4.13(a) or Section 5.8(b4.13(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party Indemnifying Party (as defined below) shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party Indemnifying Party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c4.13(c) is not permitted by applicable law, then each indemnifying party Indemnifying Party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c4.13(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c4.13(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.94.14) any actual and documented out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Registration Rights Agreement (Amentum Holdings, Inc.), Registration Rights Agreement (Amazon Holdco Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by law, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, the Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls the Registrable SharesHolder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and affiliates against any all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees of counselattorneys’ fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “ClaimsLosses”)) incurred by such party pursuant to any actual or threatened action, to which each such indemnified party may become subjectsuit, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), proceeding or actions or proceedings in respect thereof, arise investigation arising out of or are based upon an upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementin, or any omission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary or final prospectus contained therein, Prospectus or any amendment or supplement theretoto any of the foregoing, any Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or any document incorporated by reference thereinnecessary to make the statements therein (in the case of a Prospectus, a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (A) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to state therein a material fact required the Holder furnished in writing to be stated therein the Company by the Holder or necessary to make the statements its counsel expressly for use therein, in light (B) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the circumstances in Company to keep effective the Registration Statement of which they were madesuch Prospectus forms a part has expired or (C) the use of any Prospectus, not misleading, and Free Writing Prospectus or “issuer information” after such time as the Company shallhas advised the Holder that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal relating to action required of or other out-of-pocket expenses reasonably incurred and documented inaction by them the Company in connection with investigating or defending any such Claims; providedregistration. Notwithstanding the foregoing provisions of this Section 2.10(a), however, that the Company shall not be liable to the Holder or any Amneal Group Member (underwriter or its officers, directors, employee and controlling Persons, if anyto any other indemnified party under the indemnity agreement in this Section 2.10(a) in for any such case to the extent Losses that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) the Holder or such registration statement, underwriter failed to send or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with deliver a copy of the Required Amneal Group Member Information furnished Prospectus prior to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative time of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims Securities by the Holder or such underwriter to the Person asserting the claim from which each such indemnified party may become subject, insofar as Losses arise and (B) the Prospectus would have corrected such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any such omission or alleged omission to state therein a material fact required to be stated therein omission; or necessary to make the statements therein not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission was is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, the Holder or such underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, prior to the time of the sale of Registrable Securities by the Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, the Holder shall indemnify and hold harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and affiliates, against all Losses incurred by such party pursuant to any actual action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, preliminary Prospectus or Free Writing Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance upon on and in conformity with information with respect to the Required Amneal Group Member Information Holder furnished in writing to the Company in writing by the Amneal Group Member Holder or its Representative expressly counsel specifically for use therein therein, provided that is the subject Holder shall not be required to indemnify the Company or any other indemnified party under this Section 2.10(b) with respect to any amount in excess of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the total net proceeds received by the Holder from sales of the Registrable Securities under such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusRegistration Statement.
(c) Amneal Group Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 2.10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the Company agree indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that ifit shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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 for any reasonlegal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the indemnification provisions contemplated defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for the Holder (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by Section 5.8(a) or Section 5.8(b) are unavailable such indemnifying party with respect to or are insufficient such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to hold harmless exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for the Holder (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry 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 to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 2.10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 2.10 is unavailable to an indemnified party hereunder in respect of any Claims referred to thereinLosses, then each the indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions which resulted in such Losses, on as well as any other relevant equitable considerations, provided that the one hand, and Holder shall not be required to contribute any amount in excess of the indemnified party, on amount of the other hand, with respect to total net proceeds received by the Holder from sales of the Registrable Securities under the applicable offering of securitiesRegistration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other thingsmatters, whether the any action in question, including any untrue statement 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 by, such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c)action. The amount paid or payable by an indemnified a party as a result of the Claims Losses referred to above shall be deemed to include (include, subject to the limitations set forth in Section 5.9) 2.10(c), any legal or other fees or and expenses reasonably incurred by such indemnified party in connection with investigating any investigation or defending any such action, proceeding or claimproceeding. 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. Notwithstanding The parties agree that it would not be just and equitable if contribution pursuant to this Section 2.10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the foregoingconsideration referred to in this Section 2.10(d). If indemnification is available under this Section 2.10, no Amneal Group Member the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 2.10(a) or 2.10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 2.10(d).
(e) The provisions of this Section 2.10 shall be liable in addition to contribute any amount in excess liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 2.10 shall be made by periodic payments of the dollar amount equal to thereof during the sum course of (i) the net proceeds any action, suit, proceeding or investigation, as and when invoices are received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Losses are incurred.
Appears in 2 contracts
Samples: Registration Rights and Governance Agreement (Advisory Board Co), Stock Purchase Agreement (Advisory Board Co)
Indemnification; Contribution. (a) In The Company agrees, to the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, the Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified harmless each Holder and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in who controls any offering or sale Holder within the meaning of Section 15 of the Registrable SharesAct or Section 20 of the Exchange Act, against any and all losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party they or any of them may become subjectsubject under the Act or otherwise ("Indemnified Holder"), and to reimburse the Holders 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 4(c) hereof, insofar as such Claims losses, claims, damages, liabilities or actions, suits or proceedings (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, governmental investigations) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementShelf Registration Statement, or, if any Shelf Registration Statement shall be amended or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements thereinsupplemented, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal Shelf Registration Statement as so amended or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference thereinsupplemented, or arise out of or are 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, and each Amneal Group Member shallexcept insofar as such losses, and it hereby agrees toclaims, reimburse the Company for damages, liabilities or actions arise out of or are based upon any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission which was made in the Shelf Registration Statement or in the Shelf Registration Statement as so amended or supplemented, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member or its Representative any Holder expressly for use therein that is therein. The Company's indemnity agreement contained in this Section 4(a), and the subject covenants, representations and warranties of the Company contained in this Agreement, shall remain in full force and effect regardless of any investigation made by or on behalf of any Person, and the indemnity agreement contained in this Section 4 shall survive any termination of this Agreement. The liabilities of the Company in this Section 4 are in addition to any other liabilities of the Company under this Agreement or otherwise.
(b) Each Holder agrees, severally and not jointly, to the extent permitted by law, to indemnify, hold harmless and reimburse 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, to the same extent and upon the same terms as the indemnity agreement of the Company set forth in Section 4(a) hereof, but only with respect to alleged untrue statement statements or omission; providedomissions made in the Shelf Registration Statement or in the Shelf Registration Statement, howeveras amended or supplemented (if applicable), that in reliance upon and in conformity with information furnished in writing to the liability Company by such Holder expressly for use therein. The indemnity agreement on the part of each Amneal Group Member hereunder Holder contained in this Section 4(b) shall be limited to an amount equal to the dollar amount remain in full force and effect regardless of any investigation made by or on behalf of the net proceeds received by such Amneal Group Member from Company or any other Person, and the sale indemnity agreement contained in this Section 4(b) shall survive any termination of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusthis Agreement.
(c) Amneal Group If a claim is made or an action, suit or proceeding (including governmental investigations) is commenced or threatened against any person as to which indemnity may be sought under Section 4(a) or 4(b) hereof, such Person (the "Indemnified Person") shall notify the Person against whom such indemnity may be sought (the "Indemnifying Person") promptly after any assertion of such claim threatening to institute an action, suit or 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 claim. Failure to so notify the Indemnifying Person shall not, however, relieve the Indemnifying Person from any liability which it may have on account of the indemnity under Section 4(a) or 4(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 Person shall assume the defense of any such litigation or proceeding, including the employment of counsel and the payment of all expenses, with such counsel being designated, subject to the immediately succeeding sentence, in writing by a majority in principal amount of the Holders in the case of parties indemnified pursuant to Section 4(b) hereof and by the Company in the case of parties indemnified pursuant to Section 4(a) hereof. Any Indemnified Person shall have the right to participate in such litigation or proceeding and to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include (x) the Indemnifying Person and (y) the Indemnified Person and, in the written opinion of counsel to such Indemnified Person, representation of both parties by the same counsel would be inappropriate due to actual or likely conflicts of interest between them, in either of which cases the reasonable fees and expenses of counsel (including disbursements) for such Indemnified Person shall be reimbursed by the Indemnifying Person to the Indemnified Person. If there is a conflict as described in clause (ii) above, and the Indemnified Persons have participated in the litigation or proceeding utilizing separate counsel whose fees and expenses have been reimbursed by the Indemnifying Person, and the Indemnified Persons, or any of them, are found to be solely liable, such Indemnified Person shall repay to the Indemnifying Parties such fees and expenses of such separate counsel as the Indemnifying Person shall have reimbursed. It is understood that the Indemnifying Person shall not, in connection with any litigation or proceeding or related litigation or proceedings in the same jurisdiction as to which the Indemnified Persons are entitled to such separate representation, be liable under this Agreement for the reasonable fees and out-of-pocket expenses of more than one separate firm (together with not more than one appropriate local counsel) for all such Indemnified Persons. Subject to the next paragraph, all such fees and expenses shall be reimbursed by payment to the Indemnified Persons of such reasonable fees and expenses of counsel promptly after payment thereof by the Indemnified Persons. In furtherance of the requirement above that fees and expenses of any separate counsel for the Indemnified Persons shall be reasonable, the Holders and the Company agree that ifthe 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 Persons pursuant to clause (ii) of the preceding paragraph, the Indemnified Persons shall in good faith fully consult with the Indemnifying Person in advance as to 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 Company and the Holders shall cooperate in monitoring and controlling the fees and expenses of separate counsel for Indemnified Persons for which the Indemnifying Person is liable hereunder, and the Indemnified Person shall use every reasonable effort to cause such separate counsel to minimize the duplication of activities as between themselves and counsel to the Indemnifying Person. The Indemnifying Person shall not be liable for any reasonsettlement of any litigation or proceeding effected without the written consent of the Indemnifying Person, but if settled with such consent or if there be a final judgment against the Indemnified Person, the Indemnifying Person agrees, subject to the provisions of this Section 4, to indemnify the Indemnified Person from and against any loss, damage, liability or expenses by reason of such settlement or judgment. The Indemnifying Person shall not, without the prior written consent of the Indemnified Persons, effect any settlement of any pending or threatened litigation, proceeding or claim in respect of which indemnity has been properly sought by the Indemnified Persons hereunder, unless such settlement includes an unconditional release by the claimant of all Indemnified Persons from all liability with respect to claims which are the subject matter of such litigation, proceeding or claim.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 4 is unavailable to or are insufficient to hold harmless an indemnified party Indemnified Person under this Section 4 in respect of any Claims losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect thereof) referred to therein, then each indemnifying party Indemnifying Person under this Section 4 shall contribute to the amount paid or payable by such indemnified party Indemnified Person as a result of such Claims losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Person on the one hand and the Indemnified Person on the other from the sale of the Registrable Securities. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each Indemnifying Person shall contribute to such amount paid or payable by such Indemnified Person in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying partyeach Indemnifying Person, if any, on the one hand, hand and the indemnified party, Indemnified Person on the other handin connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions, suits or proceedings (including governmental investigations) in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company on the one hand or by such indemnified party, the Holders on the other and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 4 were to be determined by pro rata allocation (even if the Holders 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 in the preceding sentences of this Section 5.8(c)4. The amount paid or payable by an indemnified party Indemnified Person as a result of the Claims losses, claims, damages or liabilities (or actions, suits or proceedings (including governmental proceedings) in respect thereof) referred to above in this Section 4 shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party Indemnified Person in connection with investigating or defending any such actionactions, proceeding suits or claimproceedings (including governmental proceedings) or claims, provided that the provisions of this Section 4 have been complied with (in all material respects) in respect of any separate counsel for such Indemnified Person. Notwithstanding the provisions of this Section 4, no Holder shall be required to contribute any amount greater than the excess of the amount by which the total received by such Holder with respect to the sale of its Registrable Securities pursuant to a Shelf Registration Statement exceeds the sum of (A) the amount paid by such Holder for such Registrable Securities plus (B) the amount of any damages which such Holder 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 person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Holders' obligations in this Section 4 to contribute are several in proportion to their respective obligations and not joint. The agreement with respect to contribution contained in this Section 4 shall remain in full force and effect regardless of any amount in excess investigation made by or on behalf of the dollar amount equal to the sum Company or any Holder, and shall survive any termination of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)this Agreement.
Appears in 2 contracts
Samples: Registration Rights Agreement (CMS Energy Corp), Purchase Agreement (CMS Energy Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees shall cause each of its Subsidiaries to, indemnify jointly and severally, without limitation as to time, indemnify, defend and hold harmless, or cause to be indemnified and held harmlessthe full extent permitted by law, each Amneal Group Member and its respective holder of Registrable Securities, the partners, members, officers, directors, agents and employees and controlling Personsof each of them, if any, in any offering or sale each Person who controls each such holder (within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act), the partners, members, officers, directors, agents and employees of each such controlling person and any financial or investment adviser (each, a “Covered Person”), to the fullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, actions or liabilities in respect thereof proceedings (whether commenced or threatened), costs (including, without limitation, costs of preparation and attorneys’ fees) and expenses (including reasonable fees expenses of counselinvestigation) (collectively, “ClaimsLosses”), to which each such indemnified party may become subjectas incurred, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus or any preliminary form of prospectus or final prospectus contained therein, or in any amendment or supplement theretosupplements thereto or in any preliminary prospectus, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and except to the extent that the same arise out of or are based upon information furnished in writing to the Company shallby such Covered Person or the related holder of Registrable Securities expressly for use therein or (ii) any violation by the Company of any federal, state or common law rule or regulation applicable to the Company and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal relating to action required of or other out-of-pocket expenses reasonably incurred and documented inaction by them the Company in connection with investigating or defending any such Claimsregistration; provided, however, provided that the Company shall not be liable to any Amneal Group Member (Person who participates as an underwriter in the offering or its officers, directors, employee and controlling Personssale of Registrable Securities or any other Person, if any) in any , who controls such case underwriters within the meaning of the Securities Act to the extent that any such Claims Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (i) such registration statement, Person failed to send or preliminary deliver a copy of the prospectus with or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished prior to the Company in writing delivery of written confirmation of the sale by such Amneal Group Member Person to the Person asserting the claim from which such Losses arise, (ii) the prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, and (iii) the Company has complied with its obligations under Section 5D(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Amneal Group Member by Covered Person. If the Public Offering pursuant to any Representative registration statement provided for under this Section 5 is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Amneal Group MemberCompany to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article 5 is made through underwriters, expressly for use thereinthe Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, that is their officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the subject meaning of Section 15 of the Securities Act to the same extent as provided in this Section 5F with respect to the indemnification of the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such underwriter, or any officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or omissionalleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus.
(b) In connection with any Registration Statement in which a holder of Registrable Securities is participating, such holder, or an authorized officer of such holder, shall furnish to the event Company in writing such information regarding such holder as the Company reasonably requests for use in connection with any Registrable Shares are included in a registration statement contemplated by this AgreementRegistration Statement or prospectus and agrees, each Amneal Group Member shallseverally and not jointly, and hereby agrees toto indemnify, indemnify defend and hold harmless to the full extent permitted by law, the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and its officersSection 20 of the Exchange Act), and the partners, members, directors, officers, agents or employees of such controlling persons, from and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise all Losses arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus, or any preliminary or final prospectus contained thereinform of prospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, and each Amneal Group Member shallto the extent, and it hereby agrees tobut only to the extent, reimburse that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information regarding such holder so furnished in writing by such holder to the Company expressly for any legal use in such Registration Statement or other out-of-pocket expenses reasonably incurred prospectus and documented that such statement or omission was relied upon by the Company in connection with investigating preparation of such Registration Statement, prospectus or defending form of prospectus; provided that such holder of Registrable Securities shall not be liable in any such Claims, in each case only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement prospectus or omission amendment or alleged omission was supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made in reliance upon and in conformity with the Required Amneal Group Member Information not misleading, information previously furnished to the Company, and the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that failed to include such information therein. In no event shall the liability of each Amneal Group Member any holder of Registrable Securities hereunder shall be limited to an greater in amount equal to than the dollar amount of the proceeds (net proceeds of payment of all taxes and expenses incurred in connection therewith) received by such Amneal Group Member from holder upon the sale of the Registrable Shares sold by such Amneal Group Member pursuant Securities giving rise to such registration statement indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or prospectuson behalf of such indemnified party.
(c) Amneal Group If any Person shall be entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall give prompt notice to the party or parties from which such indemnity is sought (the “Indemnifying Parties”) of the commencement of any action, suit, proceeding or investigation or written threat thereof (a “Proceeding”) with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided that the failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to the extent that the Indemnifying Parties have been prejudiced by such failure. The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such Proceeding, to assume, at the Indemnifying Parties’ expense, the defense of any such Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided that an Indemnified Party or parties (if more than one such Indemnified Party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless: (i) the Indemnifying Parties agree to pay such fees and expenses; (ii) the Indemnifying Parties fail promptly to assume the defense of such Proceeding or fail to employ counsel reasonably satisfactory to such Indemnified Party or parties; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or parties and the Company agree Indemnifying Parties or an Affiliate of the Indemnifying Parties or such Indemnified Parties, and there may be one or more defenses available to such Indemnified Party or parties that ifare different from or additional to those available to the Indemnifying Parties, in which case, if such Indemnified Party or parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party or parties. Whether or not such defense is assumed by the Indemnifying Parties, such Indemnifying Parties or Indemnified Party or parties shall not be subject to any liability for any reasonsettlement made without its or their consent (but such consent shall not be unreasonably withheld). The Indemnifying Parties shall not consent to entry of any judgment or enter into any settlement which (i) provides for other than monetary damages without the consent of the Indemnified Party or parties (which consent shall not be unreasonably withheld or delayed) or (ii) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or parties of a release, in form and substance satisfactory to the Indemnified Party or parties, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 5F is unavailable to an Indemnified Party or are is insufficient to hold such Indemnified Party harmless an indemnified party for any Losses in respect of any Claims referred to thereinwhich this Section 5F would otherwise apply by its terms, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall have an obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified partysuch Indemnified Party, on the other hand, in connection with respect to the applicable offering of securitiesactions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party, on the one hand, and indemnified party Indemnified Party, on the other hand, 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The 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 indemnified party in connection with any Proceeding, to the extent such proportion as is appropriate party would have been indemnified for such expenses if the indemnification provided for in Section 5F(a) or 5F(b) was available to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5F(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account of the equitable considerations referred to in this Section 5F(d). Notwithstanding the preceding sentences provisions of this Section 5.8(c5F(d). The , an Indemnifying Party that is a holder of Registrable Securities shall not be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred net proceeds received by such indemnified party in connection with investigating Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reasons of such untrue or defending any such action, proceeding alleged untrue statement or claimomission 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 who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 2 contracts
Samples: Securityholders Agreement (Vs Holdings, Inc.), Securityholders Agreement (Vitamin Shoppe, Inc.)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementSection 8, the Company shall(in such capacity, and it hereby agrees to, an "Indemnifying Party") will indemnify and hold harmlessharmless each underwriter, the Investor if it offers or cause to be indemnified sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and held harmlessstockholders of any such partners), each Amneal Group Member and its respective directors, officers, directors, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Securities Exchange Act of 1934 (the "Exchange Act") (a "Controlling Person")) (each in such capacity, an "Indemnified Party"), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred, to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that (i) the Company shall -------- ------- not be liable in respect of any settlement effected without its consent (which consent shall not be unreasonably withheld) and (ii) the Company will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from and is based upon on (i) an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with information furnished in writing to the Company by such underwriter, Selling Holder or alleged omission made Controlling Person expressly for use in such registration statement, or preliminary (ii) such Selling Holder or final prospectus, or amendment or supplement thereto, in reliance upon Controlling Person being subject to an obligation to deliver a definitive prospectus and in conformity with the Required Amneal Group Member Information furnished fails to the Company in writing by do so. With respect to such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is in such registration statement, such Selling Holder (each such Selling Holder in such capacity, an "Indemnifying Party") will indemnify and hold harmless each underwriter, the subject Company (including its directors, officers, employees and agents), each other selling stockholder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; providedSection 20 of the Exchange Act) (each in such capacity, an "Indemnifying Party"), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, that shall the liability of each Amneal Group Member hereunder shall be limited to an amount a Selling Holder for indemnification under this Section 8.4(a) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the dollar amount proportion of the net total securities sold under such registration statement which is being sold by such Selling Holder or (ii) the proceeds received by such Amneal Group Member Selling Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 8.4(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party Indemnified Party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 8.4, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other selling stockholders and the underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other selling stockholders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders, the other selling stockholders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company, the Selling Holders, the other selling stockholders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders, the other selling stockholders and indemnified party the underwriters 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 State a material fact relates to information supplied by such indemnifying party the Company, the Selling Holders, the other selling stockholders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Selling Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c8.4(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 8.4(b) in excess of the Claims referred to above shall be deemed to include lesser of (subject i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which are being sold by such indemnified party in connection with investigating Selling Holder or defending any (ii) the proceeds received by such action, proceeding or claimSelling Holder from its sale of Registrable Securities under such registration statement. No Person person found 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 found guilty of such fraudulent misrepresentation.
(c) The amount paid by an Indemnifying Party or payable to an Indemnified Party as a result of the losses, claims, damages and liabilities referred to in this Section 8 shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim, payable as the same are incurred. Notwithstanding The indemnification and contribution provided for in this Section 8.4 will remain in full force and effect regardless of any investigation made by or on behalf of the foregoingindemnified parties or any officer, no Amneal Group Member director, employee, agent or controlling person of the Indemnified Parties.
(d) Promptly after receipt by an Indemnified Party of notice of the commencement of any action or proceeding involving a claim referred to in this Section 8.4, such Indemnified Party will, if a claim in respect thereof is to be made against an Indemnifying Party, give written notice to the latter of the commencement of such action, provided, however, that the failure of any -------- ------- Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligation under the preceding subdivisions of this Section 8.4, except to the extent that the Indemnifying Party is actually prejudiced by such failure to give notice. In case any such action is brought against an Indemnified Party, provided the Indemnifying Party provides the Indemnified Party reasonable assurances that the Indemnifying Party has the ability to satisfy any judgment which may be entered against the Indemnified Party, and unless in such Indemnified Party's reasonable judgment a conflict of interest between such Indemnified Party and Indemnifying Party may exist in respect of such action; the Indemnifying Party shall be entitled to participate in and to assume the defense thereof, jointly with any other Indemnifying Party similarly notified to the extent that it may wish, with counsel reasonably 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 contribute such Indemnified Party for any amount legal or other expenses subsequently incurred by the latter in excess connection with the defense thereof other than reasonable costs of investigation. No Indemnifying Party shall consent to any settlement without the consent of the dollar amount equal to Indemnified Party which does not include as an unconditional term thereof the sum of (i) giving by the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant claimant or plaintiff to such registration statement or prospectus, minus (ii) any amounts paid or payable by Indemnified Party of a release from all liability that could have been brought against it in such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)action.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Issuer, the Company shalljointly and severally, and it hereby agrees toto indemnify, indemnify defend and hold harmless, or cause to be indemnified and held harmlessharmless the Initial Purchaser, each Amneal Group Member Holder, each person (a "Controlling Person"), if any, who controls the Initial Purchaser or Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and its the respective officers, directors, employees partners, employees, representatives and controlling Persons, if any, in any offering or sale agents of the Registrable SharesInitial Purchaser, the Holders or any Controlling Person (each, an "Indemnified Party"), from and against any lossesloss, claimsdamage, damages expense, liability, claim or liabilities any actions in respect thereof and expenses (including the reasonable fees cost of counselinvestigation) (collectivelywhich such Indemnified Party may incur or become subject to under the Securities Act, “Claims”), to which each such indemnified party may become subjectthe Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)loss, damage, expense, liability, claim or actions or proceedings in respect thereof, arise action arises out of or are is based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementShelf Registration Statement or Prospectus, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or including any document incorporated by reference therein, or arise in any amendment or supplement thereto or in any preliminary prospectus, or arises out of or are is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements thereintherein not misleading, or arises out of or is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances in under which they such statements were made, not misleading, and the Company Issuers shall, jointly and it hereby agrees toseverally, reimburse, upon requestas incurred, each such Amneal Group Member the Indemnified Parties for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claimsloss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company Issuers shall not be liable required to provide any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyindemnity pursuant to this Section 6(a) in any such case to the extent that insofar as any such Claims arise loss, damage, expense, liability, claim or action arises out of or are is based upon an any untrue statement or omission or alleged untrue statement or omission or alleged omission made in such registration statementof a material fact contained in, or preliminary or final prospectusomitted from, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Initial Purchaser or a Holder to the Company expressly for use thereinin, that is the subject of the any Shelf Registration Statement or any Prospectus; provided further that, with respect to any untrue statement or omissionomission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this Section 6(a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, damages, expenses, liabilities, claims or actions purchased the Registrable Securities concerned, to the extent that a prospectus relating to such Registrable Securities was required to be delivered by such Holder under the Securities Act in connection with such purchase and any such loss, damage, expense, liability, claim or action of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Registrable Securities to such person, a copy of the final prospectus, provided the Company had previously furnished sufficient copies of such final prospectus to such Holder in a timely manner as to reasonably permit such Holder to send or give a copy of such final prospectus to such person at or prior to the written confirmation of such sale; provided further, however, that (i) this indemnity agreement will be in addition to any liability which the Issuers may otherwise have to such Indemnified Party; and (ii) the Issuers shall not be required to provide any indemnity pursuant to this Section 6(a) insofar as any such loss, damage, expense, liability, claim or action arises out of or is based upon an offer or sale, during a Suspension Period for which the Issuers have duly given a Suspension Notice in accordance herewith, of Registrable Securities pursuant to a Shelf Registration Statement by a Notice Holder who had theretofore duly received such Suspension Notice.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Holder, each Amneal Group Member shallseverally and not jointly, and hereby agrees toto indemnify, indemnify defend and hold harmless the Company and each Issuer, its directors, officers, directors, employees and controlling Personsany person who controls any Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, if any, in any offering or sale of its Registrable Shares an "Issuer Indemnified Party") from and against any Claims loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Issuer Indemnified Party may incur or become subject to which each such indemnified party may become subjectunder the Securities Act, the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement as provided herein)loss, damage, expense, liability, claim or actions or proceedings in respect thereof, arise action arises out of or are is based upon an any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the "Holder Information") furnished in writing by or on behalf of such Holder to the Company expressly for use in, any registration statementShelf Registration Statement or Prospectus, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise arises out of or are is based upon any omission or alleged omission to state therein a material fact in connection with such Holder Information required to be stated therein in any Shelf Registration Statement or Prospectus or necessary to make the statements therein such Holder Information not misleading; and, and subject to the limitation set forth in the immediately preceding clause, each Amneal Group Member shallHolder shall reimburse, and it hereby agrees toas incurred, reimburse the Company Issuer Indemnified Party for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such Issuer Indemnified Party in connection with investigating or defending any loss, damage, expense, liability, claim or action in respect thereof. This indemnity agreement will be in addition to any liability which such ClaimsHolder may otherwise have to any Issuer or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, in each case only pursuant to the extent that Shelf Registration Statement, of the Registrable Securities giving rise to such untrue statement indemnification obligation.
(c) If any action, suit or alleged untrue statement proceeding (each, a "Proceeding") is brought against any person in respect of which indemnity may be sought pursuant to either Section 6(a) or omission or alleged omission was made in reliance upon and in conformity with Section 6(b), such person (the Required Amneal Group Member Information furnished to "Indemnified Party") shall promptly notify the Company person against whom such indemnity may be sought (the "Indemnifying Party") in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omissioninstitution of such Proceeding and the Indemnifying Party shall assume the defense of such Proceeding; provided, however, that the omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability which it may have to such Indemnified Party or otherwise. Such Indemnified Party shall have the right to employ its own counsel in any such case, but the fees and expenses of each Amneal Group Member hereunder such counsel shall be limited at the expense of such Indemnified Party unless the employment of such counsel shall have been authorized in writing by such Indemnifying Party in connection with the defense of such Proceeding or such Indemnifying Party shall not have employed counsel to have charge of the defense of such Proceeding within thirty (30) days of the receipt of notice thereof or such Indemnified Party shall have reasonably concluded upon the written advice of counsel that there may be one or more defenses available to it that are different from, additional to or in conflict with those available to such Indemnifying Party (in which case such Indemnifying Party shall not have the right to direct that portion of the defense of such Proceeding on behalf of the Indemnified Party, but such Indemnifying Party may employ counsel and participate in the defense thereof but the fees and expenses of such counsel shall be at the expense of such Indemnifying Party), in any of which events such reasonable fees and expenses shall be borne by such Indemnifying Party and paid as incurred (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action). An Indemnifying Party shall not be liable for any settlement of such Proceeding effected without the written consent of such Indemnifying Party, but if settled with the written consent of such Indemnifying Party, such Indemnifying Party agrees to indemnify and hold harmless an amount equal Indemnified Party 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 such Indemnified Party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then such 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 sixty (60) Business Days after receipt by such Indemnifying Party of the aforesaid request, (ii) such Indemnifying Party shall not have fully reimbursed such Indemnified Party in accordance with such request prior to the dollar amount date of such settlement and (iii) such Indemnified Party shall have given such Indemnifying Party at least thirty (30) days' prior notice of its intention to settle. No Indemnifying Party shall, without the net proceeds received prior written consent of any Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which such Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Amneal Group Member Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the sale subject matter of Registrable Shares sold such Proceeding and does not include an admission of fault or culpability or a failure to act by or on behalf of such Amneal Group Member pursuant to such registration statement or prospectusIndemnified Party.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a6 is unavailable to an Indemnified Party under Section 6(a) or Section 5.8(b) are unavailable to 6(b), or are insufficient to hold harmless an indemnified party such Indemnified Party harmless, in respect of any Claims losses, damages, expenses, liabilities, claims or actions referred to therein, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims losses, damages, expenses, liabilities, claims or actions (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying partyIssuers, on the one hand, and by the indemnified partyHolders or the Initial Purchaser, on the other hand, with respect to from the applicable offering of securitiesthe Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Issuers, on the one hand, and of the Holders or the Initial Purchaser, on the other hand, in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable considerations. The relative fault of such indemnifying party the Issuers, on the one hand, and indemnified party of the Holders or the Initial Purchaser, 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 such indemnifying party the Issuers or by such indemnified party, the Holders or the Initial Purchaser and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsconnection with investigating or defending any Proceeding.
(e) The Issuers, but also the relative benefits of the indemnifying party Holders and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Initial Purchaser agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 6 were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in Section 6(d) above. Notwithstanding the preceding sentences provisions of this Section 5.8(c). The 6, no Holder shall be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred amount by which the total price at which the Registrable Securities giving right to above shall be deemed to include (subject such contribution obligation and sold by such Holder were offered to the limitations set forth in Section 5.9) public exceeds the amount of any legal damages which it has otherwise been required to pay by reason of such untrue or other fees alleged untrue statement or expenses reasonably incurred by such indemnified party in connection with investigating omission or defending any such action, proceeding or claimalleged 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Holders' respective obligations to contribute any amount pursuant to this Section 6 are several in excess of the dollar amount equal proportion to the sum respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 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.
(f) The indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) the net proceeds received by such Amneal Group Member from the sale any termination of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusthis Agreement, minus (ii) any amounts paid investigation made by or payable on behalf of any Holder or the Initial Purchaser or any person controlling any Holder or the Initial Purchaser, or any Issuer , or any officer or director of any Issuer or any person controlling any Issuer and (iii) the sale of any Registrable Security by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)any Holder.
Appears in 1 contract
Samples: Registration Rights Agreement (Matria Healthcare Inc)
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
7.1. To the extent permitted by applicable law, the Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Selling Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Selling Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner, and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively a “Violation”):
(i) Any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) The omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case for any such loss, claim, damage, liability or expense to the extent that any such Claims arise it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, indemnified party expressly for use thereinin connection with such registration; provided, further, that the indemnity agreement contained in this Section 7 shall not apply to any underwriter to the extent that any such loss is the subject of the untrue statement based on or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise arises out of or are based upon an untrue statement or alleged untrue statement of a material fact fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if such underwriter was under an obligation to deliver such final prospectus and failed to do so. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders.
7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or any preliminary threatened action, suit, proceeding or final prospectus contained thereininvestigation, or to which any amendment of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state laws, or any document incorporated by reference thereininsofar as such losses, or claims, damages, liabilities and expenses arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such ClaimsViolation, in each case to the extent (and only to the extent extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made Violation occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is the subject of the untrue statement or omissionin connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of each Amneal Group Member hereunder the relevant Selling Holder of Registrable Securities, which consent shall not be limited to an amount equal to unreasonably withheld, and (y) in no event shall the dollar amount of any indemnity under this Section 7.2 exceed the net proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Holder.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 7.3. Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to an indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be unreasonably withheld.
7.4. If the indemnification required by this Section 7 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 7:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 7.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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.
7.5. Notwithstanding If indemnification is available under this Section 7, the foregoing, no Amneal Group Member indemnifying parties shall be liable indemnify each indemnified party to contribute the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party or indemnified party or any amount other equitable consideration referred to in excess Section 7.4.
7.6. The obligations of the dollar amount equal to Company and the sum of (i) the net proceeds received by such Amneal Group Member from the sale Selling Holders of Registrable Shares sold by such Amneal Group Member Securities under this Section 7 shall survive the completion of any offering of Registrable Securities pursuant to such a registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Holder and its respective officerspartners, members, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable SharesParticipating Shares pursuant to a registration statement hereunder, against any losses, claims, damages (including reasonable attorney’s fees) or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subjectsubject (and the Company will pay to each such Participating Holder or other aforementioned person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any Claim as such expenses are incurred), insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleadingmisleading or (iii) any violation by the indemnifying party (or any of its agents or Affiliates, and but excluding any Holder) of the Company shallSecurities Act, and it hereby agrees tothe Exchange Act, reimburseany state securities law, upon requestor any rule or regulation promulgated under the Securities Act, each such Amneal Group Member for the Exchange Act or any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claimsstate securities law; provided, however, provided that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly Holder for use therein, or by any Holder’s failure to furnish the Company, upon request, with the information with respect to such Holder, or such Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if any Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Participating Holders, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Holder, each Amneal Group Member severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company and Company, its directors, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Participating Shares pursuant to a registration statement hereunder, or any other sale by a Holder of Company Common Stock issued as Earn-Out Consideration, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) (A) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon (B) 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case of (A) and (B) 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Holder with respect to such Holder expressly for use therein that is or (ii) any violation or alleged violation by the subject indemnifying party (or any of its agents or Affiliates) of the untrue statement Securities Act, the Exchange Act, any state securities law, or omission; providedany rule or regulation promulgated under the Securities Act, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement Exchange Act or prospectusany state securities law.
(c) Amneal Group Any indemnification of a Claim pursuant to this Section 3.05 shall be determined in accordance with the procedures and restrictions of Article V of the Purchase Agreement as a claim under Section 5.1(b) or 5.2(b) of the Purchase Agreement, as applicable. Any payments made to an indemnified party in respect of Claims pursuant to this Section 3.05 shall be treated as an adjustment to the Total Consideration for Tax purposes in accordance with Section 5.7 of the Purchase Agreement to the extent permitted by Law.
(d) The Participating Holders and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a3.05(a) or Section 5.8(b3.05(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c3.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsfault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c3.05(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c3.05(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In Indemnification by the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company. The Company shall, and it hereby agrees to, to indemnify ------------------------------ and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Holder and its respective officers, directors, employees officers and controlling Personsdirectors and each Person, if any, in who controls any offering or sale Holder within the meaning of Section 15 of the Registrable Shares, Securities Act as follows:
(i) against any lossesand all loss, claimsliability, damages or liabilities in respect thereof claim, damage and expenses (including reasonable fees of counsel) (collectivelyexpense whatsoever, “Claims”)as incurred, to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, Registration Statement (or any amendment or supplement thereto) pursuant to which such Holder's Registrable Securities were registered under the Securities Act, including all documents incorporated therein by reference, or any document incorporated by reference therein, or arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light therefrom of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for misleading or arising out of any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto), including all documents incorporated therein by reference, 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 expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or investigation or proceeding by any governmental agency, body or third party, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, if such settlement is effected with the written consent of the Company which shall not be unreasonably withheld; and
(iii) against any and all expense (including reasonable fees and disbursements of counsel), as reasonably incurred in investigating, preparing or defending against any litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, in each case whether or not a party, or any claim whatsoever based upon any such 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) above. provided, however, that the indemnity provided pursuant to this Section 9(a) -------- ------- does not apply to any Holder with respect to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Holder expressly for use therein that is the subject of the untrue statement in a Registration Statement (or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aamendment thereto) or Section 5.8(b) are unavailable to any Prospectus (or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid amendment or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconductsupplement thereto).
Appears in 1 contract
Samples: Registration Rights and Lock Up Agreement (Cais Internet Inc)
Indemnification; Contribution. (a) In the event Incident to any registration of any Registrable Shares are included in a registration statement contemplated by Securities under the Securities Act pursuant to this Agreement, the Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and stockholders of any such partners), and directors, officers, employees, representatives and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or cause to be indemnified and held harmlessany of them, each Amneal Group Member and its respective officersmay become subject under the Securities Act, directorsthe Exchange Act or other federal or state statutory law or regulation, employees and controlling Personsat common law or otherwise, if any, in any offering or sale of the Registrable Shares, against any insofar as such losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement thereto, to such registration statement or any document incorporated by reference therein, prospectus) or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any (1) such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by or alleged omission made on behalf of such Holder in accordance with Section 4(b) of this Agreement for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (2) in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing case of a sale directly by such Amneal Group Member or Holder (including a sale of Registrable Securities through any underwriter retained by such Holder to engage in a distribution solely on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided hereinHolder), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made contained in reliance upon a preliminary prospectus and corrected in conformity with a final or amended prospectus, and such Holder failed to deliver a copy of the Required Amneal Group Member Information final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the Person asserting any such loss, claim, damage or liability in any case where such delivery is required by the Securities Act or any state securities laws. With respect to such untrue statement or omission or alleged untrue statement or omission in the information furnished in writing to the Company by or on behalf of such Holder in writing by the Amneal Group Member or its Representative expressly accordance with Section 4(b) of this Agreement for use therein that is in such registration statement, such Holder, on a several and not joint basis, will indemnify and hold harmless the subject Company (including its directors, officers, employees, representatives and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, representatives and agents of any of them, and each person who controls any of them " = "1" "" "" within the meaning of Section 15 of the untrue statement Securities Act or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount Section 20 of the net proceeds received by such Amneal Group Member Exchange Act), from and against any and all losses, claims, damages, reasonable expenses and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the sale same are incurred), to which they, or any of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement them, may become subject under the Securities Act, the Exchange Act or prospectusother federal or state statutory law or regulation, at common law or otherwise.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 5, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the other Holders from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and the other Holders in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Holders shall be deemed to be in the same respective proportions that the net proceeds from the offering received by the Company and the Holders, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company and indemnified party the Holders 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 such indemnifying party or by such indemnified party, on behalf of the Company or the Holders and the partiesParties’ relative intent, knowledge, knowledge and access to information and opportunity to correct or prevent such statement or omissioninformation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimparagraph. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 5 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusindemnified parties. No indemnifying party, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case defense of fraud any such claim or willful misconduct).litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld. Any indemnified party that proposes to assert the right to be indemnified under this " = "1" "" ""
Appears in 1 contract
Samples: Registration Rights Agreement (Aptevo Therapeutics Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the Persons referred to be indemnified in this clause (iii) being hereinafter referred to as a "controlling Person"), and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling PersonsPerson (any Person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an "indemnified Person"), to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a Person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel, or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons; and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any Person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Holder from the sale or other disposition of Registrable Shares sold his or its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling Person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling Person shall have the rights and duties given to each Holder by Section 2.8(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.8 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.8(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities, or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.8(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c2.8(c). The , no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity and contribution provisions contained in this Section 2.8 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying Person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified Persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 1 contract
Samples: Registration Rights Agreement (Senesco Technologies Inc)
Indemnification; Contribution. (ai) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each holder and each affiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in under any offering Blue Sky Law or sale of the Registrable Shares, regulation against any losses, claims, damages damages, or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party holder may become subjectsubject under the Securities Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages, or liabilities (or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement, or any preliminary or final prospectus contained thereinprospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and will reimburse each Amneal Group Member shall, such holder and it hereby agrees to, reimburse the Company affiliate for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such holder in connection with investigating or defending any such Claimsaction or claim regardless of the negligence of any such holder or affiliate; 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, registration statement or prospectus, or any such amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by any such holder expressly for use therein.
(ii) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any losses, claims, damages, or liabilities to which the 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 an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, 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, 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 any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by such holder expressly for use therein.
(iii) Promptly after receipt by an indemnified party under Sections 4(d)(i) or (ii) above 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 either 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 that it may otherwise have to any indemnified party. 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 assume the defense thereof by notice in writing to the indemnified party. After notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under either of such subsections for any legal expenses of other counsel or any other expense, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party, unless such expenses have been specifically authorized in writing by the Amneal Group Member indemnifying party, the indemnifying party has failed to assume the defense and employ counsel, or its Representative expressly for use therein that is the subject of named parties to any such action include both the untrue statement or omission; providedindemnified party and the indemnifying party, howeveras appropriate, and such indemnified party has been advised by counsel that the liability representation of such indemnified party has been advised by counsel that the representation of such indemnified party and the indemnifying party by the same counsel would be inappropriate due to actual or potential differing interests between them, in each Amneal Group Member hereunder shall of which cases the fees of counsel for the indemnified party will be limited to an amount equal to paid by the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusindemnifying party.
(civ) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a4(d) is unavailable or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under Section 4(d)(i) or (ii) in respect of any Claims losses, claims, damages, or liabilities (or action in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims 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 holder or holders from this Agreement and from the offering of the shares of Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, 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 indemnifying party, on the one hand, Company and the indemnified partyholders in connection with the statement or omissions that resulted in such losses, on the claims, damages, or liabilities (or actions in respect thereof), as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company or by such indemnified party, the holder and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c4(d)(iv) were to be determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation which that does not take into account the equitable considerations referred to above in the preceding sentences of this Section 5.8(csubsection 4(d)(iv). The Except as provided in Section 4(d)(iii), the amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 4(d)(iv) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating investigation or defending any such action, proceeding action or claim. 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. Notwithstanding any provision in this Section 4(d)(iv) to the foregoingcontrary, no Amneal Group Member holder shall be liable to contribute for any amount amount, in the aggregate, in excess of the dollar amount equal to the sum of (i) the net proceeds received by to such Amneal Group Member holder from the sale of Registrable Shares sold by such Amneal Group Member pursuant holder's shares (obtained upon exercise of Warrants) giving rise to such registration statement losses, claims, damages, or prospectusliabilities.
(v) The obligations of the Company under this Section 4(d) shall be in addition to any liability that the Company may otherwise have and shall extend, minus (iiupon the same terms and conditions, to each person, if any, who controls any holder of Warrants within the meaning of the Securities Act. The obligations of the holders of Common Stock under this Section 4(d) shall be in addition to any amounts paid or payable by liability that such Amneal Group Member pursuant holders may otherwise have and shall extend, upon the same terms and conditions to Section 5.8(b) (except in each person, if any, who controls the case Company within the meaning of fraud or willful misconduct)the Securities Act.
Appears in 1 contract
Samples: Domain Registrar Project Completion Agreement (Fullnet Communications Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each person, if any, who controls (within themeaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to be indemnified in this clause (iii) being hereinafter referred to as a “controlling person”) and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an “indemnified Person”), to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “Claims”), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.5(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof with counsel reasonably satisfactory to the indemnified Persons, it being understood and agreed that the Company’s regular outside counsel is acceptable for such purpose. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are materially different from or additional to those available to the Company, it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company’s prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder indemnified Person, which shall not be limited to an amount equal unreasonably withheld, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Registrable Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) (x) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, (y) with respect to the preliminary Prospectus, any matters which result from the fact that such Holder 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, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; or (z) such matters which result from the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.5(b)(iv), the indemnified Person or the related Holder was not permitted to do so, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Purchaser from the sale or other disposition of his or its Registrable Securities covered by such Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Registrable Shares sold Securities covered by any Registration Statement, such Amneal Group Member pursuant Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement controlling person shall have the rights and duties given to each Holder by Section 2.9(a). Such indemnity shall remain in full force and effect regardless of any investigation made by or prospectuson behalf of any the Company or any other indemnified Person and shall survive the transfer of securities by any applicable Holder.
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.9 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.9(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Registrable Securities or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c2.9(a) is not permitted by applicable lawand Section 2.9(b), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Registrable Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.9(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c). The 2.9(c) no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Registrable Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity, and contribution provisions contained in this Section 2.9 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, (i) indemnify and hold harmlessharmless each Demand Shareholder (but not, pursuant to this Section 6.6, any Shareholder Designee in his or cause to be indemnified her capacity as a Director), and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, underwriter in any offering or sale of the Registrable Shares, and its and their respective Representatives and Controlling Persons, if any, from and against any and all losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims Prospectus (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of the circumstances in which they were made), not misleading, ; and each Amneal Group Member shall, and it hereby agrees to, (ii) reimburse the Company periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred and documented by such indemnified party in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any such indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to the Company by a Demand Shareholder or any Representative of a Demand Shareholder expressly for use therein, or if a Demand Shareholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Original Shareholder, on behalf of the Demand Shareholders, and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement.
(b) Each Demand Shareholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company and each underwriter in any offering or sale of Registrable Shares, and its and their respective Representatives and Controlling Persons, if any, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in light of the circumstances in which they were made), not misleading; and (ii) reimburse periodically upon demand such indemnified party for any legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member a Demand Shareholder or its any Representative of a Demand Shareholder, expressly for use therein that is therein, or if a Demand Shareholder sold securities to the subject Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Original Shareholder, on behalf of the Demand Shareholders, and such Prospectus corrected such untrue statement or omissionalleged untrue statement or omission or alleged omission made in such Registration Statement; provided, however, that the liability of each Amneal Group Member the Demand Shareholders hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member the Demand Shareholders from the sale of Registrable Shareholder Shares sold by such Amneal Group Member the Demand Shareholders pursuant to such registration statement Registration Statement or prospectusProspectus.
(c) Amneal Group Each Demand Shareholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a6.6(a) or Section 5.8(b6.6(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c6.6(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Parties agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.6(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.6(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.7) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member the Demand Shareholders shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member the Demand Shareholders from the sale of Registrable Shareholder Shares sold by such Amneal Group Member the Demand Shareholders pursuant to such registration statement Registration Statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Prospectus.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmless
(i) each Holder covered by any Registration Statement,
(ii) each other Person who participates as an underwriter in the offering or sale of such securities,
(iii) each person, if any, who controls (within the meaning of Section 15 of the Securities Act or cause Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to be indemnified and held harmless, each Amneal Group Member and its in this clause (iii) being hereinafter referred to as a ("controlling person") and
(iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an "indemnified Person"), to the Registrable Shares, fullest extent lawful from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise wise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or 17 supplemented, if the Company shall have previously furnished copies hereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Hxxxxx. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof Such indemnified Person shall have the night 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall-have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any 18 pending or threatened action claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Purchaser from the sale or other disposition of Registrable Shares sold his or its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling person shall have the rights and duties given to each Holder by Section 2.8(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.8 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments of expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such 19 proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Hxxxxx and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.8(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c). The 2.8(c) no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity and contribution provisions contained in this Section 2.8 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).above. 20
Appears in 1 contract
Samples: Registration Rights Agreement (Environmental Remediation Holding Corp)
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by Securities pursuant to this AgreementArticle III, the Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by Law, each Amneal Group Member of the Investors and their respective Affiliates, the Investors’ Representative and each of its respective Affiliates, and each Person who controls an Investor or the Investors’ Representative within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, in each case other than any Affiliate that is an Excluded GIC Entity or any Excluded Portfolio Company Pension Fund, and the directors, officers, directorsemployees, employees partners, affiliates, members, managers, shareholders, assignees and controlling Persons, if any, in any offering or sale representatives of each of the Registrable Sharesforegoing (collectively, the “Indemnified Persons”) from and against any and all losses, claims, damages or liabilities in respect thereof damages, liabilities, judgments, actions and expenses (including reasonable fees of counselattorneys’ fees) (collectively, “ClaimsLosses”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), ) joint or actions or proceedings in respect thereof, arise several arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementpart of any Registration Statement, or any preliminary or final prospectus contained thereinor other disclosure document used in connection with the Registrable Securities, any Issuer FWP or any amendment or supplement theretoto any of the foregoing, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for misleading or (ii) any legal violation or other out-of-pocket expenses reasonably incurred and documented alleged violation by the Company or any of its Subsidiaries of any federal, state, foreign or common law rule or regulation applicable to the Company or any of its Subsidiaries and relating to action or inaction in connection with investigating or defending any such Claimsregistration, in each case only Registration Statement, other disclosure document or Issuer FWP; provided, however, that the Company will not be required to the extent that indemnify any Indemnified Person for any losses, claims, damages, liabilities, judgments, actions or expenses resulting from any such untrue statement or alleged omission if such untrue statement or omission or alleged omission was made in reliance on and in conformity with information with respect to any Indemnified Person furnished to the Company in writing by the Investors expressly for use therein.
(b) In connection with any Registration Statement, preliminary or final prospectus, or Issuer FWP, each Investor agrees to indemnify, severally and not jointly, the Company, its Directors, its officers who sign such Registration 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 Act) to the same extent as the foregoing indemnity from the Company to the Investors, but only with respect to information with respect to such Investor furnished to the Company in writing by such Investor expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP to the extent such information is included therein in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by the Amneal Group Member or its Representative such Investor expressly for use therein therein; provided, however, that is the subject in no event shall any Investor’s liability pursuant to this Section 3.08 in respect of the untrue statement offering to which such loss, claim, damages, liabilities, judgments, actions or omissionexpenses relate exceed an amount equal to the proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which such Investor has otherwise been required to pay by reason of such information.
(c) In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided, however, that the liability failure to give such notice shall not relieve the indemnifying party of each Amneal Group Member hereunder shall be limited its obligations pursuant to an amount equal this Agreement except to the dollar amount extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party; and (iii) pay the fees and disbursements of such counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, Bye-laws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to the Company, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action or proceeding is a criminal or regulatory enforcement action. It is understood that the indemnifying party will not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (C) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the net proceeds received retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable 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 will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 3.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such Amneal Group Member from indemnifying party of the sale aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of Registrable Shares sold the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such Amneal Group Member pursuant to indemnified party, unless such registration statement settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding or prospectus(ii) which involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 3.08 from the indemnifying party is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities, judgments, actions or expenses referred to thereinin this Section 3.08, then each the indemnifying party shall party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of the Company, on the one hand, and the indemnified partyInvestors, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will 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 taken by, or relates to information supplied by by, such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 3.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c3.08(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c3.08(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of “fraudulent misrepresentation 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. Notwithstanding the foregoingprovisions of Section 3.08(d) and this Section 3.08(e), no Amneal Group Member shall be liable each Investor’s liability pursuant to contribute any amount Section 3.08(d) in excess respect of the dollar offering to which such loss, claim, damages, liabilities, judgments, actions or expenses relate shall not exceed an amount equal to the sum proceeds to such Investor (after deduction of (iall Underwriters’ discounts and commissions) from such offering less the net proceeds received amount of any damages which such Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 3.08 is several in proportion to the respective number of Registrable Securities held by such Amneal Group Member Investor hereunder and not joint.
(f) For purposes of this Section 3.08, each Indemnified Person shall have the same rights to contribution as such Investor, and each officer, Director and Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the Company, subject in each case to the limitations set forth in the immediately preceding paragraph. 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 Section 3.08, notify such party or parties from whom contribution may be sought, but the sale of Registrable Shares sold omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 3.08 or otherwise except to the extent that it has been prejudiced in any material respect by such Amneal Group Member pursuant failure. No party shall be liable for contribution with respect to any action or claim settled without its written consent; provided, however, that such registration statement written consent was not unreasonably withheld.
(g) If indemnification is available under this Section 3.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 3.08(a) and (b) without regard to the relative fault of said indemnifying party or prospectus, minus indemnified party or any other equitable consideration provided for in Section 3.08(d) or (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconducte).
Appears in 1 contract
Samples: Shareholder Agreement (Genpact LTD)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementArticle V, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and its respective officersstockholders of any such partners), stockholders, directors, officers, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Securities Exchange Act of 1934 (the "Exchange Act") (a "Controlling Person")), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by such underwriter, Selling Holder or alleged omission made Controlling Person expressly for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished . With respect to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is in such registration statement, such Selling Holder will indemnify and hold harmless each underwriter, the subject Company (including its directors, officers, employees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners), stockholders, directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omission; providedSection 20 of the Exchange Act), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, that shall the liability of each Amneal Group Member hereunder shall be limited to an amount a Selling Holder for indemnification under this Section 5.5(a) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the dollar amount proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (ii) the net proceeds received by such Amneal Group Member Selling Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5.5(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 5.5, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations; provided, however, that in the event of a registration statement filed in response to a demand under Section 5.2 and in which the Company does not register any shares of capital stock, the proportion of contribution by the Company, the other Selling Holders and the underwriters shall in all cases be governed by clause (ii) above. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawSelling Holders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5.5(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 5.5(b) in excess of the Claims referred to above shall be deemed to include lesser of (subject i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which are being sold by such indemnified party in connection with investigating Selling Holder or defending any (ii) the net proceeds received by such action, proceeding or claimSelling Holder from its sale of Registrable Securities under such registration statement. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section5.5 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 5.5 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)indemnified parties.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to be indemnified in this clause (iii) being hereinafter referred to as a "controlling person") and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an "indemnified Person"), to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Blackout Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Purchaser from the sale or other disposition of Registrable Shares sold his or its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling person shall have the rights and duties given to each Holder by Section 2.8(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.8 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.8(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.8(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c). The 2.8(c) no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity, and contribution provisions contained in this Section 2.8 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 1 contract
Samples: Registration Rights Agreement (Senesco Technologies Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member Investor and its respective officers, directors, employees managers, partners, employees, agents, representatives, trustees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees and expenses of counsel) or Actions in respect thereof (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member Investor for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member Investor (or its officers, directors, employee managers, partners, employees, agents, representatives, trustees and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Investor Information furnished to the Company in writing by such Amneal Group Member Investor or on behalf of such Amneal Group Member Investor by any Representative of the Amneal Group Membersuch Investor, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Investor who includes Registrable Shares in such registration statement shall, and hereby agrees agrees, on a several basis (and not jointly or jointly and severally) to, indemnify and hold harmless the Company and its officers, directors, employees managers, employees, agents, representatives and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings Actions in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member such Investor shall, and it hereby agrees to, on a several basis (and not jointly or jointly and severally), reimburse the Company for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Investor Information furnished to the Company in writing by the Amneal Group Member such Investor or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member such Investor hereunder shall be limited to an amount equal to the dollar amount of the net proceeds actually received by such Amneal Group Member Investor from the sale of Registrable Shares sold by such Amneal Group Member Investor pursuant to such registration statement or prospectus.
(c) Amneal Group The Investors and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.8(a) or Section 5.8(b2.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.8(c) is not permitted by applicable lawLaw, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.92.9) any legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimAction. 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. Notwithstanding the foregoing, no Amneal Group Member Investor shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member Investor from the sale of Registrable Shares sold by such Amneal Group Member Investor pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member Investor pursuant to Section 5.8(b2.8(b) (except in the case of fraud or willful misconductmisconduct by such Investor).
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmlessharmless the Stockholder, or cause to be indemnified the Stockholder’s Subsidiaries and held harmless, each Amneal Group Member and its respective officers, directors, employees and their controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of- pocket fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member reimburse periodically the Stockholder and its Subsidiaries for any actual and documented out-of-pocket legal or other actual and documented out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member the Stockholder, any of its Subsidiaries, any underwriter or on behalf of such Amneal Group Member by any Representative of the Amneal Group MemberStockholder, expressly for use therein, or by the Stockholder’s failure to furnish the Company, upon request, with the information with respect to the Stockholder or its Subsidiaries, or any underwriter or Representative of the Stockholder, or the Stockholder’s or its Subsidiary’s intended method of distribution, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member The Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative Stockholder expressly for use therein that is therein, and (ii) reimburse the subject of Company for any actual and documented out-of-pocket legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group The Stockholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a5.9(a) or Section 5.8(b5.9(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c5.9(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsfault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.9(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.9(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.10) any actual and documented out-of-pocket legal or other out- of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Samples: Stockholder Agreement
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member the Investor and its respective officers, directors, employees managers, partners, employees, agents, representatives, trustees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees and expenses of counsel) or Actions in respect thereof (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member the Investor for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member the Investor (or its officers, directors, employee managers, partners, employees, agents, representatives, trustees and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Investor Information furnished to the Company in writing by such Amneal Group Member the Investor or on behalf of such Amneal Group Member the Investor by any Representative of the Amneal Group MemberInvestor, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member the Investor shall, and hereby agrees to, to indemnify and hold harmless the Company and its officers, directors, employees managers, employees, agents, representatives and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings Actions in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member the Investor shall, and it hereby agrees to, to reimburse the Company for any legal or other out-of-pocket fees and expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Investor Information furnished to the Company in writing by the Amneal Group Member Investor or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member the Investor hereunder shall be limited to an amount equal to the dollar amount of the net proceeds actually received by such Amneal Group Member the Investor from the sale of Registrable Shares sold by such Amneal Group Member the Investor pursuant to such registration statement or prospectus.
(c) Amneal Group The Investor and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.7(a) or Section 5.8(b2.7(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.7(c) is not permitted by applicable lawLaw, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.7(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.7(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.92.8) any legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimAction. 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. Notwithstanding the foregoing, no Amneal Group Member the Investor shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member the Investor from the sale of Registrable Shares sold by such Amneal Group Member the Investor pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member the Investor pursuant to Section 5.8(b2.7(b) (except in the case of fraud or willful misconductmisconduct by the Investor).
Appears in 1 contract
Samples: Registration Rights Agreement (Franchise Group, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementThe Company agrees (i) to indemnify, the Company shall, and it hereby agrees to, indemnify defend and hold harmlessharmless each Placement Agent, or cause to be indemnified Lazard Freres & Co. LLC and held harmlesseach of their directors, each Amneal Group Member and its respective officers, directors, employees and controlling Personsagents, and each person, if any, in any offering who controls such Placement Agent or sale Lazard Freres & Co. LLC within the meaning of Section 15 of the Registrable SharesAct 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 claim (or actions in respect thereof and expenses (including reasonable fees of counselas contemplated below) (collectivelywhich such Placement Agent, “Claims”)Lazard Freres & Co. LLC or any such person may incur under the Act, to which each such indemnified party may become subjectthe Exchange Act, the common law or otherwise, insofar as such Claims loss, damage, expense, liability or claim (including or actions in respect thereof as contemplated below) arises out of or is based (A) in whole or in part upon any amounts paid inaccuracy in settlement effected with the consent representations and warranties of the Company as provided contained herein), (B) in whole or actions in part upon any failure of the Company to perform its obligations hereunder or proceedings in respect thereofunder law, arise out of or are based (C) upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained thereinthe Registration Statement, or any amendment or supplement thereto, including any information deemed to be a part thereof pursuant to Rule 430A, Rule 430B or any document incorporated by reference thereinRule 430C under the Act, or arise out of or are based upon any the omission or alleged omission to state therein therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, (D) upon any untrue statement or alleged untrue statement of a material fact contained in the Disclosure Package, any Issuer Free Writing Prospectus, 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 in under which they were made, not misleading, and the Company shallor (E) in whole or in part upon any act or failure to act or alleged act or failure to act by such Placement Agent in reliance upon (A), (B), (C) or (D), and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending relating in any manner to the Shares or the offering contemplated hereby, provided that the Company shall not be liable under this clause (E) to the extent that a court of competent jurisdiction shall have determined by a final judgment that such loss, claim, damage, liability or action resulted primarily from any such Claimsacts or failures to act undertaken or omitted to be taken by such Placement Agent through its bad faith or willful misconduct; and (ii) to reimburse each Placement Agent, its officers, directors, employees, agents and each such controlling person for any and all expenses (including the fees and disbursements of counsel chosen by such Placement Agent) as such expenses are reasonably incurred by such Placement Agent, Lazard Freres & Co. LLC or their officers, directors, employees and agents or such controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Company foregoing indemnity agreement shall not be liable apply to any Amneal Group Member (loss, claim, damage, liability or its officers, directors, employee and controlling Persons, if any) in any such case expense to the extent that any such Claims arise extent, but only to the extent, arising out of or are based upon an any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Placement Agents expressly for use thereinin the Registration Statement, any Issuer Free Writing Prospectus, or the Prospectus (or any amendment or supplement thereto). The indemnity agreement set forth in this Section 9(a) shall be in addition to any liabilities that is the subject of the untrue statement or omissionCompany may otherwise have.
(b) In Each of the event any Registrable Shares are included in a registration statement contemplated by this AgreementPlacement Agents agrees, each Amneal Group Member shallseverally and not jointly, and hereby agrees to, to indemnify and hold harmless the Company and Company, each of its officers, directors, employees each of its officers who signed the Registration Statement and controlling Personseach person, if any, in any offering who controls the Company within the meaning of the Act or sale of its Registrable Shares the Exchange Act, against any Claims loss, claim, damage, liability or expense, as incurred, to which each the Company or any such indemnified party director, officer or controlling person may become subject, insofar as such Claims loss, claim, damage, liability or expense (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise thereof as contemplated below) arises out of or are is based upon an any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Disclosure Package, any registration statement, Issuer Free Writing Prospectus or any preliminary or final prospectus contained therein, the Prospectus (or any amendment or supplement thereto), or any document incorporated by reference therein, or arise arises out of or are is based upon any 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 each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case to the extent, and only to the extent extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative Placement Agents expressly for use therein therein; and to reimburse the Company or any such director, officer or controlling person for any legal and other expense reasonably incurred by the Company or any such director, officer or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The Company hereby acknowledges that is the subject only information that the Placement Agents have furnished to the Company expressly for use in the Registration Statement, the Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) are the statements set forth in the penultimate paragraph of the untrue statement Prospectus Supplement under the caption "PLAN OF DISTRIBUTION" concerning stabilization.
(c) Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 9, notify the indemnifying party in writing of the commencement thereof; but the failure to so notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or omission(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 other than the indemnification obligation provided in paragraph (a) or (b) above. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it shall elect, jointly with all other indemnifying 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 with counsel reasonably satisfactory to such indemnified party; provided, however, 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 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 such indemnifying party's election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 9 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the liability indemnifying party shall not be liable for the expenses of more than one separate counsel (other than local counsel), reasonably approved by the indemnifying party, representing the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action, in each Amneal Group Member hereunder of which cases the fees and expenses of counsel shall be limited to an amount equal to at the dollar amount expense of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusindemnifying party.
(cd) Amneal Group and the Company agree that if, The indemnifying party under this Section 9 shall not be liable for any reasonsettlement 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 indemnification provisions indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense 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 by Section 5.8(a11(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if such settlement is entered into more than 60 days after receipt by such indemnifying party of the aforesaid request and 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 the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding 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.
(e) If the indemnification provided for in Section 9(a) or Section 5.8(b) are (b), as applicable, is for any reason unavailable to or are otherwise insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party party, as incurred, as a result of such Claims any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying partyCompany, on the one hand, and the indemnified partyPlacement Agents, on the other hand, from the placement of the Shares pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Placement Agents, on the other hand, in connection with respect the statements or omissions contained in the Registration Statement, the Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto) or inaccuracies in the representations and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Placement Agents, on the other hand, in connection with the placement of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the placement of the Shares pursuant to this Agreement (before deducting expenses) received by the Company, and the total compensation received by the Placement Agents bear to the applicable offering aggregate proceeds from the placement of securitiesthe Shares. The relative fault of such indemnifying party the Company, on the one hand, and indemnified party the Placement Agents, 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 or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by such indemnifying party the Company, on the one hand, or by such indemnified partythe Placement Agents, on the other hand, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified a party as a result of the Claims losses, claims, damages, liabilities and expenses referred to above shall be deemed to include (include, subject to the limitations set forth in Section 5.9) 9(c), any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. The Company and the Placement Agents agree that it would not be just and equitable if contribution pursuant to this Section 9(e) were determined by pro rata allocation (even if the Placement Agents were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 9(e).
(f) Notwithstanding the provisions of Section 9(e), no Placement Agent shall be required to contribute any amount in excess of the compensation received by such Placement Agent in connection with the placement contemplated by this Agreement. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Placement Agents' obligations to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b9(e) (except are several, and not joint, in proportion to their respective percentage allocations of the case compensation payable by the Company pursuant to Section 1 hereof. For purposes of fraud Section 9(e), each director, officer, employee and agent of a Placement Agent and each person, if any, who controls a Placement Agent within the meaning of the Act or willful misconduct)the Exchange Act shall have the same rights to contribution as such Placement 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 the Act or the Exchange Act shall have the same rights to contribution as the Company.
Appears in 1 contract
Samples: Placement Agent Agreement (Lexicon Genetics Inc/Tx)
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
6.1. To the extent permitted by applicable law, the Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Selling Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Selling Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner, and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”joint or several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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; provided, and each Amneal Group Member shallhowever, and it hereby agrees tothat the indemnification required by this Section 6.1 shall not apply to amounts paid in settlement of any such loss, reimburse claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any legal such loss, claim, damage, liability or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only expense to the extent that such untrue statement it arises out of or alleged untrue statement or omission or alleged omission was made is based upon (x) a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative indemnified party expressly for use in connection with such registration or (y) the failure of any person entitled to indemnification hereunder to deliver or make available to a purchaser of Registrable Securities (to the extent required by law), a copy of any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto (if the same was required by applicable law to be delivered or made available), provided that is the subject Company shall have delivered to the applicable Selling Holder such registration statement, including such preliminary prospectus or final prospectus contained therein and any amendments or supplements thereto. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each person who controls such persons (within the meaning of Section 15 of the untrue statement Securities Act or omissionSection 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders.
6.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Selling Holder expressly for use in connection with such registration; provided, however, that (x) the indemnification required by this Section 6.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of each Amneal Group Member hereunder the relevant Selling Holder of Registrable Securities, which consent shall not be limited to an amount equal to unreasonably withheld, and (y) in no event shall the dollar amount of any indemnity under this Section 6.2 exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Holder.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 6.3. Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 6 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 6, such indemnified party shall deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 6 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 6. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels). No indemnifying party shall be liable to an indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be unreasonably withheld.
6.4. If the indemnification required by this Section 6 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 6:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 6.1 and Section 6.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 6.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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.
6.5. Notwithstanding If indemnification is available under this Section 6, the foregoing, no Amneal Group Member indemnifying parties shall be liable to contribute any amount in excess of the dollar amount equal indemnify each indemnified party to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except full extent provided in the case of fraud or willful misconduct).this
Appears in 1 contract
Samples: Registration Rights Agreement (Broadpoint Gleacher Securities Group, Inc.)
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by Securities pursuant to this AgreementArticle II, the Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by applicable Law, each Amneal Group Member Investor and its respective Affiliates and each Person who controls such Investor within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and the directors, officers, directorsemployees, employees partners, affiliates, members, managers, shareholders, assignees and controlling Persons, if any, in any offering or sale representatives of each of the Registrable Sharesforegoing (collectively, the “Indemnified Persons”) from and against any and all losses, claims, damages or liabilities in respect thereof damages, liabilities, judgments, actions and expenses (including documented and reasonable fees of counselattorneys’ fees) (collectively, “ClaimsLosses”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), ) joint or actions or proceedings in respect thereof, arise several arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementpart of any Registration Statement, or any preliminary or final prospectus contained thereinor other disclosure document used in connection with the Registrable Securities, any Issuer FWP or any amendment or supplement theretoto any of the foregoing, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for misleading or (ii) any legal violation or other out-of-pocket expenses reasonably incurred and documented alleged violation by the Company or any of its Subsidiaries of any federal, state, foreign or common law rule or regulation applicable to the Company or any of its Subsidiaries and relating to action or inaction in connection with investigating or defending any such Claimsregistration, in each case only Registration Statement, other disclosure document or Issuer FWP; provided, however, that the Company will not be required to the extent that indemnify any Indemnified Person for any Losses resulting from any such untrue statement or alleged omission to the extent such untrue statement or omission or alleged omission was made in reliance on and in conformity with information with respect to any Indemnified Person furnished to the Company in writing by such Investor expressly for use in the Registration Statement or prospectus in which such untrue statement or omission is purported to have occurred.
(b) In connection with any Registration Statement, preliminary or final prospectus, or Issuer FWP, each Investor agrees to indemnify, severally and not jointly, the Company, its Directors, its officers who sign such Registration 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 Act) to the same extent as the foregoing indemnity from the Company to the Investor, but only with respect to information with respect to the Investor furnished to the Company in writing by the Investor expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP to the extent such information is included in the Registration Statement or prospectus in which such untrue statement or omission is purported to have occurred in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by the Amneal Group Member or its Representative Investor expressly for use therein therein; provided, however, that is in no event shall the subject Investor’s liability pursuant to this Section 2.08 in respect of the untrue statement offering to which such Losses relate exceed an amount equal to the proceeds to the Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which the Investor has otherwise been required to pay by reason of such information.
(c) In case any claim, action or omissionproceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided, however, that the liability failure to give such notice shall not relieve the indemnifying party of each Amneal Group Member hereunder shall be limited its obligations pursuant to an amount equal this Agreement except to the dollar amount extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party; and (iii) pay the fees and disbursements of such counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, Bylaws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action or proceeding is a criminal or regulatory enforcement action. It is understood that the indemnifying party will not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (C) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the net proceeds received retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable 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 will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 2.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such Amneal Group Member from indemnifying party of the sale aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of Registrable Shares sold the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such Amneal Group Member pursuant 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, (ii) that involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder, or (iii) that includes a statement as to such registration statement or prospectusadmission of fault, culpability, or a failure to act, by or on behalf of any indemnified person.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.08 from the indemnifying party is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims Losses referred to thereinin this Section 2.08, then each the indemnifying party shall party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such Claims Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of the Company, on the one hand, and the indemnified partyapplicable Investor, on the other hand, in connection with respect to the applicable offering of securitiesstatements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will 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 taken by, or relates to information supplied by by, such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the Losses referred to above will be deemed to include, subject to the limitations set forth in Section 2.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.08(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.08(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of “fraudulent misrepresentation 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. Notwithstanding the foregoingprovisions of Section 2.08(d) and this Section 2.08(e), no Amneal Group Member shall be liable each Investor’s liability pursuant to contribute any amount Section 2.08(d) in excess respect of the dollar offering to which such Losses relate shall not exceed an amount equal to the sum proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which the Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 2.08 is several in proportion to the number of Registrable Securities held by the Investors hereunder and not joint.
(if) For purposes of this Section 2.08, each Indemnified Person shall have the net proceeds received same rights to contribution as the applicable Investor, and each officer, Director and Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the Company, subject in each case to the limitations set forth in the immediately preceding paragraph. 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 Section 2.08, 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 obligation it or they may have under this Section 2.08 or otherwise except to the extent that it has been prejudiced in any material respect by such Amneal Group Member from failure. No party shall be liable for contribution with respect to any action or claim settled without its written consent; provided, however, that such written consent was not unreasonably withheld.
(g) If indemnification is available under this Section 2.08, the sale indemnifying party will indemnify each indemnified party to the full extent provided in Sections 2.08(a) and (b) without regard to the relative fault of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement said indemnifying party or prospectus, minus (ii) indemnified party or any amounts paid or payable by such Amneal Group Member pursuant to other equitable consideration provided for in Section 5.8(b) (except in the case of fraud or willful misconduct2.08(d).
Appears in 1 contract
Samples: Registration Rights Agreement (Radius Global Infrastructure, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company Coty Parent shall, and it hereby agrees to, (i) indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, Registration Equityholder in any offering or sale of Registrable Securities, and such Registration Equityholder’s partners, members, managers and Affiliates (but not, for the Registrable Sharesavoidance of doubt, any Stockholder Designee in such person’s capacity as a Director of Coty Parent) and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any and all losses, claims, damages damages, or liabilities liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and costs and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims Prospectus (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus, including any Free Writing Prospectus, incorporated into such Registration Statement, in the light of the circumstances in which they were made), not misleading, ; and (ii) reimburse upon written demand each Amneal Group Member shall, and it hereby agrees to, reimburse the Company indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred and documented by the Company such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims; provided, however, that Coty Parent shall not be liable to an indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to Coty Parent about a Registration Equityholder by or on behalf of such indemnified party expressly for use therein, or if the Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if Coty Parent had previously furnished copies thereof to such Registration Equityholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement.
(b) Each Registration Equityholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless Coty Parent in any offering or sale of Registrable Securities, each Director and officer of Coty Parent (including any such Director or officer who shall sign the applicable Registration Statement) and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances in which they were made), not misleading; and (ii) reimburse upon written demand each indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case only case, to the extent extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with the Required Amneal Group Member Information information about such Registration Equityholder furnished to the Company in writing to Coty Parent by the Amneal Group Member or its Representative on behalf of such Registration Equityholder expressly for use therein that is therein, or if such Registration Equityholder sold securities to the subject Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if Coty Parent had previously furnished copies thereof to the Registration Equityholders a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration alleged untrue statement or prospectusomission or alleged omission made in such Registration Statement.
(c) Amneal Group Each Registration Equityholder, on the one hand, and Coty Parent, on the Company agree other hand, agrees that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.7(a) or Section 5.8(b2.7(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.7(c) is not permitted by applicable lawRequirements of Law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative benefits received by Coty Parent, on the one hand, and a Registration Equityholder, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Registration Equityholder with respect to its sale of Registrable Securities giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.7(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.7(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.92.8) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such action, proceeding or claimProceeding. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Registration Equityholders obligations to contribute any amount as provided in excess of the dollar amount equal to the sum of (ithis Section 2.7(c) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)are several and not joint.
Appears in 1 contract
Samples: Contribution Agreement (Coty Inc.)
Indemnification; Contribution. (a) In the event Incident to any registration of any Registrable Shares are included in a registration statement contemplated by Securities under the Securities Act pursuant to this Agreement, the Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless the Investor if it offers or sells any such Registrable Securities in connection with such registration statement (including Investor's members (including partners, members or stockholders of such members), any directors, officers, employees, representatives and agents of any of them, and any underwriter (as defined in the Securities Act) for the Investor (each, a "Selling Investor" and collectively, the "Selling Investors"), and each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (a "Controlling Person")), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, 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, as the same are incurred), to which they, or cause to be indemnified and held harmlessany of them, each Amneal Group Member and its respective officersmay become subject under the Securities Act, directorsthe Exchange Act or other federal or state statutory law or regulation, employees and controlling Personsat common law or otherwise, if any, in any offering or sale of the Registrable Shares, against any insofar as such losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a any material fact contained in such registration statement or prospectus (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement thereto, to such registration statement or any document incorporated by reference therein, prospectus) or arise out of or are based upon (ii) any omission or alleged omission to state therein a in such document any material fact required to be stated therein in it or necessary to make the statements therein, in light it not misleading or (iii) any violation or alleged violation by the Company of the circumstances in which they were madeSecurities Act, not misleadingthe Exchange Act, and any state securities law or any rule or regulation promulgated under the Company shallSecurities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for the Exchange Act or any legal or other out-of-pocket expenses reasonably incurred and documented by them state securities law in connection with investigating or defending any the offering covered by such Claimsregistration statement; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by the Selling Investor or Controlling Person expressly for use in such registration statement.
(b) To the extent permitted by applicable law, with respect to such untrue statement or omission or alleged untrue statement or omission made in the information furnished in writing to the Company by such Selling Investor expressly for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, Selling Investor will indemnify and hold harmless the Company (including its directors, and officers), each other Selling Investor (including its partners or members (including partners, members or stockholders of such entities) and directors, officers, directorsemployees, employees representatives and controlling Personsagents of any of them, if anyand each person who controls any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), in any offering or sale of its Registrable Shares from and against any Claims and all losses, claims, damages, expenses and liabilities, joint or several, to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementthey, or any preliminary or final prospectus contained thereinof them, or any amendment or supplement theretomay become subject under the Securities Act, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal Exchange Act or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating federal or defending any such Claimsstate statutory law or regulation, in each case only at common law or otherwise to the same extent that such untrue statement or alleged untrue statement or omission or alleged omission was made provided in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omissionimmediately preceding sentence; provided, however, that the indemnity agreement of such Selling Investor contained in this Section 7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of each Amneal Group Member hereunder such Selling Investor, which consent shall not be limited to an amount equal to the dollar amount of unreasonably withheld; provided further, that in no event shall any indemnity by a Selling Investor under this Section 7(b) exceed the net proceeds from the offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Investor.
(c) Amneal Group and the Company agree that if, If for any reasonreason the foregoing indemnities are unavailable, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect party, other than by reason of any Claims referred to the exceptions provided therein, then each indemnifying party under this Section 7 shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses, liabilities, actions or proceedings in such proportion as is appropriate to reflect the relative fault benefits to and faults of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handhand in connection with the offering of Registrable Securities (taking into account the portion of the proceeds realized by each such party) and the statements or omissions or alleged statements or omissions which resulted in such loss, with respect damage, liability, action, proceeding or expense, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Investors and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Investors and the underwriting discount received by the underwriters, in each case as set forth in the table on the cover page of the applicable prospectus, bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Investors and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Investors or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If; provided, however, that in no event shall any contribution by a Selling Investor hereunder exceed the allocation in net proceeds from the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable offering received by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(cSelling Investor.
(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid by an indemnifying party or payable by to an indemnified party as a result of the Claims losses, claims, damages and liabilities referred to above in this Section 7 shall be deemed to include (include, subject to the limitations set forth in Section 5.9) above, any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 7 will remain in full force and effect notwithstanding the termination of this Agreement and regardless of any investigation made by or on behalf of the indemnified parties or any officer, director, employee, agent or controlling person of the indemnified parties. No Person guilty indemnifying party, in the defense of fraudulent misrepresentation (within any such claim or litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the meaning of Section 11(f) consent of the Securities Act) shall indemnified party, which consent will not be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)unreasonably withheld.
Appears in 1 contract
Samples: Merger Agreement (Hickok Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company The Buyer shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, Participating Holder in any offering or sale of the Registrable SharesParticipating Shares pursuant to the Shelf Registration Statement, against any losses, claims, damages (including reasonable attorney’s fees) or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party Participating Holder may become subjectsubject (and the Buyer will pay to each such Participating Holder any legal or other expenses reasonably incurred thereby in connection with investigating or defending any Claim as such expenses are incurred), insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company Buyer as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in each case in light of the circumstances in which they were made, not misleadingmisleading or (iii) any violation or alleged violating by the Buyer (or any of its agents or Affiliates) of the Securities Act, and the Company shallExchange Act, and it hereby agrees toany state securities law, reimburseor any rule or regulation promulgated under the Securities Act, upon request, each such Amneal Group Member for the Exchange Act or any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claimsstate securities law; provided, however, that the Company Buyer shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Participating Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing Buyer by the Participating Holder with respect to such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Participating Holder expressly for use therein, or by such Participating Holder’s failure to furnish the Buyer, upon request, with the information with respect to such Participating Holder, that is the subject of the untrue statement or omission, or if such Participating Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Buyer had previously furnished copies thereof to the Participating Holders, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Participating Holder, each Amneal Group Member severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company and Buyer, its directors, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Participating Shares pursuant to a registration statement hereunder, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing Buyer by the Amneal Group Member or its Representative such Participating Holder with respect to such Participating Holder expressly for use therein therein; provided, that in no event shall any indemnity under this Section 6.6(b) exceed the net proceeds (after underwriting fees, commissions and discounts) from the sale of Participating Shares pursuant to the Shelf Registration Statement received by such Participating Holder unless such liability arises out of or is the subject based on fraud or willful misconduct by such Participating Holder.
(c) Promptly after receipt by an indemnified party under Section 6.6(a) or Section 6.6(b) of written notice of the untrue statement commencement of any action or omissionproceeding for which indemnification under Section 6.6(a) or Section 6.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within twenty (20) days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of each Amneal Group Member hereunder both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which shall not be unreasonably withheld, conditioned or delayed. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party (which shall not be unreasonably withheld, conditioned or delayed), compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 6.6(a) or Section 6.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from the sale all liability in respect of Registrable Shares sold by such Amneal Group Member pursuant to such registration claim or litigation, and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal Group The Participating Holders and the Company Buyer agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a6.6(a) or Section 5.8(b6.6(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c6.6(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsfault, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c6.6(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c6.6(d). The amount paid or payable by an indemnified party as a result Notwithstanding any of the Claims referred to above foregoing, in no event shall be deemed to include (subject any contribution by any Participating Holder under this Section 6.6(d), when combined with any amounts payable or paid by such Participating Holder under Section 6.6(b), exceed the gross proceeds from the sale of Participating Shares pursuant to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred Shelf Registration Statement received by such indemnified party in connection with investigating Participating Holder, unless such liability arises out of or defending any is based on fraud or willful misconduct by such action, proceeding or claimParticipating Holder. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Samples: Membership Interest Purchase Agreement (Everyday Health, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified harmless each Initial Purchaser and held harmless, each Amneal Group Member Holder of Registrable Securities and its respective officers, directors, employees and controlling Personseach person, if any, in who controls any offering Initial Purchaser or sale any Holder of Registrable Securities within the meaning of either Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelyliabilities, “Claims”)joint or several, to which each such indemnified party persons may become subject, under the Securities Act or otherwise, insofar as such Claims losses, claims, damages or liabilities (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementpreliminary prospectus, or any preliminary or final prospectus contained therein, the Prospectus (or any amendment or supplement thereto), or the Registration Statement (or any document incorporated by reference therein, amendment or supplement thereto) or arise out of or are based upon any the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, ; and the Company shall, and it hereby agrees to, reimburse, upon request, each will reimburse such Amneal Group Member person for any legal or other out-of-pocket expenses reasonably incurred and documented by them such person in connection with investigating or defending any such Claimsaction or claim as such expenses are incurred; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise loss, claim, damage or liability arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or any preliminary or final prospectus, Prospectus, Registration Statement or any such amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of the Initial Purchasers, such Amneal Group Member by Holder of Registrable Securities (which also acknowledges the indemnity provisions herein) or any Representative person, if any, who controls an Initial Purchaser or any such Holder of the Amneal Group Member, Registrable Securities expressly for use thereinin the Registration Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any such amendment or supplement thereto); provided further, however, that is this indemnity agreement shall not apply to any loss, claim, damage or liability (1) arising from an offer or sale of Registrable Securities occurring during a Deferral Period, if a Deferral Notice was given to such Notice Holder in accordance with Section 8(c), or (2) if the subject Holder fails to deliver at or prior to the written confirmation of sale, the most recent Prospectus, as amended or supplemented, and such Prospectus, as amended or supplemented, would have corrected such untrue statement or omissionomission or alleged untrue statement or omission of a material fact and the delivery thereof was required by law.
(b) In connection with any Shelf Registration in which a Holder, including, without limitation, the event Initial Purchasers, of Registrable Securities is participating, in furnishing information relating to such Holder of Registrable Securities to the Company in writing expressly for use in such Registration Statement, any preliminary prospectus, the Prospectus or any amendments or supplements thereto, the Holders of such Registrable Shares are included in a registration statement contemplated by this AgreementSecurities agree, each Amneal Group Member shallseverally and not jointly, and hereby agrees to, to indemnify and hold harmless the Company each Initial Purchaser and its officers, directors, employees and controlling Personseach person, if any, in any offering who controls an Initial Purchaser within the meaning of either Section 15 of the Securities Act or sale Section 20 of its Registrable Shares the Exchange Act and the Company, and each person, if any, who controls the Company within the meaning of either such Section, against any Claims to which each such indemnified party may become subjectand all loss, claim, damage and liability described in the indemnity contained in subsection (a) of this Section, insofar as such Claims losses, claims, damages or liabilities (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement (or any amendment thereto), or any preliminary prospectus or final prospectus contained therein, the Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein), or arise out of or are based upon any 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 each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, 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 reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by or on behalf of such Holder of Registrable Securities (which also acknowledges the Amneal Group Member indemnity provisions herein) or its Representative any person, if any, who controls any such Holder of Registrable Securities expressly for use therein that is in the subject Registration Statement (or any amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto). The Initial Purchasers agree to indemnify and hold harmless the Company, the Holders of Registrable Securities, and each person, if any, who controls the Company or any Holder of Registrable Securities within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, claim, damage and liability described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statement statements or omission; providedomissions, howeveror alleged untrue statements or omissions, that made in the liability of each Amneal Group Member hereunder shall be limited to an amount equal Registration Statement (or any amendment thereto), or any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the dollar amount Company by or on behalf of the net proceeds received Initial Purchasers expressly for use in the Registration Statement (or any amendment thereto) or such preliminary prospectus or the Prospectus (or any amendment or supplement thereto); and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigation or defending any such Amneal Group Member from the sale of Registrable Shares sold by action or claim as such Amneal Group Member pursuant to such registration statement or prospectusexpenses are incurred.
(c) Amneal Group 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 therein and, to the extent that it shall wish, jointly with any other indemnifying 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 (which consent shall not be unreasonably withheld, conditioned or delayed), 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, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation.
(d) No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought under this Section 6 (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include any statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party. The consent in this last sentence shall not be unreasonably withheld, conditioned or delayed and the Company agree indemnifying party agrees that ifthe indemnified party shall in all cases be justified in withholding consent unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim 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.
(e) If the indemnification to which an indemnified party is entitled under this Section 6 is for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are reason unavailable to or are insufficient although applicable in accordance with its terms to hold harmless an indemnified party in respect of any Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the aggregate amount paid of such losses, claims, damages and liabilities (or payable actions in respect thereof) incurred by such indemnified party party, as a result of such Claims incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party, party or parties on the one hand, hand and of the indemnified party, party on the other handhand in connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party the Company on the one hand and indemnified party the Holders of the Registrable Securities or the Initial Purchasers 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 such indemnifying party the Company or by such indemnified party, the Holder of the Registrable Securities or the Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c6(e) were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to above in the preceding sentences of this Section 5.8(c6(e). The aggregate amount paid or payable of losses, claims, damages, and liabilities incurred by an indemnified party as a result of the Claims and referred to above in this Section 6(e) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such 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 actionuntrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, proceeding neither the Holder of any Registrable Securities nor an Initial Purchaser, shall be required to indemnify or claimcontribute any amount in excess of the amount by which the total price at which the Registrable Securities sold by such Holder of Registrable Securities or by the Initial Purchaser, as the case may be, and distributed to the public were offered to the public exceeds the amount of any damages that such Holder of Registrable Securities or the Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged 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. Notwithstanding For purposes of this Section 6(e), each person, if any, who controls an Initial Purchaser or any Holder of Registrable Securities within the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess meaning of Section 15 of the dollar amount equal Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the sum Initial Purchaser or such Holder, and each person, if any, who controls the Company within the meaning of (i) Section 15 of the net proceeds received by such Amneal Group Member from Securities Act or Section 20 of the sale of Registrable Shares sold by such Amneal Group Member pursuant Exchange Act shall have the same rights to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in contribution as the case of fraud or willful misconduct)Company.
Appears in 1 contract
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by Securities pursuant to this AgreementArticle III, the Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified and held harmlessthe fullest extent permitted by Law, each Amneal Group Member of the Investors and their respective Affiliates, the Investors’ Representative and each of its respective Affiliates, each Person who controls an Investor or the Investors’ Representative within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and the directors, officers, directorsemployees, employees partners, affiliates, members, managers, shareholders, assignees and controlling Persons, if any, in any offering or sale representatives of each of the Registrable Sharesforegoing (collectively, the “Indemnified Persons”) from and against any and all losses, claims, damages or liabilities in respect thereof damages, liabilities, judgments, actions and expenses (including reasonable fees of counselattorneys’ fees) (collectively, “ClaimsLosses”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), ) joint or actions or proceedings in respect thereof, arise several arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementpart of any Registration Statement, or any preliminary or final prospectus contained thereinor other disclosure document used in connection with the Registrable Securities, any Issuer FWP or any amendment or supplement theretoto any of the foregoing, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for misleading or (ii) any legal violation or other out-of-pocket expenses reasonably incurred and documented alleged violation by the Company or any of its Subsidiaries of any federal, state, foreign or common law rule or regulation applicable to the Company or any of its Subsidiaries and relating to action or inaction in connection with investigating or defending any such Claimsregistration, in each case only Registration Statement, other disclosure document or Issuer FWP; provided, however, that the Company will not be required to the extent that indemnify any Indemnified Person for any losses, claims, damages, liabilities, judgments, actions or expenses resulting from any such untrue statement or alleged omission if such untrue statement or omission or alleged omission was made in reliance on and in conformity with information with respect to any Indemnified Person furnished to the Company in writing by the Investors expressly for use therein.
(b) In connection with any Registration Statement, preliminary or final prospectus, or Issuer FWP, each Investor agrees to indemnify, severally and not jointly, the Company, its Directors, its officers who sign such Registration 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 Act) to the same extent as the foregoing indemnity from the Company to the Investors, but only with respect to information with respect to such Investor furnished to the Company in writing by such Investor expressly for use in such Registration Statement, preliminary or final prospectus, or Issuer FWP to the extent such information is included therein in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by the Amneal Group Member or its Representative such Investor expressly for use therein therein; provided, however, that is the subject in no event shall any Investor’s liability pursuant to this Section 3.08 in respect of the untrue statement offering to which such loss, claim, damages, liabilities, judgments, actions or omissionexpenses relate exceed an amount equal to the proceeds to such Investor (after deduction of all Underwriters’ discounts and commissions) from such offering less the amount of any damages which such Investor has otherwise been required to pay by reason of such information.
(c) In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided, however, that the liability failure to give such notice shall not relieve the indemnifying party of each Amneal Group Member hereunder shall be limited its obligations pursuant to an amount equal this Agreement except to the dollar amount extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party to assume the defense of such claim, action or proceeding with counsel reasonably satisfactory to the indemnified party to represent the indemnified party; and (iii) pay the fees and disbursements of such counsel related to such claim, action or proceeding. In any such claim, action or proceeding, any indemnified party will have the right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (without prejudice to such indemnified party’s indemnity and other rights under the Charter, Bye-laws and applicable Law, if any) unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, with a copy provided to the Company, that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them, (C) the indemnifying party has failed to assume the defense of such claim and employ counsel reasonably satisfactory to the indemnified party, or (D) any such, claim, action or proceeding is a criminal or regulatory enforcement action. It is understood that the indemnifying party will not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnified parties (in addition to any local counsel at any time for all such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (C) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the net proceeds received retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld), but if such claim, action or proceeding is settled with such consent or if there has been a final non-appealable 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 will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 3.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such Amneal Group Member from indemnifying party of the sale aforesaid request and (ii) such indemnifying party has not reimbursed the indemnified party in accordance with such request or reasonably objected in writing, on the basis of Registrable Shares sold the standards set forth herein, to the propriety of such reimbursement prior to the date of such settlement. No indemnifying party will, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding (i) in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such Amneal Group Member pursuant to indemnified party, unless such registration statement settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding or prospectus(ii) which involves the imposition of equitable remedies on the indemnified party or the imposition of any obligation on the indemnified party, other than as a result of the imposition of financial obligations for which the indemnified person will be indemnified hereunder.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 3.08 from the indemnifying party is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities, judgments, actions or expenses referred to thereinin this Section 3.08, then each the indemnifying party shall party, in lieu of indemnifying such indemnified party, will contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified party in connection with the actions that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of the Company, on the one hand, and the indemnified partyInvestors, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will 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 taken by, or relates to information supplied by by, such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above will be deemed to include, subject to the limitations set forth in Section 3.08(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c3.08(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c3.08(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of “fraudulent misrepresentation 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. Notwithstanding the foregoingprovisions of Section 3.08(d) and this Section 3.08(e), no Amneal Group Member shall be liable each Investor’s liability pursuant to contribute any amount Section 3.08(d) in excess respect of the dollar offering to which such loss, claim, damages, liabilities, judgments, actions or expenses relate shall not exceed an amount equal to the sum proceeds to such Investor (after deduction of (iall Underwriters’ discounts and commissions) from such offering less the net proceeds received amount of any damages which such Investor has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. Each Investor’s obligation to contribute pursuant to this Section 3.08 is several in proportion to the respective number of Registrable Securities held by such Amneal Group Member Investor hereunder and not joint.
(f) For purposes of this Section 3.08, each Indemnified Person shall have the same rights to contribution as such Investor, and each officer, Director and Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the Company, subject in each case to the limitations set forth in the immediately preceding paragraph. 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 Section 3.08, notify such party or parties from whom contribution may be sought, but the sale of Registrable Shares sold omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 3.08 or otherwise except to the extent that it has been prejudiced in any material respect by such Amneal Group Member pursuant failure. No party shall be liable for contribution with respect to any action or claim settled without its written consent; provided, however, that such registration statement written consent was not unreasonably withheld.
(g) If indemnification is available under this Section 3.08, the indemnifying party will indemnify each indemnified party to the full extent provided in Sections 3.08(a) and (b) without regard to the relative fault of said indemnifying party or prospectus, minus indemnified party or any other equitable consideration provided for in Section 3.08(d) or (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconducte).
Appears in 1 contract
Samples: Shareholder Agreement (Genpact LTD)
Indemnification; Contribution. (ai) In Acquiror shall indemnify, to the event any fullest extent permitted by law, each Holder of Registrable Shares are included in a registration statement contemplated by this Agreement, the Company shallSecurities, and it hereby agrees toif applicable, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Personsagents, and if anyapplicable, in any offering or sale each Person who controls such Holder (within the meaning of the Registrable SharesSecurities Act), against any all losses, claims, damages or damages, liabilities in respect thereof and expenses (including reasonable fees costs of counselinvestigation and legal expenses) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration, any registration statement, or any preliminary or final prospectus contained thereinrelated prospectus, or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein in any thereof a material fact required to be stated therein or necessary to make the statements thereintherein (in the case of a prospectus or prospectus supplement, in light of the circumstances in under which they were made, ) not misleading, except in each case insofar as and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise the same arises out of or are is based upon (i) an untrue statement or alleged untrue statement of a material fact or an omission or alleged omission to state a material fact in such Shelf Registration, prospectus, amendment or supplement, as the case may be, made or omitted, as the case may be, in reliance upon and in conformity with information furnished to Acquiror by such Holder expressly for use therein, or (ii) a Holder's failure to send or give a copy of the final prospectus to the Persons asserting an untrue statement or alleged untrue statement or omission or alleged omission made at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such registration statement, or preliminary or final prospectus, and such final prospectus was delivered by Acquiror to the Holder sufficiently in time for the Holder to deliver it to the asserting Person prior to such written confirmation of sale.
(ii) In connection with the Shelf Registration, each Holder shall furnish to Acquiror in writing such information and affidavits with respect to such Holder as Acquiror reasonably requests for use in connection with such Shelf Registration, any related prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished shall indemnify, to the Company in writing fullest extent permitted by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Memberlaw, expressly for use thereinAcquiror, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementAcquiror's directors, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Personsagents and each Person who controls Acquiror (within the meaning of the Securities Act), if anyagainst all losses, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subjectclaims, insofar as such Claims damages, liabilities and expenses (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise reasonable costs of investigation and legal expenses) arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration, any registration statement, or any preliminary or final prospectus contained thereinrelated prospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a prospectus or prospectus supplement, in light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, 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 upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, howeverextent, that the liability same arises out of each Amneal Group Member hereunder shall be limited to or is based upon an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration untrue statement or prospectus.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or an omission or alleged omission to state a material fact relates in such registration statement or in such related prospectus, amendment or supplement, as the case may be, made or omitted, as the case may be, in reasonable reliance upon and in reasonable conformity with written information furnished to information supplied Acquiror by such Holder expressly for use in the Shelf Registration.
(iii) Any Person entitled to indemnification under this Section 3(d) agrees to give prompt written notice to the indemnifying party after the receipt by such Person of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such Person will claim indemnification or contribution pursuant to this Agreement and, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and the indemnifying party with respect to such claim, permit the indemnifying party to assume the defense of such claim with counsel selected by the indemnifying party and reasonably satisfactory to such indemnified party. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the reasonable fees and expenses of more than one counsel with respect to such claim, unless in the reasonable judgment of counsel to such indemnified party, expressed in a writing delivered to the indemnifying party, a conflict of interest may exist between such indemnified party and any other indemnified party with respect to such claim, in which event the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute be obligated to pay the amount paid reasonable fees and expenses of such additional counsel or payable by such indemnified party in such proportion as is appropriate counsels (which shall be limited to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the one counsel per indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified indemnifying party as a result of the Claims referred to above shall not be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending liability for any such actionsettlement made without its consent, proceeding or claim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) which consent shall not be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)unreasonably withheld.
Appears in 1 contract
Samples: Stock Restriction and Registration Rights Agreement (Mohawk Industries Inc)
Indemnification; Contribution. (a) In The Company and each of the event any Registrable Shares are included in a registration statement contemplated by this AgreementGuarantors, the Company shalljointly and severally, and it hereby agrees to, agree to indemnify and hold harmlessharmless each Holder of the Securities, or cause to be indemnified any Participating Broker-Dealer and held harmlesseach of their respective affiliates, each Amneal Group Member and its respective the directors, officers, directors, employees and controlling Persons, if any, in agents and each person who controls (within the meaning of either the Securities Act or the Exchange Act) any offering or sale Holder of the Registrable SharesSecurities or any Participating Broker-Dealer, from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statement, a Registration Statement as originally filed or any preliminary or final prospectus contained therein, or in any amendment or supplement thereto, or any document incorporated by reference thereinthereof, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shallor arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the prospectus included in a Registration Statement or in any preliminary prospectus or any “issuer free writing prospectus” (as defined in Rule 433 under the Securities Act), or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and it hereby agrees toto reimburse each such indemnified party, reimburse the Company as incurred, for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action; provided, however, that the Company and the Guarantors will not be liable in each any such case only to the extent that any such loss, claim, damage, liability or action arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by or on behalf of such Holders or any such Participating Broker-Dealer specifically for inclusion therein. The Company and the Guarantors shall also indemnify underwriters in connection with any Shelf Registration, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Securities if requested in writing by such Holders. This indemnity agreement will be in addition to any liability which the Amneal Group Member Company or the Guarantors may otherwise have.
(b) Each Holder of the Securities and each Participating Broker-Dealer agrees, severally and not jointly, to indemnify and hold harmless the Company, each of its Representative expressly directors, each of its officers who signs a Registration Statement, and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and the Guarantors to the Holders of the Securities and Participating Broker-Dealers, but only with reference to written information relating to the Holders of the Securities and the Participating Broker-Dealers furnished to the Company by or on behalf of any such Holder or Participating Broker-Dealer specifically for use therein inclusion in the documents referred to in the foregoing indemnity. Any underwriter that is covered by the subject indemnity in the preceding paragraph (a) shall also indemnify the Company, each of its directors, each of its officers who signs a Registration Statement, and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as provided above in this paragraph (b). This indemnity agreement will be in addition to any liability which any such underwriter, the Holders of the untrue statement Securities and Participating Broker-Dealers may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve the indemnifying party from liability under paragraph (a) or omission(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 obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the 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 the liability of each Amneal Group Member hereunder such counsel shall be limited to an amount equal reasonably satisfactory to the dollar amount of indemnified party. Notwithstanding the net proceeds received by such Amneal Group Member from indemnifying party’s election to appoint counsel to represent the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred an action, the indemnified party shall have the right to thereinemploy separate counsel (including local counsel), then each and the indemnifying party shall contribute bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the amount paid or payable by such indemnified party as would present such counsel with a result conflict of interest, (ii) the actual or potential defendants in, or targets of, any such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and action include both the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of 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, as well as (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 notice of the institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any other relevant equitable considerations. The 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 hereto agree that it would not be just are actual or potential parties to such claim or action) unless such settlement, compromise or consent (x) includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding, and equitable if contributions pursuant to this Section 5.8(c(y) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred include a statement as to in the preceding sentences or an admission of this Section 5.8(c). The amount paid fault, culpability or payable a failure to act by an or on behalf of any indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)party.
Appears in 1 contract
Indemnification; Contribution. (a) In the event of any Registrable Shares are included in a registration statement contemplated by this Agreementof any securities of the Company under the Securities Act, the Company shallwill, and it hereby agrees todoes, indemnify and hold harmlessharmless in the case of any registration statement filed pursuant to Section 2, 3 or cause to be indemnified 4 hereof, the holder of any Registrable Securities covered by such registration statement, its directors and held harmlessofficers, each Amneal Group Member officer and its respective officersdirector of each underwriter, directors, employees each other person who participates as an underwriter in the offering or sale of such securities and controlling Personseach other person, if any, in who controls such holder or any offering or sale such underwriter within the meaning of the Registrable Shares, Securities Act against any losses, claims, damages damages, liabilities and expenses, joint or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”)several, to which each such indemnified party holder or any such director or officer or participating or controlling person may become subjectsubject under the Securities Act or otherwise, insofar as such Claims losses, claims, damages, liabilities or expenses (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings or investigations in respect thereof, ) arise out of or are based upon an (x) any untrue statement or alleged untrue statement of a any material fact contained in any registration statementstatement under which such securities were registered under the Securities Act, or any preliminary or prospectus (unless, with respect to the indemnification of the officers and directors of each underwriter and each other person participating as an underwriter, any such statement is corrected in a subsequent prospectus and the underwriters are given the opportunity to circulate the corrected prospectus to all persons receiving the preliminary prospectus), final prospectus contained or summary prospectus included therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyy) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (z) any violation by the Company of any securities laws in connection with such registration, and the Company will reimburse such holder and each Amneal Group Member shallsuch director, officer, participating person and it hereby agrees to, reimburse the Company controlling person for any legal or any other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, liability, action or proceeding; provided, however, that the Company shall not be liable to any seller, director, officer, participating person or controlling person in each any such case only to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing an instrument prepared by or under the Amneal Group Member direction of such seller, director, officer, participating person or its Representative expressly controlling person for use therein that is in the subject preparation of such documents, which information was specifically stated to be for use in the untrue statement registration statement, prospectus, offering circular or omission; providedother document. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such seller or any such director, howeverofficer, that participating person or controlling person and shall survive the liability transfer of each Amneal Group Member hereunder such securities by such seller. The Company shall agree to provide for contribution relating to such indemnity as shall be limited to an amount equal to the dollar amount of the net proceeds received reasonably requested by such Amneal Group Member from the sale any seller of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement Securities or prospectusthe underwriters.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementArticle V, the Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each underwriter and each Mezzanine Investor who offers or sells any such Registrable Interests in connection with such registration statement (including their respective partners (including partners of partners and stockholders and members of any such partners), or cause to be indemnified and held harmlessdirectors, each Amneal Group Member and its respective officers, directorsmanagers, members, employees and controlling Personsagents of any of them (a “Selling Holder”), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a “Controlling Person”), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, reasonable legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), as the same are incurred to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them “blue sky” laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from and is based upon on an untrue statement or omission or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon on and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Selling Holder or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Controlling Person expressly for use therein, that in such registration statement or is due to the subject failure of such Selling Holder or Controlling Person to deliver a copy of the prospectus or any supplements thereto a reasonable period of time after the Company has furnished such Selling Holder or Controlling Person with a sufficient number of copies of the same or by the delivery of prospectuses by such Selling Holder or Controlling Person after the Company notified such Selling Holder or Controlling Person in writing to discontinue delivery of prospectuses. With respect (i) to such untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member such Selling Holder or its Representative Controlling Person expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to in such registration statement or prospectus(ii) to the failure of any Selling Holder of Controlling Person to refrain from delivering any prospectus or supplements thereto a reasonable period of time following notice from the Company to discontinue delivery such prospectus or supplements, such Selling Holder will indemnify and hold harmless each underwriter, the Company (including its directors, officers, employees, agents and Controlling Persons), and each other Selling Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, agents and Controlling Person of any of them), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, shall the liability of a Selling Holder or Controlling Person for indemnification under this Section 5.6(a) in its capacity as such exceed the net proceeds (before deducting expenses) received by such Selling Holder from its sale of Registrable Interests under such registration statement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5.6(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party Indemnified Party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each Indemnifying Party under this Section 5.6, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters, if any, from the offering of the Registrable Interests or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters, if any, in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters, if any, shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, if any, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Interests. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters, if any, 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Selling Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5.6(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 5.6(b) in excess of the Claims referred to above shall be deemed to include net proceeds (subject to the limitations set forth in Section 5.9before deducting expenses) any legal or other fees or expenses reasonably incurred received by such indemnified party in connection with investigating or defending any Selling Holder from its sale of Registrable Interests under such action, proceeding or claimregistration statement. No Person person found 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 found guilty of such fraudulent misrepresentation.
(c) As promptly as is reasonably practicable after receipt by a party seeking indemnification pursuant to this Section 5.6 (an “Indemnified Party”) of written notice of any investigation, claim, proceeding or other action in respect of which indemnification is being sought (each, a “Claim”), the Indemnified Party promptly shall notify the party against whom indemnification pursuant to this Section 5.6 is being sought (the “Indemnifying Party”) of the commencement thereof; but the omission to so notify the Indemnifying Party shall not relieve it from any liability hereunder, except to the extent that the Indemnifying Party is materially prejudiced by reason of such failure. In connection with any Claim, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess assumption of the dollar amount equal defense of any Claim by the Indemnifying Party, the Indemnified Party shall have the right to employ separate legal counsel and to participate in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket costs and expenses of such separate legal counsel to the sum of Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed to pay such fees, costs and expenses, (y) the Indemnified Party shall reasonably have concluded that representation by the same legal counsel would not be appropriate due to (i) actual or potentially differing interests between such parties in the net proceeds received by conduct of the defense of such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement Claim, or prospectus, minus (ii) any amounts paid legal defenses that may be available to the Indemnified Party that are in addition to or payable by disparate from those available to the Indemnifying Party, or (z) the Indemnifying Party shall have failed to employ legal counsel reasonably satisfactory to the Indemnified Party and take action to defend such Amneal Group Member pursuant to Section 5.8(b) (except claim within 30 days after notice of the commencement of such Claim or the Indemnifying Party shall, in the case reasonable judgment of fraud the Indemnified Party, have ceased to conduct a diligent defense of such claim. If the Indemnified Party employs separate legal counsel in circumstances other than as described in clauses (x), (y) or willful misconduct(z) above, the fees, costs and expenses of such legal counsel shall be borne exclusively by the Indemnified Party. Except as provided above, the Indemnifying Party shall not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm of counsel for the Indemnified Party (together with appropriate local counsel). No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle or compromise any Claim or consent to the entry of any judgment with respect thereto, unless such settlement, compromise or consent (i) includes an unconditional release of each Indemnifying Party from all liabilities with respect to such Claim or judgment 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) The indemnification and contribution provided for in this Section 5.6 will remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Parties or any officer, director, employee, agent or Controlling Person of the Indemnified Parties.
Appears in 1 contract
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
(a) To the extent permitted by applicable law, the Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner and employee of such Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (joint or several), including reasonable attorney’s fees and disbursements and reasonable expenses of counsel) investigation (collectively, “ClaimsLosses”), incurred by such Person pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may otherwise become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, Losses arise out of or are based upon an any of the following statements or omissions (collectively, a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact contained in any the registration statement, or including any preliminary Prospectus or final prospectus Prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) the omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein, in light of the circumstances in under which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the indemnification required by this Section 5(a) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case for any such Loss to the extent that any such Claims arise it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by a Holder or any Representative of the Amneal Group Member, underwriter expressly for use thereinin connection with such registration; and provided, further, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated indemnification required by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless Section 5(a) shall not apply to the Company and its officers, directors, employees and controlling Persons, if any, in extent that any offering such Loss is based on or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise arises out of or are based upon an untrue statement or alleged untrue statement of a material fact contained fact, or an omission or alleged omission to state a material fact, included in or omitted from any registration preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or any preliminary such omission or alleged omission, and a copy of the final prospectus contained thereinhas not been sent or given by the Holder or any underwriter to the Person alleging damage at or prior to the confirmation of sale to such Person; and provided, further, that this indemnity shall not apply to the extent that any such Loss is based on an offer or Transfer of Registrable Securities during any period which the Company has notified the Holder that such offers and Transfers must cease under the Agreement, including under Section 2.3, Section 2.4(b) or Section 2.4(e).
(b) To the extent permitted by applicable law, the Holders (severally and not jointly) shall indemnify and hold harmless the Company, each of the directors of the Company, each of the officers of the Company who shall have signed the Resale Registration Statement, each Person, if any, who controls the Company within the meaning of the Securities Act, and each officer, director, partner, and employee of such controlling Person, against any and all Losses incurred by such Person pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any amendment of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state laws, or any document incorporated by reference therein, or but only insofar as such Losses arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such ClaimsViolation, in each case only to the extent that such untrue statement Violation arises out of or alleged untrue statement or omission or alleged omission was made in reliance is based upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by the Amneal Group Member or its Representative on behalf of a Holder expressly for use therein that is in connection with such registration, or upon the subject Holder’s failure to properly and timely deliver an “official” Prospectus, or upon the Holder’s use of a written or oral prospectus other than the untrue statement or omission“official” Prospectus; provided, however, that any indemnification required by this Section 5(b) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the liability consent of each Amneal Group Member hereunder the Holders (which consent shall not be limited to an amount equal to unreasonably withheld, conditioned or delayed) and in no event shall the dollar amount of any indemnity obligation under this Section 5(b) exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusHolders.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 5 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 5, such indemnified party shall deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses (in each case, to the extent reasonable) to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 5 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 5. Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it that are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel or counsels).
(d) If the indemnification required by this Section 5 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims Losses referred to thereinin this Section 5:
(i) the indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions that resulted in such Losses, on the one hand, and the indemnified party, on the as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Sections 5(a), 5(b) and 5(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also connection with any investigation or proceeding;
(ii) the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5(d)(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess .
(e) The obligations of the dollar amount equal Company and the Holders under this Section 5 shall survive the completion of any offering of Registrable Securities pursuant to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
Appears in 1 contract
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated under this Section 2:
(a) To the extent permitted by this Agreementlaw, the Company shallwill, and it hereby agrees todoes, indemnify and hold harmlessharmless each selling Holder, or cause to be indemnified and held harmlessthe partners, each Amneal Group Member and its respective members, officers, directorsagents, employees Affiliates, employees, trustees, stockholders and controlling Personsdirectors of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, in any offering who controls such Holder or sale underwriter within the meaning of the Registrable SharesSecurities Act or the Exchange Act, against any lossesDamages, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), the Company will pay to which each such indemnified party Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may become subjectresult, insofar as such Claims (including any expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.9(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected with without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company as provided herein), or actions or proceedings in respect thereof, be liable for any Damages to the extent that they arise out of or are based upon an untrue statement statements or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission omissions made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information regarding the Required Amneal Group Member Information Holder or its plan of distribution furnished to the Company in writing by such Amneal Group Member or on behalf of any such Amneal Group Member by any Representative of the Amneal Group MemberHolder, underwriter, controlling Person, or other aforementioned Person expressly for use thereinin the Disclosure Package, that is the subject Prospectus, any Free Writing Prospectus, or any registration statement of the untrue statement Company, including any preliminary Prospectus or omissionFinal Prospectus contained therein or any amendments or supplements thereto.
(b) In To the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, each Amneal Group Member shallselling Holder, severally and hereby agrees tonot jointly, will indemnify and hold harmless the Company Company, and each of its officers, directors, employees and controlling Persons, if any, in any offering or sale each of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any officers who has signed the registration statement, or each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any preliminary or final prospectus contained thereinunderwriter (as defined in the Securities Act), or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 misleadingother Holder selling securities in such registration statement, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal controlling Person of any such underwriter or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending Holder, against any such ClaimsDamages, in each case only to the extent that such untrue statement Damages arise out of or alleged untrue statement are based upon statements or omission or alleged omission was omissions made in reliance upon and in conformity with written information regarding the Required Amneal Group Member Information Holder or its plan of distribution furnished by or on behalf of such selling Holder expressly for use in the Disclosure Package, the Prospectus, any Free Writing Prospectus, or any registration statement of the Company, including any preliminary Prospectus or Final Prospectus contained therein or any amendments or supplements thereto; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in writing by the Amneal Group Member connection with investigating or its Representative expressly for use therein that is the subject of the untrue statement defending any claim or omissionproceeding from which Damages may result, as such expenses are incurred; provided, however, that the liability indemnity agreement contained in this Section 2.9(b) shall not apply to amounts paid in settlement of each Amneal Group Member hereunder shall be limited to an amount equal to any such claim or proceeding if such settlement is effected without the dollar amount consent of the net Holder, which consent shall not be unreasonably withheld; and provided, further, that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution under this Section 2.9(b) and Section 2.9(d) exceed the proceeds from the offering received by such Amneal Group Member from the sale Holder (net of Registrable Shares sold any Selling Expenses paid by such Amneal Group Member pursuant to such registration statement or prospectusHolder).
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 2.9 of written notice of the commencement of any action, threat or proceeding (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is made or intended to be made against any indemnifying party under this Section 2.9, give the indemnifying party written notice of any Claims referred to therein, then each the commencement thereof. The indemnifying party shall contribute have the right to participate in such action and, to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of extent the indemnifying partyparty so desires, on the one handparticipate jointly with any other indemnifying party to which notice has been given, and to assume the indemnified party, on the other hand, defense thereof with respect counsel mutually satisfactory to the applicable offering of securitiesparties. The relative fault of such indemnifying party and Each indemnified party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the reasonable and documented out-of-pocket fees and expenses of such counsel shall be determined paid by reference to, among other things, 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 such indemnified party unless (i) the indemnifying party or by such indemnified partyagrees to pay the same, and (ii) the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute fails to assume the defense of such action with counsel reasonably satisfactory to the amount paid or payable by such indemnified party in within a reasonable period of time or (iii) the named parties to any such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of action (including any impleaded parties) include both the indemnifying party and the indemnified party and such parties have been advised by such counsel that either (x) representation of such indemnified party and the indemnifying party by the same counsel would be inappropriate under applicable standards of professional conduct, as determined in the reasonable judgment of any party or (y) there may be one or more legal defenses available to the indemnified party which are different from or in addition to those available to the indemnifying party, it being understood, however that the indemnifying party shall not be liable for fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for each group of similar indemnified parties (e.g., the Holders, as well contrasted with executive officers and directors of the Company). In any of such cases, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party and all such fees and expenses shall be reimbursed as any other relevant equitable considerationsincurred. In the event that the indemnified parties retain separate counsel, such counsel shall, to the extent reasonable, cooperate with the indemnifying party’s counsel in order to control overall costs. The parties hereto agree failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the indemnified party under this Section 2.9, except to the extent that it would such failure results in the loss of substantive legal rights. No indemnifying party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. No indemnifying party shall, without the consent of each indemnified party, effect any settlement of any pending or threatened proceeding in respect of which such indemnified party is a party and indemnity has been sought hereunder by such indemnified party, unless such settlement (i) includes an unconditional release of such indemnified party from all liability for claims that are the subject matter of such proceeding 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) To provide for just and equitable if contributions contribution to joint liability under the Securities Act in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 5.8(c2.9 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) were to that such indemnification may not be determined by pro rata allocation or by any other method of allocation which does not take into account enforced in such case, notwithstanding the equitable considerations referred to in the preceding sentences of fact that this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth 2.9 provides for indemnification in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).case,
Appears in 1 contract
Indemnification; Contribution. (a) In The Issuer of the event any Registrable Shares are included securities to be registered in a the relevant registration statement contemplated by this Agreement, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member harmless DoCoMo and its respective directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “"Claims”), ") to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company Issuer as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company Issuer shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically DoCoMo or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company Issuer shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (i) in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing Issuer by such Amneal Group Member DoCoMo or on behalf any underwriter or representative of such Amneal Group Member by any Representative of the Amneal Group Member, DoCoMo expressly for use therein, or by DoCoMo's failure to furnish the Issuer, upon request, with the information with respect to DoCoMo, or any underwriter or representative of DoCoMo, or DoCoMo's intended method of distribution, that is the subject of the untrue statement or omissionomission or (ii) if the Issuer shall sustain the burden of proving that DoCoMo or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Issuer had previously furnished copies thereof to DoCoMo or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member DoCoMo shall, and hereby agrees to, to (i) indemnify and hold harmless AT&T, with respect to the Company registration of Current Wireless Tracking Stock, or AT&T Wireless, with respect to the registration of AT&T Wireless Common Stock, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of DoCoMo as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to AT&T or AT&T Wireless, as the Company in writing case may be, by the Amneal Group Member or its Representative DoCoMo expressly for use therein that is therein, and (ii) periodically reimburse AT&T or AT&T Wireless, as the subject case may be, for any legal or other out-of-pocket expenses reasonably incurred by AT&T or AT&T Wireless, as the case may be, in connection with investigating or defending any such Claim.
(c) Promptly after receipt by an indemnified party under Section 7.6(a) or Section 7.6(b) of written notice of the untrue statement commencement of any action or omissionproceeding for which indemnification under Section 7.6(a) or Section 7.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding that is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party that are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each Amneal Group Member hereunder jurisdiction) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel's fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel (and one local counsel per jurisdiction) for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 7.6(a) or Section 7.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified party to such registration any material injunctive relief or other material equitable remedy and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal Group DoCoMo, AT&T and the Company AT&T Wireless agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 7.6(a) or Section 5.8(b7.6(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c7.6(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.6(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.97.6(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities ActAct or any successor provision thereof) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless each Buyer Party holding Registrable Securities, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, stockholders, managers and controlling Personsagents of each such Buyer Party and each Person who controls any such Buyer Party within the meaning of either the 1933 Act or the 1934 Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any registration statementamendment thereof, or the Disclosure Package, or any preliminary preliminary, final or final summary prospectus contained thereinor Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative expressly on behalf of any such Buyer Party specifically for use inclusion therein that including, without limitation, any notice and questionnaire, (ii) out of or is the subject based upon any Buyer Party’s failure to deliver a copy of the Registration Statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities or (iii) out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 5.3(c) hereof. This indemnity agreement will be in addition to any liability which the Company may otherwise have.
(b) Each Buyer Party severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, stockholders, managers and agents and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 Act, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages or liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon (i) any untrue statement or omissionalleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Buyer Party Free Writing Prospectus, preliminary, final or summary prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, 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 (in the case of the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Buyer Party furnished to the Company by or on behalf of such Buyer Party specifically for inclusion therein or (ii) Buyer Party’s failure to deliver a copy of the Registration Statement, the Disclosure Package, or any preliminary, final or summary prospectus or Free Writing Prospectus included in any such Registration Statement or any amendments or supplements thereto (if the same was required by applicable law to be so delivered) after the Company has furnished such Buyer Party with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Securities; provided, however, that the liability of each Amneal Group Member hereunder total amount to be indemnified by such Buyer Party pursuant to this Section 5.8(b) shall be limited to an amount equal to the dollar amount of the net proceeds (after deducting underwriters’ discounts and commissions) received by such Amneal Group Member from Buyer Party in the sale of Registrable Shares sold by offering to which such Amneal Group Member pursuant to such registration statement Registration Statement or prospectusProspectus relates.
(c) Amneal Group Promptly after receipt by an indemnified party under this Section 5.8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5.8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and 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 other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein 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 (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the Company agree indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel 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 actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that ifthere 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; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any reasonlocal counsel) for all indemnified parties. An indemnifying party shall not be liable under this Section 5.8 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 indemnification provisions contemplated indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No 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 or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in Section 5.8(a) or Section 5.8(b) are above is unavailable to or are insufficient to hold harmless an indemnified party in respect of for any Claims referred to thereinreason, then each applicable indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) to which such indemnified indemnifying party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative fault of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handhand in connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party on the one hand or by such the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5.8(d) were to be determined by pro rata allocation (even if the Buyer Parties holding Registrable Securities or any agents or underwriters or all of them 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 preceding sentences of this Section 5.8(c5.8(d). The amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Article V shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. No Notwithstanding the provisions of this Section 5.8(d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act0000 Xxx) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5.8, each Person who controls any Buyer Party holding Registrable Securities, agent or underwriter within the meaning of either the 1933 Act or the 1934 Act and each director, officer, employee and agent of any such Buyer Party, agent or underwriter shall have the same rights to contribution as such Buyer Party, agent or underwriter, and each Person who controls the Company within the meaning of either the 1933 Act or the 1934 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 Section 5.8(d). Notwithstanding the foregoing, no Amneal Group Member the total amount to be contributed by any Buyer Party pursuant to this Section 5.8(d) shall be liable limited to contribute the net proceeds (after deducting underwriters’ discounts and commissions) received by such Buyer Party in the offering to which such Registration Statement or prospectus relates.
(e) The provisions of this Section 5.8 will remain in full force and effect, regardless of any amount in excess investigation made by or on behalf of any Buyer Party holding Registrable Securities or the Company or any of the dollar amount equal officers, directors or controlling Persons referred to in this Section 5.8, and will survive the transfer of Registrable Securities.
(f) To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under this Section 5.8 to the sum of fullest extent permitted by Applicable Law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000 Xxx) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such Amneal Group Member seller from the sale of such Registrable Shares sold by such Amneal Group Member Securities pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Shelf Registration.
Appears in 1 contract
Samples: Stock Purchase Agreement (Professional Diversity Network, Inc.)
Indemnification; Contribution. (a) In The Company agrees to indemnify, hold harmless and defend (i) each Holder covered by any Registration Statement, (ii) each person, if any, who controls (within the event meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Registrable Shares are included such Holder or underwriter (any of the persons referred to in this clause (ii) being hereinafter referred to as a registration statement contemplated by this Agreement, "controlling person") and (iii) the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii) or (iii) may hereinafter be referred to as an "indemnified person"), in any offering or sale of to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments, fines, amounts paid in settlement, costs or liabilities in respect thereof and expenses (including reasonable fees of counsel) expenses, joint or several, (collectively, “"Claims”") incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body of the Commission, whether pending or threatened, whether or not an indemnified party is or may be a party thereto ("Indemnified Damages"), to which each such any indemnified party person may become subject, subject insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings proceedings, whether commenced or threatened, in respect thereof, ) arise out of or are based upon an upon, or are caused by: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, Registration Statement (or any amendment or supplement thereto, thereto filed with the Commission) or in any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them filing made in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative qualification of the Amneal Group Member, expressly for use therein, that is offering under the subject securities or other "blue sky" laws of the untrue statement or omission.
any jurisdiction in which Securities are offered (b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein"Blue Sky Filings"), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for (ii) any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact contained in any preliminary Prospectus if used prior to the effective date of such Registration Statement, or contained in any final Prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the Commission) or any omission or alleged omission to state therein a material fact relates required to be stated therein or necessary, in light of the circumstances under which the statements therein were made, not misleading or (iii) a violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law, or any other law applicable to the Company relating to any such registration or qualification (the matters in the foregoing clauses (i) through (iii) being, collectively, "Violations"); except insofar as such Claims or an indemnified person: (x) are caused by any such untrue statement or omission or alleged untrue statement or omission that is based upon and in conformity with information supplied by such indemnifying party or by relating to such indemnified partyperson furnished in writing to the Company by or on behalf of any of such indemnified person expressly for use therein; or (y) with respect to any preliminary Prospectus, result from the fact that such person 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, as amended or supplemented, if the Company shall have previously furnished copies thereof to such person in accordance with this Agreement and the parties’ relative intentsaid Prospectus, knowledgeas amended or supplemented, access to information and opportunity to correct or prevent would have corrected such untrue statement or omission. IfSuch indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified person and shall survive the transfer of such securities by such Holder. In case any Claim shall be brought or asserted against any of the indemnified persons with respect to which indemnity may be sought against the Company, however, such indemnified person shall promptly notify the allocation Company and the Company shall assume the defense thereof. Such indemnified person shall have the right to employ separate counsel in any such action and to participate in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsdefense thereof, but also the relative benefits fees and expenses of such counsel shall be at the expense of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of person unless (i) the net proceeds received employment of such counsel shall have been specifically authorized in writing by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusCompany, minus (ii) the Company shall have failed to assume the defense and employ counsel or (iii) the named parties to any amounts paid such action (including any implied parties) include both the indemnified person and the Company and the indemnified person shall have been advised in writing by its counsel that there may be one or payable more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified person), it being understood, however, that the Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified persons, which firm shall be (x) designated by such Amneal Group Member pursuant to Section 5.8(b) (except indemnified persons holding a majority in interest of the Securities included in the case Registration Statement to which the Claim relates and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of fraud any such action or willful misconduct).proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Holder and its respective officerspartners, members, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable SharesShares pursuant to a registration statement hereunder, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Holder in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Holder with respect to such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Holder expressly for use therein, or by such Holder’s failure to furnish the Company, upon request, with the information with respect to the Holder, or such Holder’s intended method of distribution, that is the subject of the untrue statement or omission, or if the Holder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Holders, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Holder, each Amneal Group Member severally and not jointly, shall, and hereby agrees to, indemnify and hold harmless the Company and Company, its directors, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares pursuant to a registration statement hereunder, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company by such Holder with respect to such Holder; provided, that in no event shall any indemnity under this Section 2.05 exceed the net proceeds from the offering received by such Holder unless such liability arises out of or is based on willful misconduct by such Holder.
(c) Promptly after receipt by an indemnified party under Section 2.05(a) or Section 2.05(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 2.05(a) or Section 2.05(b) may be requested, such indemnified party shall notify such indemnifying party in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement commencement of such action or omissionproceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each Amneal Group Member hereunder jurisdiction plus any necessary local counsel as determined by the indemnified party) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.05(a) or Section 2.05(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement is solely for monetary damages and includes an unconditional release of the indemnified party from the sale all liability in respect of Registrable Shares sold by such Amneal Group Member pursuant to such registration claim or litigation, and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal Group The Holders and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.05(a) or Section 5.8(b2.05(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.05(d) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.05(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.05(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.92.05(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim; provided, that in no event shall any contribution under this Section 2.05(d), when combined with any amounts payable or paid under 2.05(b), exceed the net proceeds from the offering received by such Holder unless such liability arises out of or is based on willful misconduct by such Holder. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member harmless the Stockholder and its respective officerscontrolling Persons, directorsif any, employees and each underwriter and its controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, including pursuant to Section 5.1, Section 5.2 or Section 5.4, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable actual out-of-pocket fees of counselcounsel reasonably incurred) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically the Stockholder or any such Amneal Group Member underwriter for any actual out-of-pocket legal or other actual out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member the Stockholder, any underwriter or on behalf of such Amneal Group Member by any Representative of the Amneal Group MemberStockholder, expressly for use therein, or by the Stockholder’s failure to furnish the Company, upon request, with the information with respect to the Stockholder, or any underwriter or Representative of the Stockholder, or the Stockholder’s intended method of distribution, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member The Stockholder shall, and hereby agrees to, (i) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of of, relate to, are in connection with, or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of of, relate to, are in connection with, or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative Stockholder expressly for use therein that is therein, and (ii) reimburse the subject of Company for any actual out-of-pocket legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group The Stockholder and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(a5.9(a) or Section 5.8(b5.9(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c5.9(c) is not permitted by applicable lawLaw, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.9(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.9(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.10) any actual out-of-pocket legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In To the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessDiversified, each Amneal Group Member and of its respective officers, directors, employees members and partners, and each person controlling Diversified, with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, each director and controlling Personsperson of the Company and each officer of the Company who signed the Registration Statement, and each underwriter, if any, in and each person who controls any offering or sale of the Registrable Sharesunderwriter, against any all claims, losses, claimsdamages and liabilities (or actions, damages proceedings or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectivelysettlements, “Claims”), to which each if such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement settlements are effected with the written consent of the Company as provided herein)Company, or actions or proceedings in respect thereof, arise ) arising out of or are based upon an on any untrue statement (or alleged untrue statement statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement, notification or the like, any preliminary amendments or final prospectus contained therein, or supplements thereto and any amendment or supplement thereto, or any document documents incorporated by reference therein) incident to any such registration, qualification or compliance, or arise out of or are based upon any omission (or alleged omission omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and or any violation by the Company shallof the Securities Act or the Exchange Act or any other applicable securities laws or other federal, state or common law or any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and it hereby agrees towill reimburse Diversified, reimburseeach of its officers, upon requestdirectors, members and partners, and each person controlling Diversified, each such Amneal Group Member director, controlling person and officer, each such underwriter and each person who controls any such underwriter, for any legal or and any other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating and defending or defending settling any such Claimsclaim, loss, damage, liability, action or proceeding; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise claim, loss, damage, liability or expense arises out of or are is based upon an on any untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, offering circular or amendment or supplement thereto, other document in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by Diversified or such underwriter and stated to be specifically for use therein. Such indemnity obligation shall remain in writing full force and effect regardless of any investigation made by such Amneal Group Member or on behalf of such Amneal Group Member Diversified and shall survive the transfer of Registrable Securities by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omissionDiversified.
(b) In To the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, Diversified will indemnify the Company, each Amneal Group Member shallof its directors, officers and controlling persons, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Personseach underwriter, if any, in any offering of the Company’s securities covered by such a registration statement, each person who controls the Company or sale such underwriter within the meaning of its Registrable Shares the Securities Act or the Exchange Act or the rules and regulations thereunder, against any Claims to which each such indemnified party may become subjectall claims, insofar as such Claims losses, damages and liabilities (including any amounts paid in settlement as provided herein)or actions, proceedings or actions or proceedings settlements in respect thereof, arise ) arising out of or are based upon an on any untrue statement (or alleged untrue statement statement) of a material fact contained in any such registration statement, prospectus, offering circular or any preliminary or final prospectus contained thereinother document, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission (or alleged omission omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and each Amneal Group Member shall, and it hereby agrees to, will reimburse the Company and such directors, officers, members, partners, persons, underwriters or control persons for any legal or any other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating and defending or defending settling any such Claimsclaim, loss, damage, liability, action or proceeding, in each case to the extent, but only to the extent extent, that such untrue statement (or alleged untrue statement statement) or omission (or alleged omission was omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative expressly Diversified and stated to be specifically for use therein that is the subject of the untrue statement or omissiontherein; provided, however, that the liability of each Amneal Group Member Diversified hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member Diversified from the sale of Registrable Shares sold by such Amneal Group Member pursuant Registered Securities as contemplated herein giving rise to such registration statement or prospectusliability.
(c) Amneal Group Each party entitled to indemnification under this Section 4 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Company agree Indemnified Party may participate in such defense at such party’s expense, and provided further that ifthe failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, for unless such failure to notify materially adversely affects the Indemnifying Party’s ability to defend such action. No Indemnifying Party, in the defense of any reasonsuch claim or litigation, shall, except with the indemnification provisions contemplated 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 Section 5.8(a) the claimant or Section 5.8(b) are unavailable plaintiff to or are insufficient to hold harmless an indemnified party such Indemnified Party of a release from all liability in respect of such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom.
(d) If the indemnification provided for in this Section 4 shall for any Claims referred to thereinreason be unenforceable or otherwise unavailable by an Indemnified Party, although otherwise available in accordance with its terms, then each Indemnifying Party shall, in lieu of indemnifying party shall such Indemnified Party, contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of the losses, claims, damages, liabilities or expenses with respect to which such Claims Indemnified Party has claimed indemnification, in such proportion as is appropriate to reflect the relative fault of the indemnifying party, Indemnified Party on the one hand, hand and the indemnified party, Indemnifying Party on the other handin connection with the statements or omissions which resulted in such losses, with respect to the applicable offering of securitiesclaims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault fault, in the case of such indemnifying party and indemnified party 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 or statement, omission or alleged omission to state a material fact relates to information supplied by such indemnifying party the Indemnifying Party or by such indemnified partythe Indemnified Party, and the such parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement statement, alleged statement, omission or alleged omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Diversified agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) hereto were to be determined by pro rata allocation or by any other method of allocation which does not take into account the such equitable considerations referred to in the preceding sentences of this Section 5.8(c)considerations. The amount paid or payable by an indemnified party Indemnified Party as a result of the Claims losses, claims, damages, liabilities or expenses referred to above herein shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal fees, charges or other fees or expenses reasonably incurred by such indemnified party Indemnified Party in connection with investigating or defending against any action or claim which is the subject hereof. In no case, however, shall Diversified be responsible for a portion of the contribution obligation in excess of the net proceeds received by Diversified from the sale of securities as contemplated herein giving rise to such action, proceeding or claimliability. 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 is not guilty of such fraudulent misrepresentation. Notwithstanding .
(e) Anything to the foregoingcontrary contained in this Section 4 notwithstanding, no Amneal Group Member Diversified shall not be liable to contribute for any amount indemnification or contribution in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member it from the any sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Securities which has been registered hereunder.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless each Holder, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersthe Affiliates, directors, employees officers, employees, members, managers and controlling Personsagents of each such Holder and each Person who controls any such Holder within the meaning of either the Securities Act or the Exchange Act, if anyto the fullest extent permitted by applicable law, in any offering or sale of the Registrable Shares, from and against any and all losses, claims, damages damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any violation of the Securities Act, Exchange Act or state securities laws, or upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any registration statementamendment thereof, or the Disclosure Package, or any preliminary preliminary, final or final prospectus contained thereinsummary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, and agrees to reimburse each Amneal Group Member shallsuch indemnified party, and it hereby agrees toas incurred, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company them in connection with investigating or defending any such Claimsloss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in each any case only to the extent that any such loss, claim, damage, liability or expense arises (i) out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or (ii) out of sales of Registrable Securities made during a Blackout Period after notice is given pursuant to the definition thereof. This indemnity agreement will be in writing addition to any liability which the Company may otherwise have.
(b) Each Holder severally (and not jointly) agrees to indemnify and hold harmless the Company and each of its Affiliates, directors, employees, members, managers and agents and each Person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the fullest extent permitted by the Amneal Group Member applicable law, from and against any and all losses, claims, damages or its Representative expressly for use therein that is the liabilities to which they or any of them may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon any violation of the Securities Act, Exchange Act or state securities laws, upon any untrue statement or omissionalleged untrue statement of a material fact contained in a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, 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 (in the case of the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, in light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is contained in any written information relating to such Holder furnished to the Company by or on behalf of such Holder specifically for inclusion therein; provided, however, that the liability of each Amneal Group Member hereunder total amount to be indemnified by such Holder pursuant to this Section 7(b) shall be limited to an amount equal to the dollar amount of the net proceeds (after deducting underwriters’ discounts and commissions) received by such Amneal Group Member from Holder in the sale of Registrable Shares sold by offering to which such Amneal Group Member pursuant to such registration statement Registration Statement or prospectusProspectus relates.
(c) Amneal Group Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and 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 other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein 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 (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the Company agree indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel 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 actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that ifthere 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; (iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. No indemnifying party shall, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general circumstances or allegations, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any reasonlocal counsel) for all indemnified parties. An indemnifying party shall not be liable under this Section 7 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 indemnification provisions contemplated indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party. No 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 or compromise unless such settlement or compromise (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (ii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) In the event that the indemnity provided in Section 5.8(a7(a) or Section 5.8(b7(b) are above is unavailable to or are insufficient to hold harmless an indemnified party in respect of for any Claims referred to thereinreason, then each applicable indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative fault of the indemnifying party, party on the one hand, hand and the indemnified party, party on the other handin connection with the statements or omissions which resulted in such losses, with claims, damages or liabilities (or actions in respect to the applicable offering of securitiesthereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such the indemnifying party on the one hand or by such the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c7(d) were to be determined by pro rata allocation (even if the Holders or any agents or underwriters or all of them 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 preceding sentences of this Section 5.8(c7(d). The amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 7(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. No Notwithstanding the provisions of this Section 7(d), 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).such
Appears in 1 contract
Samples: Registration Rights Agreement (Red Lion Hotels CORP)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Investor and its respective officers, directors, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages or liabilities, or actions or proceedings in respect thereof, including any amounts paid in settlement as provided in this Agreement (collectively, Claims), arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse each Participating Investor or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Participating Investor or any underwriter expressly for use therein; and provided, further, that is the subject Company will not be liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such underwriter with respect to any preliminary or final prospectus contained therein, or any amendment or supplement thereto, to the extent that any Claim of such underwriter or controlling Person results from the fact that such underwriter sold Registrable Securities to a Person to whom there was not sent or given (to the extent legally required), at or prior to the written confirmation of such sale, a copy of the untrue statement final prospectus or omissionof the final prospectus as then amended or supplemented, whichever is most recent, if the Company has previously furnished copies thereof to such underwriter.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Each Participating Investor shall, and hereby agrees to, to (1) indemnify and hold harmless each of the Company Company, each other Participating Investor and their respective directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative on behalf of such Participating Investor expressly for use therein that is therein, and (2) reimburse the subject of Company for any legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 6.5(a) or Section 6.5(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 6.5(a) or Section 6.5(b) may be requested, such indemnified party shall notify the indemnifying party in writing of the commencement of such action or proceeding, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other 1iability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. If there exists or is reasonably likely to exist a conflict of interest that would make it inappropriate under applicable standards of professional conduct in the reasonable judgment of the indemnified party for the same counsel to represent both the indemnified party and the indemnifying party or if the indemnifying party elects not to assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim in each jurisdiction for which the indemnified party reasonably determines counsel is necessary. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 6.5(a) or Section 6.5(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation and does not subject the indemnified party to any injunctive relief or other equitable remedy.
(d) Each Participating Investor and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 6.5(a) or Section 5.8(b6.5(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to thereintherein (other than as a result of the provisos thereto), then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of and benefits derived by the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference toas well as other equitable considerations, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the if that allocation in the first sentence of this Section 5.8(c) is not permitted by under applicable law, law then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of received by the indemnifying party Company and the indemnified party, as well as any other relevant equitable considerationsParticipating Investors. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) contribution were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c)paragraph. The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.96.5(c)) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmless, or cause to be indemnified and held harmlessthe extent permitted by law, each Amneal Group Member Holder of Registrable Securities, its officers and its respective officers, directors, employees and controlling Personseach person, if any, in any offering or sale who controls such Holder (within the meaning of the Registrable Shares, Securities Act) against any all losses, claims, damages or liabilities in respect thereof damages, liabilities, and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementstatement under which Registrable Securities owned by such Holder were registered under the Securities Act, or in any related prospectus or preliminary or final prospectus contained thereinprospectus, or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a prospectus or preliminary prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse except insofar as the Company for same are caused by or contained in any legal information or other out-of-pocket expenses reasonably incurred and documented by the Company affidavit with respect to such Holder furnished in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Holder expressly for use therein or by such Holder's failure to furnish the Company upon request with the information with respect to such Holder or such Holder's plan of distribution that is the subject of the untrue statement or omission; providedomission or by such Holder's failure to deliver a copy of the applicable registration statement or prospectus (exclusive of the documents, howeverif any, from which information is incorporated by reference) after the Company has furnished such Holder with a sufficient number of copies of the same. In connection with an underwritten offering, the Company will also indemnify the underwriters thereof, their officers and directors, and each person who controls (within the meaning of the Securities Act) such underwriters to the same extent as provided above with respect to the indemnification of the Holders of Registrable Securities.
(b) In connection with any registration statement in which a Holder of Registrable Securities is participating, each such Holder agrees to indemnify and hold harmless, to the extent permitted by law, the Company, the directors and officers of the Company, the underwriters participating in the offering, the underwriters' directors and officers, and each person, if any, who controls (within the meaning of the Securities Act) the Company or the underwriters against any losses, claims, damages, liabilities, and expenses arising out of any untrue or alleged untrue statement of a material fact contained in any registration statement under which Registrable Securities owned by such Holder were registered under the Securities Act, or in any related prospectus or preliminary prospectus, or any amendment thereof or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, or preliminary prospectus, in the light of the circumstances under which they were made) not misleading, to the extent that such untrue statement or omission is contained in any information or affidavit with respect to such Holder furnished to the liability Company by such Holder expressly for use therein or such untrue statement or omission relates to such Holder or such Holder's plan of each Amneal Group Member hereunder distribution and such Holder failed to furnish such information to the Company upon request, or arising out of the Holder's failure to deliver a copy of the applicable registration statement or prospectus (exclusive of the documents, if any, from which information is incorporated by reference) after the Company has furnished such Holder with a sufficient number of copies of the same. Notwithstanding the provisions of this Section 6(b), the indemnification required from any Holder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member Holder from the sale of the Registrable Shares sold Securities under the registration statement to which the indemnification claim relates. The Company and, to the extent customary in underwriting agreements at the time, its directors and officers and each person, if any, who controls (within the meaning of the Securities Act) the Company, shall be entitled to receive indemnities from underwriters, selling brokers, dealer managers, and similar securities industry professionals participating in the distribution to the same extent as provided above with respect to information so furnished by such Amneal Group Member pursuant persons specifically for inclusion in any prospectus or registration statement, or the failure by such underwriters, selling brokers, dealer managers, and similar securities industry professionals to such deliver a copy of the applicable registration statement or prospectusprospectus (exclusive of the documents, if any, from which information is incorporated by reference) after the Company has furnished such persons with a sufficient number of copies of the same.
(c) Amneal Group Any person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such person of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such person will claim indemnification or contribution pursuant to this Agreement and permit the Company agree indemnifying party to participate therein and, to the extent that ifit shall wish, jointly with any other indemnifying party similarly situated, to assume the defense of such claim with counsel reasonably satisfactory to such indemnified party. If the indemnifying party elects to assume the defense of a claim, it shall not be liable to such indemnified party for legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel with respect to such claim. The indemnifying party will not be subject to any liability for any reasonsettlement made without its consent, which consent shall not be unreasonably withheld. If the failure of any person to give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification prejudices such indemnifying party, such indemnifying party shall be relieved of its obligation to indemnify such person to the extent that such indemnifying party has been prejudiced. No indemnifying party will consent to entry of any judgment or enter into any settlement agreement 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.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 6 from the indemnifying party is unavailable to or are insufficient to hold harmless an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities, or expenses referred to therein, then each the indemnifying party party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities, or expenses in such proportion as is appropriate to reflect not only the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other but also the relative fault of the indemnifying party, on the one hand, party and the indemnified party, on the party as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the any action in question, including any untrue or alleged untrue statement statements 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 by, such indemnifying party or by such indemnified partyparties, and the parties’ ' relative intent, knowledge, access to information information, and opportunity to correct or prevent such statement or omissionaction. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitation set forth in Section 6(c), any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerationsinvestigation or proceeding. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c6(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claimparagraph. 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 is not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
7.1 To the extent permitted by applicable law, the Company shall, and it hereby agrees to, Trust shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless Starwood Mezzanine, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls Starwood Mezzanine within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner and employee of Starwood Mezzanine and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (joint or several), including reasonable attorneys' fees and disbursements and reasonable expenses of counsel) (collectivelyinvestigation, “Claims”)incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may otherwise become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively, a "Violation"):
(i) Any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) The omission or alleged omission to state therein a material fact required to be stated therein therein, or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Trust (which consent shall not be unreasonably withheld), nor shall the Trust be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case for any such loss, claim, damage, liability or expense to the extent that any such Claims arise it arises out of or are is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, a Violation which occurs in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing Trust by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, indemnified party expressly for use thereinin connection with such registration; and provided, further, that the indemnity agreement contained in this Section 7 shall not apply to the extent that any such loss is the subject of the untrue statement based on or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise arises out of or are based upon an untrue statement or alleged untrue statement of a material fact fact, or an omission or alleged omission to state a material fact, contained in or omitted from any registration preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or any preliminary such omission or alleged omission, and a copy of the final prospectus contained thereinhas not been sent or given to such person at or prior to the confirmation of sale to such person if an underwriter was under an obligation to deliver such final prospectus and failed to do so.
7.2 To the extent permitted by applicable law, Starwood Mezzanine shall indemnify and hold harmless the Trust, its Trustees, officers, employees and agents, each Person, if any, who controls the Trust within the meaning of the Securities Act, and the trustees, directors, officers, employees or agents of such controlling Person against any and all losses, claims, damages, liabilities and expenses (joint and several), including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any amendment of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or supplement theretoother federal or state laws, or any document incorporated by reference thereinbut only insofar as such losses, or claims, damages, liabilities and expenses arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such ClaimsViolation, in each case only to the extent that such untrue statement Violation arises out of or alleged untrue statement or omission or alleged omission was made in reliance is based upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by the Amneal Group Member or its Representative Starwood Mezzanine expressly for use therein that is the subject of the untrue statement or omissionin connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of each Amneal Group Member hereunder Starwood Mezzanine (which consent shall not be limited to an amount equal to unreasonably withheld) and (y) in no event shall the dollar amount of any indemnity under this Section 7.2 exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusStarwood Mezzanine.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 7.3 Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel in writing that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels).
7.4 If the indemnification required by this Section 7 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 7:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 7.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding .
7.5 If indemnification is available under this Section 7, the foregoing, no Amneal Group Member indemnifying parties shall be liable indemnify each indemnified party to contribute the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party or indemnified party or any amount other equitable consideration referred to in excess Section 7.4.
7.6 The obligations of the dollar amount equal to Trust and Starwood Mezzanine under this Section 7 shall survive the sum completion of (i) the net proceeds received by such Amneal Group Member from the sale any offering of Registrable Shares sold by such Amneal Group Member Securities pursuant to such a registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
Appears in 1 contract
Samples: Registration Rights Agreement (Angeles Participating Mortgage Trust)
Indemnification; Contribution. (a) In The Company and each of the event any Registrable Shares are included in a registration statement contemplated by this AgreementGuarantors, the Company shalljointly and severally, and it hereby agrees to, agree to indemnify and hold harmlessharmless each Holder of the Securities, or cause to be indemnified any Participating Broker-Dealer and held harmless, each Amneal Group Member and its of their respective officersaffiliates, directors, officers, employees and controlling Persons, if any, in agents and each person who controls (within the meaning of either the Securities Act or the Exchange Act) any offering or sale Holder of the Registrable SharesSecurities or any Participating Broker-Dealer, from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statement, a Registration Statement as originally filed or any preliminary or final prospectus contained therein, or in any amendment or supplement thereto, or any document incorporated by reference thereinthereof, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shallor arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the prospectus included in a Registration Statement or in any preliminary prospectus or any “issuer free writing prospectus” (as defined in Rule 433 under the Securities Act), or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and it hereby agrees toto reimburse each such indemnified party, reimburse the Company as incurred, for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such party in connection with investigating or defending any such Claimsloss, claim, damage, liability or action; provided, however, that the Company and the Guarantors will not be liable in each any such case only to the extent that any such loss, claim, damage, liability or action arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission was made therein in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by or on behalf of such Holders or any such Participating Broker-Dealer specifically for inclusion therein. The Company and the Guarantors shall also indemnify the underwriters in connection with any Shelf Registration, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Securities if requested in writing by such Holders. This indemnity agreement will be in addition to any liability which the Amneal Group Member Company or the Guarantors may otherwise have.
(b) Each Holder of the Securities and each Participating Broker-Dealer agrees, severally and not jointly, to indemnify and hold harmless the Company, each of its Representative expressly directors, each of its officers who signs a Registration Statement, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and the Guarantors to the Holders of the Securities and Participating Broker-Dealers, but only with reference to written information relating to the Holders of the Securities and the Participating Broker-Dealers furnished to the Company by or on behalf of any such Holder or Participating Broker-Dealer specifically for use therein inclusion in the documents referred to in the foregoing indemnity. Any underwriter that is covered by the subject indemnity in the preceding paragraph (a) shall also indemnify the Company, each of its directors, each of its officers who signs a Registration Statement, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the same extent as provided above in this paragraph (b). This indemnity agreement will be in addition to any liability which any such underwriter, the Holders of the untrue statement Securities and Participating Broker-Dealers may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve the indemnifying party from liability under paragraph (a) or omission(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 obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the 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 reasonably satisfactory to the liability 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 separate counsel 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 actual or potential defendants in, or targets of, 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, (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 notice of the institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle 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 (x) includes an unconditional release of each Amneal Group Member hereunder shall be limited indemnified party from all liability arising out of such claim, action, suit or proceeding, and (y) does not include a statement as to or an amount equal admission of fault, culpability or a failure to the dollar amount act by or on behalf of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusany indemnified party.
(cd) Amneal Group and In the Company agree event that if, for any reason, the indemnification provisions contemplated by Section 5.8(aindemnity provided in paragraph (a) or (b) of this Section 5.8(b) are 5 is unavailable to or are insufficient to hold harmless an indemnified party in respect of for any Claims referred to thereinreason, then each indemnifying party shall agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including legal or payable by such other expenses reasonably incurred in connection with investigating or defending the same) (collectively “Losses”) to which the indemnified party as a result of such Claims may be subject in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying partyparty or parties, on the one hand, and the indemnified partyparty on the other hand from the exchange of Securities pursuant to the Registered Exchange Offer or the registration of the Initial Securities pursuant to the Shelf Registration, as applicable. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company, the Guarantors, the Holders of Securities and the Participating Broker-Dealers shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and the Guarantors, on the one hand, and of the Holders of Securities and the Participating Broker-Dealers, on the other hand, in connection with respect to the applicable offering of securitiesstatements or omissions which resulted in such Losses as well as any other relevant equitable considerations. The relative Relative fault of such indemnifying party and indemnified party 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 such indemnifying party or by such indemnified party, the Company and the parties’ Guarantors on the one hand or the relevant Holder, Participating Broker-Dealer or other indemnified party on the other, the intent of the parties and their relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. If, howeverThe Company, the allocation in Guarantors, the first sentence Holders of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party Securities and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree Participating Broker-Dealer agrees that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 5 were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in above. Notwithstanding the preceding sentences provisions of this Section 5.8(cparagraph (d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person 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 person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5, each person who controls a Holder of Securities or Participating Broker-Dealer within the meaning of either the Securities Act or the Exchange Act and each affiliate, director, officer, employee and agent of a Holder of Securities or Participating Broker-Dealer shall have the same rights to contribution as such Holder of Securities or Participating Broker-Dealer, and each person who controls the Company or the Guarantors within the meaning of either the Securities Act or the Exchange Act, each officer of the Company or the Guarantors who shall have signed a Registration Statement and each director of the Company or 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 paragraph (d). Notwithstanding the foregoingany other provision of this Section 5(d), no Amneal Group Member Holder of the Securities shall be liable required to contribute any amount in excess of the dollar amount equal to the sum of (i) by which the net proceeds received by such Amneal Group Member Holder from the sale of Registrable Shares sold by such Amneal Group Member the Securities pursuant to a Registration Statement exceeds the amount of damages which such registration Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or prospectus, minus omission or alleged omission.
(iie) any amounts paid or payable by such Amneal Group Member The agreements contained in this Section 5 shall survive the sale of the Securities pursuant to Section 5.8(b) (except a Registration Statement and shall remain in the case full force and effect, regardless of fraud any termination or willful misconduct)cancellation of this Agreement or any investigation made by or on behalf of any indemnified party.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder covered by any Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of such securities, (iii) each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to be indemnified in this clause (iii) being hereinafter referred to as a "controlling person") and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii), in any offering (iii) or sale of (iv) may hereinafter be referred to as an "indemnified Person"), to the Registrable Sharesfullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses, joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an upon, or are caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented a violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses of any such indemnified Person; (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative on behalf of any of such indemnified Person expressly for use therein therein; (y) with respect to the preliminary Prospectus, result from the fact that is such Holder sold Securities to a person to whom there was not sent or given, at or prior to the subject written confirmation of such sale, a copy of the Prospectus, as amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and said Prospectus, as amended or supplemented, would have corrected such untrue statement or omission; providedor (z) as a result of the use by an indemnified Person of any Prospectus when, upon receipt of a Black-Out Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.4(b)(iv), the indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified Person and shall survive the transfer of such securities by such Holder. In case any action shall be brought or asserted against any of the indemnified Persons with respect to which indemnity may be sought against the Company, such indemnified Person shall promptly notify the Company and the Company shall assume the defence thereof. Such indemnified Person 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 the indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Company, (ii) the Company shall have failed to assume the defence and employ counsel or (iii) the named parties to any such action (including any implied parties) include both the indemnified Person and the Company and the indemnified Person shall have been advised in writing by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the indemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the indemnified Persons, which firm shall be (x) designated by such indemnified Persons and (y) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal indemnified Person, settle or compromise or consent to the dollar amount entry of judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any indemnified Person is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each indemnified Person from all liability arising out of such action, claim litigation or proceeding.
(b) Each Holder of Restricted Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company and its directors, officers and any person controlling (within the meaning of Section 15 of the net proceeds Securities Act or Section 20 of the Exchange Act) the Company, and the respective officers, directors, partners, employees, representatives and agents of each person, to the same extent as the foregoing indemnity from the Company to each of the indemnified Persons, but only (i) with respect to actions based on information relating to such Holder furnished in writing by or on behalf of such Holder expressly for use in any Registration Statement or Prospectus, and (ii) to the extent of the gross proceeds, if any, received by such Amneal Group Member Purchaser from the sale or other disposition of Registrable Shares sold his or its Restricted Securities covered by such Amneal Group Member pursuant Registration Statement. In case any action or proceeding shall be brought against the Company or its directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Restricted Securities covered by any Registration Statement, such Holder shall have the rights and duties given the Company in Section 2.8(a) (except that the Holder may but shall not be required to assume the defense thereof), and the Company or its directors or officers or such registration statement or prospectuscontrolling person shall have the rights and duties given to each Holder by Section 2.8(a).
(c) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 2.8 is unavailable to or are insufficient to hold harmless an indemnified party under Section 2.7(a) or (b) (other than by reason of exceptions provided in those Sections) in respect of any Claims losses, claims, damages, liabilities, judgments or expenses referred to therein, then each applicable indemnifying party (in the case of the Holders severally and not jointly), in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims damages, liabilities, judgments or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Holder on the other hand from sale of Restricted Securities or (ii) if such allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany and such Holder in connection with the statements or omissions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities, judgments or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of the Company on the one hand and of such indemnifying party and indemnified party Holder 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 such indemnifying party the Company or by such indemnified party, Holder and the parties’ parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. IfThe amount paid to a party as a result of the losses, howeverclaims, damages, liabilities judgments and expenses referred to above shall be deemed to include, subject to the allocation limitations set forth in the first sentence second paragraph of this Section 5.8(c) is not permitted by applicable law2.8(a), then each indemnifying party shall contribute to the amount paid any legal or payable other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with investigating or defending any other relevant equitable considerationsaction or claim. The parties hereto Company and each Holder of Restricted Securities covered by any Registration Statement agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.8(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding sentences paragraph. Notwithstanding the provisions of this Section 5.8(c). The 2.8(c) no Holder (and none of its related indemnified Persons) shall be required to contribute, in the aggregate, any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred dollar amount of proceeds received by such indemnified party in connection with investigating Holder upon the sale of the Restricted Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue statement or defending any such action, proceeding omission or claimalleged omission. No Person person guilty of fraudulent misrepresentation misrepresentations (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. Notwithstanding The indemnity, and contribution provisions contained in this Section 2.8 are in addition to any liability which the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal indemnifying person may otherwise have to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified persons referred to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)above.
Appears in 1 contract
Samples: Registration Rights Agreement (Environmental Remediation Holding Corp)
Indemnification; Contribution. (ai) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees towithout limitation as to time, indemnify and hold harmless, or cause to be indemnified and held harmlessthe full extent permitted by law, each Amneal Group Member and its respective Stockholder, the officers, directors, members, agents and employees and controlling Personsof each of them, if any, in any offering or sale each Person who controls each such Person (within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act), the officers, directors, agents and employees of each such controlling person and any financial or investment adviser (each, an "INDEMNIFIED STOCKHOLDER"), to the fullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, actions or liabilities in respect thereof proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and reasonable expenses (including reasonable fees expenses of counselinvestigation) (collectively, “Claims”"LOSSES"), to which each such indemnified party may become subjectas incurred, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus or any preliminary form of prospectus or final prospectus contained therein, or in any amendment or supplement theretosupplements thereto or in any preliminary prospectus, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and except to the extent, but only to the extent, that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information so furnished in writing by the Company shallto such Stockholder expressly for use in such Registration Statement or prospectus and that such statement or omission was reasonably relied upon by such Stockholder in preparation of such Registration Statement, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal prospectus or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claimsform of prospectus; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that the Company has furnished in writing to such Stockholder within a reasonable period of time prior to the filing of any such Claims Registration Statement or prospectus or amendment or supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made not misleading, information previously furnished to such Stockholder, and such Stockholder failed to include such information therein; provided, further, however, that the Company shall not be liable to any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls such underwriter(s) within the meaning of the Securities Act to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (A) such registration statementPerson failed to send or deliver a copy of the prospectus with or prior to the delivery of written confirmation of the sale by such Person to the Person asserting the claim from which such Losses arise, (B) the prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, and (C) the Company has complied with its obligations under Section 4(e)(iii). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Stockholder.
(ii) In connection with any Registration Statement in which a Stockholder is participating, such Stockholder, or preliminary or final prospectusan authorized officer of such Stockholder, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished shall furnish to the Company in writing such information as the Company reasonably requests for use in connection with any Registration Statement or prospectus and agrees, severally and not jointly, to indemnify, to the full extent permitted by such Amneal Group Member law, the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or on behalf employees of such Amneal Group Member by any Representative of the Amneal Group Membercontrolling persons (each, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shallan "INDEMNIFIED COMPANY", and hereby agrees totogether with the Indemnified Stockholders, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein"INDEMNIFIED PARTIES"), or actions or proceedings in respect thereoffrom and against all Losses, arise as incurred, arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus or any preliminary form of prospectus or final prospectus contained therein, or in any amendment or supplement theretosupplements thereto or in any preliminary prospectus, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, and each Amneal Group Member shallexcept to the extent, and it hereby agrees tobut only to the extent, reimburse that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information so furnished in writing by such Stockholder to the Company expressly for any legal use in such Registration Statement or other out-of-pocket expenses prospectus and that such statement or omission was reasonably incurred and documented relied upon by the Company in connection with investigating preparation of such Registration Statement, prospectus or defending form of prospectus; provided, however, that such Stockholder shall not be liable in any such Claims, in each case only to the extent that such untrue statement Stockholder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such Registration Statement or alleged untrue statement prospectus or omission amendment or alleged omission was supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made in reliance upon and in conformity with the Required Amneal Group Member Information not misleading, information previously furnished to the Company, and the Company failed to include such information therein. In no event shall the liability of any selling Stockholder hereunder be greater in writing by amount than the Amneal Group Member or its Representative expressly for use therein that is the subject after-tax dollar amount of the untrue statement proceeds (net of payment of all expenses) received by such Stockholder upon the sale of the Registrable Securities giving rise to such indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or omissionon behalf of such Indemnified Company.
(iii) Any Indemnified Party shall give prompt notice to the party or parties from which such indemnity is sought (the "INDEMNIFYING PARTIES") of the commencement of any action, suit, proceeding or investigation or written threat thereof (a "PROCEEDING") with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided, however, that the failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to the extent that the Indemnifying Parties have been prejudiced by such failure. The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of each Amneal Group Member hereunder written notice from such Indemnified Party of such Proceeding, to assume, at the Indemnifying Parties' expense, the defense of any such Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided, however, that an Indemnified Party or Indemnified Parties (if more than one such Indemnified Party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be limited at the expense of such Indemnified Party or Indemnified Parties unless: (x) the Indemnifying Parties agree to an amount equal pay such fees and expenses; (y) the Indemnifying Parties fail promptly to assume the defense of such Proceeding or fail to employ counsel reasonably satisfactory to such Indemnified Party or Indemnified Parties; or (z) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or Indemnified Parties and the Indemnifying Parties, and there may be one or more defenses available to such Indemnified Party or Indemnified Parties that are different from or additional to those available to the dollar amount Indemnifying Parties, in which case, if such Indemnified Party or Indemnified Parties notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the net proceeds received Indemnifying Parties, the Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party or Indemnified Parties. Whether or not such defense is assumed by the Indemnifying Parties, such Amneal Group Member from Indemnifying Parties or Indemnified Party or Indemnified Parties will not be subject to any liability for any settlement made without its or their consent (but such consent will not be unreasonably withheld). The Indemnifying Parties shall not consent to entry of any judgment or enter into any settlement which (A) provides for other than monetary damages without the sale consent of Registrable Shares sold the Indemnified Party or Indemnified Parties (which consent shall not be unreasonably withheld or delayed) or (B) does not include as an unconditional term thereof the giving by such Amneal Group Member pursuant the claimant or plaintiff to such registration statement Indemnified Party or prospectusIndemnified Parties of a release, in form and substance satisfactory to the Indemnified Party or Indemnified Parties, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder.
(civ) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a4(g) or Section 5.8(b) are is unavailable to an Indemnified Party or are is insufficient to hold such Indemnified Party harmless an indemnified party for any Losses in respect of any Claims referred to thereinwhich this Section 4(g) would otherwise apply by its terms, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified 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 Claims Losses, in such proportion as is appropriate to reflect the relative fault of and relative benefit to the indemnifying partyIndemnifying Party, on the one hand, and the indemnified partysuch Indemnified Party, on the other hand, in connection with respect to the applicable offering of securitiesactions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party, on the one hand, and indemnified party Indemnified Party, on the other hand, 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The 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 indemnified party in connection with any Proceeding, to the extent such proportion as is appropriate party would have been indemnified for such expenses if the indemnification provided for in Section 4(g)(i) or 4(g)(ii) was available to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c4(g)(iv) were to be determined by pro pro-rata allocation or by any other method of allocation which that does not take into account of the equitable considerations referred to in this Section 4(g)(iv). Notwithstanding the preceding sentences provisions of this Section 5.8(c4(g)(iv). The , an Indemnifying Party that is a selling Stockholder shall not be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred net after-tax proceeds received by such indemnified party in connection with investigating Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reasons of such untrue or defending any such action, proceeding alleged untrue statement or claimomission 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 who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Samples: Stockholders Agreement (Thayer Equity Investors Iii Lp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each holder and each affiliate thereof of Common Stock registered pursuant to this Agreement with the Commission, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in under any offering Blue Sky Law or sale of the Registrable Shares, regulation against any losses, claims, damages, or liabilities, joint or several, to which such holder may become subject under the Act or otherwise, insofar as such losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement, or any preliminary or final prospectus contained thereinprospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and will reimburse each Amneal Group Member shall, such holder and it hereby agrees to, reimburse the Company affiliate for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such holder in connection with investigating or defending any such Claimsaction or claim regardless of the negligence of any such holder or affiliate; 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, registration statement or prospectus, or any such amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by any such holder expressly for use therein.
(b) Each holder of Common Stock registered pursuant to this Agreement will indemnify and hold harmless the Company against any losses, claims, damages or liabilities 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 an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, 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, 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 any preliminary prospectus, registration statement or prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to the Company by such holder expressly for use therein.
(c) Promptly after receipt by an indemnified party under Sections 8(a) or (b) above 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 either 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 that it may otherwise have to any indemnified party. 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 assume the defense thereof by notice in writing to the indemnified party. After notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under either of such subsections for any legal expenses of other counsel or any other expense, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation incurred prior to the assumption by the indemnifying party, unless such expenses have been specifically authorized in writing by the Amneal Group Member indemnifying party, the indemnifying party has failed to assume the defense and employ counsel, or its Representative expressly the named parties to any such action include both the indemnified party and the indemnifying party, as appropriate, and such indemnified party has been advised by counsel that the representation of such indemnified party and the indemnifying party by the same counsel would be inappropriate due to actual or potential differing interests between them, in each of which cases the fees of one counsel (together with appropriate local counsel) for use therein that is the subject indemnified party will be paid by the indemnifying party. In no event shall any indemnifying party be liable in respect of any amounts paid in settlement of any action unless the indemnifying party shall have approved the terms of the untrue statement or omissionsettlement; provided, however, that the liability of each Amneal Group Member hereunder such consent or approval shall not unreasonably be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectuswithheld.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a) 8 is unavailable or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any Claims losses, claims, damages or liabilities (or action in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims 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 holder or holders from this Agreement and from the offering of the shares of Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, 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 indemnifying party, on the one hand, Company and the indemnified partyholders in connection with the statement or omissions that resulted in such losses, on the claims, damages or liabilities (or actions in respect thereof), as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company or by such indemnified party, the holder and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c8(d) were to be determined by pro rata allocation (even if the holders were treated as one entity for such purpose) or by any other method of allocation which that does not take into account the equitable considerations referred to above in the preceding sentences of this Section 5.8(csubsection (e). The Except as provided in Section 8(c), the amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages, or liabilities (or actions in respect thereof) referred to above in this Section 8(d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating investigation or defending any such action, proceeding action or claim. 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. Notwithstanding any provision in this Section 8(d) to the foregoingcontrary, no Amneal Group Member holder shall be liable to contribute for any amount amount, in the aggregate, in excess of the dollar amount equal to the sum of (i) the net proceeds received by to such Amneal Group Member holder from the sale of Registrable Shares sold by such Amneal Group Member pursuant holder's shares (obtained upon exercise of Warrants) giving rise to such registration statement losses, claims, damages or prospectusliabilities.
(e) The obligations of the Company under this Section 8 shall be in addition to any liability that the Company may otherwise have and shall extend, minus (ii) upon the same terms and conditions, to each person, if any, who controls any amounts paid or payable by holder of Warrants within the meaning of the Act. The obligations of the holders of Common Stock under this Section 8 shall be in addition to any liability that such Amneal Group Member pursuant holders may otherwise have and shall extend, upon the same terms and conditions to Section 5.8(b) (except in each person, if any, who controls the case Company within the meaning of fraud or willful misconduct)the Act.
Appears in 1 contract
Samples: Warrant Agreement (Training Devices International Inc)
Indemnification; Contribution. (a) In To the event any Registrable Shares are included in a registration statement contemplated extent permitted by this Agreementlaw, Hybridon shall indemnify each Holder and each person controlling such Holder within the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, in any offering or sale meaning of Section 15 of the Registrable SharesSecurities Act, with respect to which any registration, qualification or compliance has been effected pursuant to this Article II, against any all claims, losses, claims, damages and liabilities (or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings action in respect thereof), arise including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Subsection 7(c) below), arising out of or are based upon an on any untrue statement (or alleged untrue statement statement) of a material fact contained in any registration statement, prospectus or any preliminary or final prospectus contained thereinoffering circular, or any amendment or supplement theretothereof, incident to any such registration, qualification or compliance, or any document incorporated by reference therein, or arise out of or are based upon on any omission (or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyomission) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, and shall reimburse each Holder and each Amneal Group Member shall, person controlling such Holder for legal and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claimsclaim, loss, damage, liability or action as incurred; provided that Hybridon shall not be liable in each any such case only to the extent that any untrue statement or omission or allegation thereof is made in reliance upon and in conformity with information furnished to Hybridon by or on behalf of such Holder and stated to be specifically for use in preparation of such registration statement, prospectus or offering circular; provided, further, that Hybridon shall not be liable in any such case where the claim, loss, damage or liability arises out of or is related to the failure of the Holder to comply with the covenants and agreements contained in this Article II respecting sales of Registrable Securities, and except that the foregoing indemnity agreement is subject to the condition that, insofar as it relates to any such untrue statement or alleged untrue statement or omission or alleged omission made in the preliminary prospectus but eliminated or remedied in the amended prospectus on file with the Commission at the time the registration statement becomes effective or in the amended prospectus filed with the Commission pursuant to Rule 424(b) of the Securities Act or in the prospectus subject to completion and term sheet under Rule 434 of the Securities Act, which together meet the requirements of Section 10(a) of the Securities Act (the "Final Prospectus"), such indemnity agreement shall not inure to the benefit of any such Holder or any such controlling person, if a copy of the Final Prospectus furnished by Hybridon to the Holder for delivery was not furnished to the person or entity asserting the loss, liability, claim or damage at or prior to the time such furnishing is required by the Securities Act and the Final Prospectus would have cured the defect giving rise to such loss, liability, claim or damage.
(b) Each Holder will severally, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being effected, indemnify Hybridon, each of its directors and officers and each other person who controls Hybridon within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Subsection 7(c) below), arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus or offering circular, or any amendment or supplement thereof, incident to any such registration, qualification or compliance, or based on 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, in light of the circumstances in which they were made, and will reimburse Hybridon, such directors and officers and each other person controlling Hybridon for reasonable legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action as incurred, in each case to the extent, but only to the extent, that such untrue statement or omission or allegation thereof is made in reliance upon and in conformity with the Required Amneal Group Member Information written information furnished to Hybridon by or on behalf of the Company in writing by the Amneal Group Member or its Representative expressly Holder and stated to be specifically for use therein in preparation of such registration statement, prospectus or offering circular; provided that is the subject indemnity shall not apply to the extent that such claim, loss, damage or liability results from the fact that a current copy of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal prospectus was not made available to the dollar amount Holder and such current copy of the net prospectus would have cured the defect giving rise to such loss, claim, damage or liability. Notwithstanding the foregoing, in no event shall a Holder be liable for any such claims, losses, damages or liabilities in excess of the proceeds received by such Amneal Group Member from Holder in the sale offering, except in the event of Registrable Shares sold fraud by such Amneal Group Member pursuant to such registration statement or prospectusHolder.
(c) Amneal Group Each party entitled to indemnification under this Section 7 of this Article II (the "Indemnified Party") shall give notice to the party required to provide indemnification (the "Indemnifying Party") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such 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 unreasonably be withheld), and the Company agree Indemnified Party may participate in such defense at such Indemnified Party's expense, and provided further that ifthe failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless such failure is materially prejudicial to the Indemnifying Party in defending such claim or litigation. An Indemnifying Party shall not be liable for any reason, settlement of an action or claim effected without its written consent (which consent will not be unreasonably withheld).
(d) If the indemnification provisions contemplated provided for in this Section 7 of this Article II is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or are insufficient to hold harmless an indemnified party in respect of any Claims expense referred to therein, then each the Indemnifying Party, in lieu of indemnifying party such Indemnified Party thereunder, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party, Indemnifying Party on the one hand, hand and of the indemnified party, Indemnified Party on the other handin connection with the statements or omissions which resulted in such loss, with respect to the applicable offering of securitiesliability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of such indemnifying party the Indemnifying Party and indemnified party of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged the omission to state a material fact relates to information supplied by such indemnifying party the Indemnifying Party or by such indemnified party, the Indemnified Party and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Samples: Exchange Agreement (Hybridon Inc)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, to indemnify and hold harmlessharmless (i) each Holder of Securities covered by the Registration Statement, (ii) each other Person who participates as an underwriter in the offering or cause sale of Securities pursuant to be indemnified the Registration Statement, (iii) each person, if any who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any such Holder or underwriter (any of the persons referred to in this clause (iii) being hereinafter referred to as a "controlling person"), and held harmless, each Amneal Group Member and its (iv) the respective officers, directors, employees partners, employees, representatives and agents of any such Holder or underwriter or any controlling Personsperson (any person referred to in clause (i), if any(ii), in any offering (iii) or sale of the Registrable Shares(iv) may hereinafter be referred to as an "Indemnified Person"), from and against any and all losses, claims, damages damages, liabilities, judgments or liabilities expenses (including, without limitation, reasonable attorneys' fees and disbursements), joint or several (or actions or proceedings, whether commenced or threatened, in respect thereof and expenses (including reasonable fees of counselthereof) (collectively, “"Claims”"), to which each such indemnified party Indemnified Person may become subjectsubject under either Section 15 of the Securities Act or Section 20 of the Exchange Act, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an or caused by any untrue statement or alleged untrue statement of a material fact contained in any registration statement, Registration Statement or any preliminary or final prospectus contained therein, Prospectus (or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for or any legal or other out-of-pocket expenses reasonably incurred and documented violation by the Company in connection with investigating of the Securities Act or defending any state securities law, or any rule or regulation promulgated under the Securities Act or any state securities law, or any other law applicable to the Company relating to any such Claimsregistration or qualification, in each case only to the extent that except insofar as such losses, claims, damages, liabilities, judgments or expenses (including, without limitation, reasonable attorneys' fees and disbursements) of any such Indemnified Person: (x) are caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission was made that is based upon information relating to such Indemnified Person furnished in reliance upon and in conformity with the Required Amneal Group Member Information furnished writing to the Company by or on behalf of any of such Indemnified Person expressly for use therein; (y) with respect to the preliminary Prospectus, result from the fact that such Holder sold Securities or Restricted 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 amended or supplemented, if the Company shall have previously furnished copies thereof to such Holder in accordance with this Agreement and the Prospectus, as amended or supplemented; or (z) are a result of the use by an Indemnified Person of any Prospectus when, upon receipt of a BlackOut Notice or a notice from the Company of the existence of any fact of the kind described in Section 2.3(b)(iv), the Indemnified Person or the related Holder was not permitted to do so. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of any Indemnified Person and shall survive the transfer of such Securities by such Holder. If any action shall be brought or asserted against any Indemnified Person with respect to which indemnity may be sought against the Company, such Indemnified Person shall promptly notify the Company and the Company shall assume the defense thereof. Such Indemnified Person 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 the Indemnified Person unless (i) the employment of such counsel shall have been specifically authorized in writing by the Amneal Group Member Company, (ii) the Company shall have failed to assume the defense and employ counsel, or (iii) the named parties to any such action include both the Indemnified Person and the Company and the Indemnified Person shall have been advised in writing by its Representative expressly for use therein counsel that is there may be one or more legal defenses available to it that are different from or additional to those available to the subject Company (in which case the Company shall not have the right to assume the defense of such action on behalf of the untrue statement or omission; providedIndemnified Person), it being understood, however, that the liability Company shall not, in connection with such action or similar or related actions or proceedings 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 any local counsel) at any time for all the Indemnified Persons, which firm shall be (A) designated by such Indemnified Persons and (B) reasonably satisfactory to the Company. The Company shall not be liable for any settlement of any such action or proceeding effected without the Company's prior written consent, which consent shall not be withheld unreasonably, and the Company agrees to indemnify and hold harmless any Indemnified Person from and against any loss, claim, damage, liability, judgment or expense by reason of any settlement of any action effected with the written consent of the Company. The Company shall not, without the prior written consent of each Amneal Group Member hereunder shall be limited to an amount equal Indemnified Person, settle or compromise or consent to the dollar amount entry of the net proceeds received by judgment on or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified Person is a party thereto), unless such Amneal Group Member settlement, compromise, consent or termination includes an unconditional release of each Indemnified Person from the sale all liability arising out of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement action, claim, litigation or prospectusproceeding.
(cb) Amneal Group Each Holder of Securities covered by any Registration Statement agrees, severally and not jointly, to indemnify and hold harmless the Company agree that ifand its directors, for officers and any reason, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of fraudulent misrepresentation person controlling (within the meaning of Section 11(f) 15 of the Securities Act or Section 20 of the Exchange Act) the Company, its subsidiaries and their respective officers, directors, partners, employees, representatives and agents of each such person, to the same extent as the foregoing indemnity from the Company to each of the Indemnified Persons, but only with respect to actions based on Claims referred to in clauses (x), (y) or (z) of Section 2.7(a), and subject to the limitation that no Holder's liability for such indemnification shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar greater than an amount equal to the sum total original purchase price of (i) the net proceeds received Preferred Stock purchased by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member Holder pursuant to the Stock Purchase Agreement, as set forth on Exhibit A attached hereto. If any action or proceeding shall be brought against the Company, any of its subsidiaries or any of their respective directors or officers or any such registration statement or prospectuscontrolling person in respect of which indemnity may be sought against a Holder of Securities covered by any Registration Statement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Holder shall have the rights and duties given the Company in Section 5.8(b2.7(a) (except in that the case of fraud Holder may but shall not be required to assume the defense thereof), and the Company or willful misconductsuch subsidiary, its directors or officers or such controlling person shall have the rights and duties given to each Holder by Section 2.7(a).
Appears in 1 contract
Samples: Registration Rights Agreement (Pacific Aerospace & Electronics Inc)
Indemnification; Contribution. (a) In the event any case of each offering of Registrable Shares are included in a registration statement contemplated by made pursuant to this AgreementArticle III, the Company shall, and it hereby agrees toto the extent permitted by applicable law, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Selling Holder and its respective officers, directors, employees directors and controlling Personsofficers and each Person, if any, in any offering or sale that controls (within the meaning of Section 15 of the Registrable Shares, Securities Act or Section 20 of the Exchange Act) such Selling Holder from and against any and all losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable and documented fees of counsel) (collectively, “"Claims”), ") to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements thereintherein (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances in under which they were made, ) not misleading, and misleading or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for the Exchange Act or any legal or other out-of-pocket expenses reasonably incurred and documented by them state securities law in connection with investigating or defending any such Claimsoffering; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement contained in or omission or alleged omission made in from such registration statementRegistration Statement, or preliminary or final prospectusProspectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Selling Holder or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, such Selling Holder expressly for use therein; provided, further, that is that the subject foregoing indemnity agreement, with respect to any Prospectus or Free Writing Prospectus, shall not inure to the benefit of any such indemnified party if the Person asserting any Claims against such indemnified party purchased Shareholder Shares and (x) prior to the time of sale of the Shareholder Shares to such Person (the "Time of Sale"), the Company shall have notified such Selling Holder that the Prospectus or Free Writing Prospectus (as it existed prior to the Time of Sale) contains an untrue statement of material fact or omits to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (y) such untrue statement or omissionomission of a material fact was corrected in a Prospectus or Free Writing Prospectus, and such corrected Prospectus or Free Writing Prospectus was provided to such Selling Holder in advance of the Time of Sale, and (z) such corrected preliminary Prospectus or Free Writing Prospectus was not conveyed to such Person at or prior to the Time of Sale. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter to substantially the same extent as provided above with respect to the indemnification of each Selling Holder by the Company.
(b) In the event any case of each offering of Registrable Shares are included in a registration statement contemplated by made pursuant to this AgreementArticle III, each Amneal Group Member Selling Holder shall, and hereby agrees toto the extent permitted by applicable law, indemnify and hold harmless the Company and its officers, directors, employees directors and controlling Personsofficers and each Person, if any, in any offering that controls (within the meaning of Section 15 of the Securities Act or sale Section 20 of its Registrable Shares the Exchange Act) the Company from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, ) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member such Selling Holder or its any Representative of such Selling Holder expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the therein. The liability of each Amneal Group Member hereunder any Selling Holder under the foregoing provisions of this Section 3.8(b) shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member Selling Holder from the sale of Registrable Shareholder Shares sold by such Amneal Group Member Selling Holder pursuant to such registration statement Registration Statement or prospectusProspectus. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter and any other selling securityholder in such offering (and, in the case of each such other selling securityholder, such selling securityholder's officers and directors and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such selling securityholder), to substantially the same extent as provided above with respect to the indemnification of the Company by each Selling Holder.
(c) Amneal Group and the Company agree that ifIf, for any reason, the indemnification provisions contemplated by Section 5.8(a3.8(a) or Section 5.8(b3.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to thereintherein other than by the terms of this Section 3.8, then each indemnifying party Indemnifying Party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party Indemnifying Party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c3.8(c) is not permitted by applicable law, then each indemnifying party Indemnifying Party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c3.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c3.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.93.9) any reasonable and documented legal or other fees or out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member the Shareholder shall not be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member the Shareholder from the sale of Registrable Shareholder Shares sold by such Amneal Group Member the Shareholder pursuant to such registration statement Registration Statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Prospectus.
Appears in 1 contract
Samples: Combination Agreement (CF Industries Holdings, Inc.)
Indemnification; Contribution. (a) In The Company and the event any Registrable Shares are included in a registration statement contemplated by this AgreementIssuer agree to indemnify, the Company shall, and it hereby agrees to, indemnify defend and hold harmless, or cause to be indemnified and held harmlessharmless each Initial Purchaser, each Amneal Group Member Holder, each person (a “Controlling Person”), if any, who controls any Initial Purchaser or Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and its the respective officers, directors, employees partners, employees, representatives and controlling Personsagents of any Initial Purchaser, if anythe Holders or any Controlling Person (each, in any offering or sale of the Registrable Sharesa “Holder Indemnified Party”), from and against any lossesloss, claimsdamage, damages expense, liability, claim or liabilities any actions in respect thereof and expenses (including the reasonable fees cost of counselinvestigation) (collectivelywhich such Holder Indemnified Party may incur or become subject to under the Securities Act, “Claims”), to which each such indemnified party may become subjectthe Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)loss, damage, expense, liability, claim or actions or proceedings in respect thereof, arise action arises out of or are is based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementShelf Registration Statement or Prospectus, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or including any document incorporated by reference therein, or arise in any amendment or supplement thereto or in any preliminary prospectus, or arises out of or are is based upon any omission or alleged omission to state therein a material fact required to be stated therein in any Shelf Registration Statement or in any amendment or supplement thereto or necessary to make the statements thereintherein not misleading, or arises out of or is based upon any omission or alleged omission to state a material fact necessary in order to make the statements made in any Prospectus or in any amendment or supplement thereto or in any preliminary prospectus, in the light of the circumstances in under which they such statements were made, not misleading, and the Company shall, and it hereby agrees to, the Issuer shall reimburse, upon requestas incurred, each such Amneal Group Member the Holder Indemnified Parties for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claimsloss, damage, expense, liability, claim or action in respect thereof; provided, however, that the Company and the Issuer shall not be liable required to provide any Amneal Group Member (or its officers, directors, employee and controlling Persons, if anyindemnification pursuant to this Section 6(a) in any such case to the extent that insofar as any such Claims arise loss, damage, expense, liability, claim or action arises out of or are is based upon an (i) any untrue statement or omission or alleged untrue statement or omission or alleged omission made in such registration statementof a material fact contained in, or preliminary or final prospectusomitted from, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of an Initial Purchaser or a Holder to the Amneal Group Member, Company expressly for use thereinin, any Shelf Registration Statement or any Prospectus or (ii) a disposition, pursuant to a Shelf Registration Statement, of Registrable Securities by a Holder Indemnified Party during a Suspension Period, provided such Holder Indemnified Party received, prior to such disposition, a Suspension Notice with respect to such Suspension Period; provided further, however, that is this indemnity agreement will be in addition to any liability which the subject of Company and the untrue statement or omissionIssuer may otherwise have to such Holder Indemnified Party.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this AgreementEach Holder, each Amneal Group Member shallseverally and not jointly, and hereby agrees toto indemnify, indemnify defend and hold harmless the Company and the Issuer, each of its directors, officers, directorsemployees, employees representatives, agents and controlling Personsany person who controls the Company and the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, if any, in any offering or sale of its Registrable Shares a “Company Indemnified Party”) from and against any Claims loss, damage, expense, liability, claim or any actions in respect thereof (including the reasonable cost of investigation) which such Company Indemnified Party may incur or become subject to which each such indemnified party may become subjectunder the Securities Act, the Exchange Act or otherwise, insofar as such Claims (including any amounts paid in settlement as provided herein)loss, damage, expense, liability, claim or actions or proceedings in respect thereof, arise action arises out of or are is based upon an (A) any untrue statement or alleged untrue statement of a material fact contained in, and in conformity with information (the “Holder Information”) furnished in writing by or on behalf of such Holder to the Company expressly for use in, any registration statementShelf Registration Statement or Prospectus, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise arises out of or are is based upon any omission or alleged omission to state therein a material fact in connection with such Holder Information, which material fact was not contained in such Holder Information, and which material fact was either required to be stated therein in any Shelf Registration Statement or Prospectus or necessary to make the statements therein such Holder Information not misleading, and each Amneal Group Member shall(B) a sale, and it hereby agrees toby such Holder pursuant to a Shelf Registration Statement in or with respect to which such Holder is named as a selling securityholder, reimburse of Registrable Securities during a Suspension Period, provided that the Company shall have theretofore provided such Holder a Suspension Notice in accordance with Section 3(k), or (C) a public sale of Registrable Securities by such Holder without delivery, if required by the Securities Act, of the most recent applicable Prospectus provided to such Holder by the Company pursuant to Section 3(i) or Section 2(d)(i)(C), provided the Company shall have theretofore provided such Holder with copies of such Prospectus in a timely manner so as to permit such delivery; and, subject to the limitation set forth in the immediately preceding clause, each Holder shall reimburse, as incurred, the Company and the Issuer for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company and the Issuer or any such controlling person in connection with investigating or defending any loss, damage, expense, liability, claim or action in respect thereof. This indemnity agreement will be in addition to any liability which such Claims, in each case 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 the Required Amneal Group Member Information furnished Holder may otherwise have to the Company and the Issuer or any of its controlling persons. In no event shall the liability of any selling Holder of Registrable Securities hereunder be greater in amount than the dollar amount of the proceeds received by such Holder upon the sale, pursuant to the Shelf Registration Statement, of the Registrable Securities giving rise to such indemnification obligation.
(c) If any action, suit or proceeding (each, a “Proceeding”) is brought against any person in respect of which indemnity may be sought pursuant to either Section 6(a) or Section 6(b), such person (the “Indemnified Party”) shall promptly notify the person against whom such indemnity may be sought (the “Indemnifying Party”) in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omissioninstitution of such Proceeding and the Indemnifying Party shall assume the defense of such Proceeding; provided, however, that the omission to so notify such Indemnifying Party shall not relieve such Indemnifying Party from any liability of each Amneal Group Member hereunder which it may have to such Indemnified Party or otherwise. The Indemnifying Party shall be limited entitled to an amount equal appoint counsel (including local counsel) of the 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, other than local counsel if not appointed by the Indemnifying Party, retained by the Indemnified Party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the dollar amount Indemnified Party. Notwithstanding the Indemnifying Party’s election to appoint counsel (including local 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 separate counsel (it being understood, however, that such Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any one Proceeding or series of related Proceedings together with reasonably necessary local counsel representing the Indemnified Parties who are parties to such action) 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 actual or potential defendants in, or targets of, 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; (iii) the Indemnifying Party shall not have employed counsel satisfactory to the Indemnified Party to represent the Indemnified Party within sixty (60) days after notice of the net proceeds received institution of such action; or (iv) the Indemnifying Party shall authorize the Indemnified Party to employ separate counsel at the expense of the Indemnifying Party. 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 Amneal Group Member Indemnified Party unless such settlement (i) includes an unconditional release of such Indemnified Party from all liability on any claims that are the sale subject matter of Registrable Shares sold such action, (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by such Amneal Group Member pursuant or on behalf of an Indemnified Party, and (iii) does not include any undertaking or obligation to such registration statement act or prospectusto refrain from acting by the Indemnified Party.
(cd) Amneal Group and the Company agree that if, for any reason, If the indemnification provisions contemplated by provided for in this Section 5.8(a6 is unavailable to an Indemnified Party under Section 6(a) or Section 5.8(b) are unavailable to 6(b), or are insufficient to hold harmless an indemnified party such Indemnified Party harmless, in respect of any Claims losses, damages, expenses, liabilities, claims or actions referred to therein, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims losses, damages, expenses, liabilities, claims or actions (i) in such proportion as is appropriate to reflect the relative fault of benefits received by the indemnifying partyCompany and the Issuer, on the one hand, and by the indemnified partyHolders or the Initial Purchaser, on the other hand, with respect to from the applicable offering of securitiesthe Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and the Issuer, on the one hand, and of the Holders or the Initial Purchaser, on the other hand, in connection with the statements or omissions which resulted in such losses, damages, expenses, liabilities, claims or actions, as well as any other relevant equitable considerations. The relative fault of such indemnifying party the Company and indemnified party the Issuer, on the one hand, and of the Holders or the Initial Purchaser, 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 such indemnifying party the Company and the Issuer or by such indemnified party, the Holders or the Initial Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, damages, expenses, liabilities, claims and actions referred to above shall be deemed to include any reasonable legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faultsconnection with investigating or defending any Proceeding.
(e) The Company, but also the relative benefits of Issuer, the indemnifying party Holders and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Initial Purchaser agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 6 were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in Section 6(d) above. Notwithstanding the preceding sentences provisions of this Section 5.8(c). The 6, no Holder shall be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred amount by which the total price at which the Registrable Securities giving rise to above shall be deemed to include (subject such contribution obligation and sold by such Holder were offered to the limitations set forth in Section 5.9) public exceeds the amount of any legal damages which it has otherwise been required to pay by reason of such untrue or other fees alleged untrue statement or expenses reasonably incurred by such indemnified party in connection with investigating omission or defending any such action, proceeding or claimalleged 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Holders’ respective obligations to contribute any amount pursuant to this Section 6 are several in excess of the dollar amount equal proportion to the sum respective amount of Registrable Securities they have sold pursuant to a Shelf Registration Statement, and not joint. The remedies provided for in this Section 6 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.
(f) The indemnity and contribution provisions contained in this Section 6 shall remain operative and in full force and effect regardless of (i) the net proceeds received by such Amneal Group Member from the sale any termination of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusthis Agreement, minus (ii) any amounts paid investigation made by or payable on behalf of any Holder or the Initial Purchaser or any person controlling any Holder or Initial Purchaser, or the Company, or the Issuer, or the Company’s or the Issuer’s officers or directors or any person controlling the Company or the Issuer and (iii) the sale of any Registrable Security by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)any Holder.
Appears in 1 contract
Samples: Registration Rights Agreement (Sl Green Realty Corp)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees shall cause each of its Subsidiaries to, indemnify jointly and severally, without limitation as to time, indemnify, defend and hold harmless, or cause to be indemnified and held harmlessthe full extent permitted by law, each Amneal Group Member and its respective holder of Registrable Securities, the partners, members, officers, directors, agents and employees and controlling Personsof each of them, if any, in any offering or sale each Person who controls each such holder (within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act), the partners, members, officers, directors, agents and employees of each such controlling person and any financial or investment adviser (each, a “Covered Person”), to the fullest extent lawful, from and against any and all losses, claims, damages damages, liabilities, actions or liabilities in respect thereof proceedings (whether commenced or threatened), costs (including, without limitation, costs of preparation and attorneys’ fees) and expenses (including reasonable fees expenses of counselinvestigation) (collectively, “ClaimsLosses”), to which each such indemnified party may become subjectas incurred, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise arising out of or are based upon an (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus or any preliminary form of prospectus or final prospectus contained therein, or in any amendment or supplement theretosupplements thereto or in any preliminary prospectus, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, therein not misleading, and except to the extent that the same arise out of or are based upon information furnished in writing to the Company shallby such Covered Person or the related holder of Registrable Securities expressly for use therein or (ii) any violation by the Company of any federal, state or common law rule or regulation applicable to the Company and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal relating to action required of or other out-of-pocket expenses reasonably incurred and documented inaction by them the Company in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall not be liable to any Amneal Group Member (Person who participates as an underwriter in the offering or its officers, directors, employee and controlling Personssale of Registrable Securities or any other Person, if any) in any , who controls such case underwriters within the meaning of the Securities Act to the extent that any such Claims Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (A) such registration statement, Person failed to send or preliminary deliver a copy of the prospectus with or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished prior to the Company in writing delivery of written confirmation of the sale by such Amneal Group Member Person to the Person asserting the claim from which such Losses arise, (B) the prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission and (C) the Company has complied with its obligations under Section 5D(c). Each indemnity and reimbursement of costs and expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Amneal Group Member by Covered Person. If the Public Offering pursuant to any Representative Registration Statement provided for under this Section 5 is made through underwriters, (x) no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Amneal Group MemberCompany to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence and (y) the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, expressly for use thereintheir officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act to the same extent as provided in this Section 5F with respect to the indemnification of the holders of Registrable Securities; provided, that is the subject Company shall not be required to indemnify any such underwriter, or any officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or omissionalleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus.
(b) In connection with any Registration Statement in which a holder of Registrable Securities is participating, such holder, or an authorized officer of such holder, shall furnish to the event Company in writing such information regarding such holder as the Company reasonably requests for use in connection with any Registrable Shares are included in a registration statement contemplated by this AgreementRegistration Statement or prospectus and agrees, each Amneal Group Member shallseverally and not jointly, and hereby agrees toto indemnify, indemnify defend and hold harmless to the full extent permitted by law, the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and its officersSection 20 of the Exchange Act), and the partners, members, directors, officers, agents or employees of such controlling persons, from and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise all Losses arising out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, prospectus, or any preliminary or final prospectus contained thereinform of prospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise arising out of or are based upon any omission or alleged omission to state therein of a material fact required to be stated therein or necessary to make the statements therein not misleading, and each Amneal Group Member shallto the extent, and it hereby agrees tobut only to the extent, reimburse that such untrue or alleged untrue statement is contained in, or such omission or alleged omission is required to be contained in, any information regarding such holder so furnished in writing by such holder to the Company expressly for any legal use in such Registration Statement or other out-of-pocket expenses reasonably incurred prospectus and documented that such statement or omission was relied upon by the Company in connection with investigating preparation of such Registration Statement, prospectus or defending form of prospectus; provided, that such holder of Registrable Securities shall not be liable in any such Claims, in each case only to the extent that the holder has furnished in writing to the Company within a reasonable period of time prior to the filing of any such untrue statement Registration Statement or alleged untrue statement prospectus or omission amendment or alleged omission was supplement thereto information expressly for use in such Registration Statement or prospectus or any amendment or supplement thereto which corrected or made in reliance upon and in conformity with the Required Amneal Group Member Information not misleading, information previously furnished to the Company, and the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that failed to include such information therein. In no event shall the liability of each Amneal Group Member any holder of Registrable Securities hereunder shall be limited to an greater in amount equal to than the dollar amount of the proceeds (net proceeds of payment of all taxes and expenses incurred in connection therewith) received by such Amneal Group Member from holder upon the sale of the Registrable Shares sold by such Amneal Group Member pursuant Securities giving rise to such registration statement indemnification obligation. Such indemnity shall remain in full force and effect regardless of any investigation made by or prospectuson behalf of such indemnified party.
(c) Amneal Group If any Person shall be entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall give prompt notice to the party or parties from which such indemnity is sought (the “Indemnifying Parties”) of the commencement of any action, suit, proceeding or investigation or written threat thereof (a “Proceeding”) with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; provided, that the failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to the extent that the Indemnifying Parties have been prejudiced by such failure. The Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such Proceeding, to assume, at the Indemnifying Parties’ expense, the defense of any such Proceeding, with counsel reasonably satisfactory to such Indemnified Party; provided, that an Indemnified Party (if more than one such Indemnified Party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless: (i) the Indemnifying Parties agree to pay such fees and expenses; (ii) the Indemnifying Parties fail promptly to assume the defense of such Proceeding or fail to employ counsel reasonably satisfactory to such Indemnified Party or parties; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party or parties and the Company agree Indemnifying Parties or an Affiliate of the Indemnifying Parties or such Indemnified Parties, and there may be one or more defenses available to such Indemnified Party that ifare different from or additional to those available to the Indemnifying Parties, in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the Indemnifying Parties; the Indemnifying Parties shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Parties, it being understood, however, that, unless there exists a conflict among Indemnified Parties, the Indemnifying Parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party. Whether or not such defense is assumed by the Indemnifying Parties, such Indemnifying Parties or Indemnified Party shall not be subject to any liability for any reasonsettlement made without its or their consent (but such consent shall not be unreasonably withheld). The Indemnifying Parties shall not consent to entry of any judgment or enter into any settlement which (x) provides for other than monetary damages without the consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed) or (y) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance satisfactory to the Indemnified Party, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder.
(d) If the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 5F is unavailable to an Indemnified Party or are is insufficient to hold such Indemnified Party harmless an indemnified party for any Losses in respect of any Claims referred to thereinwhich this Section 5F would otherwise apply by its terms, then each applicable Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall have an obligation to contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party, on the one hand, and the indemnified partysuch Indemnified Party, on the other hand, in connection with respect to the applicable offering of securitiesactions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party, on the one hand, and indemnified party Indemnified Party, on the other hand, 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The 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 indemnified party in connection with any Proceeding, to the extent such proportion as is appropriate party would have been indemnified for such expenses if the indemnification provided for in Section 5F(a) or 5F(b) was available to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5F(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account of the equitable considerations referred to in this Section 5F(d). Notwithstanding the preceding sentences provisions of this Section 5.8(c5F(d). The , an Indemnifying Party that is a holder of Registrable Securities shall not be required to contribute any amount paid or payable by an indemnified party as a result in excess of the Claims referred to above shall be deemed to include (subject to amount by which the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred net proceeds received by such indemnified party in connection with investigating Indemnifying Party exceeds the amount of any damages that such Indemnifying Party has otherwise been required to pay by reasons of such untrue or defending any such action, proceeding alleged untrue statement or claimomission 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 who was not guilty of such fraudulent misrepresentation. Notwithstanding .
(e) Each Securityholder and the foregoing, no Amneal Group Member Company agree that such Person shall be liable not permit any amendment to contribute any amount in excess the Certificate of Incorporation or the by-laws of the dollar amount equal to Company that would reduce the sum scope of (i) the net proceeds received by such Amneal Group Member from the sale indemnification or limitation of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)liability provisions contained therein.
Appears in 1 contract
Samples: Securityholders Agreement (Universal Hospital Services Inc)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementArticle V, the Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each underwriter and each Mezzanine Investor who offers or sells any such Registrable Interests in connection with such registration statement (including their respective partners (including partners of partners and stockholders and members of any such partners), or cause to be indemnified and held harmlessdirectors, each Amneal Group Member and its respective officers, directorsmanagers, members, employees and controlling Personsagents of any of them (a "SELLING HOLDER"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a "CONTROLLING PERSON"), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, reasonable legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), as the same are incurred to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from and is based upon on an untrue statement or omission or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon on and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Selling Holder or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Controlling Person expressly for use therein, that in such registration statement or is due to the subject failure of such Selling Holder or Controlling Person to deliver a copy of the prospectus or any supplements thereto a reasonable period of time after the Company has furnished such Selling Holder or Controlling Person with a sufficient number of copies of the same or by the delivery of prospectuses by such Selling Holder or Controlling Person after the Company notified such Selling Holder or Controlling Person in writing to discontinue delivery of prospectuses. With respect (i) to such untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member such Selling Holder or its Representative Controlling Person expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to in such registration statement or prospectus(ii) to the failure of any Selling Holder of Controlling Person to refrain from delivering any prospectus or supplements thereto a reasonable period of time following notice from the Company to discontinue delivery such prospectus or supplements, such Selling Holder will indemnify and hold harmless each underwriter, the Company (including its directors, officers, employees, agents and Controlling Persons), and each other Selling Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees, agents and Controlling Person of any of them), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, shall the liability of a Selling Holder or Controlling Person for indemnification under this Section 5.6(a) in its capacity as such exceed the net proceeds (before deducting expenses) received by such Selling Holder from its sale of Registrable Interests under such registration statement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 5.6(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party Indemnified Party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each Indemnifying Party under this Section 5.6, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters, if any, from the offering of the Registrable Interests or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters, if any, in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters, if any, shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, if any, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Interests. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters, if any, 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Selling Holders agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c5.6(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 5.6(b) in excess of the Claims referred to above shall be deemed to include net proceeds (subject to the limitations set forth in Section 5.9before deducting expenses) any legal or other fees or expenses reasonably incurred received by such indemnified party in connection with investigating or defending any Selling Holder from its sale of Registrable Interests under such action, proceeding or claimregistration statement. No Person person found 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 found guilty of such fraudulent misrepresentation.
(c) As promptly as is reasonably practicable after receipt by a party seeking indemnification pursuant to this Section 5.6 (an "INDEMNIFIED PARTY") of written notice of any investigation, claim, proceeding or other action in respect of which indemnification is being sought (each, a "CLAIM"), the Indemnified Party promptly shall notify the party against whom indemnification pursuant to this Section 5.6 is being sought (the "INDEMNIFYING PARTY") of the commencement thereof; but the omission to so notify the Indemnifying Party shall not relieve it from any liability hereunder, except to the extent that the Indemnifying Party is materially prejudiced by reason of such failure. In connection with any Claim, the Indemnifying Party shall be entitled to assume the defense thereof. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess assumption of the dollar amount equal defense of any Claim by the Indemnifying Party, the Indemnified Party shall have the right to employ separate legal counsel and to participate in the defense of such Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket costs and expenses of such separate legal counsel to the sum of Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed to pay such fees, costs and expenses, (y) the Indemnified Party shall reasonably have concluded that representation by the same legal counsel would not be appropriate due to (i) actual or potentially differing interests between such parties in the net proceeds received by conduct of the defense of such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement Claim, or prospectus, minus (ii) any amounts paid legal defenses that may be available to the Indemnified Party that are in addition to or payable by disparate from those available to the Indemnifying Party, or (z) the Indemnifying Party shall have failed to employ legal counsel reasonably satisfactory to the Indemnified Party and take action to defend such Amneal Group Member pursuant to Section 5.8(b) (except claim within 30 days after notice of the commencement of such Claim or the Indemnifying Party shall, in the case reasonable judgment of fraud the Indemnified Party, have ceased to conduct a diligent defense of such claim. If the Indemnified Party employs separate legal counsel in circumstances other than as described in clauses (x), (y) or willful misconduct(z) above, the fees, costs and expenses of such legal counsel shall be borne exclusively by the Indemnified Party. Except as provided above, the Indemnifying Party shall not, in connection with any Claim in the same jurisdiction, be liable for the fees and expenses of more than one firm of counsel for the Indemnified Party (together with appropriate local counsel). No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle or compromise any Claim or consent to the entry of any judgment with respect thereto, unless such settlement, compromise or consent (i) includes an unconditional release of each Indemnifying Party from all liabilities with respect to such Claim or judgment 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) The indemnification and contribution provided for in this Section 5.6 will remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Parties or any officer, director, employee, agent or Controlling Person of the Indemnified Parties.
Appears in 1 contract
Indemnification; Contribution. (aA) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Initial Purchaser, each Amneal Group Member Holder, each underwriter who participates in an offering of the Registrable Securities, and its respective officers, directors, employees and controlling Personseach Person, if any, in who controls any offering or sale of such parties within the meaning of Section 15 of the Registrable Shares, Securities Act (each an "Indemnified Party") from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities Act or any other statute or common law and shall reimburse each such Indemnified Party for any legal or other expenses (including, to the extent hereinafter provided, reasonable counsel fees) as and when incurred by them in connection with investigating any such losses, claims, damages or liabilities or in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subjectconnection with defending any actions, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages, liabilities, expenses or actions or proceedings in respect thereof, arise out of or are based upon an any untrue statement or alleged untrue statement of a material fact contained in any registration Prospectus, or in a Shelf Registration Statement, or 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; provided, however, that the indemnity agreement contained in this Section 4 as to any Indemnified Party shall not apply to any such losses, claims, damages, liabilities, expenses or actions arising out of, or based upon, any such untrue statement or alleged untrue statement, or any preliminary such omission or final prospectus contained thereinalleged omission, if such statement or omission was made in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Party expressly for use in connection with the preparation of a Shelf Registration Statement or the related Prospectus or any amendment or supplement theretoto either thereof, or arising out of, or based upon, statements in or omissions from the part of the Shelf Registration Statement which shall constitute the Statement of Eligibility and Qualification of the Trustee under the TIA; and provided further, that the indemnity agreement contained in this Section 4 with respect to the related Prospectus or any document amendment or supplement thereto (if the Company shall have furnished any amendment or supplement thereto) shall not inure to the benefit of any Indemnified Party on account of any such losses, claims, damages, liabilities, expenses or actions arising from the sale of Registrable Securities to any person if a copy of the related Prospectus (exclusive of any documents incorporated by reference thereinreference) shall not have been given or sent to such person by or on behalf of such Indemnified Party with or prior to the written confirmation of the sale involved unless, with respect to the delivery of any amendment or supplement to the Prospectus, the alleged omission or alleged untrue statement was not corrected in such amendment or supplement at the time of such written confirmation. The indemnity agreement of the Company contained in this Section 4 shall remain operative and in full force and effect regardless of any termination of this Agreement or of any investigation made by or on behalf of any Indemnified Party, and shall survive the registration of the Registrable Securities.
(B) Each Holder shall indemnify, defend and hold harmless the Company and any underwriter and other selling Holder, and their respective managers, officers and directors, and each person who controls the Company or any underwriter or any other selling Holder within the meaning of Section 15 of the Securities Act, from and against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities Act or any other statute or common law and shall reimburse each of them for any legal or other expenses (including, to the extent hereinafter provided, reasonable counsel fees) as and when incurred by them in connection with investigating any such losses, claims, damages or liabilities or in connection with defending any actions, insofar as such losses, claims, damages, liabilities, expenses or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in a Shelf Registration Statement or the related Prospectus, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in under which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each if such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information information furnished in writing to the Company in writing by the Amneal Group Member or its Representative on behalf of such Holder, expressly for use therein that is in connection with the subject preparation of a Shelf Registration Statement or the related Prospectus or any amendment or supplement to either thereof. The indemnity agreement of the untrue statement respective Holders contained in this Section 4 shall remain operative and in full force and effect regardless of any termination of this Agreement or omissionof any investigation made by or on behalf of the Company, any underwriter, or any other selling Holder, or their respective managers, directors or officers, or any such controlling person, and shall survive the registration of the Registrable Securities; provided, however, that the liability of each Amneal Group Member hereunder that, no such Holder shall be limited to an amount equal to liable for any claims hereunder in excess of the dollar amount of the net proceeds received by such Amneal Group Member Holder from the sale of Registrable Shares sold by such Amneal Group Member Securities pursuant to such registration statement or prospectusa Shelf Registration Statement.
(cC) Amneal Group The Company and the Company agree that ifHolders each shall, for upon the receipt of notice of the commencement of any reasonaction against it or any person controlling it as aforesaid, the indemnification provisions contemplated by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of which indemnity may be sought on account of any Claims referred indemnity agreement contained herein, promptly give written notice of the commencement thereof to thereinthe party or parties against whom indemnity shall be sought hereunder, then each but the failure to notify such indemnifying party or parties of any such action shall contribute not relieve such indemnifying party or parties from any liability hereunder to the amount paid extent such indemnifying party or payable by such indemnified party parties is/are not materially prejudiced as a result of such Claims failure to notify and in any event shall not relieve such indemnifying party or parties from any liability that it or they may have to the indemnified party otherwise than on account of such indemnity agreement. In case such notice of any such action shall be so given, such indemnifying party shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume (in conjunction with any other indemnifying parties) the defense of such action, in which event such defense shall be conducted by counsel chosen by such indemnifying party or parties and satisfactory to the indemnified party or parties who shall be defendant or defendants in such proportion as is appropriate to reflect action, and such defendant or defendants shall bear the relative fault fees and expenses of any additional counsel retained by them; but if the indemnifying partyparty shall elect not to assume the defense of such action, on such indemnifying party will reimburse such indemnified party or parties for the one handreasonable fees and expenses of any counsel retained by them; provided, however, if the defendants in any such action (including impleaded parties) include both the indemnified party and the indemnifying party and counsel for the indemnifying party shall have reasonably concluded that there may be a conflict of interest involved in the representation by a single counsel of both the indemnifying party and the indemnified party, the indemnified party or parties shall have the right to select separate counsel, satisfactory to the indemnifying party, whose reasonable fees and expenses shall be paid by such indemnifying party, to participate in the defense of such action on behalf of such indemnified party or parties (it being understood, however, that the indemnifying party shall not be liable for the fees and expenses of more than one separate counsel (in addition to local counsel) representing the indemnified parties who are parties to such action). The Company and the Holders each agree that without the other party's prior written consent, which consent shall not be unreasonably withheld, it will not settle, compromise or consent to the entry of any judgment in any claim in respect of which indemnification may be sought under the indemnification provisions of this Agreement, unless such settlement, compromise or consent (i) includes an unconditional release of such other party from all liability arising out of such claim 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 such other party.
(D) If the indemnification provided for in subparagraph (a) or (b) above shall be unenforceable under applicable law by an indemnified party, each indemnifying party agrees to contribute to such indemnified party with respect to any and all losses, claims, damages, liabilities and expenses for which each such indemnification provided for in subparagraph (a) or (b) above shall be unenforceable, in such proportion as shall be appropriate to reflect (i) the relative benefits received by each indemnifying party on the one hand and the indemnified party on the other hand, with respect to hand from the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined the Registrable Securities pursuant to this Agreement, (ii) if an allocation solely on the basis provided by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(cclause (i) is not permitted by applicable lawlaw or is inequitable or against public policy, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such the relative faults, benefits referred to in clause (i) above but also the relative benefits fault of the each indemnifying party on the one hand and the indemnified partyparty on the other hand in connection with the statements or omissions which have resulted in such losses, as well as claims, damages, liabilities and expenses and (iii) any other relevant equitable considerations. The parties hereto agree ; provided, however, that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an no indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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 indemnifying party not guilty of such fraudulent misrepresentation. 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 such indemnifying party or the indemnified party and each such party's relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and each of the Holders agree that it would not be just and equitable if contributions pursuant to this paragraph (d) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not taken account of the equitable consideration referred to above. Notwithstanding the foregoingprovisions of this Section 4, no Amneal Group Member Holder shall be liable required to contribute any amount in excess of the dollar amount equal to the sum excess of (i) the net proceeds received by such Amneal Group Member Holder from the sale of Registrable Shares sold Securities by such Amneal Group Member pursuant it to such registration statement or prospectusEligible Holders, minus over (ii) the amount of any amounts paid damages which such Holder has otherwise been required to pay by reason of any such untrue or payable by such Amneal Group Member alleged untrue statement or omission or alleged omission. The obligations of each Holder to contribute pursuant to this Section 5.8(b) (except in 4 are several and not joint and shall not exceed the case same proportion of fraud or willful misconduct)all contributions of Holders required hereunder as such Holder's Registrable Securities sold pursuant to the Shelf Registration Statement is of the total amount of Registrable Securities sold pursuant to the Shelf Registration Statement.
Appears in 1 contract
Indemnification; Contribution. (a) In the event connection with any registration of Registrable Shares are included in a registration statement contemplated by this AgreementSecurities or Takedown Offering pursuant to Section 2.01 or Section 2.02, the Company shallshall indemnify, and it hereby agrees to, indemnify defend and hold harmlessharmless Holder, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officersAffiliates, directors, officers and shareholders, employees and controlling Persons, if any, in any offering or sale each Person who controls Holder within the meaning of either Section 15 of the Registrable Shares, against any losses, claims, damages Securities Act or liabilities in respect thereof and expenses (including reasonable fees Section 20 of counsel) the Exchange Act (collectively, the “ClaimsIndemnified Persons”), to which each such indemnified party may become subject, insofar as such Claims (including ) from and against any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an and all Losses caused by any untrue statement or alleged untrue statement of a material fact contained or incorporated by reference in any registration statement, part of any Registration Statement or any preliminary or final prospectus contained thereinProspectus, or including any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them used in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statementRegistrable Securities, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of a Prospectus, in the light of the circumstances under which they were made) not misleading, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information furnished to the Company in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omission; provided, however, that the liability Company shall not be required to indemnify any Indemnified Person for any such Loss arising out of each Amneal Group Member hereunder shall be limited or with respect to an amount equal sales pursuant to the dollar amount Registration Statement or Prospectus prior to the eighteen (18) month anniversary of the net proceeds received date on which the Merger is consummated, based upon information in the Registration Statement or Prospectus that was represented by Holder, Omaha Financial Holdings, Inc. or Mutual of Omaha Bank as true and correct in the Merger Agreement, and with respect to which the Company would not have been reasonably expected to discover the failure of such information to be true and correct prior to the date of such sales; provided, further, that the Company shall not be required to indemnify any Indemnified Person for any such Loss arising out of or based upon any such untrue or alleged untrue statement, or omission or alleged omission, made or incorporated by reference in any such Registration Statement or Prospectus or any amendment or supplement thereto or any document incorporated by reference therein in reliance upon, and in conformity with, written information prepared and furnished to the Company by such Amneal Group Member Indemnified Person expressly for use therein.
(b) In connection with any registration of Registrable Securities or Takedown Offering pursuant to Section 2.01 or Section 2.02, Holder shall indemnify, defend and hold harmless the Company, its directors, its officers, its 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) to the same extent as the foregoing indemnity from the sale Company to Holder, but only with respect to information arising out of Registrable Shares sold or based upon information furnished in writing by such Amneal Group Member pursuant to such registration statement Holder or prospectuson Holder’s behalf (in each case, in its capacity as Holder), in either case for use in any Registration Statement or any Prospectus, including any amendment or supplement thereto.
(c) Amneal Group and the Company agree that ifIn case any claim, for action or proceeding (including any reason, the indemnification provisions contemplated by governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 5.8(a2.09(a) or Section 5.8(b2.09(b), such Person (the “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall be entitled to participate therein and, to the extent it shall wish, to assume the defense thereof with counsel reasonably satisfactory to the Indemnified Party and shall pay the fees and disbursements of such counsel related to such proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its obligations pursuant to this Agreement except to the extent that it shall be determined by a court of competent jurisdiction that such Indemnifying Party has been prejudiced by such failure or delay. In any such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in any such defense and to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party have mutually agreed to the retention of such counsel, (ii) the Indemnifying Party fails to assume the defense of the claim, action or proceeding within 15 Business Days following receipt of notice from the Indemnified Party or (iii) the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party shall not, in connection with any claim, action or proceeding or related claims, actions or proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties and that all such reasonable fees and expenses shall be reimbursed as they are incurred. In the case of the retention of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any Loss by reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (i) an unconditional release of such Indemnified Party from all liability in connection with such proceeding, (ii) no finding or admission of any violation of Law or any violation of the rights of any Person by the Indemnified Party or any of its Affiliates can be made as the result of such action and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in full by the Indemnifying Party.
(d) If the indemnification provided for in this Section 2.09 from the Indemnifying Party is unavailable to an Indemnified Party hereunder or are is insufficient to hold harmless an indemnified party in respect of any Claims Losses referred to thereinin this Section 2.09, then each the Indemnifying Party, in lieu of indemnifying party such Indemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Claims Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying partyIndemnifying Party and Indemnified Party in connection with the actions that resulted in such Losses, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of the Company, on the one hand, and the indemnified partyHolder, on the other, in connection with the statements or omissions that resulted in such Losses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party Indemnified Party 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 taken by, or relates to information supplied by by, such indemnifying party Indemnifying Party or by such indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 2.09(c), any reasonable legal or other out-of-pocket fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(e) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c2.09(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.09(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of “fraudulent misrepresentation 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. Notwithstanding the foregoing, In no Amneal Group Member event shall Holder be liable obligated to contribute any amount provide indemnification or contribution in excess of the dollar amount equal to the sum of (i) the net aggregate proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member Securities pursuant to such registration statement the applicable Registration Statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Prospectus.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member Participating Investor and its respective partners, members, officers, directors, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of the Registrable Common Shares, against any losses, claims, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages or liabilities, or actions or proceedings in respect thereof, including any amounts paid in settlement as provided herein (collectively, “Claims”), arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, reimburse each Participating Investor or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them it in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member Participating Investor or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, underwriter expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member Each Participating Investor shall, and hereby agrees to, to (1) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Common Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Group Member or its Representative such Participating Investor expressly for use therein that is therein, and (2) reimburse the subject of Company for any legal or other out-of-pocket expenses reasonably incurred by the untrue statement Company in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 4.7(a) or Section 4.7(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 4.7(a) or Section 4.7(b) may be requested, such indemnified party shall notify the indemnifying party in writing of the commencement of such action or proceeding, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 4.7(a) or Section 4.7(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation and does not subject the indemnified party to any material injunctive relief or other material equitable remedy.
(d) Each Participating Investor and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 4.7(a) or Section 5.8(b4.7(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to thereintherein (other than as a result of the provisos thereto), then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of and benefits derived by the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.94.7(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, will indemnify and hold harmlessharmless each of the Participating Purchasers and their respective affiliates and all of their respective directors, or cause to be indemnified and held harmless, each Amneal Group Member and its respective officers, directorsmembers, employees partners, employees, fiduciaries, agents and controlling Persons, if any, in any offering or sale each other person who controls such persons within the meaning of the Registrable SharesSecurities Act or the Exchange Act (collectively, the "Indemnified Parties") against any losses, claims, damages or liabilities in respect thereof and expenses liabilities, joint or several (including without limitation reasonable attorneys' fees and any and all expenses whatsoever incurred in investigating, preparing, compromising or defending against any Third Party Claim, and any and all amounts paid in settlement of counsel) (collectively, “Claims”any Third Party Claim), to which each such indemnified party Indemnified Party may become subjectsubject as a result of a Third Party Claim against such Indemnified Party, insofar under the Securities Act or otherwise, including without limitation as such Claims (including any amounts paid in settlement effected with the consent of the Company losses, claims, damages or liabilities as provided herein), or actions or proceedings in respect thereof, may arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in any registration statementPreliminary Prospectus, the Registration Statement or any preliminary or final prospectus contained thereinthe Prospectus, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make (ii) the statements therein, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, will reimburse the Company Indemnified Party for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company such Indemnified Party in connection with investigating or defending any such ClaimsThird Party Claim 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 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 or the Prospectus or any such amendment or supplement in reliance upon and in conformity with written information furnished to the Company by Franklin Mutual as such Participating Purchaser expressly for use therein (including without limitation the matters identified in Section 3(c)(xi) ("Participating Purchaser Information").
(b) Each Participating Purchaser will indemnify and hold harmless the Company, its affiliates, and their respective directors, officers, members, partners, employees, fiduciaries, agents and each other person who controls such persons within the meaning of the Securities Act or the Exchange Act against any losses, claims, damages or liabilities (including without limitation reasonable attorneys' fees and any and all expenses), to which the Company may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, the Registration Statement or the Prospectus, or any amendment or supplement thereto, 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, 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 any Preliminary Prospectus, the Registration Statement or the Prospectus or any such amendment or supplement in reliance upon and in conformity with the Required Amneal Group Member Participating Purchaser Information furnished to by Franklin Mutual or such Participating Purchaser and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in writing by the Amneal Group Member investigating or its Representative expressly for use therein that is the subject of the untrue statement defending any such action or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by claim as such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusexpenses are incurred.
(c) Amneal Group Promptly after receipt by an indemnified party under paragraph (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 paragraph, notify the indemnifying party in writing of the commencement thereof; provided, that the omission so to notify the indemnifying party shall not relieve it from any liability that it may have under paragraph (a) or (b) except to the extent 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 person shall not relieve it from any liability which it may have to any indemnified party otherwise than under such paragraph. In case any such action shall be brought against any indemnified party and it shall notify the Company agree indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that ifit shall wish, jointly with any other indemnifying 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 paragraph for any reasonlegal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim 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 the indemnification provisions contemplated by provided for in this Section 5.8(a) or Section 5.8(b) are 6 is unavailable to or are insufficient to hold harmless an indemnified party under paragraph (a) or (b) above in respect of any Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims 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 Participating Purchasers on the other from the offering of the Rights and Subscription Shares. 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 paragraph (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 indemnifying party, Company on the one hand, hand and the indemnified party, Participating Purchasers on the other handin connection with the statements or omissions which resulted in such losses, with 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 Participating Purchasers on the other shall be deemed to be in the same proportion as the total net proceeds from the Rights Offering (before deducting expenses) received by the Company bear to the applicable offering of securitiesCommitment Fee received by the Participating Purchasers. The relative fault of such indemnifying party and indemnified party 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 such indemnifying party the Company on the one hand or by such indemnified party, the Participating Purchasers on the other and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party The Company and the indemnified party, as well as any other relevant equitable considerations. The parties hereto Participating Purchasers agree that it would not be just and equitable if contributions pursuant to this Section 5.8(cparagraph (d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account of the equitable considerations referred to above in the preceding sentences of this Section 5.8(cparagraph (d). The amount paid or payable by an indemnified party as a result of the Claims losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this paragraph (d) shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding action or claim. Notwithstanding the provisions of this paragraph (d), the Participating Purchasers shall not be required to contribute any amount in excess of the amount by which the total price at which the Commitment Securities purchased by it exceed the amount of any damages which such Participating Purchasers has otherwise been required to pay by reason of such untrue or alleged 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. Notwithstanding .
(e) The obligations of the foregoing, no Amneal Group Member Company under this Section 6 shall be liable in addition to contribute any amount in excess liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls such Participating Purchaser within the meaning of the dollar amount equal Securities Act or Exchange Act; and the obligations of each Participating Purchaser under this Section 6 shall be in addition to any liability which such Participating Purchaser may otherwise have and shall extend, upon the sum same terms and conditions, to each officer and director of (i) the net proceeds received by such Amneal Group Member from Company and to each person, if any, who controls the sale Company within the meaning of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement the Securities Act or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)Exchange Act.
Appears in 1 contract
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the Company LSC Parent shall, and it hereby agrees to, (i) indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal Group Member and its respective officers, directors, employees and controlling Persons, if any, Registration Equityholder in any offering or sale of Registrable Securities, and such Registration Equityholder’s partners, members, managers and Affiliates and each Person, if any, who controls any of the Registrable Sharesforegoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any and all losses, claims, damages damages, or liabilities liabilities, or any actions or proceedings (whether commenced or threatened) in respect thereof and costs and expenses (including reasonable fees of counsel) (collectively, “Claims”), ) to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected reached in accordance with the requirements for consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statementRegistration Statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims Prospectus (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus, including any Free Writing Prospectus, incorporated into such Registration Statement, in the light of the circumstances in which they were made), not misleading, ; and (ii) reimburse upon written demand each Amneal Group Member shall, and it hereby agrees to, reimburse the Company indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred and documented by the Company such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims; provided, however, that LSC Parent shall not be liable to an indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance upon and in conformity with information furnished in writing to LSC Parent about a Registration Equityholder by or on behalf of such indemnified party expressly for use therein, or if the Registration Equityholder sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if LSC Parent had previously furnished copies thereof to such Registration Equityholder a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such Registration Statement.
(b) Each Registration Equityholder shall, and hereby agrees to, severally and not jointly (i) indemnify and hold harmless LSC Parent in any offering or sale of Registrable Securities, each Director and officer of LSC Parent (including any such Director or officer who shall sign the applicable Registration Statement) and each Person, if any, who controls any of the foregoing Persons within the meaning of the Securities Act or the Exchange Act, from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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 (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances in which they were made), not misleading; and (ii) reimburse upon written demand each indemnified party for any reasonable and documented legal or other out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such Claims, in each case only case, to the extent extent, that such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with the Required Amneal Group Member Information information about such Registration Equityholder furnished to the Company in writing to LSC Parent by the Amneal Group Member or its Representative on behalf of such Registration Equityholder expressly for use therein that is therein, or if such Registration Equityholder sold securities to the subject Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable Prospectus (excluding any documents incorporated by reference therein) or of the applicable Prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if LSC Parent had previously furnished copies thereof to the Registration Equityholders a reasonable period of time prior to such sale and such Prospectus corrected such untrue statement or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration alleged untrue statement or prospectusomission or alleged omission made in such Registration Statement.
(c) Amneal Group Each Registration Equityholder, on the one hand, and LSC Parent, on the Company agree other hand, agrees that if, for any reason, the indemnification provisions contemplated by Section 5.8(a2.7(a) or Section 5.8(b2.7(b) are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable offering of securitiesstatements or omissions that that resulted in such Claims. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first sentence of this Section 5.8(c2.7(c) is not permitted by applicable lawRequirements of Law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative benefits received by LSC Parent, on the one hand, and a Registration Equityholder, on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the offering of securities (net of discounts and commissions but before deducting expenses) giving rise to the applicable Claim bears to the net proceeds received by such Registration Equityholder with respect to its sale of Registrable Securities giving rise to such Claim. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c2.7(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c2.7(c). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.92.8) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending (or preparing to defend) any such action, proceeding or claimProceeding. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable The Registration Equityholders obligations to contribute any amount as provided in excess of the dollar amount equal to the sum of (ithis Section 2.7(c) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)are several and not joint.
Appears in 1 contract
Samples: Registration Rights Agreement (LSC Communications, Inc.)
Indemnification; Contribution. (a) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, the The Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, harmless each Amneal member of the Shareholder Group Member and its respective directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable Shares, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “"Claims”), ") to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically Parent or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing by such Amneal the Shareholder Group Member or on behalf of such Amneal Group Member by any Representative underwriter or representative of the Amneal Shareholder Group Member, expressly for use therein, or by the Shareholder Group's failure to furnish the Company, upon request, with the information with respect to the Shareholder Group, or any underwriter or representative of the Shareholder Group, or the Shareholder Group's intended method of distribution, that is the subject of the untrue statement or omissionomission or if the Company shall sustain the burden of proving that the Shareholder Group or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Company had previously furnished copies thereof to the Shareholder Group or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In The members of the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Shareholder Group Member shall, and hereby agrees toagree, severally and not jointly, to (i) indemnify and hold harmless the Company Company, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Shares, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to the Company in writing by the Amneal Shareholder Group Member or its Representative expressly for use therein that is therein, and (ii) reimburse the subject Company for any legal or other out-of-pocket expenses reasonably incurred by the Company in connection with investigating or defending any such Claim.
(c) Promptly after receipt by an indemnified party under Section 5.6(a) or Section 5.6(b) of written notice of the untrue statement commencement of any action or omissionproceeding for which indemnification under Section 5.6(a) or Section 5.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that (i) if the liability indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding which is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party which are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each Amneal Group Member hereunder jurisdiction) and the indemnifying party shall be limited liable for any expenses therefor (including, without limitation, any such reasonable counsel's fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to an amount equal pay the fees and expenses of more than one counsel for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the dollar amount prior written consent of the net proceeds received by indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 5.6(a) or Section 5.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such Amneal Group Member compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the sale of Registrable Shares sold by such Amneal Group Member pursuant indemnified party to such registration any material injunctive relief or other material equitable remedy and does not include a statement or prospectusadmission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(cd) Amneal The members of the Shareholder Group and the Company agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 5.6(a) or Section 5.8(b5.6(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c5.6(d) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c5.6(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.95.6(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Indemnification; Contribution. (a) In The Issuer of the event any Registrable Shares are included securities to be registered in a the relevant registration statement contemplated by this Agreement, the Company shall, and it hereby agrees to, indemnify and hold harmless, or cause to be indemnified and held harmless, each Amneal Group Member harmless DoCoMo and its respective directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, directors, officers, employees and controlling Persons, if any, in any offering or sale of the Registrable SharesSecurities, against any losses, claims, damages or liabilities liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), "CLAIMS") to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company Issuer as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, in light of the circumstances in which they were made, not misleading, and the Company Issuer shall, and it hereby agrees to, reimburse, upon request, each reimburse periodically DoCoMo or any such Amneal Group Member underwriter for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; providedPROVIDED, howeverHOWEVER, that the Company Issuer shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) such Person in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, (i) in reliance upon and in conformity with the Required Amneal Group Member Information information furnished to the Company in writing Issuer by such Amneal Group Member DoCoMo or on behalf any underwriter or representative of such Amneal Group Member by any Representative of the Amneal Group Member, DoCoMo expressly for use therein, or by DoCoMo's failure to furnish the Issuer, upon request, with the information with respect to DoCoMo, or any underwriter or representative of DoCoMo, or DoCoMo's intended method of distribution, that is the subject of the untrue statement or omissionomission or (ii) if the Issuer shall sustain the burden of proving that DoCoMo or such underwriter sold securities to the Person alleging such Claims without sending or giving, at or prior to the written confirmation of such sale, a copy of the applicable prospectus (excluding any documents incorporated by reference therein) or of the applicable prospectus, as then amended or supplemented (excluding any documents incorporated by reference therein), if the Issuer had previously furnished copies thereof to DoCoMo or such underwriter, and such prospectus corrected such untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member DoCoMo shall, and hereby agrees to, to (i) indemnify and hold harmless AT&T, with respect to the Company registration of Current Wireless Tracking Stock, or AT&T Wireless, with respect to the registration of AT&T Wireless Common Stock, its directors, officers, employees and controlling Persons, if any, and each underwriter, its partners, officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares Securities, against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of DoCoMo as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case 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 the Required Amneal Group Member Information written information furnished to AT&T or AT&T Wireless, as the Company in writing case may be, by the Amneal Group Member or its Representative DoCoMo expressly for use therein that is therein, and (ii) periodically reimburse AT&T or AT&T Wireless, as the subject of case may be, for any legal or other out-of-pocket expenses reasonably incurred by AT&T or AT&T Wireless, as the untrue statement case may be, in connection with investigating or omission; provided, however, that the liability of each Amneal Group Member hereunder shall be limited to an amount equal to the dollar amount of the net proceeds received by defending any such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusClaim.
(c) Amneal Group Promptly after receipt by an indemnified party under Section 7.6(a) or Section 7.6(b) of written notice of the commencement of any action or proceeding for which indemnification under Section 7.6(a) or Section 7.6(b) may be requested, such indemnified party shall notify such indemnifying party in writing of the commencement of such action or proceeding; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced by such failure of the indemnified party to give such notice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it shall determine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably 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, such indemnifying party shall not be liable to such indemnified party for any legal or any other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; PROVIDED, HOWEVER, that (i) if the indemnifying party fails to take reasonable steps necessary to defend diligently the action or proceeding within 20 days after receiving notice from such indemnified party that the indemnified party believes it has failed to do so; (ii) if such indemnified party who is a defendant in any action or proceeding that is also brought against the indemnifying party reasonably shall have concluded that there may be one or more legal defenses available to such indemnified party that are not available to the indemnifying party; or (iii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all indemnified parties in each jurisdiction) and the Company indemnifying party shall be liable for any expenses therefor (including, without limitation, any such reasonable counsel's fees). If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel (and one local counsel per jurisdiction) for each indemnified party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, which consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, compromise or consent to entry of any judgment or enter into any settlement agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 7.6(a) or Section 7.6(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement includes an unconditional release of the indemnified party from all liability in respect of such claim or litigation, does not subject the indemnified party to any material injunctive relief or other material equitable remedy and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(d) DoCoMo, AT&T and AT&T Wireless agree that if, for any reason, the indemnification provisions contemplated by Section 5.8(aSections 7.6(a) or Section 5.8(b7.6(b) hereof are unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such Claims in such proportion as is appropriate to reflect the relative fault of of, the indemnifying party, on the one hand, and the indemnified party, on the other hand, with respect to the applicable such offering of securities. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other things, 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 such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, however, the allocation in the first second preceding sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 5.8(c7.6(d) were to be determined by pro rata allocation or by any other method of allocation which that does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.6(d). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.97.6(c) hereof) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities ActAct or any successor provision thereof) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the foregoing, no Amneal Group Member shall be liable to contribute any amount in excess of the dollar amount equal to the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct).
Appears in 1 contract
Samples: Investor Agreement (At&t Corp)
Indemnification; Contribution. (a) In the event Incident to any Registrable Shares are included in a registration statement contemplated by referred to in this AgreementArticle IV and subject to applicable law, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and its respective stockholders of any such partners), and directors, officers, directors, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a "Controlling Person") (each, an "Indemnified Party"), from and against any and all losses, claims, damages damages, expenses and liabilities, joint or liabilities in respect thereof and expenses several (including reasonable fees of counsel) (collectivelyany investigation, “Claims”legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), to which each such indemnified party they, or any of them, may become subjectsubject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, claims, damages, expenses or actions or proceedings in respect thereof, liabilities arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; providedPROVIDED, howeverHOWEVER, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case Indemnified Party to the extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from and is based upon on an untrue statement or omission or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon on and in conformity with the Required Amneal Group Member Information information furnished in writing to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, Indemnified Party expressly for use therein, that is the subject in such registration statement (in such Person's capacity as a shareholder of the Company and not in its capacity as an officer or director of the Company and which such information relates to such Person's capacity as a shareholder). With respect to (but only with respect to) such untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is the subject in such registration statement (in such Person's capacity as a shareholder of the untrue statement Company and not in its capacity as an officer or omission; provideddirector of the Company and which such information relates to such Person's capacity as a shareholder), such Selling Holder will indemnify and hold harmless each underwriter, the Company (including its directors, officers, employees and agents), each other Investor (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them) so registered, and each Controlling Person thereof, from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence. In no event, however, that shall the aggregate liability of each Amneal Group Member hereunder shall be limited to a Selling Holder for indemnification and/or contribution under this Section 4.7 in its capacity as such (and not in its capacity as an amount officer or director of the Company) exceed the lesser of (i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the dollar amount proportion of the total securities sold under such registration statement which is being sold by such Selling Holder or (ii) the net cash proceeds received by such Amneal Group Member Selling Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 4.7(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 4.7, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the Selling Holders and the underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the Selling Holders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawSelling Holders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c4.7(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to make any indemnification payment under Section 4.7(a) and/or contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 4.7(b) in excess, in the aggregate, of the Claims referred to above shall be deemed to include lesser of (subject i) that proportion of the total of such losses, claims, damages or liabilities indemnified against equal to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred proportion of the total Registrable Securities sold under such registration statement which are being sold by such indemnified party in connection with investigating Selling Holder or defending any (ii) the net cash proceeds received by such action, proceeding or claimSelling Holder from its sale of Registrable Securities under such registration statement. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 4.7 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.7 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectus, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)indemnified parties.
Appears in 1 contract
Samples: Securityholders' Agreement (Harvard Bioscience Inc)
Indemnification; Contribution. (a) In the event Incident to any registration of any Registrable Shares are included in a registration statement contemplated by Securities under the Securities Act pursuant to this Agreement, the Company shall, and it hereby agrees to, will indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each underwriter, each Amneal Group Member Holder or Other Holder who offers or sells any such Registrable Securities in connection with such registration statement (including its partners (including partners of partners and its respective stockholders of any such partners), and directors, officers, directors, employees and controlling Personsagents of any of them (a "Selling Holder"), if any, in and each person who controls any offering or sale of them within the meaning of Section 15 of the Registrable SharesSecurities Act or Section 20 of the Exchange Act (a "Controlling Person")), from and against any and all losses, claims, damages, expenses and liabilities, joint or several (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, as the same are incurred), to which they, or any of them, may become 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, damages or liabilities in respect thereof and expenses (including reasonable fees of counsel) (collectively, “Claims”), to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an on (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any registration statement, or any related preliminary or final prospectus contained thereindefinitive prospectus, or any amendment or supplement theretoto such registration statement or prospectus), or any document incorporated by reference therein, or arise out of or are based upon (ii) any omission or alleged omission to state therein in such document a material fact required to be stated therein in it or necessary to make the statements therein, in light of the circumstances in which they were made, it not misleading, and or (iii) any violation by the Company shallof the Securities Act, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal state securities or other out-of-pocket expenses reasonably incurred and documented by them "blue sky" laws or any rule or regulation thereunder in connection with investigating or defending any such Claimsregistration; provided, however, that the Company shall will not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the -------- ------- extent that any such Claims arise out of loss, claim, damage, expense or are liability arises from 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 furnished in writing to the Company by such underwriter, Selling Holder or alleged omission made Controlling Person expressly for use in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished . With respect to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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, and each Amneal Group Member shall, and it hereby agrees to, reimburse the Company for any legal or other out-of-pocket expenses reasonably incurred and documented by the Company in connection with investigating or defending any such Claims, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and the information furnished in conformity with the Required Amneal Group Member Information furnished writing to the Company in writing by the Amneal Group Member or its Representative such Selling Holder expressly for use therein that is in such registration statement, such Selling Holder will indemnify and hold harmless each underwriter, the subject Company (including its directors, officers, employees and agents), each other Holder (including its partners (including partners of partners and stockholders of such partners) and directors, officers, employees and agents of any of them, and each person who controls any of them within the meaning of Section 15 of the untrue statement Securities Act or omissionSection 20 of the Exchange Act), from and against any and all losses, claims, damages, expenses and liabilities, joint or several, to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise to the same extent provided in the immediately preceding sentence; provided, however, that no Selling Holder shall -------- ------- be required to indemnify any Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any liability which arises out of the failure of any Person to deliver a prospectus as required by the Securities Act. In no event, however, shall the liability of each Amneal Group Member hereunder shall be limited to an amount equal to a Selling Holder for indemnification under this Section 4.4(a) exceed the dollar amount lesser of (i) such Selling Holder's pro rata share of the net total of such losses, claims, damages or liabilities or (ii) the proceeds received by such Amneal Group Member Selling Holder from the its sale of Registrable Shares sold by such Amneal Group Member pursuant to Securities under such registration statement or prospectusstatement.
(cb) Amneal Group and If the Company agree that if, indemnification provided for in Section 4.4(a) above for any reason, the indemnification provisions contemplated reason is held by Section 5.8(a) or Section 5.8(b) are a court of competent jurisdiction to be unavailable to or are insufficient to hold harmless an indemnified party in respect of any Claims losses, claims, damages, expenses or liabilities referred to therein, then each indemnifying party under this Section 4.4, in lieu of indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, expenses or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, the other Selling Holders and the underwriters from the offering of the Registrable Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying partyCompany, the other Selling Holders and the underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations; provided, however, that in the event of a registration statement filed in response to a demand under Section 4.2 and in which the Company does not register any shares of capital stock, the proportion of contribution by the Company, the other Selling Holders and the underwriters shall in all cases be governed by clause (ii) above. The relative benefits received by the Company, the Selling Holders and the underwriters shall be deemed to be in the same respective proportions that the net proceeds from the offering (before deducting expenses) received by the Company and the Selling Holders and the underwriting discount received by the underwriters, in each case as set forth in the table on the one handcover page of the applicable prospectus, and the indemnified party, on the other hand, with respect bear to the applicable aggregate public offering price of securitiesthe Registrable Securities. The relative fault of such indemnifying party the Company, the Selling Holders and indemnified party the underwriters 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 such indemnifying party the Company, the Selling Holders or by such indemnified party, the underwriters and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. If, howeverThe Company, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable lawSelling Holders, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto underwriters agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c4.4(b) were to be determined by pro rata or per capita allocation or by any other method of allocation which does not take into account of the equitable considerations referred to in the immediately preceding sentences of paragraph. In no event, however, shall a Selling Holder be required to contribute any amount under this Section 5.8(c). The amount paid or payable by an indemnified party as a result 4.4(b) in excess of the Claims referred to above shall be deemed to include lesser of (subject to i) such Selling Holder's pro rata share of the limitations set forth in Section 5.9total of such losses, claims, damages or liabilities or (ii) any legal or other fees or expenses reasonably incurred the proceeds received by such indemnified party in connection with investigating or defending any Selling Holder from its sale of Registrable Securities under such action, proceeding or claimregistration statement. No Person person found 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 found guilty of such fraudulent misrepresentation. Notwithstanding .
(c) The amount paid by an indemnifying party), or payable to an indemnified party as a result of the foregoinglosses, no Amneal Group Member claims, damages and liabilities referred to in this Section 4.4 shall be liable deemed to contribute include, subject to the limitations set forth above, any amount legal or other expenses reasonably incurred by such indemnified party in excess connection with investigating or defending any such action or claim, payable as the same are incurred. The indemnification and contribution provided for in this Section 4.4 will remain in full force and effect regardless of any investigation made by or on behalf of the dollar amount equal to indemnified parties or any officer, director, employee, agent or controlling person of the sum of (i) the net proceeds received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusindemnified parties. No indemnifying party, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case defense of fraud any such claim or willful misconduct)litigation, shall enter into a consent of entry of any judgment or enter into a settlement without the consent of the indemnified party, which consent will not be unreasonably withheld.
Appears in 1 contract
Samples: Stockholders and Rights Agreement (Click Commerce Inc)
Indemnification; Contribution. (a) In the event If any Registrable Shares Securities are included in a registration statement contemplated by under this Agreement:
7.1. To the extent permitted by applicable law, each of the Company shallTrust and the Corporation, severally and it hereby agrees tonot jointly, shall indemnify and hold harmless, or cause to be indemnified and held harmlessharmless each Selling Holder, each Amneal Group Member and its respective officers, directors, employees and controlling PersonsPerson, if any, in any offering or sale who controls such Selling Holder within the meaning of the Registrable SharesSecurities Act, and each officer, director, partner and employee of such Selling Holder and such controlling Person, against any and all losses, claims, damages or damages, liabilities in respect thereof and expenses (joint or several), including reasonable attorneys' fees and disbursements and reasonable expenses of counsel) (collectivelyinvestigation, “Claims”)incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which each such indemnified party any of the foregoing Persons may otherwise become subjectsubject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such Claims (including any amounts paid in settlement effected with the consent of the Company as provided herein)losses, or actions or proceedings in respect thereofclaims, damages, liabilities and expenses arise out of or are based upon an any of the following statements, omissions or violations (collectively a "Violation"):
(i) Any untrue statement or alleged untrue statement of a material fact contained in any such registration statement, or including any preliminary prospectus or final prospectus contained therein, or any amendment amendments or supplement supplements thereto, or any document incorporated by reference therein, or arise out of or are based upon any ; or
(ii) The omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, and the Company shall, and it hereby agrees to, reimburse, upon request, each such Amneal Group Member for any legal or other out-of-pocket expenses reasonably incurred and documented by them in connection with investigating or defending any such Claims; provided, however, that the Company shall not be liable to any Amneal Group Member (or its officers, directors, employee and controlling Persons, if any) in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, or preliminary or final prospectus, or amendment or supplement thereto, in reliance upon and in conformity with the Required Amneal Group Member Information furnished to the Company in writing by such Amneal Group Member or on behalf of such Amneal Group Member by any Representative of the Amneal Group Member, expressly for use therein, that is the subject of the untrue statement or omission.
(b) In the event any Registrable Shares are included in a registration statement contemplated by this Agreement, each Amneal Group Member shall, and hereby agrees to, indemnify and hold harmless the Company and its officers, directors, employees and controlling Persons, if any, in any offering or sale of its Registrable Shares against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement as provided herein), or actions or proceedings in respect thereof, arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any registration statement, or any preliminary or final prospectus contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are 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;
7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Trust, the Corporation, each of the Trustees of the Trust, each of the directors of the Corporation, each of the officers of the Trust or the Corporation who shall have signed the registration statement, each Person, if any, who controls the Trust or the Corporation within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and each Amneal Group Member shallemployee of such other Selling Holder and such controlling Person, against any and it hereby agrees toall losses, reimburse claims, damages, liabilities and expenses (joint and several), including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the Company for any legal foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other out-of-pocket federal or state laws, but only insofar as such losses, claims, damages, liabilities and expenses reasonably incurred and documented by the Company in connection with investigating arise out of or defending are based upon any such ClaimsViolation, in each case only to the extent that such untrue statement Violation arises out of or alleged untrue statement or omission or alleged omission was made in reliance is based upon and in conformity with the Required Amneal Group Member Information information furnished to the Company by such Selling Holder in writing by the Amneal Group Member or its Representative expressly for use therein that is the subject of the untrue statement or omissionin connection with such registration; provided, however, that (x) the indemnification required by this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of each Amneal Group Member hereunder the relevant Selling Holder (which consent shall not be limited to an amount equal to unreasonably withheld) and (y) in no event shall the dollar amount of any indemnity under this Section 7.2 exceed the net gross proceeds from the applicable offering received by such Amneal Group Member from the sale of Registrable Shares sold by such Amneal Group Member pursuant to such registration statement or prospectusSelling Holder.
(c) Amneal Group and the Company agree that if, for any reason, the indemnification provisions contemplated 7.3. Promptly after receipt by Section 5.8(a) or Section 5.8(b) are unavailable to or are insufficient to hold harmless an indemnified party under this Section 7 of notice of the commencement of any action, suit, proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim under this Section 7, such indemnified party shall deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, 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 such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent 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, claim or proceeding on behalf of such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings 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 (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of such indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such action, claim or proceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels).
7.4. If the indemnification required by this Section 7 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Claims losses, claims, damages, liabilities or expenses referred to thereinin this Section 7:
(i) The indemnifying party, then each in lieu of indemnifying party such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Claims losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying partyparty and indemnified parties in connection with the actions which resulted in such losses, on the one handclaims, and the indemnified partydamages, on the liabilities or expenses, as well as any other hand, with respect to the applicable offering of securitiesrelevant equitable considerations. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other things, whether the untrue any Violation has been committed by, or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by by, such indemnifying party or by such indemnified partyparties, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omissionViolation. If, however, the allocation in the first sentence of this Section 5.8(c) is not permitted by applicable law, then each indemnifying party shall contribute to the The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 7.1 and Section 7.2, any legal or other fees or expenses reasonably incurred by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the indemnifying party and the indemnified party, as well as connection with any other relevant equitable considerations. investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contributions contribution pursuant to this Section 5.8(c) 7.4 were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 5.8(c7.4(i). The amount paid or payable by an indemnified party as a result of the Claims referred to above shall be deemed to include (subject to the limitations set forth in Section 5.9) any legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action, proceeding or claim. 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.
7.5. Notwithstanding If indemnification is available under this Section 7, the foregoing, no Amneal Group Member indemnifying parties shall be liable indemnify each indemnified party to contribute the full extent provided in this Section 7 without regard to the relative fault of such indemnifying party or indemnified party or any amount other equitable consideration referred to in excess Section 7.4.
7.6. The obligations of the dollar amount equal to Trust, the sum of (i) Corporation and the net proceeds received by such Amneal Group Member from the sale Selling Holders of Registrable Shares sold by such Amneal Group Member Securities under this Section 7 shall survive the completion of any offering of Registrable Securities pursuant to such a registration statement or prospectusunder this Agreement, minus (ii) any amounts paid or payable by such Amneal Group Member pursuant to Section 5.8(b) (except in the case of fraud or willful misconduct)and otherwise.
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Samples: Registration Rights Agreement (Prudential Insurance Co of America)